Real Estate Glossary Terms Beginning With – A

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Terms Beginning With - A

Property Development & Investment Glossary, Terms & Definitions

A-frame construction

People who live in this kind of house have an outside design that looks like the letter A.

A, B, C, D paper

Borrowers and loans are classified according to their desirability; an A borrower is the most desirable and is eligible for the lowest interest rates; B is less desirable, while C and D are the least desirable. 

AAA tenant

A reputable business tenant with an extraordinary credit rating, or one whose national or local recognition provides dignity to a shopping complex or office facility.

Abandonment

Voluntary surrender of property, whether owned or leased, without naming a successor as owner or renter.

The act of giving up or letting go of real property without giving this right to anyone else. An overt act is usually needed to show that someone has given up on their home, like not paying their property taxes. Each case of possible abandonment must be looked at to see if the property has been legally left behind. The fact that someone doesn't use the property isn't enough to show that they won't take it back. For example, the owner of an easement footpath across a neighbouring property might show that they don't want to keep it by building a fence between the two properties. When a condemning authority gives up an easement, the fee owner (condemnee) is the only person who owns the land.

This is different from "surrender," which must be agreed to by both the lessor and the lessee, and "forfeiture," which happens without the owner's permission. It happens when someone gives up a right to do something that isn't allowed under the current zoning rules. See forfeiture and surrender.

A tenant who moves out of the leased property because they no longer want to follow the terms of the lease is "abandoning" the property. The landlord then takes full ownership and control. The lessee is still responsible for paying rent until the lease is over. It is called a surrender if the landlord agrees to end the tenancy. If the landlord doesn't, the tenant doesn't have to pay future rents.

There is a law in many states that says that landlords must make "reasonable efforts" to rent out the abandoned property at a fair price. See the Uniform Residential Landlord and Tenant Act (URLTA) for more.

People who want to give up their homestead in states that recognise homestead rights must file a declaration of abandonment in the public record. A person's homestead rights will not be officially lost if he or she just walks away from these places. See also homestead.

There may be income tax consequences if you don't pay. People who own property and then leave it may be able to treat it as though they sold it for nothing, even though they didn't get any money for sale at all (other than relief from any mortgages or liens). As a result, the taxpayer can claim a loss in this case, up to a certain amount.

Most states have laws that outline the rights and responsibilities of the government and other people when they can't find or don't want their own personal property. Landlords of mini-warehouses, for example, should think very carefully about what could happen if they throw away unclaimed property at the end of a rental.

Abatement

Reduce or decrease in the number of things that are the same amount, intensity, or value There are many situations in which a lessee can get a break on the rent because of fire, flood, or other acts of God. Some landlords may also cut rent if they don't give a tenant possession when they say they will.
People who buy real estate can get their money back if they find a flaw in the title of a seller and they don't fix it before they close. This is called "specific performance." For example, a buyer signs a contract to buy a $100,000 house. Title checks before the closing show that sellers haven't paid $5,000 in property taxes, which means they won't be able to sell their home. In this case, the sellers don't want to pay the taxes, so they decide not to sell the house. An action for specific performance could be used by the buyer to deposit $95,000 in court and force the sale of the home. In order to get clear title to their home, the sellers would pay the state the $5,000 in unpaid taxes that had been left unpaid.

Tax abatement happens when there is a reduction in taxes or a halt to taxes on an initial assessed value, like when there was an error in the taxes.

When a court orders the destruction of unsafe or damaged buildings, this is called a "summary abatement."

If a property owner is keeping a nuisance, such as a chemical plant that emits harmful fumes, an abutting owner can file a lawsuit to get rid of the nuisance.

An asbestos abatement plan lays out how to deal with asbestos in a home. How to get rid of asbestos is done by people who have been trained to remove it. They can also encapsulate it so that the fibres can't be released, wrap it in a protective jacket, or seal off a place that has asbestos, like a crawlspace.

Able

Financial ability is used in the phrase "ready, willing, and able buyer," which is used to see if a broker can get paid. It doesn't mean that the buyer must have all the money needed to buy the house. It means that the buyer must be able to get and set up the financing in the time frame set out in the purchase agreement.

Abnormal sale

This is a real estate sale that isn't typical for the market. To be used as a reliable comparison, the appraiser needs to think about things like whether the sellers sold their home to their kids for less than market value.

Absentee owner

A property owner who does not live on the premises or manage it.

A non-residential property owner who frequently defers management of the investment to a property manager.
Federal tax laws apply to ownership of depreciable real property when the owner is away for the majority of the year but occupies the property during vacations or other periods. These improvements are intended to mitigate the tax benefits associated with an absentee owner's use of the property as a second home. For detailed details, consult an experienced attorney.

Numerous states now require sellers to provide a property condition report to the buyer. This creates complications for absentee owners. Alternatively, the absentee owner may wish to provide a report from a professional property inspector to the buyer. The absentee owner is excused from providing the report in several states.

Absolute

Absolute and unrestricted, as in a fee simple absolute estate, an absolute transaction, or absolute obligation (strict liability).

Absolute monopoly

A market in which there is just one supplier of an item or service for which no reasonably acceptable substitutes exist.

Absorber

A solar heat collector's covered panel that absorbs solar radiation and transmits it through absorber fluid passageways to be transformed to heat energy.

Absorption bed

This is a shallow trench that has a distribution pipe in it. The septic tank effluent flows through the pipe and into the soil.

Absorption rate

The expected time it takes to lease properties in an area.

The rate at which a property is sold or leased. Absorption is typically represented in terms of units sold or leased per month for apartments or for-sale homes. The metric for office or retail space is square feet leased per quarter or year.

A forecast of the annual sales or occupancies of a certain type of space, such as new office space, new homes, or new condominium units. This rate is frequently predicted as part of a feasibility study or evaluation conducted in conjunction with a loan request.

The pace at which a product is "absorbed" by the market; the rate at which units are purchased.

Abstract and opinion

A statement of the chain of previous title transfers for real estate, as well as an attorney's written judgement that the title is free of defects.

Abstract Of Judgment

This is the document that is utilised to enforce a judgement lien. Must be filed in any county in which the judgement debtor own real property.

Abstract of title

A synopsis of each documented document related to the title to a certain tract of land.

A comprehensive overview of all sequential grants, conveyances, wills, records, and judicial procedures affecting title to a particular tract of real estate, as well as a listing of all documented liens and encumbrances affecting the property and their current status. The abstracter searches the title as it is recorded or registered with the county recorder, county registrar, circuit court, and/or other official sources. The abstractor compiles a list of all documents impacting the property and arranges them chronologically, beginning with the grant of title.
The abstract offers a list of public records that were accessed and those that were not accessed during the report's development. When summarising a deed in the chain of title, the abstractor may include the book and page number of the recorder's book, the date of the deed, the date of recording, the names of the grantor and grantee, a brief description of the property, the type of deed, and any conditions or restrictions contained in the deed.

The abstract of title in no way guarantees or ensures the validity of the property's title. Rather than that, it is a condensed history that discloses just those facts concerning the land that are public records; it does not disclose encroachments or forgeries. As a result, abstractors are typically only accountable for damages resulting from their own negligence in examining public information.

