Term
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Definition
| Legal term for attaching or affixing personal property to real property 1 |
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Term
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Definition
| Person who owns item as personal property and brings it on to real property 1 |
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Term
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Definition
| Rights that go with ownership of real property, a legal term used for both physical and non-physical appurtenances 1 |
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Term
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Definition
| Things connected to the land, whether natural or man-made 1 |
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Term
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Definition
| All real property rights conferred with ownership, including but not limited to, the right of use, right of enjoyment, and right of disposal 1 |
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Term
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Definition
| The need or desire for a specific good or service by others 1 |
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Term
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Definition
| A right to use another person's real property for a particular purpose 1 |
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Term
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Definition
| The greatest estate(ownership)that one can have in real property because it is transferable, inheritable, and of indefinite duration, with no conditions on title 1 |
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Term
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Definition
| Man-made attachments to real property, major fixtures are improvements 1 |
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Term
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Definition
| A type of legal description for land referencing principal meridians and base lines designated throughout much of the country, also called GOVERNMENT RECTANGULAR SURVEY or RECTANGULAR SURVEY SYSTEM 1 |
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Term
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Definition
| A physical characteristic of real estate that refers to the fact that real estate itself cannot mover from one place to another 1 |
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Term
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Definition
| A physical characteristic of real estate referring to the fact that it can't be destroyed 1 |
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Term
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Definition
| A type of legal description used for platted property, the description states only the property's lot number and block number in a particular subdivision 1 |
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Term
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Definition
| A type of legal description that starts at an easily identifiable point of beginning, then describes the property's boundaries in terms of courses and distances, returning to point of begining 1 |
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Term
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Definition
| Tangible items that (usually) are not permanently attached to or part of real estate, also called PERSONALTY or CHATTEL 1 |
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Term
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Definition
| The right of ownership in a thing, such as the right to use, possess, transfer, or encumber it 1 |
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Term
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Definition
| Not only the physical land and everything attached to it but also the rights of ownership (bundle of rights) in real estate, also called REALTY 1 |
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Term
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Definition
| The perceived supply of a good or service relative to the demand for the item 1 |
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Term
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Definition
| Equipment a tenant installs for business that may be removed before the lease ends, unless prohibited by contract 1 |
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Term
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Definition
| The ability to freely buy, sell, encumber, or dispose of propertyin any way the owner sees fit 1 |
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Term
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Definition
| The ability of a good or service to satisfy human wants, needs, or desires 1 |
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Term
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Definition
| An easement that burdens one piece of land for the benefit of another 2 |
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Term
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Definition
| Provisions in a deed or other document that make the parties' rights and obligations depend on the occurence (or non-occurence) of some event 2 |
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Term
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Definition
| Property developed for co-ownership, with each co-owner having seperate interest in an individual unit and an undivided interest in the common areas of the property 2 |
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Term
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Definition
| Anything of value, such as money, goods, services, or promises, given in exchange for something from another party 2 |
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Term
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Definition
| Promises or guarantees, express or implied, in a deed or other document 2 |
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Term
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Definition
| An instrument that conveys grantor's interest, if any, in real property 2 |
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Term
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Definition
| Limitations on real property use, imposed by a former owner through language included in the deed 2 |
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Term
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Definition
| A special real property interest that many states give by law as as statutory life estate to a spouse when a married person owns real property 2 |
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Term
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Definition
| A right to use another's real property for a particular purpose 2 |
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Term
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Definition
| An easement that benefits a person, not a piece of land 2 |
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Term
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Definition
| Government's constitutional power to take (or appropriate or condemn) private property for public use as long as the owner is paid just compensation 2 |
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Term
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Definition
| A physical object intruding onto a neighbor's property 2 |
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Term
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Definition
| A nonpossessory interest, such as an easement or lien, that burdens the property owner's title 2 |
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Term
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Definition
| An interest in property created on execution of a valid sales contract. Land contracts and some options also create equitable title 2 |
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Term
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Definition
