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Assignment of rents clause
A clause in a mortgage or deed of trust that gives the lender the right to collect rents generated by a property in the event the borrower does not repay the loan.
Association
A not-for-profit organization that can own property and transact business in its own name.
Assume the loan
The buyer obligates himself to repay an existing loan as a condition of the sale.
Attorney-in-fact
One who is authorized by another to act in his (her) place.
Automatic renewal clause
Allows a listing to renew itself indefinitely unless cancelled by the owner.
Avulsion
The removal of land by the action of water.
Balloon loan
A loan in which the final payment is larger then the preceding payments.
Balloon payment
The name given to the final payment of a balloon loan.
Bargain and sale deed
A deed that contains no covenants, but does imply the grantor owns the property being conveyed by the deed. Bargain brokers
A term that refers to Real Estate Brokers who charge less than most competing Brokers in their area.
Base industry
An industry that produces goods or services for export from the region.
Base Line
An imaginary latitude line selected as a reference in the rectangular survey system.
Basis
The price paid for property; used in calculating income taxes.
Bench mark
A reference point of known location and elevation.
Beneficial interest
A unit of ownership in Real Estate investment trust.
Beneficiary
One for whose benefit a trust is created.
Bequest
Personal property received under a will.
Bilateral contract
Results when a promise is exchanged for a promise.
Bill of Sale
A written agreement by which one person transfers his personal property to another.
Binder
A short purchase contract used to secure a Real Estate transaction until a more formal contract can be signed.
Blanket mortgage
A mortgage that is secured by more than one real property.
Blended-rate loan
A refinancing plan the combines the interest rate on an existing mortgage with currant rates.
Blind pool
An investment pool wherein properties are purchased after investors have already invested their money.
Blockbusting
The illegal practice of inducing panic selling in a neighborhood for financial gain.
Blue-sky laws
State laws designed to protect persons from buying into dubious investment schemes.
Board of equalization
A government body that reviews property tax assessment procedures.
Borrower's points
Charges in one-percent units of a loan, paid by a borrower to obtain a loan.
Breach of contract
Failure without legal excuse to perform as required by a contract.
Broad-form
An insurance term that describes a policy that covers a large number of named perils.
Broker
A natural or legal person licensed to act independently in conducting a Real Estate brokerage business; authority.
Budget mortgage
Features loan payments that include principal, interest, taxes, and insurance (often called PITI).
Building codes
Local and State laws that set minimum construction standards.
Building societies
Forerunners of today's savings and loan associations.
Buy-down
A cash payment to a lender so as to reduce the interest rate a borrower must pay.
Buyer's market
One with few buyers and many sellers.
Bylaws
Rules the govern how an owner's association will be run.
Canons
Standards of conduct.
Capital gain
The gain (profit) on the sale of an appreciated asset.
Capitalize
To convert future income to current value.
Cash flow
The number of dollars remaining each year after collecting rents and paying operating expenses and mortgage payments.
Cash-on-cash
The cash flow produced by a property divided by the amount of cash necessary to purchase it.
Caveat emptor
Let the buyer beware.
CC&Rs
Covenants, conditions and restrictions by which a property owner agrees to abide.
Certificate of eligibility
(For a VA loan.
Certificate of occupancy
A government-issued document that states a structure meets local zoning and building code requirements and is ready for use. |
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