Abstracter

A person who draughts a title abstract. Additionally spelled abstractor.

abstracter's certificate

An abstractor's warranty that an abstract contains all public records affecting title to a particular plot of property.

abstraction

An assessment technique in which the appraiser determines the land value of any developed property by subtracting the value of any site improvements from the property's overall sales price. The remaining sum represents the land's projected sales price, or indicated value. Additionally referred to as the allocation or extraction procedure.

abutment

A section of a wall or pier that is pressed by an item, such as the supports at either end of a bridge.

Abutting owner

A landowner whose property is adjacent to a public road or any other contiguous property. The primary source of contention between adjacent owners is encroachment, party walls, access, light and air easements, and lateral support. The rights of an adjoining neighbour include the right to see and be seen from the street. (For more information, see access, lateral, and subjacent support.)

Accelerated Cost Recovery System (ACRS)

The Economic Recovery Act of 1981 introduced a technique of depreciation that determines the useful life of various types of property.

The Economic Recovery Tax Act of 1981 came up with a simple way to depreciate things. It was meant to replace the old ""ADS class life"" system. People who live in certain classes or own certain types of things can write off some of the costs over a certain amount of time. People who bought or used a lot of things between 1980 and 1987 were subject to ACRS. (See accelerated depreciation, depreciation [tax], salvage value, salvage value, useful life, and useful life.)

The Tax Reform Act of 1986 made a lot of changes to the ACRS rules. After December 31, 1986, the changes are most effective. See "MACRS," the Tax Reform Act of 1986, for more information.

Accelerated Depreciation

A depreciation method in which the asset is written off faster than using the straight-line method.
Depreciation is a way to write off the cost of certain things that people own and things that people make to real property faster for tax purposes than if they used the straight-line method. In order for the property to be taxed, it must be used in a trade or business or held for the purpose of making money. This method is based on the idea that an asset deteriorates more quickly in its first years of life.

For a description of the basic methods, see the SOYD method and the declining balance method.
In the case of property that has already been put to use, the original period and method of depreciation or cost recovery will stay in place as long as the same owner keeps the property in service for an eligible use. This means that some people will figure out depreciation for things that were put into use before 1981, ACRS things that were put into use between 1981 and 1986, and things that were put into use after 1986.

Accelerated Method

A technique of calculating depreciation or cost recovery allowances in which substantial yearly allowances are claimed in the first years of ownership, offset by lesser allowances in subsequent years.

Acceleration Clause

If the mortgagor defaults on any of the requirements, a clause in the mortgage agreement gives the mortgagee the authority to accelerate full repayment of the debt.

A provision that allows the mortgagee to declare the entire amount of a loan due and payable if the mortgagor fails to meet any of the agreed-upon requirements.

A clause that requires all future payments to be made in the event of a single loan failure. When a single payment is late, the lender is not required to litigate for each payment.

In the case of a mortgage, trust deed, promissory note, or contract for deed (agreement of sale), there is a clause that gives the lender the right to call all the money that is due and owed before the agreed-upon payment date. This could happen if someone doesn't pay an instalment, the property is destroyed, an encumbrance is put on it, or the property is sold or given away. The payee usually has the option to speed up the note if he or she doesn't pay any instalment of interest or principal when it's due, as long as he or she gives enough notice and gives the person who owes the money a chance to fix the problem. It can also happen if the payee doesn't pay taxes and assessments or keep the property insured and in good condition. Also, if the borrower (mortgagee) does not have good title to the property he or she is borrowing, the lender may be able to move forward with the loan. For example, if all or part of the property is taken away, the lender may be able to move forward with the loan.

If it isn't written in the mortgage or contract for the sale, there is no way to speed up the process. There should be a match between the acceleration clauses in the mortgage and the ones in the promissory note. A due-on-sale clause or alienation clause is also called an acceleration clause when it says that the payment will be made faster when the property is sold, so it is called that. There are times when an acceleration clause won't be valid because it's too much of a restraint on the sale of a home.

The seller of a contract for deed usually adds a clause that says that if the buyer doesn't fix a problem, the whole balance is due and must be paid. If this clause was not in place, the seller would have to sue the buyer when each instalment payment was due, and the buyer did not pay it.

Acceleration Principle

An occurrence that has a higher impact on demand or prices than may be directly attributed to that event. The driving force that draws trade, business, and/or industry to a specific location.

Acceptable Referee

Accountants, solicitors, magistrates, doctors, and the justice of the peace are all in this group.

Acceptance

To accept an offer or contract's terms and conditions.

The act of a party to whom a thing is provided, in which he or she accepts the object with the aim of keeping it.

The goal is to agree to the terms and conditions of a deal or offer

1. A person who accepts an offer (such as the seller in a real estate deal) says that they will follow the terms of the offer. It must be told to the person who made the offer that you have agreed to it (offeror, such as a buyer). The communication doesn't have to be written. It could be a simple nod of the head. If the offer is written and the acceptance is written, too, it must be written to be valid.

After making an offer, a buyer can cancel it at any time before the seller tells them that they've accepted it. Even if the buyer has said that they want to keep the offer open for a certain amount of time. Since the sales contract should say that it must be agreed to at a specific time and that acceptance should be communicated to both buyer and seller as soon as possible, this is what you should write in there. Getting the message across is very important because after a seller accepts your deal, but before you hear about it from them, you could effectively revoke your offer and not be able to buy the thing.

It must also be done within the time limit set out in the offer. If there is no time limit, the acceptance is valid if it is made in a reasonable amount of time, which varies from case to case and from community to community. Some offers say that if you accept the deal, you won't be able to close the deal until the offeror or broker gets a signed copy from you within a certain amount of time.

You can't accept an offer unless you use the method that the offer says you can use to accept it, like by facsimile or by e-mail. For example, if you accept a mailed offer, it becomes a legally binding contract when it is sent through the mails. The law assumes that the buyer chose the post office as the person who would get the acceptance notice. When the acceptance is sent in an unusual way, like by posting it in a newspaper ad, the contract isn't valid until the buyer gets the acceptance in a reasonable amount of time.

You don't have to accept an offer for the price you put on your home if you put it on the market through a broker. The listing is not an offer to sell, but a job offer. Because it doesn't give the buyer any power of acceptance, it doesn't work. Because the owner may owe the broker money, however, they may have to pay them money.
Silence is usually not enough to show that you want to accept, but sometimes it can be. Even though the community might be more used to 7 percent, some people think that the broker agreed to another 4 percent commission rate when he or she handled many sales for a developer at a 4 percent commission rate.

2. The grantee must willingly and unconditionally accept a deed in order for the deed to be valid. A grantee who doesn't want to own the property doesn't have to accept the deed. Constructive acceptance: When a beneficial transfer to a person who can't agree is made, the courts often assume that the grantee will accept it. This is called a deed to a minor or an incompetent person. Taking the deed, recording the deed, paying the sales price, encumbering the title, or any other act of ownership shows that the grantee has agreed to the deal.

As an example, a court probably wouldn't assume that the grantor had agreed to give his $ 100,000 farm, which was heavily in debt and had building code violations, to a grantee who died without ever hearing about it. As long as there was a valid delivery, the property would go to his estate if there was no debt or code violations on it.

access

A technique of approaching a property or an entry into or upon a property. Additionally, access can refer to a broad or specific right of admission and egress to a certain property. Generally, a property owner has the right of access to and from his or her land to a public street or highway adjacent to the property, including the right to unrestricted light and air movement from the roadway to the property. Additionally, the term access refers to a riparian owner's right of passage to and from the waters that border his or her property.

