|
A
ABSTRACT OF TITLE
The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.
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 other covenant.
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
The increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake or sea.
ACCRUED ITEMS
On a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.
ACKNOWLEDGEMENT
A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document.
ACRE
A measure of land equal to 43,560 square feet, 4,840 square yards, 4,047 square meters, 160 square rods or 0.4047 hectares.
ACTUAL EVICTION
The legal process that results in the tenant's being physically removed from the leased premises.
ACTUAL NOTICE
Express information or fact; that which is known; direct knowledge.
ADJUSTABLE-RATE MORTGAGE (ARM)
A loan characterized by a fluctuating interest rate, usually one tied to a bank or savings and loan association cost-of-funds index.
AD VALOREM TAX
A tax levied according to value, generally used to refer to real estate tax. Also called the general tax.
ADVERSE POSSESSION
The actual, open, notorious, hostile and continuous possession of another's land under a claim of title. Possession for a statutory period may be a means of acquiring title.
AFFIDAVIT OF TITLE
A written statement, made under oath by a seller or grantor of real property and acknowledged by a notary public, in which the grantor
(I) identifies himself or herself and indicates marital status,
(2) certifies that since the examination of the title on the date of the contracts no defects have occurred in the title and
(3) certifies that he or she is in possession of the property (if applicable).
AGENCY
The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.
AGENCY COUPLED WITH AN INTEREST
An agency relationship in which the agent is given an estate or interest in the subject of the agency (the property).
AGENT
One who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent.
AIR LOT
A designated airspace over a piece of land. An air lot, like surface property, may be transferred.
AIR RIGHTS
The right to use the open space above a property, usually allowing the surface to be used for another purpose.
ALIENATION
The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.
ALIENATION CLAUSE
The clause in a mortgage or deed of trust that states that the balance of the secured debt becomes immediately due and payable at the lender's option if the property is sold by the borrower. In effect this clause prevents the borrower from assigning the debt without the lender's approval.
ALLODIAL SYSTEM
A system of land ownership in which land is held free and clear of any rent or service due to the government; commonly contrasted to the feudal system. Land is held under the allodial system in the United States.
AMERICAN LAND TITLE ASSOCIATION (ALTA) POLICY
A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan.
AMORTIZED LOAN
A loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan.
ANNUAL PERCENTAGE RATE (APR)
The relationship of the total finance charges associated with a loan. This must be disclosed to borrowers by lenders under the Truth-in-Lending Act.
ANTICIPATION
The appraisal principle that holds that value can increase or decrease based on the expectation of some future benefit or detriment produced by the property.
ANTITRUST LAWS
Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Most violations of antitrust laws in the real estate business involve either price-fixing (brokers conspiring to set fixed compensation rates) or allocation of customers or markets (brokers agreeing to limit their areas of trade or dealing to certain areas or properties).
APPRAISAL
An estimate of the quantity, quality or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value.
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, privilege or improvement belonging to, and passing with, the land.
APPURTENANT EASEMENT
An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor's land.
ASSEMBLAGE
The combining of two or more adjoining lots into one larger tract to increase their total value.
ASSESSMENT
The imposition of a tax, charge or levy, usually according to established rates.
ASSIGNMENT
The transfer in writing of interest in a bond, mortgage, lease or other instrument.
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.
ATTACHMENT
The act of taking a person's property into legal custody by writ or other judicial order to hold it available for application to that person's debt to a creditor.
ATTORNEY'S OPINION OF TITLE
An abstract of title that an attorney has examined and has certified to be, in his or her opinion, an accurate statement of the facts concerning the property ownership.
AUTOMATIC EXTENSION
A clause in a listing agreement that states that the agreement will continue automatically for a certain period of time after its expiration date. In many states, use of this clause is discouraged or prohibited.
AVULSION
The sudden tearing away of land, as by earthquake, flood, volcanic action or the sudden change in the course of a stream.
B
BALANCE
The appraisal principle that states that the greatest value in a property will occur when the type and size of the improvements are proportional to each other as well as the land.
BALLOON PAYMENT
A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.
BARGAIN AND SALE DEED
A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion.
BASE LINE
The main imaginary line running east and west and crossing a principal meridian at a definite point, used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
BASIS
The financial interest that the Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property was acquired by purchase, the owner's basis is the cost of the property plus the value of any capital expenditures for improvements to the property, minus any depreciation allowable or actually taken. This new basis is called the adjusted basis.
BENCH MARK
A permanent reference mark or point established for use by surveyors in measuring differences in elevation.
BENEFICIARY
(1) The person for whom a trust operates or in whose behalf the income from a trust estate is drawn.
(2) A lender in a deed of trust loan transaction.
BILATERAL CONTRACT
See contract
BINDER
An agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser's good faith and intent to complete the transaction.
BLANKET LOAN
A mortgage covering more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt.
