Listing Agreement An employment contract between principal and agent , authorizing the agent to perform
services for the principle involving the latter's property
Fiduciary A person who on behalf of or for the benefit of another transacts business or handles
money or property not the person's own ; such relationship implies great confidence and
trust
Disclosure Regarding Real Estate Agency Relationships Form A written explanation , to be signed by a prospective buyer or seller of real estate ,
explaining to the client the role that the broker plays in the transaction . First document to
be submitted to all prospective clients
Principal The employer of an agent or broker ; the broker's or agent's client .
Price Fixing Conspiring to establish fixed fees or prices for services or products
Market Allocation An agreement between members of a trade to refrain from competition in specific
market areas
Independent Contractor Relationship A person that provides services to another under terms specified in a contract or within a
verbal agreement . The agent does not have to work in a specific location The broker
cannot control the agent's work activities
Bundle of Rights The premise that the ownership of real estate consists of the ownership of various rights
associated with it . These rights include the right to use and / or occupy , the right to sell
in whole or in part , the right to lease , the right to bequeath and the right to do none of
the foregoing
Includes the right to quiet enjoyment
Littoral Rights The right of a property owner whose land borders on a body of water , such as a lake ,
ocean or sea to reasonable use and enjoyment of the shore and water the property
borders on .
Riparian Rights The right of a property owner whose land borders a natural water course such as a river ,
to reasonable use and enjoyment of the water that flows past the property . Riparian
literally means " riverbank
,Specific Lien A lien that only binds to a specific asset or property
Example : mortgage
Voluntary Lien A contractual or consensual lien that is created by an action taken by the debtor , such as
a mortgage loan to buy real estate ( Example : mortgage ) .
Encumbrance Any right to or interest in the land interfering with its use or transfer or subjecting it to an
obligation .
Burden on the property . it is a claim , lein , charge or liability attached to real property .
Title can still be transferred
Affirmative Easement Appurtenant A forced easment because of the fact that someoen would not be able to get to their
property without it.
Full Covenant and Warranty Deed A type of deed where the grantor guarantees that he or she holds clear title to a piece of
real estate and has a right to sell it to the grantee . This type of deed contains the
strongest guarantee of title
Quitclaim Deed A deed which conveys simply the grantor's rights or interest in real estate without any
agreement or covenant as to the nature or extent of that interest , or any other covenants
; usually used to remove a cloud from the title
Habendum Clause A clause in a deed or lease that defines the type of interest and rights to be enjoyed by
the grantee or lessee . Also known as the " to have and to hold " clause
Delivery and Acceptance After deed is deliverd and accepted, it has to be properly recorded
Chain of Title The sequence of historical transfers of title to a property . It runs from the present owner
back to the original owner of the property . Record of all Prior transfers
Title Legal term for a bundle of rights in a piece of property in which a party may own either a
legal interest or equitable interest
,Closing Statement A document commonly used in real estate transactions , detailing the fees , commissions ,
insurance , etc. that must be transacted for a successful transfer of ownership to take
place
Essential Element of a Contract 1 ) Consideration 2 ) Must be in writing 3 ) Must have competent parties
Express Contract A contract in which all elements of a contract are specifically stated ( offer , acceptance ,
consideration ) .
Attorney Review Clause A clause found in real estate contracts that may allow buyers to walk away from an
agreed upon sale for any reason
Mortgage Contingency Clause A clause in a contract that states a mortgage must be obtained in order for the contract
to be binding .
Eviction A legal proceeding by a lessor landlord to recover possession of real property
Holdover Tenant A tenant who remains in possession of leased property after the expiration of the lease
term (ex: tenant who continues not to pay)
Triple Net Lease A lease commonly found in a building with a single , long - term tenant. leasee has the
responsibility to pay taxes insurance and maintenance
Mortgage Legal agreement by which a bank lends money in exchange for taking title of the debtor's
property , with the condition that the conveyance of title becomes void upon payment of
the debt .
APR The actual interest rate charged , including loan fees and points
Secondary Mortgage Market The market where mortgage loans and servicing rights are bought and sold between
mortgage originators , mortgage aggregators ( securitizers ) and investors
Extremely large and liquid
Satisfaction of Mortgage A document acknowledging the payment of a mortgage debt .
, Fixed Rate Mortgage Accounts for the majority of mortgages. The borrower makes installment payments
(usually once a month). Over time the balance on the loan decreases. At the end of the
term of the loan (30 years for examples), the loan balance reaches $0 and the loan is
paid in full.
In a fixed-rate mortgage, the borrower pays both principal and interest with each
mortgage payment.
Amortization The process by which a loan principal decreases over the life of a loan .
Condemnation Taking private property for public use , with fair compensation owner , exercising the
right of eminent domain
Police Power The right of any political body to enact laws and enforce them , for the order safety ,
health , morals and general welfare of the public .
Variance The authorization to improve or develop a particular property in a manner not authorized
by zoning .
Building Codes Regulations established by state or local governments stating fully that structural
requirements for building . enforced by the issuance of permits .The primary purpose is
to ensure a safe, properly functioning environment for the occupants.