Numerous state statutes provide that a residential tenant may not withhold consent from the landlord to enter the dwelling unit to inspect the premises, make necessary or agreed-upon repairs, provide agreed-upon services, show the dwelling unit to prospective purchasers, mortgagees, or tenants, or to demand rent. However, the landlord may not misuse this right of access or use it to harass the tenant and should enter only after providing adequate notice to the tenant, in an emergency, or when doing so is impractical.

Condominium rules establish easements and other rights that allow owners access to their units via shared features.

Access Right

To accept an offer or contract's terms and conditions. The act of a party to whom a thing is provided, in which he or she accepts the object with the aim of keeping it.

Accessibility

1. How easy it is to get to a site and where it is in relation to different transportation facilities is an important factor in deciding if a site is good for a certain use.

2. The ability of a person with a disability or handicap to get to and use things more easily and on their own. Making doors wider, increasing the radius of a wheelchair and installing grab bars, audible and visual signals as well as the like are all examples of things that can be done.

Accession (Accesion)

Acquiring title to extra land or improvements through annexation of fixtures or alluvial deposits along the banks of streams. For instance, if Ben Brown constructs a fence on his neighbour's land without first obtaining permission from the neighbour to remove it, ownership of the fence passes to the neighbour, until the neighbour wants its removal. (See also annexation, accretion, alluvion, fixture, and improvement.)

Accessory Building (Edificacion Complementaria)

It is a building that is not the main building on the same lot. If, for example, a garage, pump house, or storage shed is built on the same piece of land as the main building on the property, it would be called a "accessory building," not the main building.

Accommodating Party

A person or corporation that agrees to take title to a property in return for tax benefits under Section 1031. Additionally referred to as the middleman.
Without receiving any remuneration, a party signs a negotiable document (such as a promissory note) as maker, acceptor, or endorser in order to accommodate another party and strengthen the paper's creditworthiness by giving his name as additional security. For instance, a brother who co-signs a banknote with his sister in order for her to borrow money to purchase a house is considered an accommodation party to the lending arrangement.

Accord And Satisfaction

For these standards to apply, the requirement must be disputed (that is, an unliquidated debt). For instance, if Gary Green owes Bob Brown $100 and sends Brown a $75 check marked ""payment in full,"" Brown retains a claim against Green for the remaining $25 amount. If, on the other hand, the amount owing is disputed and Green offers a $75 check in full payment, the act of depositing the check constitutes an agreement and satisfaction, and the obligation is discharged.

Account Payable

A debt (liability) is an amount of money that a person owes to another person, usually because they bought something, like goods, supplies, or services. It's not always due right away.

Account Receivable

A debtor has a claim against the debtor, which usually comes from sales or service that the debtor has paid for. Because an account receivable is the opposite of an account payable, it isn't always due or late at any given time.

Accounting

The agent's fiduciary obligation is to safeguard and protect the principal's property and funds. The agent is responsible for maintaining accurate records of funds and papers received.

Accredited investor

A wealthy investor who is not one of the 35 investors allowed to invest in a private limited partnership under Securities and Exchange Commission Regulation D. To be eligible, an investor must have a net worth of at least $1,000,000, an annual income of at least $200,000, or a minimum investment of $150,000 in the deal, with the investment not exceeding 20% of the investor's net worth.

Accredited Land Consultant (ALC)

The REALTORS Land Institute bestows this professional qualification (RLI).

Accredited Management Organization (AMO)

A professional title bestowed upon management groups that adhere to the Institute of Real Estate Management's requirements (IREM).

Accredited purchasers

Investors who are either (1) sufficiently rich to ensure that a proposed stocks acquisition (of $150,000 or more) does not exceed 20% of their net worth. (2) have a net worth of more than $1 million, or (3) have a two-year earnings record of more than $200,000 each year and expect current earnings to surpass $200,000.

Accredited Resident Manager (ARM)

A title given by the Institute of Real Estate Management (IREM).

Accredited Rural Appraiser (ARA)

The American Society of Farm and Rural Appraisers gives this title to people who work in the field of farm and rural value.

Accretion

Because of soil deposited by waves and current action, the land area close to a body of water gradually grows.

Land expands in size as a result of the addition or accumulation of soil to it through time through natural deposits.

Alluvial deposits of soil move with the flow of water, such as when a stream or river moves the shoreline. Land that is added to a stream, whether it is navigable, is owned by the person who owns the land next to it. Any existing mortgages also apply to this new land. However, if the land is slowly washed away by erosion, the owner can lose the right to the land.

Accrual basis

Income and costs are recognised when they are earned or incurred, even if they have not yet been received or paid, according to this accounting technique.

Accrual Method

Income and expenses are reported in this way even if the expenses or income were not paid or the money was not received. This is an accounting method. The right to get, not the fact that you got it, is what makes the money count as gross income. Expenses are also deducted when the taxpayer's liability is set and clear, not when the taxpayer pays the expense. Most of the time, businesses can use the accrual method. Individuals can't use it, though. For more information on how to report income and expenses in another way, see the cash method.

Accrued

Amounts that have been built up over time, like accrued depreciation, accrued interest, or accrued expenses. There are costs that have already been paid, like real estate taxes. It's called a "closing statement," and it shows how much money the buyer owes to the seller. The buyer will pay this money back at a later date.

Accrued Depreciation (Depreciacion Acumulada)

A decrease in value is a result of physical degradation, functional obsolescence, and economic or geographical disadvantages. The process of determining and quantifying decreases in a property's current market value from today's reproduction cost in cost appraisal.

1. In accounting, a bookkeeping account that shows how much depreciation has been taken off an asset since it was bought. This is also called accumulated depreciation.
2. It's important for an appraiser to figure out how much it would cost to make the property again and how much it's worth now, so that they can figure out how much it's worth. In this case, accrued depreciation is called "diminished value."

Accrued interest

Interest that is due but has not yet been paid.

Accumulated depreciation

The entire amount of depreciation taken thus far.

Accuracy

The similarity of observations, calculations, or estimations to true values or values regarded as true.

Acknowledgement

An individual's assertion that he has signed a paper voluntarily. A notary public or other relevant public official certifies that the grantor indicated before the official that he or she executed the recognised instrument. Confirmation that a deed represents the grantor's purpose and behaviour.

A statement made in front of a person who is legally allowed to do so, usually a notary public, by a person who has signed a document. Also, the document that the person signed. An acknowledgment is meant to stop fake and fraudulent documents from taking effect. The officer makes sure that the person who signed is someone who is known to the officer or who has the right identification. As usual, the person does not need to sign in front of the officer. The officer is liable for any damages caused by his or her negligence in not being able to identify the person correctly. For example, if someone forges someone's name because the officer accepted verification over the phone.

In most states, a document can't be recorded unless it's been signed by the person who wrote it. If a foreign acknowledgment (one that took place outside of the state where it is to be recorded) is valid where it was made, it is likely to be valid where it is to be recorded. When a foreign official signs an acknowledgment, it shows that it was done in accordance with the laws of the place where it was done and that the officer had the right to take the acknowledgment. This means that the document can be recorded and, if necessary, read into evidence in any judicial proceeding without having to show that it is real. However, for documents signed outside of the United States, many states require that the acknowledgment be made by an official at a U.S. Consulate Office, but this is not always the case.

It's important for the officer to sign the document if it has been changed or crossed out, even if it has been agreed to by everyone. Otherwise, the document might not be able to be recorded. Signs should be made in black ink because modern methods of making copies of documents make them easier to read.