| Interests that give the holder a temporary right to possession of the estate, without title 2 |
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Term
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Definition
| Contracts in which one party pays te other rent in exchange for possession of real estate, a lease is the conveyance of a leasehold estate from the fee owner to a tenant 2 |
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Term
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Definition
| a revocable, non-assignable permission to enter another's land for a particular purpose 2 |
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Term
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Definition
| Freehold estate that lasts only as long as a specified person lives 2 |
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Term
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Definition
| Contacts in which a seller promises to convey title to real property to a buyer in exchange for the purchase price. Also called PURCHASE AGREEMENTS, SALE CONTRACTS, SALE AGREEMENTS, PURCHASE AND SALE AGREEMENTS, or EARNEST MONEY AGREEMENTS 2 |
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Term
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Definition
| Deeds that convey any interest in a piece of real property the grantor has at the time the deed is executed, a quitclaim deed makes no warranties regarding title if any held by the grantor 2 |
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Term
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Definition
| The deed (or other document of transfer)that 40 years ago, was the most recently recorded deed 2 |
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Term
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Definition
| Ownership by one individual 2 |
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Term
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Definition
| The actual lawful ownership of real property, this is not a document, but a concept of theory dealing with ownership 2 |
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Term
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Definition
| Gives each co-owner the right to possession of the whole property, not just a fraction of it 2 |
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Term
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Definition
| Deeds that carry warranties of clear title and the grantor's right to convey title 2 |
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Term
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Definition
| Local ordinances dividing a city, county, etc., into zones, specifying different types of land use in different areas 2 |
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Term
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Definition
| Economic theory that says a particular home achieves its maximum value when surrounded by similar homes in style and function 3 |
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Term
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Definition
| Economic theory that says a particular item or feature of a property is only worth what it actually contributes in value to that parcel of real estate 3 |
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Term
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Definition
| Third stage a neighborhood goes through in its life cycle, when property values begin to fall as demand falls 3 |
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Term
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Definition
| The main business or industry that a community uses to support and sustain itself, a good economic base is critical for real estate values 3 |
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Term
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Definition
| A situation in which there is potential for harm to persons or property from conditions that exist in a property or surrounding area |
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Term
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Definition
| Process of rapid revitalization of properties in a neighborhood which causes current residents to be displaced 3 |
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Term
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Definition
| First stage a neighborhood goes through in tis life cycle, where property values tend to rise as development activity begins and continues 3 |
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Term
| Law of Diminishing Returns |
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Definition
| Economic theory that says, beyond a certain point, the added value of an additional feature, addition, repair, etc., is less than the actual cost of that item, also called the LAW OF DECREASING RETURNS 3 |
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Term
| Law of Increasing Returns |
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Definition
| Economic theory that says the added value of an additional feature, repair, etc., is more than the actual cost of that item 3 |
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Term
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Definition
| Group of houses or properties that shares common characteristics, also refered to as MARKET AREA 3 |
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Term
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Definition
| Anything outside the boundaries of a property that interferes with the right of quiet enjoyment of that property 3 |
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Term
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Definition
| A principle that says the value of a home is helped by other homes in an area, usually said about the "worst" home in the "best" area 3 |
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Term
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Definition
| Naturally occurring radioactive gas that emanates from rocks, it is odorless, colorless, and tasteless but has been identified as a cancer-causing agent 3 |
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Term
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Definition
| Principle that says the value of a home is held down by other homes in an area, usually said about the "best" home in the "worst" area 3 |
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Term
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Definition
| Final stage a neighborhood goes through in its life cycle, when property values rise again as demand increases, resulting in increased renovation and rehabilitation, rapid revitalization is called gentrification 3 |
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Term
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Definition
| Second stage a neighborhood goes through in its life cycle, when the are is built up to the point there is little, if any, vacant property, also referred to as EQUILIBRIUM 3 |
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Term
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Definition
| Property held to be undesirable by most people because of a past event(often a crime or environmental hazard) 3 |
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Term
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Definition
| Economic theory that says an informed buyer will not pay more for a home (or a feature in a home) than a comparable substitute 3 |
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Term
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Definition
| Law of economics that says, for all products, goods, and sercives, when supply exceeds demand prices will fall and when demand exceeds supply, prices rise 3 |
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Term
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Definition
| The amount of goods or services offered in the marketplace in exchange for something else, we typically measure amount in a dollar figure 3 |
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Term
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Definition
