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complete glossary

all glossary terms from real estate textbook

Question	Answer
“Meeting of the minds”	A deliberate agreement between parties; offer and acceptance; “meeting of the minds.” A requirement of a legally enforceable contract.
“Time is of the essence”	A phrase in a contract that requires the performance of a certain act no later than the stated time or the noncompliant party is in breach and the contract may be voidable by the opposite party.
10 reasons for terminating an easement	1)no longer exist 2)easement holder becomes owner 3)release right 4) abandonment 5)non-use of prescription 6) adverse possession 7)demolition of a party wall 8)nonrecordation 9)lawsuit(quiet title) 10)residential easement converted to commercial purposes
3 events in closing	1)the promises made in the sales contract are fulfilled 2)the mortgage loans funds are distributed to the buyer for use 3)other settlement costs or funds are dispersed
3 physical characteristics of real property	Immobility, indestructibility, uniqueness
4 economic characteristics of real property	Scarcity, Location, Improvements, & Permanence of investment. aka SLIP
5 categories of real property	Residential, Commercial, Industrial, Agricultural, Special purpose.
5 characteristics of ownership in severalty	1) One owner only 2) interest 100% 3) one signature only when sold unless a married person - spouse signs to extinguish elective share rights 4) marriage of an owner does not automatically change to tenancy by entireties 5) heir ship rights
a lease is said to have ___ ___ ____ because it is a contract and it conveys an interest in real property.	dual legal personality
Abstract of Title	A condensed history of a title.
acceleration clause	the clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or another covenant.
acceptance	occurs when the offeree signs the offer without making any changes to it, thereby evidencing his acceptance and willingness to be bound by and perform all terms of the offer.
Accession	Acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks of streams.
Accretion	Acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks of streams.
accrued items	unpaid items to be prorated such as unpaid current real estate taxes or interest on an assumed mortgage that are owed by the seller but will be paid later by the buyer.
Acre	A measure of land equal to 43,560 square feet, 4,840 square yards, 4,047 square meters, 160 square rods, or 0.0408 hectare.
Actual eviction	The legal process that results in the tenant’s being physically removed from the leased premises; summary ejectment.
Ad valorem taxes	General real estate taxes that are levied for the general support of the government agency authorized to impose the levy.
adjustable-rate mortgage (ARM)	a type of mortgage that generally originates at one rate of interest, with the rate fluctuating up or down during the loan term based on the movement of a published index.
adjusted basis	cost of any physical capital improvements that add value to the property or prolong its life (added to the cost basis)
Adverse Possession	The Open, Continuous, Exclusive, Adverse, Notorious possession of another's land under a claim of title. Possession for a statutory period of 20 years in North Carolina may be a means of acquiring title.
Aesthetic Zoning	An area zoned strictly for aesthetic or appearance considerations
Age Life Method of Depreciation	The easiest but least precise way to measure depreciation that uses the effective age of a building & its economic life.
Agency	the fiduciary relationship between the principal and the agent.
Agent	one who represents the interest of another person.
Agricultural	farms, timberland, ranches, and orchards.
Agricultural Fixtures	In North Carolina, a fixture attached to leased property by a tenant farmer is considered the landowner's real property rather than the tenant's personal property.
Air Rights	The right to use the open space above a property, usually allowing the surface to be used for another purpose.
Alienation	Transfer of title, act of transferring property to another.
Alienation Clause	Prevents the borrower from letting someone assume the debt without the lender's approval.
ALTA Policy	Owner's title insurance policy that protects the owner against title defects not found in public records.
American land title association/Alta policy	A title insurance policy that protects the interests in a collateral property of a mortgage lender that originates a new real estate loan.
Americans with Disabilities Act (ADA)	A Federal Act that facilitates accessibility and mobility by ramp construction, safety rails, wider doors, and other accommodations.
Amortized Loans	A loan in which principal as well as interest is payable in periodic installments over the term of the loan.
annual percentage rate (APR)	the relationship of all finance charges to the loan amount; must be disclosed to borrowers the Truth-in Lending Act.
Anticipation	When value could increase or decrease based on anticipation of some future benefit or detriment affecting the property.
Antitrust laws	laws that prohibit monopolies and contracts, combinations, and conspiracies that unreasonable restrain trade.
Appraisal	Estimate of the quantity, quality or value of something.
Appreciation	An increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.
Appurtenance	A right, a privilege, or an improvement belonging to , and passing with, the land.
Arms length transaction	When the property does NOT sell for an unusually high or low price because of a special relationship between a buyer & a seller; parties are dealing from equal bargaining positions
asbestos	Mineral used extensively in insulation; inhaling fibers can cause sever respiratory diseases; particularly dangerous if friable, i.e., easily crumbled
Assessment	An official valuation of property for the purpose of establishing assessed value for tax purpose.
assignment	Refers to a transfer of rights or duties under a contract to a third party.
Assumption of mortgage	Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage, including payments.
Auction	A form of selling property where oral bids are taken and the property is sold to the highest bidder.
Avulsion	The sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden change in the course of a stream. The loss of land may not result in loss of title to the property.
backup offer	an offer submitted to the property owner with knowledge that the owner is already under contract; a secondary offer.
balloon payment loan	a mortgage loan that includes a final payment that is larger than the required periodic payments because the loan amount was not fully amortized.
baseboards	a board around the bottom of a wall perpendicular to the floor; covers gap b/w the floor and wall; decorative
basement	story-high space below the first floor; floor is usually concrete slab
basis	determines the amount of the gain realized from a sale of real property
beneficiary	A lender in a deed of trust loan transaction; the recipient of personal property in a will
bilateral contract	A type of contract in which both parties promise to do or refrain from doing something; one promise is exchanged for another. "I will do this and you will do that"
blanket mortgage	covers more than one parcel of land and usually is used to finance subdivision developments, though it can be used to finance the purchase of improved properties as well
blockbusting or Panic Peddling	The act of encouraging people to sell or rent their homes by claiming that the entry of a protected class will have a negative impact on property values.
boot	money or property given to make up any difference in value or equity between two properties in a 1031 exchange
Branch office	A secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office usually must be run by a broker – in – charge working on behalf of the broker.
Breach of Contract	The violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due.
British Thermal Unit (BTU)	A measure of heat used in rating the capacity of heating and cooling systems. (BTU)
Broad Form (HO-2)	insurance policy covering buildings and personal property against loss or damage from fire, lighting, removal, windstorm, hail, explosion, riot, smoke, vandalism and theft. also covers falling objects; weight of snow, ice or sleet; collapse of buildings;
Broker	One who acts as an intermediary on behalf of others for a fee or commission; licensed to list, lease, buy, exchange, auction, negotiate or sell interest in real estate for others for a fee
As you	the business of bringing buyers and sellers together
Broker-in-charge	Required for brokerage firm and branch office, the full broker responsible for all real estate activities and supervising all provisional brokers associated with the firm or office.
Buffer Zones	Areas such as landscaped parks and playgrounds used to separate and screen residential areas from nonresidential areas
Building Codes	NC requirements as to construction standards, with the primary purpose being safety.
Building Permit	Written governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with building codes and zoning ordinances.
Bundle of Legal Rights	The concept of land ownership that includes ownership of all legal rights to the land, i.e.. Disposition, exclusion, enjoyment, possession and control.
Business Cycle	The upward and downward fluctuations in business activities generally characterized by four stages: expansion, recession, depression, and revival
buy down	a way to lower the initial interest rate on a mortgage or deed of trust loan; common type is called a 3-2-1
Buyer-agency agreement	A principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency.
Calls	Reference to linear measurements and compass directions.
capital gain	the taxable profit earned from the sale of real property
capital loss	a loss derived from the sale of real property that may be deductible from ordinary taxable income.
Capitalization rate	The yield that an investor will demand for the investment of capital. This is the rate of return.
carbon monoxide	Colorless, odorless poisonous gas produced as a by-product of incomplete combustion; can be dangerous if not properly ventilate
Cash flow	The net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. When expenses exceed income, a negative cash flow results.
casualty insurance	A policy that provides property owner coverage for the basic structure on that property.
Caveat emptor	let the buyer beware
celling joists	attached to the top plate of a wall and carry the weight of the roof
comprehensive environmental response, compensation, and liability act (CERCLA)	Passed in 1980, established Superfund to clean up uncontrolled hazardous waste site and to respond to spills
Certificate of Occupancy	Issued upon the satisfactory inspection of a structure; building is fit for occupancy and there are no building code violations
certificate of reasonable value (CRV)	a form indicating the appraised value of a property being financed with a VA loan.
Chain of Title	The record of ownership of property over a period of time.
Change	The fact that no physical or economic condition remains constant. Real estate is subject to natural disasters, changing demands in the market etc.
Channeling	The illegal practice of channeling homes seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live.
Civil Rights Act of 1866	Federal Act that prohibited any type of discrimination based on race in the sale or rental of real property.
Client or Principal	the person who hires and delegates to the agent through a brokerage contract the responsibility of representing that person best interest.
closing	the consummation of the real estate transaction; the point at which ownership of a property is transferred in exchange for the selling price; also called settlement
closing agent	the one who usually conducts the proceedings at a closing and calculates the division of income and expenses between the parties.
closing statement	A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and all cash paid out in the transaction.