Companies, partnerships, trustees, and attorneys-in-fact use different types of acknowledgment forms, and there are also different forms for each of these groups.

Acquired Immunodeficiency Syndrome (AIDS)

A very bad disease of the body's immune system. Federal and state laws don't allow people who have acquired immunodeficiency syndrome to be discriminated against because of their condition. The fact that someone has AIDS isn't considered a material fact in many states, so they can't say that a broker tried to hide a fact. People who have AIDS-related complex (ARC) or human immunodeficiency virus infection are also safe (HIV).

Acquisition

The procedure for acquiring real estate.

Acquisition Appraisal

The process of figuring out how much a piece of land is worth in the real world so that it can be used for a public good. The goal of the appraisal is to figure out what the market value is so the government can figure out how much the property owner should get. See appraisal, condemnation, and market value for more.

Acquisition cost

The whole cost of purchasing a piece of real estate, including all fees, closing costs, and renovation expenditures.

In order to get the right to own something, money or other valuable things had to be spent. Closing costs, appraisal fees, and title insurance are some of the things that come with the purchase price.

Acquisition fee

A fee paid to a syndicator in return for their assistance in the acquisition of a property.

Acre (AC) (Acre)

An important land area measurement (containing 43,560 square feet).

43,560 square feet, 160 square rods, 10 square chains, or 4840 square yards are the dimensions of a piece of land.

43,560 square feet, or 208.71 feet by 208.71 feet, is a unit of land area. Equivalent to 4,840 square yards (4,047 square metres), 160 square rods (160 square rods), or 0.4047 hectare. A square mile is equivalent to 640 acres (25.6 hectares).

Acre Foot

One cubic yard is the same amount of water, sand, or minerals that would fill an area of one-acre with a depth of one foot. It is used to measure irrigation water. There are 325,850 gallons in each one of these things.

Acreage Zoning

By requiring big building lots, zoning was designed to limit residential density. Additionally referred to as large-lot zoning or snob zoning.

Act Of God (Caso Fortuito, Fuerza Mayor)

A natural disaster that is uncontrollable by humans, such as a tidal wave, flood, storm, volcanic eruption, or earthquake. Numerous contracts have a force majeure provision, which temporarily or permanently releases the parties from contract performance in the event that an act of God destroys or damages the subject matter of the contract or prevents performance. This clause, referred known as the destroyed or materially damaged clause, releases the parties to a real estate sales contract from obligation if an act of God damages the property's improvements prior to title transfer.

Active income

Taxable income generated through salaries, wages, commissions, fees, and bonuses under US income tax law.

Activity

Another name for a task or the work completed throughout the course of a project.

Actual Age

The building's chronological age, which is the opposite of its effective age, which is based on how well and how well it works. A building that is only 1 5 years old might have an effective age of 20 years because it hasn't been kept up.

Actual Cash Value

An insurance term for how much money an improvement would be worth. In order to figure out how much a property is worth in cash, you subtract the value of the physical wear and tear from the cost of replacing the property.

Actual Damages

Damages that a court of law will acknowledge as a direct result of an act of wrongdoing. By contrast, courts award exceptional or punitive damages as a deterrence and as a sanction.

Actual Eviction

The process of physically evicting a tenant after the court rules in favour of the owner and the tenant doesn't want to leave. It is sometimes called eviction or taking back something. People who are evicted are shown in this picture

Actual notice

An open, continuous, and obvious expression of real property claims to those who study the property.
Express knowledge or information; what is known; actual knowledge. Constructive notice, on the other hand, is the kind of knowledge that is required by law. It is the kind of knowledge that the law says you should know.

In most cases, a person who is aware of a third party's rights to a piece of land takes the land with that third party's rights in mind. A person can't get the benefits of the recording law if they buy a piece of land with knowledge of a previously signed but unrecorded document. There is also a type of notice called a "inquiry notice," which is used when there are circumstances, appearances, or rumours that make it clear that someone else owns the property. This type of notice can be used to find out if someone else owns the property.

Actual Rent

The amount of rent paid to the owner of a property.

Actuary

A person who works for an insurance company or savings and loan group, and who is good at figuring out how much life interests, pension plans, and annuities are worth.

Ad valorem

A Latin phrase that refers to the taxation of property based on its monetary worth.

Latin: "according to value," which is usually used to talk about a tax or assessment. Real property tax is an ad valorem tax that is based on how much the property is worth. Each piece of property is taxed based on its value, not on how many units there are, like a tax on a gallon of gas or a package of cigarettes.

Ad valorem tax (Latin)

Property taxes levied on the basis of the property's market value.

Adaptability

The ability to easily change the physical design of residential or commercial units in the future to meet the needs of people who have limited mobility in the future. Putting reinforcements in the walls of a bathroom makes it easy to put in grab bars later on.

Adaptive reuse

A conversion in which the emodeling results in a creative reuse of the building for a purpose other than its original.

Adaptive Use

Putting an ancient but sound structure to new use.

ADC Loan

People who want to buy, build, and develop a project get loans to pay for all of that.

Add-Back

For a loan that lets you put off paying some of the interest, that money is added to the amount you'll have to pay at the end.

Add-On Interest

Interest is calculated on the total principal balance for the chosen term, regardless of any principal repayments. The borrower is charged interest on the full principal amount for the duration of the loan (not on the declining balance), despite the fact that the principal is decreased monthly. Additionally referred to as block interest.

For example, a $10,000 loan with 12% add-on interest payable over three years would need equal annual interest payments of $1,200 regardless of the amount of unpaid principal. As a general guideline, double the reported add-on interest rate to obtain the effective rate of interest (true annual interest). Thus, the true yearly interest rate on the $10,000 loan in the example would be about 24 percent.

Addendum

Additions that are added to and become part of a document. If there isn't enough space on the sales contract form to write down all the details of a deal, the parties will add an addendum or supplement to the contract. The sales contract should include the addendum by referring to it as part of the deal, so it should be there. If there is an addendum to the sales contract, it should be dated and signed or initialled by all of the people who signed the contract.

Addition

When a building gets bigger or has a big change made to it, that's a renovation. If you add another floor to a one-story house, that's an addition.

Additional Charge Mortgage

A type of mortgage that is used to get more money from the person who owns the house after the person who owns the house gets a loan from the person who owns the house. There should be no question about whether the two debts are linked.

Additional Deposit

The extra money the buyer gives to the seller or to an escrow account as a part of a deal to buy something. The extra deposit is usually paid within a short time after the offer is accepted. With her offer to buy the seller's $150,000 condo unit, the buyer might deposit $1,000. She might also agree to pay an extra deposit of $4,000 in five working days after the seller accepts her offer. If the buyer doesn't keep their end of the deal, the seller can keep all of the money they've put down, including the extra deposit.

It might be possible for the seller to end the contract if a court rules that the buyer didn't pay on time was an important breach of the contract. There are many ways for the seller to make sure this happens. One way is to make the seller's acceptance contingent on timely payment of the extra deposit.

Additional repayment

Additional money are deposited into the loan over and above the required minimum payments. A lot more money was put into the loan than the minimum payment.

Additional Space Option

Tenants have the option to expand the space they rent during the term of their lease, as long as they do so in a way that is set out in their lease.

