255 Real Estate Exam Vocabulary Terms you NEED to KNOW (1-50)
Real Estate License Wizard・2 minutes read
A budding is an area of land or building with a common boundary with another and commercial property generates income, contrasting with residential properties where people live and sleep.
Insights
- Adverse possession allows for legal acquisition of property through continuous occupation without the owner's permission, highlighting a unique aspect of property rights that can be acquired over time through specific conditions.
- Commercial property encompasses real estate used for income generation by businesses, distinguishing it from residential properties primarily for living purposes, showcasing the diverse categories within the real estate sector based on usage and revenue generation.
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Recent questions
What does the term "ad valorem" mean?
According to value
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Summary
00:00
Real Estate Terminology Explained: A Brief Overview
- A budding refers to an area of land or building with a common boundary with another.
- The acceleration clause allows a lender to demand full repayment of a loan if payments are not made or there's a breach of contract.
- Accretion is the gradual growth or acquisition of land through the natural deposition of soil by water.
- Active property status indicates a property is available for sale.
- Actual fraud is intentional misrepresentation or lying.
- Ad valorem means "according to value" in Latin.
- An adjustable rate mortgage has a flexible interest rate that can change after an initial fixed period.
- Adverse possession is the legal acquisition of property through continuous occupation without the owner's permission.
- An agent represents or speaks for someone.
- An agreement of sale is a form where the buyer consents to purchase a property and the seller agrees to sell it under specified terms and conditions.
17:44
Understanding Real Estate: Appraisal, Value, and More
- An appraisal estimates the approximate worth of something, like property, considering factors such as age, amenities, and rebuilding costs.
- Appraisal contingency is a clause in a contract requiring a property appraisal before a loan is granted, ensuring the property's value aligns with the offer price.
- An appraiser, usually brought in by brokers or agents, must have detailed valuation knowledge and often requires specific licenses or certifications.
- Appreciation refers to any property value increase over time, contrasting with depreciation.
- A pertinence is an item attached to a property, passing on to a new owner upon sale, like a garage.
- A pertinent, as an adjective, describes an item attached to or by law to something else, like a pool coming with a property.
- A pertinent easement is an easement that runs with the land, unlike some easements that end with property transfer.
- Arbitration resolves disputes, common in real estate, between homeowners without involving courts, using a third-party arbitrator.
- An attorney in fact is authorized to act on behalf of another person, often in business transactions, like handling property sales remotely.
- Avulsion is the immediate addition or removal of land due to violent natural causes, like a dam breaking or a hurricane.
35:00
Real Estate Contract Terms and Definitions
- Breach of contract is the failure to complete an agreement per agreed terms.
- A buffer zone is the space between two districts used to ease the transition from one zone to another.
- Building codes are rules and standards for properties established for public safety and welfare.
- The bundle of rights refers to the rights given to a person upon purchasing property, which can be split and given to different parties.
- A buyer's home sale contingency allows the buyer to cancel the contract if they can't sell their current home within a specific time frame.
- A buyer's agent represents the buyer in a transaction and receives a fee for their services.
- Capital gain is the profit from the sale or auction of property or investment.
- Capitalization is the conversion of assets or income into capital.
- The capitalization rate indicates the expected rate of return on a property.
- A caveat means "let the buyer beware," indicating the buyer's responsibility to check the quality of a product before purchase.
53:21
Income-generating real estate: commercial vs residential properties
- Commercial property refers to real estate that generates income, such as warehouses, stores like Walmart, or restaurants, where businesses operate, in contrast to residential properties where people live and sleep.