Cloud on the Title	A defect on a deed that is frequently cured by a quitclaim deed.
Clustering	The grouping of homesites within a subdivision on smaller lots than normal, with remaining land used as common area.
Code of ethics	A written system of standards for ethical conduct.
Codicil	A supplement or an addition to a will, executed with the same formalities as a will, that normally does not revoke the entire will.
Coinsurance Clause	A clause in insurance policies covering real property that requires that the policyholder maintain fire insurance coverage generally equal to at least 80 percent of the property's actual replacement cost.
Commercial	Business property, including offices, shopping centers, stores, theaters, hotels and parking facilities.
Commingling	when trust funds and the firm/broker's personal/business funds are placed in the same account
Commission	compensation provided by the principal to the firm, contingent on the firm successfully performing the service
Common elements	Parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium or are normally in common use by all of the owner has an undivided ownership interest in the common elements.
Common law	The body of law based on customs, usage, and court decisions.
Comparable (COMP)	Property used in an appraisal report that is substantially equivalent to the subject property.
Comparative market analysis (CMA)	A comparison of the prices of recently sold homes that are similar to a listing seller's home in terms of location, style, and amenities; an estimate of market value.
compensatory damages	Money damages awarded to the injured party to compensate them for the breach of contract, but not to punish the breaching party.
Competition	The principle that states that excess profits generate competition.
components of an ARM loan	1)Note rate 2)Index 3)Margin 4)Interest rate caps 5)Payment Cap 6)Adjustment Period 7)Conversion option
Comprehensive plan	A comprehensive plan to guide the long-term physical development of a particular area.
Condemnation	The process by which the power of eminent domain is exercised.
Condition	It limits coverage of a specified property in an insurance policy.
Condition subsequent	A defeasible fee simple estate that dictates some action or activity that the new owner must not perform. The former owner retains a right of reentry, so if the condition is broken, the former owner can take repossession of the property.
Conditional-use Permit	Granted to a property owner who wishes to use property in a special way that is in the public interest such as a church or hospital.
Condominium Ownership	Do not own land underneath unit; can stack vertically; 7 days to cancel; own "paint to paint" or enclosed airspace; common areas owned by all members as tenants in common
conforming loan	a standardized conventional loan that meets Fannie Mae or Freddie Mac's requirements; made by for-profit lenders and are not insured by the federal gov't to the most creditworthy borrowers.
Conformity	the appraisal principle that holds that the greater the similarity among properties in an area, the better they will hold their value.
Conner Act	NC law that requires many types of real estate documents to be recorded for protection against claims from third parties.
consequential damages	Special damages that might be obtained if the damages upon breach were reasonably foreseeable to the breaching party at the time of making the contract.
Consideration	That received by the grantor in exchange for a deed. Something of value that induces a person to enter into a legally enforceable contract.
construction loan	a loan made to finance the construction of improvements on real estate--homes, apartments, office buildings
constructive eviction	the doctrine that gives the tenant the right to cancel the remainder of the lease and vacate the premises w/o penalty if the landlord fails to keep the premises fit.
Constructive Notice	Notice given by way of making ownership part of public record (by recording conveyances of real property).
Contingency	A provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes building; a condition of the contract.
Contract	A legally enforceable promise or set of promises between legally competent parties that must be performed for consideration. Law provides remedy for breaches. May be unilateral (one party ),or bilateral, (all parties)legally bound to act as prescribed.
Contribution	The principle that affirms that the value of any component of a property is defined by what its addition contributes to the value of the whole or what its absence detracts from that value.
conventional loan	a loan that is not backed by a gov't agency.; lender bears all the risk in the event of default
Conveyance	A term used to refer to any document that transfers title to real property. The term is also used in describing the act of transferring.
Cooperation brokers	those who act as subagents of the principal
Cooperative	Owns a share of stock in the corporation and has a proprietary lease to the unit
Cost Approach	the process of estimating the value of a property by adding the appraiser's estimate of the reproduction or replacement cost of the building, less depreciation to the estimated land value.
cost basis	the owner's initial cost for the real estate including closing expenses
counteroffer	An attempt by the offeree to change any of the terms proposed by the offeror
Courtesy	A life estate, usually a fractional interest, given by some states to the surviving husband in real estate owned by his deceased wife. Most states, including north carolina, have abolished courtesy.
Covenant	Deed restrictions imposed by a developer or subdivider for purpose of maintaining specific standards.
covenant of quiet enjoyment	Under this covenant, the lessor guarantees that the lessee may take possession of the leased premises and that no one, including the landlord, will interfere with the tenant's possession or use of the property.
Credit	on a closing statement, amount entered in a person's favor – an amount the party has paid order amount received from another party.
crawl space	the space between the ground surface and the first floor; frequently found in homes w/o basements that are not built on a slab foundation
curable physical deterioration	a reduction in a property's value resulting from a decline in physical condition; repairs that are physically possible and economically feasible and will result in an increase in appraised value. Ex: Roof replacement, painting
Debit	on a closing statement, an amount charged; and amount the party must pay a settlement.
Customer	the third party for whom some level of service is provided by an agent of another party, but who is not represented by the agent
debt service payment	principal and interest loan payment
Decedent	A person who has died.
Declaration of Restrictive Covenants	A declaration of limitations established by a developer.
Deductible	Loss not covered by the insurer.
Deed	A written instrument by which an owner of real estate intentionally conveys right, title, or interest in the parcel of real estate to another.
Deed in lieu of Foreclosure	Deed that is used when a borrower has defaulted on the mortgage loan and wants to avoid a foreclosure action.
Deed of gift	Deed used when a grantor conveys property as a gift; must be recorded within two years or it becomes void.
Deed of Release	a deed used to release a parcel of property from a mortgage or deed of trust lien when the real estate loan has been paid in full.
deed of trust	the document that pledges the property to the lender as security or collateral for a debt; also called mortgage.
Deed restrictions	Encumbrances on real property. AKA: covenants, conditions, restrictions. A private agreement placed in public record that affect the use of the land.
Default	The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due.
Defeasable fee estate	An estate in which the holder has a fee simple title that may be terminated upon the occurrence or non-occurrence of the specified event. Two categories of the defeasible fee estate exist: fee simple determinable and fee simple on condition subsequent.
Defeasance clause	A clause used in leases and mortgages that cancels the specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.
deficiency judgment	a personal judgment levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full; a general lien
Delivery and Acceptance	Actual delivery of the deed by the grantor and either actual or implied acceptance by the grantee.
Demand	The need or desire for possession or ownership backed by the financial means to satisfy that need.
Department of Housing and Urban Development (HUD)	A federal cabinet dept. active in national housing programs; offers programs such h as urban renewal, public housing, model cities, rehabilitation loans, FHA subsidies, fair housing enforcement
depreciation	a loss of value in property due to any cause; an expense deduction for tax purposes taken over the period of ownership of income property
Descent	The acquisition of an estate by inheritance in which an air succeeds to the property by intestate succession
Designated duel agency	used when a transaction is an in-house sale (when one agent from firm X represents the buyer and another agent from firm X represents the seller)
Developer	A person or company that attempts to put land to its most profitable use to the construction of improvements.
Devise	A gift of real property by will. The donor is the divisor and the recipient is the devisee.
direct reduction loan	a loan that requires a fixed amount of principal to be paid in each payment with the amount applied to interest varying as the balance is reduced
discount point	interest paid in advance; one point equals 1% of the loan amount for the borrower and increases the yield for the investor approximately 1/8%.
Dominant tenement	The tract that benefits from an easement.
Dormer	A projection built out from the slope of the roof, used to house windows on the upper floor and to provide additional headroom. Common types of dormers are the gable dormer in the shed dormer.
Dower	The legal right recognized in some states, that a wife acquires in the property her husband held or acquired during their marriage. During the husband’s lifetime, only a possibility of an interest; upon his death, it can become an interest in land.
Dual agency	when the broker/firm represents the buyer and the seller in the same transaction
due diligence period	The time a buyer has to have property inspected, title examined, and review any leases to determine if the property meets his or her needs.
due-on-sale clause	provides that on sale of the property by the borrower to a buyer who wants to assume the loan, the lender has the choice of either declaring the entire debt to be due and payable immediately or permitting the buyer to assume the loan at current market int
Duress	The unlawful constraint or action exercised on a person whereby the person is forced to perform an act against that person’s will. A contract entered into under duress is voidable.
Earned money deposit	Money deposited by a buyer under the terms of a contract, to be forfeited if the buyer defaults but applied to the purchase price if the sale is closed.
Easement	The right to use the land of another for a particular purpose.
Easement appurtenant	An easement that is annexed to the ownership of one parcel of land and used for the benefit of another parcel of land. The easement "runs with the land"
Easement by condemnation	An easement acquired for a public purpose through the power of eminent domain.
Easement by necessity	AKA easement by implication of law, because all owners must have rights of ingress to and egress from their land.
Easement by prescription	When a claimant has made use of another's land for a certain period of time. Use must be continuous, exclusive, and without the owners approval. (20 years in NC)
Easement in gross	A personal interest in or right to use the land of another. The right to use is not attached to any ownership. (personal or commercial)
eave	the overhand of a sloping roof that extends beyond the walls of the house.