Adhesion Contract

A one-sided contract that benefits the party who authored the deal. Indeed, an adhesion contract might be so one-sided that doubts about its being a voluntary and uncoerced agreement arise due to the implication of a significant negotiating power imbalance. Courts will not enforce adhesion contract clauses that are unjust or oppressive toward the party who did not draught the contract. Additionally referred to as a take-it-or-leave-it contract.

Contracts containing extensive fine language, such as franchise agreements, mortgages, and leases, are occasionally challenged as adhesion contracts on the grounds that the non-drafting party was not given an opportunity to bargain over the agreement's many elements.
Additionally, an insurance contract (property, title, or life) is occasionally contested as an adhesion contract. Courts have concluded that any ambiguity should be construed in the insured's favour, and that any exclusion from coverage must be disclosed plainly and prominently. Additionally, courts will employ the notion of unconscionability.

Adjudicated

It is something that has been decided by a court or government body.

Adjunction (Adjuncion)

The act of annexing a piece of land to a larger piece of property.

Adjustable Rate Loan

There are many types of loans that can have different rates and terms. Fannie Mae and Freddie Mac, the Federal Housing Finance Agency, the Comptroller of the Currency, and the Office of Thrift Supervision have all issued guidelines that allow real estate loans with provisions to change the rate of interest at certain intervals (e.g., every six months) and within a certain range to be made (e.g., 1 percent).
People now use adjustable-rate loans, which can change their interest rates based on changes in the market. The ranges for time intervals, percentage increases or decreases, and total increases or decreases can change as the market changes. There is a cap on the biweekly payment loan that you can see.
The adjustable-rate loan has its own set of terms, like the following:

  • Current index: In this case, the current value of a well-known index as it is calculated and reported nationally or regionally. The value of the current index changes all the time. This value is used to figure out the new note rate on each rate adjustment date.
  • Fully indexed note rate: At the time of application, add up the index value at that time, as well as the gross margin in the note that says that.
  • Gross margin: When the rate changes, an amount of percentage points is added to the current index value to get the new note rate. In the loan document, the gross margin is written down.
  • Initial rate: The low rate for the first adjustment period was meant to entice people to borrow money (the "teaser rate").
  • Initial rate discount: When you apply for a loan, you need to know how much money you make and how much debt you have.
  • Life of loan cap: A limit that the note rate can't go over over the life of the loan is called a "cap."
  • Note rate: The rate that determines how much interest the borrower will pay each year, or how much they will pay each month. The accrual rate, the contract rate, or the coupon rate is also called the note rate, but these are different names.
  • Payment adjustment date: Borrowers may have to pay more or less each month.
  • Payment cap: At the payment adjustment date, there is a cap on how much the borrower's monthly principal and interest will go up at that time. If the interest rate rises by more than the payment cap percentage, this rule comes into play. In most cases, the borrower can choose whether or not to follow this rule. Negative amortisation could happen.
  • Payment rate: It is the rate at which the borrower pays back the loan. This rate is based on buydowns or payment caps.
  • Periodic interest rate cap: A cap on how much the note rate can change at each rate change, which limits how much the borrower's payment will change at each rate change.
  • Rate adjustment date: Loan rates may change on this date.
  • Subsidy buydown: The money, usually from the builder or the seller, is used to make the selling price of a home a little sweeter by lowering the monthly principal and interest payment for a short time.

Adjustable rate mortgage (ARM)

A mortgage whose interest rate is linked to a floating index. At predetermined intervals, the interest rate is modified. Alternative mortgage form in which the interest rate is tied to an indexed rate during the life of the loan, allowing borrowers and lenders to share interest rate risk. The interest rate on a mortgage loan fluctuates on a regular basis.

Adjusted average rate of return method

A modified rule of thumb that uses an average income or cash flow figure while accounting for the predicted sales price or equity reversion.

Adjusted basis

Equal to the initial cost basis plus any extra real estate or personal property capital expenditures, less the total amount of tax depreciation absorbed after the property was placed in operation.

The sum paid for the property plus any further capital expenditures made to improve it, less any tax deductions for depreciation or cost recovery allowances.

The property's initial cost basis is decreased by some deductions and enhanced by certain improvements. The taxpayer's initial basis, as established at the time of acquisition, is reduced by the amount of permissible depreciation or depletion allowances accepted and by the amount of any uncompensated property losses sustained. The cost of capital improvements is then added, as are some carrying expenses and assessments. The taxpayer recognises gain or loss on the sale of property by deducting the adjusted basis on the date of sale from the adjusted sales price.

Adjusted gross income

The gross taxable income less a set of specified deductions outlined in the Internal Revenue Code.

Adjusted rate of return

A customized version of the internal rate of return that is intended to remove issues related with negative cash flows.

Adjusted tax basis

The sales price less costs and commissions on which a capital gain or loss is calculated.

Adjustment Interval

The frequency at which an adjustable-rate mortgage loan's interest rate and monthly payment amount can be changed. 

Adjustment period

The number of initial years that an ARM remains set before the interest rate can be modified.

Adjustments

Additions or subtractions from similar sale price or cost necessary to make the comparative properly more directly comparable to the subject properly.

1. In appraisal, the adjustments made to the sales price of a comparable property in order to arrive at an indicative value for the subject property. Adjustments may be necessary for a variety of reasons. The first adjustment is made for seller concessions or terms of sale; the second adjustment is made for financing terms. Another is for the date of sale, if market circumstances have changed since the similar transaction. Adjustments are subsequently made for location and dissimilarities in the subject's physical qualities and the comparable property's physical attributes. For each difference or dissimilarity, the stated value is increased or decreased. (For further information, see appraisal, comparables, and the direct sales comparison approach.)

2. In real estate closings, the settlement statement's credits and debits, such as real property taxes, insurance, and rent prorations.

Admeasurement Of Dower

Shares are determined and split up. A dower admeasurement is the legal remedy of an heir who thinks that the widow has been given more than she should have under her dower right. In valuing the widow's dower interest, standard annuity tables of mortality are used to figure out the value of her future life interest, which is then used to figure out how much of the widow's share of the estate she gets.

Administrative Law Judge

In the United States, the administrative law judge (ALJ) is the person who runs the administrative hearings where both sides present evidence. A lot of the time, the ALI can administer oaths and affirmations, rule on evidence, take depositions, regulate the hearing, and make or recommend decisions. The ALJ has a lot of power when it comes to making suggestions.

Administrative Regulations

Regulations that have the force and effect of law, made by an administrative body. The state's real estate commission often makes rules to go along with the licencing law.

Administrator

A person appointed by a court to manage the estate of someone who died intestate.

1. A person who is chosen by the court to settle the estate of someone who died without leaving a will (leaving no will). People sometimes call this person their "personal rep."

2. One who is in charge of securities.

Administrator's deed

A deed that transfers the property of a person who died without leaving a will.

Advance

To think about something before it is due. In this case, money is given by one party (like a mortgagee or a seller) to cover costs that were not paid by the other party who was in default. These costs include taxes and insurance. These amounts are added to the account of the person who gave them. For example, a second mortgagee might pay the borrower's first-mortgage payments in order to keep the property from being foreclosed on.

Lenders need to know if a recorded mortgage that secures future loans takes precedence over a later mortgage that was recorded before the date of the loan but after the first mortgage was recorded. Other advances include money that is paid out under an open-end mortgage or money that is given to a developer-borrower by a construction lender. See also: Draw, extra charge mortgage. A fee that is paid before any work is done. People who want to sell their homes or businesses might agree to pay a broker a non-refundable fee in advance to pay for advertising, but the broker doesn't guarantee that a buyer will be found. Brokers must keep good records of their expenses.

