Broker's License - All Vocab

Terms	Definitions
0-Bedroom Dwelling	Any residential dwelling in which the living area is not separated from the sleeping area.
Abstract of Title	A condensed history of the title to a particular piece of real estate showing, in chronological sequence, matters such as conveyances, liens, and encumbrances which have been recorded against the title in the office of the register of deeds or other public recording place.
Acceleration Clause	A clause within a mortgage, permitting the lender to accelerate the amount due upon default and declare the entire balance due.
Acceptance	Acceptance occurs when all buyers and sellers have signed an identical copy of the offer, including signature on separate but identical copies of the offer.
Accession	The right of the owner of the property to become entitled to all which the property produces, and to all that is added to it, either naturally or artificially. For example, the owner of an office building would acquire the abandoned trade fixtures of a tenant as real property.
Active Property	Property currently for sale.
Actual Notice	The actual knowledge a person has about the existence of a particular fact; notice expressly and actually given.
Ad Valorem	Latin for according to valuation. It refers to a type of tax, such as property taxes, which is based on the property's value, not the personal income of the person owning the property.
Addenda	Additional material attached to and made part of a document.
Adjustable Rate Loan	A mortgage with a fluctuating interest rate usually limited to one adjustment each year. There are a set number of maximum increases over the life of the loan, with the fluctuating rate based on a national index.
Advance Fee	A fee paid to a broker before any services are rendered.
Adverse Fact	Something that significantly and adversely affects the value of the property; significantly reduces the structural integrity of improvements to real estate; presents a health risk to occupants of the property; or information that indicates that a party to a transaction is not able to or does not intend to meet the obligations under a contract made concerning a transaction.
Age	A protected class under the fair housing laws that refers to any person at least 18 years of age.
Agency	A relationship in which one person acts for or represents another.
Agent	A person who is authorized by another to act on their behalf.
Amendment	A document used to change the term of a contract.
Amenities	Features of a property that add value or desirability. Amenities can be either tangible such as a skylight or intangible such as an ocean view.
American with Disabilities Act (ADA)	A federal law designed to eliminate discrimination against individuals with disabilities by mandating equal access to jobs, public accommodations, government services, public transportation, and telecommunications.
Amortization	The gradual paying of a debt through the systematic payments of principal and interest over a predetermined period of time.
Ancestry	A person's racial and ethnic background.
Annexation	An addition to property by the act of joining one thing to another. Changing personal property to real property.
Annual Percentage Rate	The relationship of the total finance charges to the total amount to be financed as required under the Federal Truth-in-Lending Act.
Anticipation	Future physical, economic, social, or political changes which may affect present value of property.
Antitrust Laws	Laws that make it illegal to conspire, to restrain trade or the free flow of goods and services in a market place.
Appraisal	An estimate or opinion of value based on supportable evidence and approved methods.
Appraiser	An independent person trained to provide an unbiased estimate of value for a fee.
Approval Jurisdiction	The rights held by cities and municipalities, in the state of Wisconsin, to annex lands within a certain area outside of their boundaries.
Approved Form	A contractual or conveyance form which is prepared and approved by the Department of Regulation and Licensing.
Appurtenant Easement	An appurtenant easement exists between two adjacent land owners, one being the dominant tenement and the other being the servient tenement. The easement attaches to the land and transfers to future owners.
Arbitration	The nonjudicial submission of a controversy to selected third parties for their determination in a manner provided by agreement or law.
Arsenic	An element found in soil and rock which is thought to increase the likelihood of several types of cancers.
Asbestos	A mineral fiber which has been used in a variety of ways within the home, but generally as an insulator around plumbing. Asbestos can be friable or non-friable, and may be hazardous to health.
Assessed Value	The determination by the state of the property's worth, for property tax purposes. Assessed value is usually a percentage of the appraised value.
Assumable Loan	A financing instrument whose terms are transferable to a party wishing to purchase the property holding the assumable loan.
Atrazine	A popular corn herbicide that has been used in Wisconsin for more than 25 years to control weeds in cornfields.
Balloon Loan	A loan originated with a short-term of 3 to 7 years while being fully amortized for 30 years.
Balloon Payment	A lump-sum payment due at the end of a mortgage contract period.
Bilateral Contract	A contract which binds two parties. Two promises are given, one in exchange for another.
Bill of Sale	A legal document used to transfer the ownership of personal property.
Binding Acceptance	Creates an enforceable contract between the parties. The offer is binding upon both parties only if a copy of the accepted offer is delivered to the party making the offer prior to the date established for binding acceptance.