BLOCKBUSTING
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood.
BLUE-SKY LAWS
Common name for those state and federal laws that regulate the registration and sale of investment securities.
BOOT
Money or property given to make up any difference in value or equity between two properties in an 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 licensed real estate broker working on behalf of the broker.
BREACH OF CONTRACT
Violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due.
BROKER
One who acts as an intermediary on behalf of others for a fee or commission.
BROKERAGE
The bringing together of parties interested in making a real estate transaction.
BUFFER ZONE
A strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another use (e.g., residential from commercial).
BUILDING CODE
An ordinance that specifies minimum standards of construction for buildings to protect public safety and health.
BUILDING PERMIT
Written governmental permission for the construction, alteration or demolition of an improvement, showing compliance with building codes and zoning ordinances.
BULK TRANSFER
See Uniform Commercial Code
BUNDLE OF LEGAL RIGHTS
The concept of land ownership that includes ownership of all legal rights to the land--for example, possession, control within the law and enjoyment.
BUYDOWN
A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time.
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.
C
CAPITAL GAIN
Profit earned from the sale of an asset.
CAPITALIZATION
A mathematical process for estimating the value of a property using a proper rate of return on the investment and the annual net operating income expected to be produced by the property. The formula is expressed as
Income -------- = Value Rate
CAPITALIZATION RATE
The rate of return a property will produce on the owner's investment.
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 .
CASH RENT
In an agricultural lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping.
CAVEAT EMPTOR
A Latin phrase meaning "Let the buyer beware."
CERTIFICATE OF REASONABLE VALUE (CRV)
A form indicating the appraised value of a property being financed with a VA loan.
CERTIFICATE OF SALE
The document generally given to the purchaser at a tax foreclosure sale. A certificate of sale does not convey title; normally it is an instrument certifying that the holder received title to the property after the redemption period passed and that the holder paid the property taxes for that interim period.
CERTIFICATE OF TITLE
A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records.
CHAIN OF TITLE
The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title.
CHANGE
The appraisal principle that holds that no physical or economic condition remains constant.
CHATTEL
See personal property
CIVIL RIGHTS ACT OF 1866
An act that prohibits racial discrimination in the sale and rental of housing.
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 TITLE
Any document, claim, unreleased lien or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title.
CLUSTERING
The grouping of homesites within a subdivision on smaller lots than normal, with the remaining land used as common areas.
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 the policyholder to maintain fire insurance coverage generally equal to at least 80 percent of the property's actual replacement cost.
COMMINGLING
The illegal act by a real estate broker of placing client or customer funds with personal funds. By law brokers are required to maintain a separate trust or escrow account for other parties' funds held temporarily by the broker.
COMMISSION
Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.
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 condominium residents. Each condominium owner has an undivided ownership interest in the common elements.
COMMON LAW
An unwritten body of law based on general custom in England and used to an extent in the United States.
COMMUNITY
PROPERTY
In some western and southwestern states, a form of ownership under which property acquired during a marriage is presumed to be owned jointly unless acquired as separate property of either spouse.
COMPARABLES
An abbreviation for "comparable properties"; used for comparative purposes in the appraisal process. Comparables are properties like the property under consideration; they have reasonably the same size, location, and amenities and have recently been sold. Comparables help the appraiser determine the approximate fair market value of the subject property.
COMPETITION
The appraisal principle that states that excess profits generate competition.
COMPETITIVE 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.
COMPREHENSIVE PLAN
See master plan
CONDEMNATION
The determination that a building is not fit for use or is dangerous and must be destroyed; the taking of private property for a public purpose through an exercise of the right of eminent domain.
CONDITIONAL-USE PERMIT
Written governmental permission allowing a use inconsistent with zoning but necessary for the common good, such as locating an emergency medical facility in a predominantly residential area.
CONDOMINIUM
A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas.
CONFESSION OF JUDGEMENT CLAUSE
Permits judgment to be entered against a debtor without the creditor's having to institute legal proceedings.
CONFORMITY
The appraisal principle that holds that the greater the similarity among properties in an area, the better they will hold their value.
CONSIDERATION
(1) That received by the grantor in exchange for his or her deed.
(2) Something of value that induces a person to enter into a contract.
CONSTRUCTION LOAN
See interim financing
CONSTRUCTIVE EVICTION
Actions of a landlord that so materially disturb or impair a tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent.
CONSTRUCTIVE NOTICE
Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the 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 binding.
CONTRACT
A legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provides a remedy. A contract may be either unilateral, by which only one party is bound to act, or bilateral, by which all parties to the instrument are legally bound to act as prescribed.
CONTRIBUTION
The appraisal principle that states that the value of any component of a property is what it gives to the value of the whole or what its absence detracts from that value.
CONVENTIONAL LOAN
A loan that requires no insurance or guarantee.
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.