Advance Fee

A fee paid before any work is done. People who want to sell their homes or businesses might agree to pay a broker a non-refundable fee in advance to pay for advertising, but the broker doesn't guarantee that a buyer will be found. Brokers must keep good records of their expenses.

Adverse Financial Change Condition

Agreement: If the borrower loses their job, for example, the lender can cancel the loan. This is called a "cancellation clause."

Adverse Possession (Prescripcion Adquisitiva)

Acquisition of title to property where an occupant has been in actual, open, infamous, and continuous usage for a period of time prescribed by state law.
Wrongful possession of the real estate in a way and for a period of time specified under state legislation. The opposing possessor then obtains title by operation of law, independent of any previously documented title to the property.

Involuntary transfer of real property rights by an individual who demonstrates a usage that is (1) antagonistic to the owner's crests, (2) actual, (3) open and infamous, (4) continuous, and (5) exclusive.
Acquiring the right to a piece of land that someone else owns by having open, hostile, and continuous possession for a set amount of time. There is the main goal of adverse possession laws: to make sure that land is used to its fullest and most productive capacity. It's up to the people who own the land to show that four conditions were met: A claim of right has kept them there. (2) They were in real, open, and obvious possession of the property, which should have given the record owner enough notice. (3) Possession was both exclusive and hostile to the title of the owner. That is, it was done without the owner's permission and showed that the owner wanted to keep the claim of ownership against anyone who might challenge it. (4) At least for the prescriptive period set by state law, the person who had the land had it for at least that long. In this case, the occupancy of the premises by people who are successors in interest (that is, by contract or descent) can be added together to meet the requirement for continued use of the premises. For example, a man's father occupies a piece of land for four years. When his father dies, his son takes over and "adds" to his father's four-year ownership. Two words can help you remember: POACH: Possession is open, real, continuous, and hostile. CANOE: Possession is not (possession is continuous, actual, notorious, open, and exclusive).

Under the law, anyone who is legally incapacitated (such as insanity) or who has a legal right to get rid of someone who owns something doesn't have to go through with the process. Because a life tenant has a life estate, someone who is an "adverse possessor" could get title to that person's property. But the remainderman has no right to the property until the life estate ends.

People who claim to own something by "adverse possession" don't have a marketable title until they get a judicial decree "quieting" the title or get a quitclaim deed from the person who took it away. When all of the rules are met, the owner's title is cancelled and a new title is given to the person who took it from them. A new title comes into effect when the first person who doesn't like it comes forward. Thus, the former owner can't sue for trespass, profits, or rents during the time that the new owner was in charge of the land.
In most states, the person who claims the property doesn't have to have paid taxes on it for a certain amount of time. In some states, if the person who claims the property pays taxes, that may shorten the prescriptive period. However, a court might think that failing to pay taxes is proof that the claimant didn't really claim to own the property. 
Usually, courts don't let people make claims of adverse possession if they have a close relationship with the owner, like father and son or husband and wife. This is because it's hard to prove hostile claims in this case. Cotenants usually can't see each other unless one cotenant is evicted by another cotenant in a very clear and real way. Prescriptive rights, in general, aren't very popular with the law because they make other people give up their rights. As a general rule, people think that if they take someone else's property, they do so with their permission.

In most cases, you can't own land in the state or the federal government if you take it illegally. As a result, the federal Colour of Title Act says that someone can get a patent if he or she meets all four tests of adverse possession on public land. If the land doesn't exceed 160 acres and all taxes are paid, he or she can get a patent. The United States, on the other hand, owns all rights to the coal and minerals on the land. In addition, title to Torrens-registered property can't usually be taken by someone else taking it over.

Adverse Selection

When an adviser has an activity to filter the available investment options, it is similar to an agency problem. retaining the more viable ones and providing the less hopeful ones to 1hc investors

Adverse Use

It's when you get the right to use someone else's land for a limited amount of time, like by getting a path easement across someone else's land. People who want to get an easement through "adverse use" usually have to meet the same requirements as people who want to get an easement through "adverse possession," including the prescriptive period. Most easements can't be lost just by not using them, but an easement that was created by someone else using it in a bad way can be lost if they don't use it for the prescriptive period of their use.

Advertising

Getting the word out about one's products and services In real estate, advertising is regulated by rules and regulations set by federal, state, local, and private bodies. Many of the same rules apply when property is advertised on Web sites over the Internet, like when it's put on a billboard or billboard.
To advertise a property, the broker needs written permission from the client. In any offer, the price must be the same as the one the owner agreed on with the broker. Many state licence laws say that real estate brokers can't use blind ads, which are ads that are placed on behalf of the seller but don't say who the real estate broker is. In sales, people can't just use their own name to advertise. You can't see the ad, or it's not true.
When it comes to advertising real estate, three things are very important:

  • Condominiums and subdivisions: Condominium, time-share, and subdivision laws in many states control how advertising for condominium and subdivision sales can be done. These laws say that ads can't make false or misleading claims, and they say that no part of a public report or public offering statement can be used for advertising unless the report is used in its entirety. In addition, some state agencies require that all real estate ads be checked by them before they can be published; other states have strict rules for real estate advertising. In many states, a developer may not be able to advertise new projects until he or she has met certain state registration rules first.
  • Discrimination: Federal rules say that ads for housing can't discriminate on the basis of race, colour, religion, sex, disability, family status, or national origin. Some state and local rules also ask about marital status, age, sexual preference, or source of income.
  • Truth in lending: Federal truth-in-lending law says that if an ad has specific financing terms or credit terms, it must say what those terms are.

Aeolian Soil

It is a type of soil that has been made by wind-blown solids, like sand dunes and volcanic ash deposits. Also, soil that moves with the wind.

Aerial

Of, relating to, or happening in the air or atmosphere.

Aerial Photograph, Oblique

Aerial shot made with the camera axis oriented between horizontal and vertical: (1) high oblique-an oblique image with the horizon visible; (2) low oblique-an oblique photograph without the horizon visible.

Aerial Photograph, Vertical

An aerial image shot with the camera's optical axis almost perpendicular to the earth's surface and the film as nearly horizontal as possible.

Aesthetic Value

In the process of valuing residential property, an intangible benefit of a home that is very attractive or pleasing, rather than just functional. The government can use its police power to protect things like a hillside site that looks out over the ocean, for example, by putting in place a zoning ordinance.

Affiant

An affidavit is made by someone who says they are telling the truth.

Affidavit

It's when you get the right to use someone else's land for a limited amount of time, like by getting a path easement across someone else's land. People who want to get an easement through "adverse use" usually have to meet the same requirements as people who want to get an easement through "adverse possession," including the prescriptive period. Most easements can't be lost just by not using them, but an easement that was created by someone else using it in a bad way can be lost if they don't use it for the prescriptive period of their use.

Affidavit Of Title (Affidavit Of Ownership)

An oath is a written statement made by the seller or grantor and signed by a notary public. The grantor (I) identifies herself and states her marital status; (2) certifies that there are no judgments, bankruptcies, or divorces against him or her, no unrecorded deeds or contracts, no repairs or improvements that have not been paid for, and no known defects in the title; and (3) certifies that there are no known defects in the title. Often used in a number of states.