Blockbusting	The practice of exploiting racial prejudices and the fear of a general decline in a neighborhood's real estate values to induce homeowners to sell their properties at a low price.
Breach	A failure to perform as promised in a contract.
Bridge Loan	A residential financing arrangement in which the buyer of a new home borrows money and gives a second mortgage on the buyer's unsold home to fund the acquisition of a new home.
Broker	One who for another, and for a commission, money or other thing of value, promotes the sale, exchange, purchase, option, rental or leasing of real estate or business opportunities.
Brokerage	The business of bringing buyers and sellers together in the marketplace.
Building Codes	Ordinances specifying minimum standards of construction.
Building Permits	Written governmental permission for the construction of a new building or an improvement to an existing structure. The purpose of the building permit is to show compliance with the zoning code to local authorities.
Bundle of Legal Rights	Real property ownership, under the allodial system, includes rights regarding the ownership of land, improvements to land, and the use of land. These rights generally include the right of quiet enjoyment, possession, disposal, exclusion, control, and the right to encumber.
Business Opportunity	The sale or lease of the business and good will of an existing business, enterprise, or opportunity, including a sale of the majority of assets or stocks of the business.
Buyer Agency Agreement	A written employment agreement that creates an agency relationship between a broker and a buyer. The buyer employs the broker to put forth a reasonable effort to find a property for the buyer to purchase and to negotiate on behalf of the buyer.
Buyer's Broker/Agent	The firm that has entered into a buyer agency agreement with the buyer indicating that the broker will be representing the interests of the buyer. The buyer's agent is the actual person, within the buyer broker firm that procured the buyer.
Cancellation Agreement and Mutual Release	A contract used to terminate a contract of sale, or agency agreement when the parties mutually agree to terminate their original statement.
Caveat Emptor	Latin meaning Let the buyer beware. A buyer should inspect the goods or realty prior to purchase because a buyer buys at their own risk.
Certificate of Eligibility	The document a veteran receives from the Veterans Administration that establishes the maximum guarantee to which the veteran is entitled.
Certificate of Reasonable Value	Prepared by an appraiser on VA loans; it states the market value of a property.
Chain of Title	Chronological record of a properties ownership. Each owner should be linked to subsequent owners.
Change	An appraisal theory that a value placed on a property is good for only one snapshot in time because no physical or economic condition ever remains the same.
Chattel	An item of moveable property, such as furniture and drapes personal property.
Client	The person who employs an agent to perform a service on their behalf.
Client Funds	All downpayments, advanced fees, earnest money deposits or other money related to a conveyance of real estate that is received by a broker, salesperson or time share salesperson on behalf of the broker's, salesperson's or time share salesperson's principal or any other person.
Closing	Consummation of the real estate transaction, it is where the mortgage funds are given to the buyer and the legal title is exchanged for payment of the purchase price.
Closing Costs	Expenses of the sale or loan refinancing, that must be paid in addition to the purchase price in the case of the buyer's expenses or be deducted from the proceeds of the sale in the case of the seller's expenses.
Cloud on Title	A claim or encumbrance that would affect or burden an owner's title to real estate.
Coliform Bacteria	Microorganisms found in the intestines and feces of humans and other warm-blooded animals as well as in soil, on vegetation, and in surface water runoff.
Color	A protected class under the fair housing laws that refers to a person's skin color.
Commission	The amount owed a broker as payment for services rendered in connection with the listing contract or buyer agency agreement.
Common Elements	All real property in a condominium development that is not described as a unit.
Common Law	A body of law based on usage, general acceptance, and custom as manifested in decrees and judgments of the courts case law.
Comparable Properties	A benchmark used in the Market Data Approach to make a property value estimate based on other properties which have recently sold and are similar to the subject property in terms of location, physical features, price, and date of sale.
Competent Parties	To be considered a competent party, it is required that all persons involved in a valid contract be of legal age and sound mind.
Condemnation	A judicial or administrative proceeding to exercise the power of eminent domain.
Conditional Use Permit	Land uses allowed if certain conditions are met. Land uses which the government has decided are not necessarily well suited to all locations within the zoning district. They are used to allow flexibility in land use regulations.
Condominium Ownership	Fee simple unit ownership of real property. Residents own their unit plus a share of common elements.
Condominium Unit	The part of the condominium development that is intended for individual use.
Conformity	The maximum value of a property that is realized when the other properties in the neighborhood are similar.
Consideration	Something of legal value given in exchange for a promise. Valuable consideration is anything that has monetary value, good consideration is a promise to perform.