COOPERATING BROKER
See listing broker
COOPERATIVE
A residential multi-unit building whose title is held by a trust or corporation that is owned by and operated for the benefit of persons living within the building, who are the beneficial owners of the trust or stockholders of the corporation, each possessing a proprietary lease.
CO-OWNERSHIP
Title ownership held by two or more persons.
CORPORATION
An entity or organization, created by operation of law, whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures.
CORRECTION LINES
Provisions in the rectangular survey (government survey) system made to compensate for the curvature of the earth's surface. Every fourth township line (at 24-mile intervals) is used as a correction line on which the intervals between the north and south range lines are remeasured and corrected to a full six miles.
COST APPROACH
The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building, less depreciation.
COST RECOVERY
An Internal Revenue Service term for depreciation.
COUNTEROFFER
A new offer made in response to an offer received. It has the effect of rejecting the original offer, which cannot be accepted thereafter unless revived by the offeror.
COVENANT
A written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property; usually found in such real estate documents as deeds, mortgages, leases and contracts for deed.
COVENANT OF QUIET ENJOYMENT
The covenant implied by law by which a landlord guarantees that a tenant may take possession of leased premises and that the landlord will not interfere in the tenant's possession or use of the property.
CREDIT
On a closing statement, an amount entered in a person's favor--either an amount the party has paid or an amount for which the party must be reimbursed.
CURTEST
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 have abolished curtesy.
D
DATUM
A horizontal plane from which heights and depths are measured.
DEBIT
On a closing statement, an amount charged; that is, an amount that the debited party must pay.
DECEDENT
A person who has died.
DEDICATION
The voluntary transfer of private property by its owner to the public for some public use, such as for streets or schools.
DEED
A written instrument that, when executed and delivered, conveys title to or an interest in real estate.
DEED IN LIEU OF FORECLOSURE
A deed given by the mortgagor to the mortgagee when the mortgagor is in default under the terms of the mortgage. This is a way for the mortgagor to avoid foreclosure.
DEED IN TRUST
An instrument that grants a trustee under a land trust full power to sell, mortgage and subdivide a parcel of real estate. The beneficiary controls the trustee's use of these powers under the provisions of the trust agreement.
DEED OF TRUST
See trust deed
DEED OF TRUST LIEN
See trust deed lien
DEED RESTRICTION
Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions, for example, they may limit the density of buildings, dictate the types of structures that can be erected or prevent buildings from being used for specific purposes or even from being used at all.
DEFAULT
The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due.
DEFEASANCE CLAUSE
A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.
DEFEASIBLE FEE ESTATE
An estate in which the holder has a fee simple title that may be divested upon the occurrence or nonoccurrence of a specified event. There are two categories of defeasible fee estates: fee simple on condition precedent (fee simple determinable) and fee simple on condition subsequent.
DEFICIENCY JUDGEMENT
Point levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.
DEMAND
The amount of goods people are willing and able to buy at a given price; often coupled with supply.
DENSITY ZONING
Zoning ordinances that restrict the maximum average number of houses per acre that may be built within a particular area, generally a subdivision.
DEPRECIATION
(I) In appraisal, a loss of value in property due to any cause, including physical deterioration, functional obsolescence and external obsolescence.
(2) In real estate investment, an expense deduction for tax purposes taken over the period of ownership of income property.
DESCENT
Acquisition of an estate by inheritance in which an heir succeeds to the property by operation of law.
DEVELOPER
One who attempts to put land to its most profitable use through the construction of improvements.
DEVISE
A gift of real property by will. The donor is the devisor, and the recipient is the devisee.
DISCOUNT POINT
A unit of measurement used for various loan charges; one point equals 1 percent of the amount of the loan.
DOMINANT TENEMENT
A property that includes in its ownership the appurtenant right to use an easement over another person's property for a specific purpose.
DOWER
The legal right or interest, recognized in some states, that a wife acquires in the property her husband held or acquired during their marriage. During the husband's lifetime the right is only a possibility of an interest; upon his death it can become an interest in land.
DUAL AGENCY
Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states.
DUE-ON-SALE CLAUSE
A provision in the mortgage that states that the entire balance of the note is immediately due and payable if the mortgagor transfers (sells) the property.
DURESS
Unlawful constraint or action exercised upon a person whereby the person is forced to perform an act against his or her will. A contract entered into under duress is voidable.
E
EARNEST MONEY
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
A right to use the land of another for a specific purpose, such as for a right-of-way or utilities; an incorporeal interest in land.
EASEMENT BY CONDEMNATION
An easement created by the government or government agency that has exercised its right under eminent domain.
EASEMENT BY NECESSITY
An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example, a right of ingress and egress over a grantor's land.
EASEMENT BY PRESCRIPTION
An easement acquired by continuous, open and hostile use of the property for the period of time prescribed by state law.
