Glossary of Terms
ABR (Accredited Buyer Representative - A designation awarded by the Real Estate Buyer�s Agent Council of the National Association of Realtors. Requirements are course in buyer representation, an examination on legal and aspects of client representation in the field of buyer representation. Earned by a very small percentage of Realtors�.
Abstract of Title - A compilation of the recorded documents relating to a parcel of land, from which an attorney may give an opinion as to the condition of title. Still in use in some states, but giving way to the use of title insurance.
Addendum - Something added. A list or other material added to a document, letter, contractual agreement, escrow instructions, etc.
Agency - Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter. Agency involving real property should be in writing such as listings, trusts, powers of attorney etc.
Closing - In real estate sales, the final procedure in which documents are executed and/or recorded, and the sale (or loan) is completed. (2) A selling term meaning the point at which the client or customer is asked to agree to the sale or purchase and sign the contract.
Closing Costs - Expenses incidental to a sale of real estate, such as loan fees, title fees, appraisal fees, realtaor�s fee for services, etc.
Closing Statement - The statement which lists the financial settlement between buyer and seller, and also the costs each must pay. A separate statement for buyer and seller is sometimes prepared.
Co-Op (Cooperative Apartment) - Also called a stock cooperative or a co-op. A structure of two or more units in which the right to occupy a unit is obtained by the purchase of stock in the corporation which owns the building. Difficult to obtain financing because there is not individual ownership of each unit. A forerunner of the condominium.
CRS (Certified Residential Specialist) - A professional designation awarded by the Residential Sales Council, an affiliate of the National Association of Realtors. Qualification is through advanced study in listing, selling, investment and taxes plus demonstrated sales performance. Only 3% of all REALTORS®®� have earned the right to be called a CRS.
Easement - A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another. It is either for the benefit of land (appurtenant), such as right to cross A to get to B, or "in gross", such as a public utility easement.
Fee Simple - An estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited. Commonly, a synonym for ownership.
GRI (Graduate Real Estate Institute Designation) - A nationally recognized designation earned by 10% of real estate salespeople and awarded through the Florida Association of Realtors� to those who complete an advanced program of study in finance, taxes, transactional skills, professional standards and other courses.
Maintenance Fee - As applied to condominiums and planned developments, the amount charged each unit owner to maintain the common area. Usually listed as a monthly fee but often paid quarterly.
Maintenance Reserve - Money reserved to cover anticipated maintenance costs.
NAR (National Association Of Realtors�- An association of people engaged in the real estate business. Organized in 1908, it currently lists over half a million members. With headquarter in Chicago, it is dedicated to the betterment of the real estate industry through education, legislation, and high ethical standards for its members.
Percolation (Perc) Test - The best to determine the capability of the soil to absorb liquid, both for construction and septic systems.
Planned Unit Development (PUD) - A subdivision of five or more individually owned lots with one or more other parcels owned in common or with reciprocal rights in one or more other parcels. The lots are generally small, being the exact size of the improvements, or slightly larger.
Procuring Cause - A direct cause of an event, or the direct cause of a series of causes leading to an event. A broker is entitled to a commission under an open listing if proven to be the procuring cause of a sale.
Proration - To divide (prorate) property taxes, insurance premiums, rental income, etc., between buyer and seller proportionately to time of use , or the date of closing.
Quitclaim Deed - A deed operating as a release; intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor.
REALTOR®® - A designation given to a real estate broker or sales-associate who is a member of a board associated with the National Association of Realtors� or with the National Association or Real Estate Boards and subscribes to its strict Code of Ethics.
Riparian - Belong or relating to the bank of a river or stream. Land within the natural watershed of a river or stream.
Riprap - A loosely composed wall of rocks and stones used to hinder the flow of water, thereby preventing erosion.
Sale-Leaseback - A sale and subsequent lease from the buyer back to the seller. Although the lease actually follows the sale, both are agreed to as part of the same transaction.
Title Insurance - Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrances.
Turn Key - Referring to property completely furnished, including furniture and inventory of household goods. Ready to "turn the key" in the front door and move in.
Warranty Deed - A deed used in many states to convey fee title to real property. Until the widespread use of title insurance, the warranties by the grantor were very important to the grantee. When title insurance is purchased, the warranties become less important as a practical means of recovery by the grantee for defective title.
Zero Lot Line - The construction of a building on any of the boundary lines of a lot. This gives more suable space on narrow lots. An easement for maintenance is given over a portion of the lot adjoining each house.
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