Constructive Notice	Knowledge which the law presumes a person has, as in the case of documents which have been recorded as a matter of public record.
Contingency	A provision in a contract that requires the completion of a certain act or happening of a particular event before that contract is binding.
Contract	A legally enforceable promise or set of promises, that must be performed and for which if a breach occurs, the law provides a remedy.
Contribution	Any component to a property is worth only what it adds to the property's value regardless of the cost of the improvement.
Control	The right to use a property within the boundaries of the law.
Conventional Financing	Financing that does not give the lender the added security of a government guarantee or insurance.
Conveyance	An instrument by which some estate or interest in land is transferred from one person to another, such as a deed, mortgage, lease, or contract for sale.
Cooperating Broker	A broker, who works in conjunction with another broker in procuring a buyer for the seller's property.
Cooperative Ownership	A multi-unit building which is owned by a corporation. Residents living in the building own stock in the corporation and have a proprietary lease.
Cost	The current reproduction cost of a building plus the value of the land tends to set the upper limit of a properties value.
Counter Offer	An offer which essentially terminates a prior offer and states only the new terms to be negotiated.
Covenant	A promise contained in a deed by which one of the parties agrees or pledges to the other that something will be done or shall not be done.
Credit Score	A statistical method of assessing the credit risk of a loan applicant.
Creditor	As defined by Regulation Z, a party who arranges for or extends credit more than 25 times a year or more than 5 times a year if the transaction is secured by a dwelling.
Customer	A person who receives services given on behalf of and for the benefit of a client.
Damages	Compensation recoverable in a lawsuit by a party who sustained an injury.
Deed	A document which transfers ownership of title.
Deed Conditions	Contingencies, qualifications, or occurrences upon which an estate in property would be gained or lost.
Deed in Lieu of Foreclosure	A borrower deeds the property to the lender in full or partial payment of the mortgage debt. The title to be transferred must be free of all encumbrances.
Deed Restrictions(Restrictive Covenants)	Clauses in a deed which limit the future use of the property, such as the type of structure that can be erected or the purpose for which a structure may be erected.
Defeasance Clause	A clause within a mortgage that legally binds the lender to release the lien from the title once the mortgage has been satisfied.
Deficiency Judgment	A lien placed on a mortgagor's real and personal property when a foreclosure sale does not satisfy the mortgage debt.
Delivery	A component of binding acceptance. Delivery can occur by fax, by mail, or in person.
Depreciation	A loss of value in a property.
Developer	One who transfers undeveloped land into parcels ready for construction.
Disability	A physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment or being regarded as having such an impairment.
Disposition	The right held by a property owner to lease, sell, or will the property away.
Dominant Tenement	The party of an easement who has asked for the right to use the land. The owner of the easement right.
Downzoning	A change in zoning from a more active to a less active classification; such as commercial to residential.
Dual Agency (Multiple Representation)	An agent representing two principals in one transaction. Dual agency is legal in Wisconsin only with informed written consent of both parties to the transaction.
Dual Compensation	Receiving compensation related to the real estate transaction from someone other than the licensee's client without prior written consent from all parties to the transaction.
Dwelling	Any building or part of a building designed for occupancy as a residence by one or more families.
Earnest Money	Up front cash or item of value from the potential buyer which indicates their intention to make good on their offer to purchase.
Easement	An incorporeal right held by one person to make use of the land of another for a limited purpose.
Easement by Condemnation	Easement acquired through operation of law by the government for a public use.
Easement by Necessity	An easement which is acquired through the operation of law allowing a purchaser of land ingress and egress.
Easement by Prescription	A way of acquiring a legal right to use the property of another by demonstrating long-term use of that property in an open, notorious, hostile and continuous manner.
Easement in Gross	A personal easement in gross is an interest to use another's land which usually ends with the death of the grantee or transfer of property. A commercial easement in gross, in an interest granted to a company, and binds successive owners.
Eminent Domain	Grants the government the right to take private land for public use.
Enabling Acts	State legislation that confers zoning powers on municipal governments.
Encroachments	To advance upon, or trespass upon the property of another as in the extension of some improvement or object across the boundary of a neighboring tract.
Encumbrance	Any claim against a property that may diminish its value.
Equitable Title	The right to obtain absolute ownership to property when legal title is held in another's name.
Equity	The excess of a property's fair market value over the outstanding debts.
Escheat	The reversion of property to the state or county, as provided by state law, in cases where a decedent dies intestate and there are no heirs.