Economic Life	The period during which property is expected to remain useful for its original intended purpose.
Economic obsolescence (incurable)	Caused by factors outside the subject property & is not curable. ex: proximity to a polluting plant
Effective age	The apparent age of the building based on observed condition rather than chronological age.
electromagnetic fields for purposes (EMFs)	Generated by movement of electrical currents; prolonged exposure may cause cancer; major concern for property owners near high voltage line
Emblements or Fructus Industriales	Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called fructus industriales. Usually considered to be personal property,
Employee	Works as a direct employee of employer, who must withold income and social security taxes from employee.
Employment Contract	Formal employment between employer & employee, principal & agent. In real estate, listing agreement, buyer agency agreement or management agreement.
Eminent Domain	Power of certain agencies to take private property for public use through a suit for condemnation.
Enabling acts	State legislation that confers zoning powers on municipal governments.
encapsulation	Sealing off of disintegrating asbestos or chipping and peeling lead based paint; may be preferable to removal; still leaves hazard behind
Encroachment	When an improvement or any portion of an improvement, such as a building, a fence, or a driveway illegally extends beyond the land of its owner and covers some land of an adjoining owner/street/alley.
Encumbrance	A claim, charge, or liability that attaches to and is binding on real estate.
Endorsement	In an insurance policy, coverage added to general policy; a rider.
Equal Credit Opportunity Act (ECOA)	Prohibits creditors from discrimination on the basis of race, color, religion, national origin, sex, marital status, age, and receipt of public assistance.
equilibrium	The point where supply and demand is balanced.
equitable title	the right to use and possess the property as if one owns it and to demand the return of the legal title when the debt is repaid.
Equity	The interest or value that an owner has in property over and above any indebtedness.
equity of redemption	the right of a borrower in default on a mortgage loan to reclaim the forfeited property prior to the foreclosure sale through payment in full of all debt and associated costs.
Erosion	The gradual wearing away of land by water, wind, or other natural forces; the diminishing of property by the elements may cause loss of ownership.
Escheat	The reversion of property to the state in cases where a person dies intestate.
Escrow	The closing of a transaction through a third party called an escrow agent who receives certain funds and documents to be delivered upon the performance of certain conditions outlined in the escrow instructions.
Escrow account	The trust account established by a broker under the provisions of the license law for the purpose of holding funds on behalf of the broker’s principal or some other person until the consummation or termination of the transaction.
essential elements of a note	1)term 2)promise to pay 3)signature of the borrower(s)
essentials of a valid lease	1. Mutual agreement 2. Consideration 3. Capacity to Contract 4. Legal objectives
estate at sufferance	an estate that arises when a tenant who lawfully came into possession of real property continues, after the tenant's rights have expired, to hold possession of the premises without the consent of the landlord; lowest estate in real estate.
estate at will	an estate that gives the tenant the right to posses property with the consent of the landlord of a term of unspecified or uncertain duration.
estate for years	a leasehold estate that continues for a definite period of time, whether for years, months, weeks, or days; automatically terminates at the end of the lease period.
estate from period to period	created when the landlord and tenant enter into an agreement that continues for a specific period, being automatically renewed for an indefinite time without a specific ending date; automatically renews.
Estate taxes	Federal taxes on the decedent’s real and personal property.
Estoppel	A method of creating an agency relationship in which a person states incorrectly that a second person is the first person’s agent and a third person relies on that representation.
Estover	A necessity allowed by law; for example, the right of a life tenant to use some of the property's resources to provide for needed repairs.
Every real estate transaction must be reported to the ___ by the closing agent.	IRS
Evidence of title	Proof of ownership of property; commonly a certificate of title, and abstract of title with lawyer’s opinion, or a torrens registration certificate.
Exchange	A transaction in which all or part of the consideration is the transfer of like – kind property (such as investment real estate for investment real estate).
Excise Tax	A tax that is based on the sales price of the property.
Exclusion	Something that is not covered for loss in an insurance policy.
exclusive-agency listing	One broker is specifically authorized to act as the exclusive agent of the principal; broker receives a commission if any broker is procuring cause; seller can sell w/o obligation.
exclusive-right-to-sell listing	One broker is appointed as sole agent of the seller and is given the exclusive right, or authorization, to represent the property in question
executed contract	A contract in which all parties have fulfilled their promises.
Execution	The signing and delivery of an instrument. Also, a legal order directing an official to enforce a judgment against the property of the debtor.
Executory Contract	A contract under which something remains to be done by one or more of the parties.
Exemptions to the Federal Fair Housing Act (1)	The home is owned by an individual (not 3 or more/not sell more than 1 every 2 years.
Exemptions to the Federal Fair Housing Act (2)	The rental of rooms or units is exempt in an owner-occupied one-family to four-family dwelling.
Exemptions to the Federal Fair Housing Act (3)	Dwelling units owned by religious organizations may be restricted to people of the same religion if membership in the organization is not restricted on the basis of protected class.
Express Agreement/Contract	An oral or written contract in which the parties state the contract's terms and express their intentions in words.
extender clause or Override Clause	A clause in a listing contract that says the listing broker is entitled to commission for a time period after the listing expires if the property is sold to a prospect that the broker initially introduced to the client during the listing term.
External depreciation	The reduction in a property’s value caused by outside factors (those that are off the property).
External obsolescence	The loss in value due to factors that are outmoded or less useful. Obsolescence may be functional or economic.
Extra-territorial Jurisdictions (ETJs)	Areas outside incorporated limits that are subject to the zoning restrictions of a municipality
Fair Credit Reporting Act	federal law giving consumers the right to view and correct their credit information
Familial Status	refers to the presence of one or more individuals who have not reached the age of 18 and who live with either a parent or legal guardian. The term also includes a woman who is pregnant.
Fannie Mae	a quasi-government agency established to purchase any kind of mortgage loans in the secondary mortgage market from the primary lenders.
fascia board	a flat strip of wood or metal that encloses the ends of the rafters; gutters are usually attached to it.
Federal Emergency Management Agency (FEMA)	Agency responsible for designating flood hazard areas bordering rivers and streams.
Federal Fair Housing Act	Federal law that prohibits discrimination based on familial status, race, sex, handicap, color, religion, national origin. (FRESH CORN)
Federal Reserve System	The country's central banking system, which controls the nation's monetary policy by regulating the supply of money and interest rates
Fee Simple Absolute	The maximum possible estate in real property; most complete and absolute ownership; indefinite in duration, freely transferable and inheritable.
Fee Simple Defeasible or defeasible fee estate	An estate in which the holder has a fee simple title that may be terminated upon the occurrence or nonoccurrence of a specified event. Two categories of defeasible fee estates exist: fee simple determinable and fee simple on condition subsequent.
Fee Simple Determinable	An estate in real estate that continues "so long as" a prescribed land use continues. Estate ends automatically upon the termination of the prescribed use; no lawsuit is necessary for reversion.
Fee Simple with Condition Subsequent	An estate in real estate that prohibits a specific condition on the property. Grantor has the right to re-enter the property and reclaim ownership through legal proceedings.
Fee-for-service	Arrangement where consumer asks licensee to perform specific real estate services for a set fee; unbundling of services; limited service firms.
FHA-insured loan	a loan insured by the FHA and made by an approved private lender according to FHA's regulations
Fiduciary	a relationship in which the agent is placed in the position of trust and confidence to the principal.
First Substantial Contact	A flexible moment in time when conversation between a licensee an a consumer begins to address confidential needs, desires and abilities; latest moment to legally disclose agency choices to a consumer.
fixed rate-level payment mortgage	The most popular repayment plan; both the interest rate and the debt service amount are set for the duration of the loan
fixed rental lease	the tenant's obligation to pay a fixed rental amount, and the landlord pays all taxes, insurance premiums, mortgage payments, repair costs; also called a gross lease.
Fixture	An item of personal property that has been converted to real property by being permanently affixed to the realty.
Flood Hazard Area	Areas designated by FEMA as being prone to flooding.
floor joists	a horizontal board laid on edge, resting on the beams that provide the main support for the floor.
footings	a concrete support under a foundation, chimney. or column that usually rests on solid ground and is wider than the structure being supported
Foreclosure	Process in which property is taken by a creditor for nonpayment of debt secured by real property.
Foreshore	Land at the coast between average high tide and average low tide this is owned by the state of North Carolina.
foundation wall	the masonry or concrete wall below ground level that serves as the main support for the frame structure; form the side walls of the basement or crawlspace.
frame	the wooden skeleton of the house consisting of the floors, walls, ceilings, and roof
Freddie Mac	a corporation established to purchase primarily conventional mortgage loans in the secondary market
Freehold Estates	An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.
frieze board	a wooden board fastened at the top of the exterior wall under the eave soffit to prevent penetration of weather elements
Front footage	The measurement of a parcel of land by the number of feet of street or road frontage, or water frontage.
Fructus industriales	Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called fructus industriales. Usually considered to be personal property.
Fructus Naturales	Plants that do not require annual cultivation and are considered real property.
Full Service Lease	Commercial lease where landlord provides most or all services, which are included in rent.
fully amortized fixed-rate mortgage	a mortgage that requires the mortgagor to pay a constant amount, usually monthly, that will completely pay off the loan amount with the last equal payment.