| Contract clause that gives a lender the right to declare the entire loan balance due immediately because of a specific reason, such as borrower default 4 |
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Term
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Definition
| Contract clause that gives the lender certain stated rights when property ownership is transferred 4 |
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Term
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Definition
| Loans with payments applied to principal and interest 4 |
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Term
| A.R.M. - Adjustable Rate Mortgage |
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Definition
| Mortgage that permits a lender to periodically adjust the interest rate to reflect fluctuations in the cost of money 4 |
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Term
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Definition
| One party taking over responsibility for a loan made to another 4 |
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Term
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Definition
| Additional funds, in the form of points, paid to a lender at the begining of a loan to lower the interest rate and monthly payments 4 |
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Term
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Definition
| Loans that meet FNMA/FHLMC standards and which can be sold on the secondary market, NONCONFORMING LOANS do not meet these standards 4 |
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Term
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Definition
| A loan not insured or guaranteed by a government entity 4 |
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Term
| Federal Home Loan Mortgage Corporation - FHLMC - "Freddie Mac" |
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Definition
| A nonprofit, federally chartered institution (now privately owned) that functions as a buyer and seller of residential mortgages 4 |
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Term
| Federal National Mortgage Association - FNMA - "Fannie Mae" |
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Definition
| The nation's largest privately owned investor in conventional, FHA, and VA residential mortgages (government owned as of 2010) |
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Term
| FHA - Federal Housing Administration |
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Definition
| A government agency under the Department of Housing and Urban Development (HUD) that insures mortgage loans 4 |
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Term
| Government National Mortgage Association - GNMA - "Ginnie Mae" |
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Definition
| A government owned corporation that guarantees principal and interest payments to investors who buy its mortgage-backed securities 4 |
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Term
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Definition
| A real estate installment agreement in which the buyer makes payments to the seller in exchange for the right to occupy and use property, but no deed or title is transferred until all, or a specified portion of, payments have been made 4 |
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Term
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Definition
| When a seller leaser property to someone for a specific term, with the tenant having an option to buy the property at a set price during the lease term 4 |
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Term
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Definition
| When a seller leases property for a specific term, with the tenant agreeing to buy the property at a set price during or following the lease term 4 |
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Term
| Loan-to-Value Ratio (LTV) |
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Definition
| The amount of money borrowed compared to the value of the property 4 |
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Term
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Definition
| An instrument that creates a lien against real property as security for a note 4 |
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Term
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Definition
| One who originates mortgage loans, usually funding loans with a company's own funds, mortgage bankers may sell loans or retain and service them 4 |
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Term
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Definition
| One who, for a fee, places loans with investors but, typically does not service such loans, mortgage brokers generally do not fund their loans 4 |
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Term
| PITI - Principal, Interest, Taxes, and Insurance |
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Definition
| Typical payment on a mortgage loan, encompasses the seperate fees 4 |
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Term
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Definition
| One percent of a loan amount, points can be charged for any reason, but often are used for buydowns, where they may also be called DISCOUNT POINTS 4 |
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Term
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Definition
| Financial institutions that make real estate loans that they keep and service in-house, instead of selling o the secondary markets 4 |
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Term
| Private Mortgage Insurance (PMI) |
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Definition
| Insurance offered by private companies to insure a lender against default by a borrower on a loan 4 |
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Term
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Definition
| Property acquired by a lending institution through foreclosure and held in inventory, often just referred to as an REO 4 |
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Term
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Definition
| An instrument that gives the creditor the right to sell the collateral to satisfy the debt if the debtor fails to pay according to the terms of the agreement 4 |
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Term
| Subject to(an existing mortgage) |
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Definition
| When property is transferred to a buyer with an existing mortgage or lien, but without the buyer accepting personal responsibility for the debt 4 |
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Term
| VA - Veterans Administration |
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Definition
| A government agency that guarantees mortgage loans for eligible veterans 4 |
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Term
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Definition
| An economic theory that says value is created by the expectation of future benefits 5 |
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Term
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Definition
| A transaction that occured under typical conditions in the marketplace, where each of the parites is acting in its own best interests 5 |
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Term
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Definition
| Combining two or more parcels of land into one larger parcel 5 |
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Term
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Definition
| The amount of value that is used to calculate taxes due, usually representing a percentage of the market value 5 |
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Term
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Definition
| 1. A supply and demand condition that exists in the real estate market when there are slightly more properties available than buyers 2. The right mix of Capital, Entrepreneurship/management, Labor, and Land (CELL) that results in the best return on investment from the land, this determines the land's maximum productivity 5 |
