Real Estate License Exams For Dummies with Online Practice Tests, 4th Edition

Appendix A

Glossary

abstract of title:

A report based on what was found in a title search, which is an investigation of the legal records concerning the title to a property.

acceleration clause:

A clause in a mortgage loan that allows the lender to declare the entire balance of the loan due immediately once the loan is declared in default after the borrower misses a certain number of payments.

accessory building:

A separate building on a property that supports or is related to the main use of the property, such as a free standing garage on a residential property.

accretion:

The gaining of land due to natural forces.

accrued depreciation:

The total loss in value of a building from all causes; part of the cost approach to value.

accrued item:

In terms of proration at a real estate closing, an item that is owed by the seller but paid by the buyer.

acknowledgement:

In a deed, shows proof of witnessing the signature of the grantor.

actual eviction:

Occurs when the landlord takes legal action, generally through a lawsuit, to re-possess the premises.

ad valorum:

Used in connection with real estate taxes that are based on the value of the property.

add on factor:

The percentage that is added to the useable space to arrive at the rentable space in a commercial building.

adjustable rate mortgage:

A mortgage loan in which the interest rate can change throughout the life of the loan.

adverse possession:

The claim of ownership of one person’s property by another based on how the encroaching ...