Functional obsolescence curable	Physical or design features that are no longer considered desirable by property buyers but can be replaced or redesigned at low cost. ex: changing fixtures
Functional obsolescence incurable	Undesirable physical or design features that can't be remedied easily are considered functionally obsolete. ex: home w/ 5 bedrooms & 1 bath
Future Interests	A person's present right to an interest in real property that will not result in possession or enjoyment until someone in the future, such as a reversion or right or reentry.
Gable	The triangular portion of an in wall rising from the top wall under the inverted v of a sloping roof that aids water drainage. A gable can be made of weatherboard, tile, or masonry and can extend above the rafters.
Gambrel	A curb roof, having a steep slope and a flatter one above, as seen in dutch colonial architecture.
Gap	A defect in the chain of title of a particular parcel of real estate; a missing document or conveyance that raises doubt as to the present ownership of the land.
General agent	one who represents the principal in a broad range of matters related to a particular business or activity
General lien	This type of lien affects all the property of a debtor, both real and personal, rather than a specific parcel of real property
General partnership	In association of two or more individuals who carry on a continuing business for profit as co– owners.
General Warranty Deed	This deed offers greater protection than any other deed, is the best deed for the grantee, but gives the grantor the greatest degree of liability.
Ginnie Mae	a gov't agency under HUD that sells mortgage-backed securities that are backed by pools of FHA and VA loans
girder	a heavy wooden or steel beam supporting the floor joists and providing the main horizontal support for the floor
Good Faith Estimate (GFE)	gives an estimate of your settlement charges and loan terms if you are approved for your loan.
graduate lease	a lease that provides for increases in rent to occur at set future dates; often used in the rental of office space for multiple-year terms. Also called a step-up lease.
graduated payment mortgage (GPM)	a flexible payment plan that allows a mortgagor to make lower monthly payments for the first few years of the loan and larger payments for the remainder of the term.
Grantee	The one who receives title
Grantor	The owner who conveys title.
Grating Clause	Words of conveyance
Gross Lease	A lease of property under which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases are gross leases; also called fixed rental lease.
gross rent multiplier (GRM)	a figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value
ground lease	when a land owner leases land to a tenant who agrees to erect a building on the land.
groundwater	Water that exists under earth's surface in tiny spaces or crevices in geological formations; if contaminated, threatens source of clean drinking water
growing-equity mortgage (GEM)	a loan in which the monthly payments increase annually, with the increased amount being used to reduce directly the principal balance outstanding and thus shorten the overall term of the loan.
header	the extra thick framing over doors and windows to bear the weight of the building above the opening
heterogeneity	The quality or state of being heterogeneous.
Highest and best use	The possible use of a property that would produce the greatest net income and thereby develop the highest value
Hip roof	A pitched roof with sloping sides and ends.
Historic Preservation Zoning	A zone created to preserve historic buildings and sites that are irreplaceable.
holdover tenant	a person who retains possession of leased property after the lease has expired; the landlord may continue to accept rent or start eviction procedures.
homeowner's insurance policy	standardize package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability, and other risks.
home equity loan	a source of funds for homeowners who wish to finance the purchase of expensive items; consolidate existing installment loans on credit card debt; or pay for medical, educational, home improvement, or other expenses
Homeowner's Protection Act	states that a borrower with good payment history will have PMI canceled when he or she has built up equity equal to 20% of purchase price or appraised value.
Housing and community development act of 1974	An act that added gender as a protected class under the federal fair housing act.
Housing for older persons	Certain properties can be restricted to occupancy by elderly persons. HOPA--Housing for Older Persons Act of 1995. 62 or older or housing occupied by at least one person 55 or older per unit.
HUD	Department of Housing and Urban Development. Enforces the Federal Fair Housing Act.
HVAC	an acronym for heating, ventilation, and air-conditioning.
HUD-1	Uniform Settlement Statement; the standard closing statement form required to be given to the borrower, lender, and seller at or before settlement by the closing agent in a transaction covered under RESPA.
hypothecation	the act of pledging real property as security for payment of a loan without giving up possession of the property.
Implied agreement	when principal and agent, without formally agreeing to the agency, act as if one exists.
implied contract	A type of contract in which the agreement of the parties is demonstrated by their actions or conduct.
implied warranty of habitability	the primary duty of the land lord to supply fit and habitable premises to the tenant.
Improvement	(1) space any structure, usually privately owned, erected on the site to enhance the value of the property – for example, a fence or a driveway. (2) a publicly owned structure added to our benefiting land, such as a curb, sidewalk, street, or sewer.
Income capitalization approach to value	Estimate based on the present worth of the future rights to income.
Incurable physical deterioration	repairs to major structural components of a building, which deteriorate at different rates, may not be economically feasible. Ex: load-bearing walls and foundations
Independent contractor	Someone who is retained to perform a certain act but who is subject to the control and direction of another only as to the end results and not as to the way in which the act is performed. Unlike an employee, an independent contractor pays all expenses and
index lease	a lease that allows rent to be increased or decreased periodically, based on changes in a stipulated index, such as the government cost-of living index or some other named index.
Industrial	warehouses, factories, land in industrial districts, and power plants.
Inflation	The gradual reduction of the purchasing power of the dollar, usually related directly to the increase in the money supply by the federal government.
Informal description	Use of a street address to describe property.
Inheritance taxes	State – imposed taxes on a decedent’s real and personal property.
In-house sale	a sale in which both the selling agent and the listing agent are from the same firm.
installment land contract	also known as a "contract for deed", it is seller financing whereby the purchase price is paid in periodic installments by purchaser. The seller retains legal ownership, while the buyer secures possession of and an equitable interest in the property.
installment sale	A transaction in which the sales price is paid in two or more installments over two or more years.
Instead of using contingencies in an offer to purchase and contract, NC uses _______.	due diligence
insulation	pieces of plasterboard, asbestos sheeting, compressed wood-wool, fiberboard, or other material placed between walls and ceilings to protect the interior from heat loss.
interest	a charge for the use of borrowed money
interest-only mortgage	also called a "term loan", it only calls for periodic payments of interest.
Interim financing	A short – term loan usually made during the construction phase of a building project (in this case, often referred to as a construction loan).
Interstate	When a person dies without having left a will.
Interstate Land Sales Full Disclosure Act	Law that requires those engaged in the interstate sale or leasing of subdivision lots to file a statement of record and register the details of the land with HUD
Intrinsic value	An appraisal term referring to the value created by a person’s personal preferences for a particular type of property.
Investment	Money directed toward the purchase, improvement, and development of an asset in expectation of income or profits.
Involuntary lien	A lien placed on property without the consent of the property owner; such as a judgment lien.
Joint Tenancy	A concurrent form of ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Usually equal but Ownership interest may be unequal. Right of survivorship is not automatic in North Carolina but can be ad
Joint venture	The joining of two or more people to conduct a specific business enterprise. A joint venture is similar to a partnership in that it must be created by agreement between the parties to share the losses and profits of the venture. It is unlike a partnership
Judgments	A decree issued by a court.
judicial foreclosure	the form of foreclosure used in lien theory states; court process
jumbo loan	a residential mortgage loan in excess of acceptable loan amounts for purchase by Fannie Mae or Freddie Mac; also called nonconforming loans
Laches	Loss of a right through undue delay or failure to assert it.
Land	The earth's surface, extending downward o the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water
Land contract	A contract for the sale of real estate financed by the seller whereby the purchase price is paid in periodic installments by the purchaser, who is in possession of the property even though legal title is retained by the seller until a future date, which m
landfill	An enormous hole to store hazardous materials, lined to prevent leakage of waste materials; includes underground drainage pipes to monitor for leaks and leaching
Lateral support	The support a parcel of land receives from adjacent land; a neighbor’s duty to support adjoining land in its natural state.
Lateral Support	The support a parcel of land receives from adjacent land; a neighbor's duty to support adjoining land in its natural state.
law of negligence	holds that the landlord is liable for injuries that occur in common areas (hallways, stairways, elevators, sidewalks, and parking lots) when the landlord negligently failed to maintain safe conditions in those areas.
Lead Based Paint hazard Reduction Act	a federal law that requires sellers/landlords to disclose the known presence of lead-based paint in residential property to potential buyers/tenants via the required disclosure addendum to sales contracts or leases
lead poisoning	poisoning caused by an elevated level of lead in the human body that can result in damage to the brain, nervous system, kidneys, and blood.
lease	a conveyance from a landlord (an owner of real estate), to a tenant that transfers the right of possession and use of the owner's property for a specified period of time.
Lease option	A lease under which the tenant has a right to purchase the property either during the lease term or at its end.
Lease purchase	The purchase of real property, the consummation of which is preceded by a lease, usually long-term; typically done for tax or financing purposes.
leasehold estate	an estate in land that is generally considered personal property, because no ownership of the real property has changed hands.
Legal description	the exact way of describing real estate in a contract, deed, mortgage or another document.
Legally Competent Parties	People who are recognized by law as being able to contract with others; those of legal age and sound mind; a requirement of a legal enforceable contract.
Legally of Object	The purpose of a legally enforceable contract cannot be for illegal actions or acts against public policy.
Lessee/lessor	A written or oral contract between a landlord (the lessor) and the tenant (the lessee) the transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (ren
Leverage	The use of borrowed money to finance and investment.