Affiliate Licensee

The licensee who works in real estate with the help of a broker. According to state law, affiliate licensees may be able to work as a sales person or a broker. Because the agency relationship is between the broker and the consumer, affiliate licensees may receive compensation for their real estate activities only from their employing broker, not directly from a consumer.

Affirmation

A statement that says that a certain thing is true. As an alternative to an oath, affirmations are used when the person who is being sworn or testifying doesn't want to take an oath because of their own or religious beliefs. A voluntary proactive programme designed by the U. S. Department of Housing and Urban Development (HUD) to inform all buyers, including those ""least likely to apply,"" of homes for sale without discrimination and t9 provide real estate licensees with procedures and educational materials to assist in compliance with the law. Affirmative marketing doesn't have any specific goals or quotas.

Affirmative covenant

A mutual agreement made by neighbours that a property will be utilised in a specific way.

Affirmative Marketing Program

Local associations of REALTORS® can meet with HUD to discuss the National Fair Housing Partnership Resolution to ensure equal opportunity in housing for all. This approach emphasises the importance of local participation and community action programmes in this approach.

AFFO

Recurrent revenue given by REIT-owned buildings adjusted for non-real estate depreciation and amortisation, as well as a straight-line rent adjustment

Affordability Index

A standard set by the National Association of REALTORS® to see how well people can afford to buy a home. It says that a family making the national median income has enough money to get a mortgage on the median-priced house.

Some economists say that every one-point rise in the interest rate on a home mortgage reduces home sales by 300,000.

Affordable Housing

Housing units are designed to serve households earning less than 60% (rent) or 80–120% (purchase) of a metropolitan area's median income.

Those who make less than a certain percentage or less than the median income for the area, as determined by HUD and adjusted for family size, can live in this type of home. Affordable housing projects are usually built with help from the government or as part of a development agreement with the right government agency.
The goal of affordable housing projects is to recognise that there is a real shortage of housing and to help people who can't afford to live somewhere else. There may be certain restrictions and conditions on how affordable housing units can be resold or how many people can live in them.

Affordable housing allocation

A provision that encourages or requires a "reasonable and equitable" component of new housing construction for low-income families.

Affordable housing loans

Loan purchase programmes were made available by Fannie Mae and Freddie Mac to 10 leading mortgage marketed lenders exclusively for low and moderate-income customers.

After tax cash flow (ATCF)

Cash flow created by a property after deducting all current operational expenditures, debt servicing obligations, and income tax repercussions. The remaining claim on the property's cash flow after the mortgage lender(s), as well as the state and federal governments, have been paid their fair share. The amount of money left over after all expenditures, including taxes, have been paid.

After tax cash flow multiplier

The equity split by the after-tax cash flow is used to calculate the payback method.

After tax equity reversion (ATER)

The equity reversion before taxes. It was defined as the net selling price minus the outstanding mortgage debt at the time of sale, fewer taxes owed at the time of sale. The net selling price minus any outstanding mortgages and any taxes owed at the time of sale.

After tax rate (ATR)

The after-tax cash flow divided by the equity yields a rate of return.

After tax real rate of return

Adjusted for inflation, the amount of money an investor can keep after paying any taxes on a sale.

After-Acquired

At some point, this item is bought. An after-acquired title is a title that a grantor of property gets after the grantor has tried to give good title to the property. When the grantor has good title, it will automatically pass to the grantee because of the law. Smith gave Jones his farm on January 1, 2004, by way of a warranty deed. That's not the only reason Smith didn't have valid title on January 1. He owned the land under a forged deed. Smith got good title on March 5, 2005, so Jones got good title on March 5.

Note that a quitclaim deed doesn't give the grantee the right to a title that the grantor hasn't yet owned. This is because the deed only transfers the grantor's current interest in the land, if any. You can see a "quitclaim deed" for more on this.

People who own property and have a mortgage must pay for and install any fixtures that they buy and pay for themselves. This means that they are subject to the lien of the mortgage. When you buy a home, you usually get a mortgage. Many mortgages also say that any fixtures that were there when the mortgage was made are subject to the mortgage. The Uniform Commercial Code (UCC) has set rules for resolving disputes between mortgagees and chattel security claimants who have rights to property that was bought before the mortgage was taken out. For example, if an appliance was bought on time and installed on the mortgaged property, the chattel security claimant has a right to it. As long as the UCC is used, a debtor can give a chattel mortgagee a superior security interest in such property that he or she has bought after the debt has been paid off.

After-Tax Income

In accounting, the amount that is left after income tax is taken out of taxable income. After taxes, the cash flow from an investment is called "after-tax cash flow," or "after-tax cash flow" (ATCF).

Age to life method

Estimating improvement value by calculating the ratio of an improvement's effective age to its economic life and multiplying the resulting age-to-life ratio by the structure's reproduction cost.

Age-Life Depreciation

Depreciation is calculated based on the condition of a property and how long it has been in business. Effective age (based on condition) is added to the estimated remaining economic life of a home under this method. The effective age is then divided by that sum to figure out how much depreciation there is total. In this example, a house has been around for ten years and still has a lot of money left in it, so the depreciation is 20%. (ten divided by 50).

Agency

The legal connection that exists between a principle and an agent as a result of a contract in which the principal hires the agent to undertake specified tasks on his or her behalf.

A relationship is formed when one person, the principal, gives another person, the agent, the right to act on his behalf in business transactions and to have some control over how they do so. People who work with someone else have a fiduciary or legal relationship with them, which means they have certain responsibilities and obligations, as well as high standards of good faith and loyalty.

People who work for someone else have a lot of different rights and responsibilities that are regulated by a lot of common and statute law. It's not just the general law of agency that applies to all business transactions. State real estate licencing laws have a direct effect on the agency relationship between real estate licensees and their clients and the public. Even though contract law and agency law are two different things, they often come together when real estate agents and their principles are interpreted. This is because real estate agents and their principals often work together.

The payment of money does not have to be part of an agency relationship. One can agree to act as an agent for free and be held to the same standards as an agent when they start doing so.

General: When a principal gives a property manager the power to run a real estate project on his or her behalf, this is an agency. It can also be a special agency, like when the broker is hired to find a ready, willing, and able buyer. The broker is not allowed to sell the property or to bind the principal to a contract to sell the property.

An agency relationship can be implied by what the parties do, and it doesn't need to be written down to make it happen. The buyer and the agent with whom they are working can have an agency relationship even if they don't agree to it in writing. Once an agency relationship is set up, it has certain rights and responsibilities. This makes the broker responsible for any violations of duty.

There are two types of real estate brokers in a typical deal: one who works for both the seller and buyer is called a "listing agent," which includes the associate licensees who work for that broker. The other broker who works for the buyer is called a "selling agent," which means that he or she either works for the buyer or for the seller. In some cases, the listing agent is the only broker who works on the deal. There may be two types of agents: dual agents and limited agents. In some states, this relationship is set to transaction brokerage by default, but it can be changed.

In most cases, a real estate licensee can be held liable for breaking his or her fiduciary duties to the person who hires him or her. (1) The principal can sue the licensee-agent for money damages in court. (2) The state licencing authority can take action against people who break its rules. For example, if an agent does something or says something that isn't in line with his or her job description, the person who hired him or her is legally responsible for those actions and statements.