EASEMENT IN GROSS
An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner. For example, a right granted by Eleanor Franks to Joe Fish to use a portion of her property for the rest of his life would be an easement in gross.
ECONOMIC LIFE
The number of years during which an improvement will add value to the land.
EMBLEMENTS
Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called fructus industriales.
EMINENT DOMAIN
The right of a government or municipal quasi-public body to acquire property for public use through a court action called condemnation, in which the court decides that the use is a public use and determines the compensation to be paid to the owner.
EMPLOYEE
Someone who works as a direct employee of an employer and has employee status. The employer is obligated to withhold income taxes and social security taxes from the compensation of employees. See also independent contractor.
EMPLOYMENT CONTRACT
A document evidencing formal employment between employer and employee or between principal and agent. In the real estate business this generally takes the form of a listing agreement or management agreement.
ENABLING ACTS
State legislation that confers zoning powers on municipal governments.
ENCROACHMENT
A building--or some portion of it--a wall or fence for instance, that extends beyond the land of the owner and illegally intrudes on some land of an adjoining owner or a street or alley.
ENCUMBRANCE
Anything, such as a mortgage, tax, or judgment lien, an easement, a restriction on the use of the land or an outstanding dower right that may diminish the value or use and enjoyment of a property.
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age or marital status.
EQUALIZATION
The raising or lowering of assessed values for tax purposes in a particular county or taxing district to make them equal to assessments in other counties or districts.
EQUALIZATION FACTOR
A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valorem tax would be based on this adjusted value.
EQUITABLE LIEN
See statutory lien
EQUITABLE RIGHT OF REDEMPTION
The right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges.
EQUITABLE TITLE
The interest held by a vendee under a contract for deed or an installment contract; the equitable right to obtain absolute ownership to property when legal title is held in another's name.
EQUITY
The interest or value that an owner has in property over and above any indebtedness.
EROSION
The gradual wearing away of land by water, wind and general weather conditions; the diminishing of property by the elements.
ESCHEAT
The reversion of property to the state or county, as provided by state law, in cases where a decedent dies intestate without heirs capable of inheriting, or when the property is abandoned.
ESCROW
The closing of a transaction through a third party called an escrow agent, or escrowee, 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 a transaction.
ESCROW INSTRUCTIONS
A document that sets forth the duties of the escrow agent, as well as the requirements and obligations of the parties, when a transaction is closed through an escrow.
ESTATE (TENANCY) AT SUFFERANCE
The tenancy of a lessee who lawfully comes into possession of a landlord's real estate but who continues to occupy the premises improperly after his or her lease rights have expired.
ESTATE (TENANCY) AT WILL
An estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite.
ESTATE (TENANCY) FOR YEARS
An interest for a certain, exact period of time in property leased for a specified consideration.
ESTATE (TENANCY) FROM PERIOD TO PERIOD
An interest in leased property that continues from period to period, week to week, month to month or year to year.
ESTATE IN LAND
The degree, quantity, nature and extent of interest a person has in real property.
ESTATE TAXES
Federal taxes on a decedent's real and personal property.
ESTOPPEL
Method of creating an agency relationship in which someone states incorrectly that another person is his or her agent, and a third person relies on that representation.
ESTOPPEL CERTIFICATE
A document in which a borrower certifies the amount owed on a mortgage loan and the rate of interest.
ETHICS
The system of moral principles and rules that becomes standards for professional conduct.
EVICTION
A legal process to oust a person from possession of real estate.
EVIDENCE OF TITLE
Proof of ownership of property; commonly a certificate of title, an abstract of title with lawyer's opinion, title insurance 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 real estate for real estate).
EXCLUSIVE-AGENCY LISTING
A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner's stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker.
EXCLUSIVE RIGHT-TO-SELL LISTING
A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time, to sell the property on the owner's stated terms, and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner or another broker.
EXECUTED CONTRACT
A contract in which all parties have fulfilled their promises and thus performed the contract.
EXECUTION
The signing and delivery of an instrument. Also, a legal order directing an official to enforce a judgment against the property of a debtor.
EXECUTORY CONTRACT
A contract under which something remains to be done by one or more of the parties.
EXPRESS AGREEMENT
An oral or written contract in which the parties state the contract's terms and express their intentions in words.
EXPRESS CONTRACT
See express agreement
EXTERNAL DEPRECIATION
Reduction in a property's value caused by outside factors (those that are off the property).
F
FAIR HOUSING ACT
The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status and national origin.
FANNIE MAE
See Federal National Mortgage Association (FNMA)
FARMER'S HOME ADMINISTRATION (FmHA)
An agency of the federal government that provides credit assistance to farmers and other individuals who live in rural areas.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
An independent federal agency that insures the deposits in commercial banks.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
A corporation established to purchase primarily conventional mortgage loans in the secondary mortgage market.
| 