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Term
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Definition
| A principle affecting value that says all factors incluencing real estate - physical, economic, governmental, and social (PEGS), are constantly changing and thus property value itself is subject to constant change 5 |
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Term
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Definition
| Two or more parties trying to obtain the same thing 5 |
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Term
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Definition
| An economic theory that says a particular property achieves its maximum value when surrounded by properties that are similar in style, function, and utility, also called HOMOGENEITY 5 |
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Term
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Definition
| An economic theory that says a particular item or feature is only worth what it actually contributes in value to that piece of real estate, this is known as the feature's CONTRIBUTORY VALUE 5 |
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Term
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Definition
| The dollars needed to develop, produce, or build something 5 |
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Term
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Definition
| Any event, item, etc., outside the boundaries of a property 5 |
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Term
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Definition
| The amount that a property can be insured for, usually only representing the replacement costs of the structure and disregarding any value for the land 5 |
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Term
| Law of Diminishing Returns |
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Definition
| An economic theory that says that, beyond a certain point, the added value of an additional feature, addition, repair, etc., is LESS than the actual cost of that item, also called the LAW OF DECREASING RETURNS 5 |
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Term
| Law of Increasing Returns |
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Definition
| An economic theory that says the added value of an additional feature, repair, etc., is MORE than the actual cost of that item 5 |
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Term
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Definition
| The amount of money that a lender is willing to let someone borrow to finance a particular piece of property, usually a percentage of the property's market value 5 |
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Term
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Definition
| The price that property sold for in an actual transaction 5 |
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Term
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Definition
| The most probably price a property should bring in a competitive and open market 5 |
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Term
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Definition
| An increase in value (over the cost of acquiring the parcels) by successful assemblage, usually due to a change in use 5 |
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Term
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Definition
| A principle that says the value of a home is helped by the other homes in an area, this is usually said about the "worst" home in the "best" neighborhood 5 |
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Term
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Definition
| A principle that says the value of a home is held down by the other homes in an area, this is usually said about the "best" home in the "worst" area 5 |
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Term
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Definition
| The value of land with enhancements that make it ready for building or structure 5 |
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Term
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Definition
| An economic theory that says an informed buyer wil not pay more for a home or feature in a home than a comparable substitute 5 |
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Term
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Definition
| A buyer who is acting in his or her own best interest, without undue pressure, influence, or emotional attachment, and would rationally and readily accept a less expensive substitute, if available in the marketplace 5 |
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Term
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Definition
| The amount of goods or services offered in the marketplace in exchange for something else 5 |
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Term
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Definition
| The value of property to the owner as it is presently being utilized, without considering its highest and best use or present marker value (e.g., value that property actually contributes to an owner's business or personal enjoyment) 5 |
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Term
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Definition
| General swings in business activity, resulting in expanding and contracting activity at different phases of the cycle 6 |
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Term
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Definition
| A situation in the housing market where buyers have a large selection of properties to choose from 6 |
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Term
| Consumer Price Index (CPI) |
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Definition
| The measurement of the fixed cost of a market basket of goods and services, used as an inflation indicator 6 |
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Term
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Definition
| The study of how resources are allocated 6 |
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Term
| Federal Reserve Board (the Fed) |
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Definition
| The government body responsible for U.S. monetary policy, maintaining economic stability, and regulating commercial banks 6 |
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Term
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Definition
| The government's plan for spending, taxation, and debt management 6 |
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Term
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Definition
| The cost of money, the additional percentage of a borrowed sum that a borrower must repay to the lender for use of the lender's money 6 |
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Term
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Definition
| The government's means of controlling the supply and cost of money 6 |
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Term
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Definition
| General swings in real estate activity, resulting in expanding and contracting activity at different phases of the cycle 6 |
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Term
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Definition
| A situation in the housing market where sellers can choose from a large number of buyers who are looking for houses in a particular area 6 |
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Term
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Definition
| A study of the number of property units that can be sold or rented in the marketplace during a certain period of time 7 |
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Term
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Definition
| Tangible or intangible aspects of a property 7 |
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Term
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Definition
| The main companies and industries that bring new business and jobs to the area 7 |