The agent must do what the principal wants, be loyal, obey, and tell the principal about important things that could make the property worth more than the agreed-upon price. The agent must also take care not to overstep the authority given to him or her or misrepresent important facts to the principal or to third parties, keep proper accounting of all money, and put the property where the principal wants it. Keep in mind that in an emergency, a person's agent has more power, and he or she can disobey orders if it's in the best interest of their boss.

When an agent doesn't have permission from the person they work for, they can't tell a third party confidential information or information that hurts the person they work for. People can't say, for example, that the seller is forced to sell because of a job loss or because they are going through a divorce. They also can't say that the seller will accept less than the listing price without permission.

The private information learned during the agency can't be used later against the principal, even if the deal is done. This is true even if the deal is done. This includes financial information that was used in negotiations with properties that were later put on the market.

Agents are legally required to tell their principals everything that is important and relevant, but race, national origin, colour, disability, religion, family status, and sex are not important facts and should not be told even if the principal wants them to.

Sometimes, a real estate agent can get an offer from someone who will list their own home with that same agent. A smart broker will tell the seller this when he or she makes an offer. Otherwise, the broker could be accused of not telling the seller that he or she made money.

In some states, the agent in a principal/agent relationship must do more. For example, if one of the salespeople or a relative or a related company makes an offer to buy the property, the agent must say so in writing. For example, if the agent's wife used her birth name when making an offer, the agent must say so in writing. There must be written permission from both the seller and the buyer if an agent works for both of them at the same time. The agent cannot mix the principal's money or other things with his own. If the owner doesn't want the broker to advertise their property, they can't. If you work for a broker, you have to tell your boss or client about every deal.

Most states have laws that require the licensee to say who the licensee represents early on in the transaction and to make sure this information is correct in writing. A limited agent, ""designated agent," "transaction coordinator," "facilitator," and other new terms and definitions have been used by states to describe how they work with customers.

Agents must be honest and careful when they deal with third parties for whom they are not the broker. They are liable for any material misrepresentations or negligent acts made by the broker, so they must be careful. A third person may also be held liable for any actions that an employee does while on the job. Statutorily, some states have given the responsibility back to the customer (abrogated vicarious liability).

At any time, a principal can end an agency with an agent. If the agency is linked to an interest, the principal can't do that at all. A money claim might be made if the agency is shut down before the stated end date. If one of the parties dies or becomes incapacitated, the agency ends. Notification of death isn't required. The property is destroyed or taken away, or the terms of the agency run out. The agent or principal can renounce or rescind the agreement. The principal can also go bankrupt and lose the property because the title is given to a receiver.

Agency By Ratification

"After the fact": When a principal says or implies that a person who claims to be her agent is acting in her best interest, that person is her agent. There must be proof that the principal knew about the act or acts and either agreed to the benefits or agreed to be bound by the actions of the agent.

Agency Coupled With An Interest

When the agent owns a piece of the subject of the agency (the property). The principal can't get rid of it, and it doesn't end when the principal dies. For example, a broker may be able to help with the financing of a condominium development if the developer agrees to give the broker an exclusive listing to sell the units that are already equipped. After the broker had given the developer the money, the developer couldn't take back the listing.

Agency problem

Occurs when an investor (principal) uninformedly relies on an advisor (agent) for counsel when there is a possibility that the adviser may not behave in the best interests of the investment/principal.

Agency relationship

A relationship in which the properly managed/agent serves as the owner's fiduciary; consequently, the manager's words and actions bind the owner.

Agent

Individual who has been permitted to act on behalf of another person (principal) in a transaction with a third party.

The person or firm you authorise in writing to act on your behalf with third parties in exchange for a commission.

A person who is allowed to act on behalf of another person (called the principal). An agent is different from an employee who only works for a principal. An agent works in the place of a principal. The main difference between an agent and a worker is that an agent can make a contract on behalf of the person they work for. An employee, on the other hand, can only make a contract if they have been specifically told to do so.

A real estate broker is a person who works for the person who wants to sell or buy a house. She has a legal or fiduciary duty to that person. A salesperson, on the other hand, works for his broker and doesn't have a direct contract with either the seller or the buyer. Salespeople who want to leave their current company and become angry when their broker doesn't let them take their listings should keep this in mind, too.

Note that minors can't choose an agent to help them with their contracts, but an adult can choose a minor to be an agent.

Agent (Real Estate)

A person who is licenced and well-trained helps with the process of selling a home.

Agents In Conjunction

You (as a vendor or landlord) may appoint more than one agency, or an appointed agent may collaborate with another agent who brings a buyer or renter to your property.

Agglomeration economies

A nebulous word relating to cost savings attributed to proximity. The formation of specialised resources in a community in response to demand from a variety of businesses. Large cities are commonly connected with this term.

Aggrieved

Having been harmed or hurt because of someone else's infringement or denial of rights. The term also refers to someone who has been hurt or who has lost some of her personal or property rights or has been forced to do something that is unfair.

Agreed Boundaries

A law that affects the rights of people who own land to the borders. When there is a question about where the true boundary line is between adjoining parcels of land, the landowners can work together to set a boundary line. agreed boundaries are used when two people agree on a legal boundary. If they act in accordance with that boundary, the law says that line is the legal boundary between their properties.

Agreement of sale

A written contract between a buyer and a seller of real estate.

Ownership terms are words that move ownership from one owner to another. In real estate, the agreement of sale (purchase agreement) includes agreements about the price, when the sale will happen, and who will get what. There are some states where a "contract for sale" is also called a "land contract" or "contract for deed."

Agricultural Foreign Investment Disclosure Act (AFIDA)

1978: A federal law says that foreigners who own more than one acre of agricultural land in the U.S. must give the secretary of agriculture information about it.

Agricultural Lien

A legal lien is given to a farmer to get money or supplies for growing a crop. The lien is only on the crop, not the land.

Air Park

This is a piece of land that is near or part of an airport and has been made into commercial, industrial, and office space.

Air Rights (Derechos A Ereos)

The right to use, occupy or govern the area above a specific piece of land. These rights can be transferred to another party by selling, leasing, or donating them.

Rights to construct on or occupy the vertical space above the specified location.

Having rights to use land that isn't owned by you. Ownership of land gives you the right to all the air above your land. Before the invention of the aeroplane, this right was unrestricted. Courts now allow reasonable interference with one's air rights, as long as the owner's right to use and occupy the land isn't harmed. Thus, low-flying planes might be trespassing, and their owners would be responsible for any damage they caused. Governments and airport authorities often buy air rights next to an airport, called an avigation easement, to make it easier for planes to glide over the ground.

If you talk about airspace in three dimensions with a specific piece of land in mind, such as in a condominium unit, it is real property. The air itself is not real property.
People who own land and people who own air rights in Maryland can be taxed separately. As with the Pan Am Building above Grand Central Station in New York City, air rights can be sold or leased and buildings built on them.

People can also give up air rights by giving up easements, like those used to build high-rise highways, get scenic rights, or get easements of light and air. Because there isn't a lot of land, many developers are looking into the possibility of building properties in the airspace above prime properties owned by schools, churches, rail lines, and cemeteries.

Air Space

1. It's a good idea to put insulating glass in between two panes of glass.

2. When someone owns a unit in a condominium, they own a lot more than they think they do (in addition to tenancy in common for the common areas). Wall-to-wall and floor-to-floor are the most common ways to do this.

Airport Zoning

Regulations that try to keep planes safe from things like electronic interference by controlling land use, building height, and natural growth in the areas around an airport.

Al L-Inclusive Deed Of Trust