Levy	To assess; to seize or collect. To levy a tax is to assess property and set the rate of taxation. To levy an execution is to officially seize the property of a person to satisfy the obligation.
Liability insurance	Insurance providing protection of the property owner against financial claims of others.
License	(1) a privilege or right granted to a person by estate to operate as a real estate broker. (2) the revocable permission for temporary use of land – a personal right that cannot be sold.
Lien	A charge against property that provides security for a debt or an obligation of the property owner.
lien theory	an older, traditional approach in mortgaging property where a two-party mortgage instrument is used as security for the debt; the borrower retains both legal and equitable title to the property.
Life Estate	An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.
Life Tenant	A person in possession of a life estate.
like-kind properties	a tax term used in exchanges; property may be exchanged for life in kind property and the tax postponed (does not refer to the physical similarity of the properties).
liquidated damages	The amount of money that will compensate the injured party for breach, which the parties agree to at the time they enter into the contract.
Liquidity	The ability to sell an asset and converted into cash, at a price close to its true value, in a short period of time.
Lis Pendens	A notice that there is and action or lawsuit pending that may adversely affect the title.
listing agreement	An employment contract between a property owner and a real estate firm/broker by which the broker is employed to find a ready, willing and able buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission.
Listing broker	The broker/firm in a multiple – listing situation representing the seller, as opposed to the cooperating broker/firm, that brings the buyer to the transaction. The listing broker and the cooperating broker may be the same person/firm.
Littoral Rights	A landowner's claim to use water in large navigable lakes and oceans adjacent to the property. The ownership rights to land bordering these bodies of water up to the average high-water mark.
LOADS	the specific duties of the principal: loyalty, obedience, accounting, disclosure of information, and skill, care, and diligence
loan origination fee	an administrative fee charged to the borrower by the lender for making a mortgage loan; usually computed as a % of the loan amount.
loan-to-value ratio (LTV)	ratio of debt to value of the property
long-term capital gain	profits from assets owned longer than 12 months; taxed at a lower rate than ordinary income
Lot –and – block (recorded plat) system	A method of describing real property that identifies a parcel of land by reference to lot and bloc numbers within the subdivision, as specified on a recorded subdivision plat.
Machinery Act	Regulates standards for real property taxation, standards for tax assessment and appraisal.
mailbox rule	A rule of law stating that once written acceptance is placed in control of the mailing service, it is considered accepted--not when the acceptance is actually received by the offeror.
Mansard roof	An architectural style in which the top floor or floors of a structure are designed to appear to be the roof. Such a roof has two slopes on each of the four sides of the building, with the upper slope less steeply inclined.
Manufactured Home	A dwelling, also know as a mobile home or house trailer; built under HUD regulations with a permanent chassis. It is considered personal property until the moving hitch, wheels and axles are removed, the unit Is attached to a permanent foundation on land
Market	A place where goods can be bought and sold and establish value
Marketable Title	A title that is free of liens and encumbrances, defects, and protects purchaser from hazard of litigation and is convincible legally significant.
Marketable Title Act	Provides that if a chain of title can be traced back for 30 years and no other claim has been recorded during that time the title become a marketable title.
Mass appraisal	An appraisal technique that determines assessed value for all lands in a given area by applying an overall percentage increase of decrease.
Master Plan	The primary method by which local governments recognize development goals.
Material fact	any fact that is important or relevant to the issue at hand; mandatory disclosure by all agents in a transaction to all parties of the transaction
Mechanics lien	A specific, involuntary lien filed when property owner has not paid for work of contractors, laborers, and others.
Metes-and-bounds description	Uses boundaries and measurements of the land.
mitigation	systems to limit the source of environmental hazards and reduce their effect on humans and the surrounding environment
MLS	Multiple listing services
Modular Home	A dwelling consisting of a series of rooms or units built off-site according to the NC State Building Code; is considered real property as soon as it assembled on the land. May be multi-storied
Monetary policy	Governmental regulation of the amount of money in circulation through such institutions as the federal reserve board.
Monuments	Fixed objects used to establish real estate boundaries. Ex.: stones, trees, lakes, streets, markers placed by surveyors.
Mortgage	A conditional transfer or pledge of real estate as security for the payment of a debt. Also the document creating a mortgage lien in a lien theory state.
Mortgage banker	A mortgage loan company that originates, services, and sells loans to investors.
Mortgage lien	A lien or charge on the property of the mortgagor that secures the underlying debt obligations.
mortgage servicing disclosure statement	a statement that tells the borrower whether the lender intends to service the loan or to transfer it to another lender.
Mortgagee/mortgagor	A mortgagee is the lender in a mortgage loan transaction; a mortgagor is the borrower in a mortgage loan transaction.
Mountain ridge protection act	The first comprehensive law in the nation passed by a state to regulate construction unprotected mountain ridges.
Ms. Murphy's Law	states that if the dwelling has four or less units and the owner lives in one of the units, it is exempt from the Fair Housing Act.
Multiperil policy	An insurance policy that offers protection from a range of potential perils, such as those of fire, hazard, public liability, and casualty.
Mutual assent	A deliberate agreement between parties offer and acceptance; "meeting of the minds." A requirement of a legally enforceable contract.
NC Coastal Area Management Act	law designed to protect, preserve, and give management guidelines in coastal areas of the state and places a severe limitation on developments
NC Dredge and Fill Act	requires property owners to obtain a permit from the Coastal Resources Commission before participating in any dredging or filling that may affect vegetation or aquatic conditions in NC waters or marshlands
NC Interstate Succession Act	The State law of descent that dictates distribution of the real and personal property of the deceased that died without a will.
NC Leaking Petroleum Underground Storage Tank Cleanup Act	law used to regulate underground storage tanks' discharge of any hazardous substance, including gas and oil.
NC Sediment Pollution Control Act	created to handle problems that occur as a result of sedimentation in state waters
negative amortization	an increase in the loan balance.
Negligent misrepresentation	when agents unintentionally misinform a buyer, seller, tenant, or landlord concerning a material fact because they do not have actual knowledge of the fact, b/c they have incorrect information, or b/c of a mistake by the agent.
Negligent omission	takes place when agents do not have actual knowledge of a material fact but should reasonably have known of such a fact.
negotiable instrument	a written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The transferee then has the original payee's right to payment.
net lease	provides that in addition to the rent, the tenant pays all or some of the property charges such as maintenance, property taxes, and insurance; sometimes called a triple net lease.
net listing	A listing based on the net price the seller will receive if the property is sold; broker can offer property at highest price to increase the commission.
Net operating income (NOI)	When you deduct the annual operating expenses of the real estate from the effective gross income.
Nonconforming Use	Real property uses that were legally established before adoption of current zoning plan, but have been "grandfathered".
Nonfreehold (leasehold) Estates	A tenant's right to occupy real estate during the term of a lease, generally considered a personal property interest; nonfreehold estate.
Nonhomogeneity	A lack of uniformity; dissimilarity; heterogeneity. Because no two parcels of land are exactly alike, real estate is said to be nonhomogenity
nonjudicial foreclosure	a foreclosure under power of sale in which the deed of trust does not have to be foreclosed through a court action.
North Carolina Condominium Act of 1986	Specifies that a condo is created and established when the developer executes and records a declaration of its creation in the county where the property is located
North carolina fair housing act of 1983	State fair housing law containing similar prohibitions to those of the federal fair housing law. Unlike the federal law, however, the north carolina law does not exempt owners who are selling their own property, and it does exempt the rental of the unit i
North Carolina human Relations Commission	The first place to file a complaint by those who have been injured by discriminatory housing acts.
North carolina real estate commission	The state governmental agency whose primary duties include making rules and regulations to protect the general public involved in real estate transactions, granting licenses to real estate brokers, and suspending or revoking licenses for cause.
North carolina sediment pollution control act	Any type of development, construction, or any other activity that may disturb vegetation or topography in a way that may cause sedimentation is illegal and subject to the act.
North carolina time-share act	The portion of north carolina state law that defines time – shares and regulates their development and sales.
North Carolina Vacation Rental Act	modeled after the Residential Agreements Act, it establishes uniform rules for landlords, tenants, and their agents involved in the handling of short-term rentals under 90 days in length where tenant has primary residence elsewhere.
Note	A financing instrument that states the terms of the underlying obligation, is signed by its maker, and is negotiable (transferable to a third party); a personal iou.
Novation	Substituting a new contract for an old one or substituting new parties to an existing contract.
Obsolescence	The loss in value due to factors that are outmoded or less useful. Obsolescence may be functional or economic.
Occupancy permit	A permit used by the appropriate local governing body to establish that the property is suitable for habitation by meeting certain safety and health standards.
Octennial reappraisal	The reappraisal process based on a statutory schedule of every eight years.
Offer and Acceptance	Two essential components of a valid contract.
Offer to Purchase and Contract	In NC, the most common title for a real estate sales contract
Office of Fair Housing and Equal Opportunity (OFHEO)	Administers the Federal Fair Housing Act under the direction of the Secretary of HUD.
Office of thrift supervision (ots)	Monitors and regulates the savings and loan industry. Ots was created by the financial institutions reform, recovery, and enforcement act (firrea).
one and a half month's rent	maximum amount of security deposit if tenancy is from month to month.
open listing	A listing agreement under which the broker's commission is contingent on the broker personally producing a ready, willing, and able buyer before the property is sold by the seller or another broker.
open-end mortgage	a line of credit allowing the mortgagee to make additional future advances of funds to the mortgagor, and are generally set up as home equity loans.
