Glossary of Terms
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In a metes and bounds description. the angle and distance of a given line or arc. Each call is usually preceded by the word then or thence. Example: N 22" E 100' (1st call), thence N 80° E 100' (2nd. call).
A clause in a lease or other contract, setting forth the conditions under which each party may cancel or terminate the agreement. The conditions may be as simple as giving notice or complex and require payment by the party desiring to cancel.
Assets of a permanent nature used to produce income, such as machinery, buildings, equipment, land, etc. Must be distinguished from inventory. A machine which makes pencils, for example, would be a capital asset to a pencil manufacturer, but inventory to the company whose business is to sell such machines.
Gains realized from the sale of capital assets. Generally, the difference between cost and selling price, less certain deductible expenses. Used mainly for income tax purposes.
An inspection of newly listed properties, either by the entire sales staff of an office or by sales personnel from more than one office in conjunction with a multiple listing group. Generally conducted on a regular basis.
The costs involved in keeping a property which is intended to produce income (either by sale or rent) but has not yet done so.
"Let the buyer beware." Legal maxim stating that the buyer takes the risk regarding quality or condition of the item purchased, unless protected by warranty or there is misrepresentation Modernly, consumer protection laws have placed more responsibility for disclosure on the seller and broker.
CERTIFICATE OF TITLE
In areas where attorneys examine abstracts or chains of title, a written opinion, executed by the examining attorney, stating that title is vested as stated in the abstract.
CHAINS AND LINKS
Measurements. In real estate measurements (surveying) a chain is 66' long or 100 links, each link being 7.92." The measurement may change when used in fields other than surveying.
CLASSIFIED PROPERTY TAX
Property tax, which varies in rate depending on the use (zoning classification) of the property.
(1) 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.
(3) The final call in a metes and bounds legal description which "closes the boundaries of the property.
CLOUD ON TITLE
An invalid encumbrance on real property, which, if valid, would affect the rights of the owner. For example: A sells lot 1, tract 1, to B The deed is mistakenly drawn to read lot 2 by the recording of the erroneous deed. The cloud may be removed by quitclaim deed, or, if necessary, by court action.
A sharing of the risk of an insurance policy by more than one insurer. Usually one insurer is liable up to a certain amount, the other liable over that amount.
Property which is zoned commercial" (for business use). Property such as stores, restaurants, etc., falling between residential and industrial
To mix funds held in trust with other funds. For example: A broker or builder mixes deposits (should be in a trust account) with his funds by putting the deposits in his general account Although commingling is in itself a violation for which a broker may lose his license, it does not mean that. by commingling, the broker or builder intended to misappropriate the funds.
CONDITIONAL SALES CONTRACT
A sale in which the title to property or goods remains with the seller until the purchaser has fulfilled the terms of the contract, usually payment in full.
A structure of two or more units, the interior space of which are individually owned: the balance of the property (both land and building) is owned in common by the owners of the individual units. The size of each unit is measured from the interior surfaces (exclusive of paint or other finishes) of the exterior walls, floors, and ceiling. The balance of the property is called the common area.
A term indicating a residence primarily used in the Summer months as a second or vacation home.
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