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Term
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Definition
| Properties available in the marketplace that a buyer would accept as ready substitutes, since they share the same features and utility as the subject 7 |
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Term
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Definition
| A study of the present business and employment situation in an area, conducted to determine the likelihood of continued stability, growth, or decline 7 |
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Term
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Definition
| A study of the cost-benefit relationship of an economic endeavor, also called a FEASIBILITY ANALYSIS 7 |
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Term
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Definition
| A group of people living in one unit of housing 7 |
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Term
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Definition
| A place where goods are exchanged, often between buyers and sellers 7 |
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Term
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Definition
| The study of economic conditions in an area 7 |
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Term
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Definition
| A process that involves separating different users and different uses for property in the real estate market, focusing on real estate products on the supply side of the market 7 |
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Term
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Definition
| A process that involves identifying and categorizing the various sub-markets that exist within a larger market, focusing on participants in the demand side of the market 7 |
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Term
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Definition
| The number of new households being formed or moving into an area, minus the number of households leaving the area 7 |
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Term
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Definition
| a means of determining the current position of a property in relation to the marketplace, also called PROPERTY PRODUCTIVITY ANALYSIS OR PRODUCTIVITY MARKET ANALYSIS 7 |
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Term
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Definition
| The non-base companies that follow the critical mass of customers created by the base industry 7 |
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Term
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Definition
| Completed construction projects, e.g. houses 7 |
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Term
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Definition
| A subset of the larger real estate market 7 |
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Term
| Annual Percentage Rate (APR) |
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Definition
| The relationship between the cost of borrowing money and the total amount financed, represented as a percentage 8 |
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Term
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Definition
| Attempting to induce owners to sell their homes by suggesting that the ethnic or racial composition of a neighborhood is changing, with the implication that property values will decline, also called PANIC SELLING or PANIC PEDDLING 8 |
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Term
| Equal Credit Opportunity Act (ECOA) |
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Definition
| Federal law that prohibits discrimination in granting credit to people based on sex, age, marital status, race, color, religion, national origin, or receipt of public assistance 8 |
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Term
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Definition
| An assumption directly related to a specific assignment, which if found to be false, could alter the opinions or conclusions of the appraisal 8 |
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Term
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Definition
| Federal National Mortgage Association (FNMA), the nation's largest and privately owned investor in residential morgages, a secondary market buyer that makes more capital available for lending by banks to consumers 8 |
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Term
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Definition
| Title VIII of the Civil Rights Act of 1968, law makes it illegal to discriminate based on race, color, religion, sex, national origin, disability, or familial status in the sal or lease of residential property, including vacant land intended for residential housing. The law also prohibits discrimination in advertising, brokerage, lending, appraisal, and other housing services, and specifically prohibits blockbusting, steering, and redlining 8 |
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Term
| FIRREA - Financial Institution Reform, Recovery, and Enforcement Act |
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Definition
| Passed in 1989 as a comprehensive savings and loan bailout and preventive measure agains future S&L insolvency. This law recognizes the USPAP as the current industry standare for appraisals and identifies the Appraisal Foundation as the authority for professional appraisal standards 8 |
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Term
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Definition
| Statements by the appraiser explaining the framework used to reach an appraisal value 8 |
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Term
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Definition
| The appraisal process of analyzing the values derived from the different appraisal approaches to arrive at a final opinion of value 8 |
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Term
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Definition
| Refusal to make loans on property located in a particular neighborhood for discriminatory reasons 8 |
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Term
| RESPA - Real Estate Settlement Procedures Act |
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Definition
| Federal law dealing with real estate closings that sets forth specific procedures and guidelines for disclosure of settlement costs, RESPA lets buyers compare cost of services, requires specific statements/disclosures, prevents kickbacks, and limits escrows lender can hold 8 |
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Term
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Definition
| Channeling prospective buyers or tenants to particular neighborhoods based on their race, religion, or ethnic background 8 |
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Term
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Definition
| Another name for the Federal Fair Housing Act, which is Title VIII of the Civil Rights Act of 1968 8 |
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Term
| Truth-In-Lending Act (TIL) |
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Definition
| Federal law requiring lenders to disclose consumer credit costs in order to promote informed use of credit 8 |
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Term
| URAR - Uniform Residential Appraisal Report |
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Definition
| A standard appraisal report form used by lenders and appraisers since it was developed by secondary mortgage market players Fannie Mae (Form 1004) and Freddie Mac (Form 70) 8 |
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Term
| USPAP - Uniform Standards of Professional Appraisal Practice |
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Definition
| Professional appraisal standards promulgated by the Appraisal Foundation and now recognized thoughout the United States as the accepted standards of appraisal practice 8 |
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