Opinion of title	An abstract of title that a lawyer has examined and is certified to be, in the lawyer’s opinion, an accurate statement of the facts concerning the property ownership.
option to purchase	an agreement b/w property owner and possible buyer, secured by the payment of an option fee, to buy or not to buy property within a specific time period at negotiated terms.
Oral buyer agency	an agency option a firm may use when the consumer is willing to commit to an exclusive written buyer agency relationship.
Overlay District	A type of zoning that is superimposed over another type of zoning.
Override clause	A carry– over or protection clause in a listing contract that says the listing broker is entitled to commission for a time period after expiration of the listing term if the property is transferred to a prospect that the broker introduced to the property
Package insurance	An insurance policy that combines the coverage of property insurance and liability insurance.
package loan	a loan that includes not only the real estate, but also all fixtures and appliances installed on the premises; has been used extensively in financing furnished condo units
Panic peddling	The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular protected class into the neighborhood.
Parol evidence rule	A rule of evidence providing that a written agreement is the final expression of the agreement of the parties, not to be varied or contradicted by prior or contemporaneous oral or written negotiations.
partially amortized fixed-rate mortgage	a loan in which the monthly principal and interest payments are a constant amount, but that payment amount is not sufficient to completely pay off the loan within the loan term; balloon payment due at maturity
Partition	The division of contents’ interests in real property when all parties do not voluntarily agree to terminate the co– ownership; takes place through court procedures.
Party wall	A wall that is located on or at a boundary line between two adjoining parcels of land and is used or is intended to be used by the owners of both properties; walls shared between townhouses.
Payment cap	The limit on the amount the monthly payment can be increased on an adjustable – rate mortgage when the interest rate is adjusted.
percentage lease	a lease in which the rent is based on a percentage of the gross or net income received by a tenant doing business on the leased property.
Percolation test	A test of the soil to determine whether it will absorbing and drain water adequately to use a septic system for sewage disposal; a soil evaluation test.
Personal Property or Personality	Items, called chattels, that do not fit into the definition of real property; movable objects like; furniture, clothing, jewelry, money, vehicles, etc.
physical deterioration	a reduction in a property's value resulting from a decline in physical condition;by action of elements or normal wear and tear.
pier	a column, usually of masonry block or steel-reinforced concrete; bears wall weight.
pitch	the slope of a roof measured as the vertical distance in inches (rise) divided by the horizontal distance in feet (run)
PITI	Principal, Interest, Taxes, and Insurance
Planned Unit Development (PUD)	A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivision.
Plat Map	A map of a subdivision indicating the location and boundaries of individual properties. Generally shows lots, blocks, easements, streets, floodplains, etc. Usually requires official approval before recordation.
Point of beginning (POB)	The point at which a metes and bounds description begins.
Police Power	The state's inherent authority to create and adopt regulations necessary to protect the public health, safety and general welfare of the citizenry.
power of sale foreclosure	The form of foreclosure used in a title theory state; also called a nonjudicial foreclosure.
Predatory Lending Act	imposes restrictions and limitations on high-cost loans; revises permissible fees and charges on certain loans; prohibits unfair or deceptive practices by lenders
Premium	The consideration for an insurance policy.
prepaid items	expenses that have already been paid by the seller prior to closing and the buyer needs to rebate that portion to the seller; generally real estate taxes or HOA dues.
prepayment penalty clause	included in a promissory note requiring the borrower to pay a penalty against the unearned portion of the interest for any payments made ahead of schedule.
Price-fixing	the practice of setting prices for products or services rather than letting competition on the open market establish them.
primary mortgage market	made up of lenders that originate mortgage loans
principal	(1) funds loaned or used in an investment (2) original amount of a loan (3) main party to a transaction – the person for whom the agent works; the client.
Priority of liens	Property taxes and special assessments, then in order of time and date files (pure race), except mechanics lien, which dates to date labor began or materials were first provided.
private mortgage insurance (PMI)	insurance provided by a private carrier that protects a lender against a loss in the event of a foreclosure and deficiency
privity of contract	rights arising from the contract itself
privity of estate	rights arising from traditional property law
Probate	A legal process by which a court determines who will inherit a decedent’s property and what the estate’s assets are.
procuring cause	The effort that began a chain of events that brings about the desired result. Under an open listing, the broker who is the procuring cause of the sale receives the commission.
promissory note	written promise to repay a debt in definite installments with interest.
Property Insurance or Casualty Insurance	A policy that provides property owner coverage for the basic structure on that property.
property management agreement	An agency contract between the owner of income property and a management firm or an individual property manager that outlines the scope of the manager's authority.
property manager	someone who preserves the value of an investment property while generating income as an agent for the owner.
Property Report	A report furnished to prospective buyers contain essential information about a development contain 25 or more lots.
Proprietary Lease	A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder's right as a tenant to an individual apartment.
prorations	divisions of financial responsibility between the buyer and seller for such items as loan interest, taxes, rents, and fuel or utility bills.
Protected Classes	Race, Color, Religion, National Origin, Sex, Handicapped, Familial Status
protection agreement	Used to guarantee a broker a commission if that particular property is sold to a specific buyer.
Protective covenant	Private agreements usually imposed by the owner when property is sold that limits the way the real estate ownership may be used; frequently used by owner/developer to maintain specific standards in the subdivision. The covenants are appurtenant. Also call
Provisional Broker	A real estate licensee who performs real estate activities under the supervision of a licensed real estate broker-in-charge. Must complete post-licensing courses to remove the provisional license status
Public offering statement	The document all prospective time – share purchasers must receive before signing a sales contract. The statement must disclose all material facts about the property, as required by the state.
puffing	exaggerated comments or opinions; "This house has the best view in town!"
Pur Autre Vie	For the life of another. A life estate pur autre vie is a life estate that is measured by the life of a person other than the grantee.
purchase-money mortgage	a note secured by a mortgage or deed of trust given by a buyer as a borrower, to a seller, as lender, as part of the purchase price of the real estate.
Quantity survey method	Estimate based on the quantities of raw materials needed to replace the subject structure as well as of the current price of such materials & their installation costs.
Quick Take	A method of condemnation in which title and possession of private property can immediately be transferred to a public authority.
Quiet title	A court action to remove the cloud on the title.
Quitclaim Deed	A non-warranty deed that provides the grantee with the least protection of any deed. It carries no covenant or warranties and conveys only such interest, if any, that the grantor my have when the deed is delivered.
radon	Radioactive odorless, tasteless gas; with long term exposure may cause lung cancer
rafter	one of a series of sloping beams that extends from the center ridge board to an exterior wall and provides the main support for the roof.
Rate cap	The limit on the amount the interest rate can be increased at each adjustment. In an adjustable-rate loan. The may also set the maximum interest rate they can be charged during the life of the loan.
Ratification	establishing an agency relationship by performing any act that accepts the conduct of the agent as that of an agent.
ready, willing, and able buyer	A buyer who is financially qualified, prepared to buy on seller's terms, and ready to take positive steps toward consummation of the transaction by showing willingness to enter into an enforceable contract.
Real Estate	Land; a portion of the earth's surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially
Real estate agents are obligated by licensing law and Commission rules to disclose all offers to sellers immediately, but no later than ___ days from the date of the offer	five
Real estate investment trust (reit)	Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the trust, which in turn invest the money in real property and distributes the profits back to the investors free of corporate income tax.
Real estate license law	The state law enacted to protect the public from fraud, dishonesty, and in competence when dealing with real estate licensees in the purchase and sale of real estate.
Real estate mortgage investment conduit (remic)	A text and state that issues multiple classes of investor or interests (securities) backed by a pool of mortgages.
Real Estate Procedures Act	Federal law that requires federally chartered or insured lenders or provide buyers and sellers of 1-4 family homes, coops, condos with info on all settlement costs
Real estate recovery fund	A fund established in some states from real estate license revenues to cover claims of aggrieved parties who have suffered monetary damage to the actions of a real estate licensee.
Real Estate Settlement Procedures Act (RESPA)	federal law that ensures that residential buyers and sellers receive full disclosure of all settlement charges; mandates HUD booklet about closing costs, a good-faith estimate of closing costs, and hUD-1 closing statement.
Real Property	defined as the land, everything that is permanently attached to the land (or goes with) the land
reality of consent	If misrepresentation, fraud, mistake of fact, undue influence or duress are absent in contract formation, good contract is formed.
Realtor®	A registered trademark term reserved for the sole use of active members of local realtors® boards affiliated with the national association of real tors®.
reconciliation	the final step in the appraisal process, in which the appraiser combines the estimates of value received from the sales comparison, cost, and income capitalization approaches to arrive at a final estimate of market value for the subject property.
Recording	Making documents that affect property ownership readily available as matters of public record.
Rectangular (government) survey system	A system established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and baselines, used mainly west of the mississippi river.
Redemption period (statutory)	A 10– day period of time after a foreclosure auction during which a property owner in default has the right to redeem the pledged real estate by paying the loan balance plus interest, and costs; also called the upset bid period.