Air rights Rights in real property to use the space above the surface of the land
Certificate of Occupancy document issued by a governmental authority that a building is ready and fit for
occupancy
Stud Vertical framing members found in wall construction . Typically placed 12 " , 16 " or 24 " on
center
Beam A horizontal structural member that supports a floor . Typically wood , cold formed metal
framing or steel
Bearing Walls Structural walls that transfer building loads down to the foundation . Joists , beams , and
roofs are typically supported by these
Bond Beam Concrete set in soil
services for the principle involving the latter's property
Fiduciary A person who on behalf of or for the benefit of another transacts business or handles
money or property not the person's own ; such relationship implies great confidence and
trust
Disclosure Regarding Real Estate Agency Relationships Form A written explanation , to be signed by a prospective buyer or seller of real estate ,
explaining to the client the role that the broker plays in the transaction . First document to
be submitted to all prospective clients
Principal The employer of an agent or broker ; the broker's or agent's client .
Price Fixing Conspiring to establish fixed fees or prices for services or products
Market Allocation An agreement between members of a trade to refrain from competition in specific
market areas
Independent Contractor Relationship A person that provides services to another under terms specified in a contract or within a
verbal agreement . The agent does not have to work in a specific location The broker
cannot control the agent's work activities
Bundle of Rights The premise that the ownership of real estate consists of the ownership of various rights
associated with it . These rights include the right to use and / or occupy , the right to sell
in whole or in part , the right to lease , the right to bequeath and the right to do none of
the foregoing
Includes the right to quiet enjoyment
Littoral Rights The right of a property owner whose land borders on a body of water , such as a lake ,
ocean or sea to reasonable use and enjoyment of the shore and water the property
borders on .
Riparian Rights The right of a property owner whose land borders a natural water course such as a river ,
to reasonable use and enjoyment of the water that flows past the property . Riparian
literally means " riverbank
,Specific Lien A lien that only binds to a specific asset or property
Example : mortgage
Voluntary Lien A contractual or consensual lien that is created by an action taken by the debtor , such as
a mortgage loan to buy real estate ( Example : mortgage ) .
Encumbrance Any right to or interest in the land interfering with its use or transfer or subjecting it to an
obligation .
Burden on the property . it is a claim , lein , charge or liability attached to real property .
Title can still be transferred
Affirmative Easement Appurtenant A forced easment because of the fact that someoen would not be able to get to their
property without it.
Full Covenant and Warranty Deed A type of deed where the grantor guarantees that he or she holds clear title to a piece of
real estate and has a right to sell it to the grantee . This type of deed contains the
strongest guarantee of title
Quitclaim Deed A deed which conveys simply the grantor's rights or interest in real estate without any
agreement or covenant as to the nature or extent of that interest , or any other covenants
; usually used to remove a cloud from the title
Habendum Clause A clause in a deed or lease that defines the type of interest and rights to be enjoyed by
the grantee or lessee . Also known as the " to have and to hold " clause
Delivery and Acceptance After deed is deliverd and accepted, it has to be properly recorded
Chain of Title The sequence of historical transfers of title to a property . It runs from the present owner
back to the original owner of the property . Record of all Prior transfers
Title Legal term for a bundle of rights in a piece of property in which a party may own either a
legal interest or equitable interest
,Closing Statement A document commonly used in real estate transactions , detailing the fees , commissions ,
insurance , etc. that must be transacted for a successful transfer of ownership to take
place
Essential Element of a Contract 1 ) Consideration 2 ) Must be in writing 3 ) Must have competent parties
Express Contract A contract in which all elements of a contract are specifically stated ( offer , acceptance ,
consideration ) .
Attorney Review Clause A clause found in real estate contracts that may allow buyers to walk away from an
agreed upon sale for any reason
Mortgage Contingency Clause A clause in a contract that states a mortgage must be obtained in order for the contract
to be binding .
Eviction A legal proceeding by a lessor landlord to recover possession of real property
Holdover Tenant A tenant who remains in possession of leased property after the expiration of the lease
term (ex: tenant who continues not to pay)
Triple Net Lease A lease commonly found in a building with a single , long - term tenant. leasee has the
responsibility to pay taxes insurance and maintenance
Mortgage Legal agreement by which a bank lends money in exchange for taking title of the debtor's
property , with the condition that the conveyance of title becomes void upon payment of
the debt .
APR The actual interest rate charged , including loan fees and points
Secondary Mortgage Market The market where mortgage loans and servicing rights are bought and sold between
mortgage originators , mortgage aggregators ( securitizers ) and investors
Extremely large and liquid
Satisfaction of Mortgage A document acknowledging the payment of a mortgage debt .
, Fixed Rate Mortgage Accounts for the majority of mortgages. The borrower makes installment payments
(usually once a month). Over time the balance on the loan decreases. At the end of the
term of the loan (30 years for examples), the loan balance reaches $0 and the loan is
paid in full.
In a fixed-rate mortgage, the borrower pays both principal and interest with each
mortgage payment.
Amortization The process by which a loan principal decreases over the life of a loan .
Condemnation Taking private property for public use , with fair compensation owner , exercising the
right of eminent domain
Police Power The right of any political body to enact laws and enforce them , for the order safety ,
health , morals and general welfare of the public .
Variance The authorization to improve or develop a particular property in a manner not authorized
by zoning .
Building Codes Regulations established by state or local governments stating fully that structural
requirements for building . enforced by the issuance of permits .The primary purpose is
to ensure a safe, properly functioning environment for the occupants.
Air rights Rights in real property to use the space above the surface of the land
Certificate of Occupancy document issued by a governmental authority that a building is ready and fit for
occupancy
Stud Vertical framing members found in wall construction . Typically placed 12 " , 16 " or 24 " on
center
Beam A horizontal structural member that supports a floor . Typically wood , cold formed metal
framing or steel
Bearing Walls Structural walls that transfer building loads down to the foundation . Joists , beams , and
roofs are typically supported by these
Bond Beam Concrete set in soil