Redlining	Illegal practice by lending institutions to deny or discourage loan application in an area based on its racial composition or deterioration.
Reduction certificate (payoff statement)	The document signed by a lender indicating the amount required to pay loan balance in full and satisfy the debt; used in the settlement process to protect both the seller’s and the buyer’s interest.
Reference to a recorded deed	A reference to a publicly recorded document, usually an earlier deed. The referenced document typically contains a legal description of the property.
Reference to a recorded plat	A method of land description that uses lot and block numbers.
Registration certificate	The document that developers of time – shares in north carolina must obtain from the north carolina real estate commission before they can offer a project’s time – shares for sale to the public.
Regression	An appraisal principal that states that between dissimilar properties, the value of the better quality property is affected adversely by the presence of the lesser quality property.
Regulation Z	implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit
Reliction	Gradual recession of water which uncovers land that usually belongs to the riparian owner.
Remainder Interest	A future interest in real estate created by the grantor for some third party that will be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.
Remainderman	One entitled to receive a remainder interest in some estate sometime in the future.
Replacement cost	The construction cost, at current prices and using modern materials & methodology, of a property that is not necessarily an exact duplicate but serves the same purpose or function as the original property.
Reproduction cost	The dollar amount required to construct an exact duplicate of the subject building at current prices. This is mostly used when appraising historical homes.
rescission	The legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions.
Residential	all property used for housing, from acreage to small city lots. both single family & multifamily, in urban, suburban, and rural areas.
Residential Rentals Agreements Act	this act governs residential leases and landlord-tenant relationships; its purpose is to ensure that only habitable residential unties are rented. Does not apply to hotels, motels, rent-free or commercial properties.
Resolution trust corporation	The organization created by the financial institutions reform, recovery, and enforcement act (firrea) to liquidate the assets of failed savings and loan associations.
Restrictive Covenant or Protective Covenant	Private agreements usually imposed by the owner when property is sold that limits the way the real estate ownership may be used; frequently used by owner/developer to maintain specific standards in a subdivision. The covenants are appurtenant. Also call
retainer fee	Typically a small amount of compensation, usually paid up front by the buyer/client when the buyer-agency agreement is established.
retaliatory eviction	illegal eviction of a tenant that has exercised protected rights under the law.
Revenue stamps	Deed transfer tax paid by the seller and required to be noted on a deed by state law; the rate is $1 per $500 of sales price. Round sales prices to the next 500 and divide by 500.
reverse-annuity mortgage (RAM)	allows senior citizens on fixed incomes to utilize the equity buildup in their homes by receiving regular monthly payments from the bank
Reversionary Interest	A future estate that the grantor holds while granting a life estate to another person.
ridge board	a heavy horizontal board, set on edge at the apex of the roof, to which the rafters are attached
Right – of – way	The right given by a landlord to another to use the land as a pathway, without actually transferring ownership.
right of first refusal	created when a property owner promises to give the contracting party the first chance to buy the property or to match the bona fide offer of a third party, should the owner decide to sell.
Right of Survivorship or Tenancy by the Entirety	A concurrent form of ownership reserved for property owned by husband and wife. Right of survivorship is mandatory; making the surviving spouse owner in severalty immediately upon the death of a spouse.
Riparian Rights	An owner's rights in land that borders on or includes a steam, river, or lake. These rights include access to and use of the water.
roofing felt	sheets of flat, heavy material place on top of the roof boards to insulate and water proof the roof
Rules and regulations	Real estate licensing authority orders that govern licensees’ activities. They usually have the same force and effect as statutory law.
R-value	the insulation value of materials
sale-and-leaseback	used as a means of financing large commercial or industrial plants; a transaction in which an owner sells improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises.
Sales comparison approach	AKA the market data approach. When an estimate of value is obtained by comparing the subject property with recently sold comparable properties.
Sandwich lease	When a lease is sublet, the original tenant retains primary liability for paying rent. The sublessor’s (original lessee’s) interest in the real estate is known as a sandwich lease.
satisfaction of mortgage	a document acknowledging the full repayment of a mortgage debt
Scarcity	A finite supply
secondary mortgage market	a market for the purchase and sale of existing mortgages
Self-help eviction	Illegal eviction practices used by landlords instead of lawful use of summary ejectment.
Servient tenement	The tract over which an easement runs.
Setback	The amount of space local zoning regulations require between a lot line and the building line.
Settlement	The process of adjusting and prorating credits, debits, and closing expenses to conclude a real estate transaction; referred to as closing.
Settlement statement (hud – 1)	Three-page document used in most residential closings detailing all cash due (or from) the buyer and seller.
Severalty	The ownership of real property by only one person or entity; referred to as closing.
Severance	Changing an item of real estate to personal property by detaching it from the land; for example, cutting down a tree.
Sharecropping	In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or the profit from its sale, actually sharing the crop.
shared-appreciation mortgage (SAM)	a mortgage loan in which the lender, in exchange for a loan with a lower interest rate, participates in the profits (if any) the borrower receives when the property is eventually sold.
sheathing	insulating material that is applied to the wall framing; then siding is applied on top of it
shingles	exterior roofing material frequently made of fiberglass, asphalt, or wood
Short sale	When a lender allows a borrower in default on mortgage loan payments to sell the mortgage property for less money than necessary to satisfy the load to avoid the delay and expense of a foreclosure sale; lender usually "forgives" the balance owned after th
short-term capital gain	profits from assets owned for 12 months or less
siding	boards nailed horizontally to the vertical studs, with or without intervening sheathing, to form the exposed surface of the outside walls of the building; can be made of wood, metal, or masonry sheets.
sill	the lowest horizontal member of the house frame; also on a window or door
Situs	The personal preference of people for one location over another, not necessarily based on objective facts and knowledge
slab	a flat, horizontal reinforced concrete area, usually the interior floor of a building but also an exterior or a roof area
soffit	the external underside of the eave; usually contains ventilation for the attic/roof
soil suitability test	a test that measures the soil's ability to absorb and drain water; usually paid for by the buyer.
sole plate	the bottom of the wall frame that connects the studs to the flooring
Special agent	one who is authorized to represent the principal in only one specific act or business transaction
Special assessments	Special taxes levied on real estate for public improvements made to that real estate, such as sidewalks, street lighting.
special promissory note provisions	1)acceleration clause 2)prepayment penalty clause 3)due-on-sale clause
Special purpose	churches, schools, cemeteries, and government held lands.
Special Warranty Deed	A conveyance that carries the warranty that the property was unencumbered by the grantor.
Specific lien	A lien that is secured by a specific parcel of property and affects only that particular property
specific performance	A legal action to compel a party to carry out the terms of a contract.
Split – level	Usually a house in which two or more floors are located directly above one another, and one or more additional floors, adjacent to them are placed at a different level; a tri– level.
Spot Zoning	When a particular property or group of properties is rezoned to permit a use different form the neighboring properties use.
Square foot method	Cost per square foot of a recently built comparable structure multiplied by the number of square feet in the subject property.
State( tenancy) from period to period	A possessory interest in lease property that automatically renews from period to period– week to week, month to month, year to year; notice is necessary to terminate. Also called periodic tenancy.
Statute of Frauds	A state law that requires that certain instruments that convey interest in real estate be in writing to be legally enforceable, such as deeds, real estate sales contracts, and certain leases.
statute of limitations	The law pertaining to the period of time within which certain actions must be brought to court or be lost.
statutory redemption period	10 day period after the auction in which the borrower can try to raise the necessary funds to redeem the property.
statutory right of redemption	the right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges
Steering	The channeling of homeowners to particular neighborhoods based on the presence or absence of a protected class.
Stigmatized Properties	Property regarded as undesirable because of events that occurred there; also called psychologically impacted property. Some conditions that typically stigmatize a property are murder, gang-related activity, proximity to a nuclear plant, and even the alle
Straight Line Depreciation	When the cost of an asset is depreciated evenly over its useful life.
straight-line amortized mortgage	a loan in which the mortgagor may pay a different amount for each installment, with each payment consisting of a fixed amount credited toward the principal plus an additional amount for the interest due on the principal outstanding since the last payment
strict foreclosure	not used in NC; after appropriate notice has been given to the delinquent borrower and proper papers prepared, the court establishes a specific time period during which the balance of the defaulted debt must be paid in full
stud	the vertical members in the wall framing; usually placed 16-24 inches apart and serve as main support for the roof and/or the story above
Subagency	the fiduciary relationship between the subagent ant the principal
Subagent	one who is employed by a person already acting as an agent (and agent of the agent).
Subdivision	All divisions of a tract or parcel of land into two or more lots, building sites, or other divisions for the purpose of sale or building development
Subdivision and development ordinances	Municipal ordinances that establish requirements for subdivisions and development.
subfloor	boards or plywood sheets nailed directly to the floor joists; made of rough boards
Subjacent Support	The support of the surface of land by the land's subsurface; duty of the owned of subsurface rights to support the surface of the land.
sublease	the leasing of premises by a tenant to a third party for part of the lessee's remaining term
subordination agreement	a written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.
subprime mortgage	A loan made to a borrower with a credit rating below what is required for regular loans creating greater liability for the lender that is countered by higher interest rates and fees; called B, C, or D paper.
Subrogation Clause	Any rights the insured had to sue the person who caused the damage are assigned to the insurance company that has already paid the insured for the damages.
Substitution	An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the substitution.
Subsurface Rights	Ownership rights in a parcel of real estate to the water, minerals, gas, oil, and so forth that lie beneath the surface of the property.
success fee	Due and payable by the buyer/principal on the signing and acceptance of an offer to purchase property found by the buyer's agent.
summary ejectment	the only legal way a landlord can evict a tenant; through a hearing before a magistrate in small claims court.
Supply	The amount of goods available in the market to be sold at a given price. The term is often coupled with demand'
Surety bond	An agreement by an insurance or a bonding company to be responsible for certain possible defaults, debts, or obligations contracted for by an insured party; in essence, a policy insuring one’s personal or financial integrity. In the real estate business,
Surface Rights	Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).
survey	gives the purchaser information about the exact location and size of the property
Tacking	Adding or combining successive periods of continuous occupation of real property by adverse possessors. This concept enables someone who has not been in possession for the entire statutory period to establish a claim of adverse possession.
Tax credit	An amount by which tax is owed is reduced directly.
Tax deed	An instrument, similar to a certificate of sale, given to a purchaser at a tax sale. See also certificate of sale.
Tax lien	Lien that is attached to real property as of the listing date.
Tax sale	A court – ordered sale of real property to raise money to cover delinquent taxes.
Taxation	The process by which a government or a municipal quasi-public body raises monies to fund its operation.
tax-deferred exchange	an IRS sanctioned method for real estate investors to defer taxation of capital gains by making a property exchange rather than by selling the investment property
Tenancy in Common	Owned by two or more parties usually not husband and wife; undivided equal interest unless stated otherwise; each owner receives his share when sold can transfer share without other signing; can acquire at different times on different instruments; if not
Tenancy by Entireties	1) Owned by Husband and Wife ONLY 2)each own 100% 3) Both must sign when sold 4)a) Divorce changes to tenants in common automatically but legal separation does not b)if not stated, the law presumes, tenants by entire 5) right of survivorship (automatic)
Tenant Security Deposit Act	regulates the amount of money that be required as a security deposit and what the landlord can do with that deposit
Term loan	A loan in which only interest is paid during the term of the loan, with the entire principal due with the final interest payment; also called a straight loan.
Testate	Having made and left a valid will.
the four characteristics of value	Demand, Utility, Scarcity & Transferability (DUST)
The request for a preclosing walk-through should be in the _____ ___ _____.	offer to purchase
There is no federal exemption to the Fair Housing act if a _____ is involved.	Broker
TICAM	acronym used by commercial agents in a net lease that frequently refer to these charges: taxes, insurance, and common area maintenance
time is of the essence	This means that the contract must be performed within the time limit specified, and any party who has not performed on time is liable for breach of contract.
Time-share Ownership	Any right to occupy a unit of real property during five or more separated time periods over a period of at least five years. 5 day cancellation (without penalty) 10 days developer keeps money in trust; 30 days to refund; $500 fine to developer (per violat
Title	The right to or ownership of the land.
Title Insurance	A contract by which the insured is compensated against any losses sustained as a result of defects in a title.
Title Search	The examination of all public records that might affect a title
title theory	uses the three-party deed of trust instrument as security for the mortgage debt; the borrower conveys legal title to a trustee to hold for the lender until the debt is paid off. NC uses this theory.
To form a valid real estate sales contract there must be an _____ made, a(n)___________, and ________.	offer acceptance communication
top plate	the top part of the wall framing that connects the stud to the ceiling framing
Topographic survey	A survey that shows the lay of the land.
Torrens system	A method of evidencing title by registration with the proper public authority, generally called the registrar, named for its founder, sir robert torrens.
Tort	A wrongful act, injury or violation of legal right to the person or property of another.
Total Circumstances Test	A legal test applied by the courts to determine whether an item is a fixture (and. therefore, part of the real property) or personal property.
Total circumstances test	Legal test applied by the courts to determine whether an item is a fixture or personal property. 1. Intention of the annexor. 2. Relationship of the annexor. 3. Method of annexation. 4. Adaptation to real estate.
Townhouse Ownership	Do own land underneath unit (footprint) can not stack units vertically; no cancellation period; own entire unit (and half of party wall); Common areas owned by Homeowners association
Trade Fixture	An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires.
Transfer tax	Tax stamps required to be affixed to a deed by state or local law; excise tax, formally known as revenue stamps.
Transferability	The relative ease of transfer of ownership rights from one person to another; often relates to clear title and satisfactory physical condition.
Trigger terms	In real estate advertising, specific phrases called trigger terms, require the advertiser to comply with regulation z, and provide the apr (annual percentage rate)plus total financing term disclosure, including total finance charge.
Trust	A fiduciary arrangement whereby property is conveyed to a person or an institution, called the trustee, to be held and administered on behalf of another person, called a beneficiary. The one who conveys the trust is called the trustor.
Trust funds	Those monies received on behalf of others by a real estate licensee while acting as an agent in a real estate transaction. Generally, trust funds include earnest money deposits, down payments, tenant security deposits, rents, and monies received from fina
Trustee	The holder of bare, legal title in a deed of trust loan transaction on behalf of the beneficiary.
Trustee's Deed	A deed of conveyance executed by a trustee and generally used to transfer title after a foreclosure action.
Truth – in– lending act	Implements the truth – in– lending act requiring credit institutions to inform borrowers of the cost of obtaining credit.
two months' rent	maximum amount of security deposit if tenancy is longer than month to month.
two weeks' rent	maximum amount of security deposit if tenancy is from week to week
underground storage tank ( UST)	Often used to store petroleum, if leaking can contaminate groundwater, only 10% of tank needs to be underground to require monitoring
Undivided interest	A concurrent form of ownership in which each owner holds an undivided interest in the real property. Ownership interests can be unequal and the right of survivorship is not allowed.
unenforceable contract	Has all of the elements of a valid contract; however, neither party can sue the other to force performance; valid as between the parties.
Uniform Commercial Code (UCC)	A codification of commercial law, adopted in most states, that attempts to make uniform all laws relating to commercial transactions, including chattel mortgages and bulk transfers. When chattels are purchased on credit, security agreement. To give noti
Uniform Electronic Transactions Act (UETA)	NC version of the federal E-sign legislations that allows contracts to be created by electronic means such as e-mails and faxes; the electronic signature is binding.
Uniform settlement statement	The standard hud– 1 closing statement form required to be given to the borrower, lender, and seller at or before settlement by the closing agent in a transaction covered under the real estate settlement procedures act.
unilateral contract	A type of contract in which one party makes a promise to induce a second party to do something. "I will give you a reward if you find my dog"
Unit in place method	Estimating the replacement cost of a structure based on the construction cost per unit of measure of individual building components, including material, labor, overhead & builders profit.
Universal agent	one who is empowered to do anything the principal could do personally
urea-formaldehyde foam insulation	a 1970s foam insulation that released gases that can cause respiratory problems such as skin irritations or asthma attacks
usury	charging interest in excess than the maximum rate established by state law.
Utility	The capacity to satisfy future owners needs and desires; how future owners can make good use of the property.
VA-guaranteed loan	a mortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the Dept. of Veterans Affairs to limit the lender's possible loss.
valid contract	A contract that complies with all the essential elements of a contract.
Value	The power of a good or service to command other goods or services in exchange. Also, the present worth of future benefits arising from the ownership of real property.
Variance	Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws.
Vendee/vendor	Vendee is a buyer, usually under the terms of the land contract; vendor is a seller, usually in a land contract.
void contract	A contract that has no legal force or effect. It is unenforceable in a court of law b/c it does not meet the essential elements of a contract.
Voidable Contract	A contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties.
walk-through	the final inspection of the property by the buyer prior to closing to assure that the seller has vacated, made required repairs, and delivered the property in the condition it was in at contact.
Waste	An improper use or abuse of a property by a possessor who holds less than fee ownership, such as a tenant, life tenant, mortgagor, or vendee. Such waste ordinarily impairs the value of the land or the interest of the person holding the title or the rever
water table	natural water level whether it is above or below ground level
Wetlands	Areas periodically inundated or saturated to the extent that they can or do support vegetation adapted to aquatic conditions.
when a lease is sublet, the original tenant retains primary liability for paying the rent; this interest in the real estate is known as _____ _______.	sandwich lease
Will	Instrument made by a property owner to convey title to real and personal property on the owner's death
Willful misrepresentation	when agents who have actual knowledge of a material fact deliberately misinform a buyer, seller, tenant, or landlord concerning such fact.
Willful omission	takes place when agents have actual knowledge of a material fact and a duty to disclose such fact to a buyer, seller, tenant, or landlord, but deliberately fail to disclose such fact.
Working with Real Estate Agents	A mandatory agency information brochure that a licensee must give to and review with consumers in all real estate sales transactions no later than first substantial contact; it does not create agency.
wraparound loan	enables a borrower who is paying off an existing mortgage to obtain additional financing from a second lender or the seller.
yield	the return or profit on a loan
Zoning Ordinances	Laws imposed by local government authorities that regulate and control the use of land and structures within a designated district or zone.
Zoning powers are conferred on municipal government's by NC's_______________ _____________ through the General Assembly.	Enabling Act

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