Escrow	The process by which money and/or documents are held by a disinterested third party until satisfaction of the terms and conditions of the escrow instructions has been acheived.
Escrow Agent	A disinterested or neutral third party who coordinates the closing activities.
Estate in Land	A recognized interest in the use, possession, control, and disposition a person has in land.
Exchange	A way to defer capital gains tax by exchanging like property for like property.
Exclusion	The right held by a property owner or lessee to keep others from using a property.
Exclusive Agency Listing Contract	An agency agreement giving the listing broker the exclusive right to market the seller's property. The seller promises to pay a commission to the listing broker, if the terms of the contract are fulfilled, except if the buyer is procured by the seller.
Exclusive Right to Sell Listing Contract	An agency agreement giving the listing broker the exclusive right to market the seller's property. The seller promises to pay a commission to the listing broker if the terms of the contract are fulfilled, no matter who procures the buyer.
Executed	All actions required by the contract have been completed.
Expired Property	A property that was listed for sale but that did not sell during the term of the listing contract.
Express Agency	An agency relationship created through a party's word, written or oral.
Express Contract	A contract created by the parties stating their intentions either orally or in writing.
Familial Status	Whether persons are members of families in which one or more children under 18 years old lives with a parent, a person who has legal custody, or the designee of the parent or legal custodian. Also a person whose household includes one or more minor or adult relatives.
Federal Housing Administration (FHA)	A government agency that insures mortgage loans for financial institutions against loss in the event of foreclosure.
Fee Estates	An estate of inheritance in land that is absolute or without limitation.
Fee Simple Absolute (Fee Simple)	The largest estate of ownership which automatically passes upon death to the owner's heirs and devisees, either by will or by descent. The estate includes the complete bundle of legal rights.
Fee Simple Defeasible	An estate of inheritance that may be nullified by an occurrence or non-occurrence of an action or event.
Fee Splitting	A fee or commission paid to an unlicensed person for performing brokerage activity.
Fiduciary	One who is placed in a position of trust and confidence, normally responsible for the money and/or property of another.
Finance Charges	The total costs of consumer credit as a dollar amount.
Fixed Rate Loan	A loan with a rate that does not change over the life of the loan.
Fixture	An article that was once personal property but has been so affixed to real estate that it has become real property.
Floodplain	The flat portions of land located along water courses and streams, which are subject to overflow and flooding.
Foreclosure	A legal process used when a borrower defaults on a debt. The court to satisfy the borrower's debt sells the mortgaged property.
Fraud	An intentional distortion of the truth, a false representation or nondisclosure where disclosure should have been made.
Freehold Estate	An estate in land characterized by an interest in something, which is immobile, and of an indefinite duration.
Gap Endorsement	Clears the gap exception, causing the title company to provide coverage for liens that occur between the title commitment and the recording of the deed.
Gap in Title	A break in the chain of title, such as when the records do not reflect any transfer to a particular grantor.
Gap Period	Title defects which appear of record after the effective date of the title commitment and before the interest of the buyer is recorded.
General Agent	One who is authorized to conduct all of a principal's affairs within the context of one specific contract.
General Lien	A claim on all property, both real and personal, owned by an individual.
Good Consideration	A legally sufficient promise made by the parties of a contract.
Government Financing	Loan programs that are either insured or guaranteed by the federal government.
Government Powers	The rights the government has to limit the private ownership of property for the general welfare of the community.
Grant	The transfer of real estate by means of a deed.
Grantee	A party who is receiving an interest in real property.
Grantor	A party who is conveying an interest in real property.
Group Boycott	Competitors conspiring against another business or agreeing to withhold their patronage to limit competition.
Highest and Best Use	The reasonable use that is most likely to produce the greatest net return to the land and/or buildings.
Homestead	The home or dwelling of a married person and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, but not less than one-fourth acre if available and not exceeding 40 acres.
Implied Agency	An agency relationship created between parties as evidenced by their actions.
Implied Contract	A contract created between parties as evidenced by their actions.
Improvement	A valuable addition to land such as buildings, sewers and sidewalks.
Increasing and Decreasing Returns	Increasing returns are demonstrated when improvements are made to the property and the costs of those improvements are recovered upon sale due to the increased value of the property. Decreasing returns are demonstrated by an over-improved property, when the costs of the improvements are not likely to be recoverable upon sale.
Individual Property	Property of married persons that was acquired prior to marriage, income that has been designated as individual property, appreciation of value from individual property or gifts and inheritance received during marriage.
In-house Sale	A sale in which the listing broker is the only broker in the transaction.
Interest	A charge for the use of money.
Joint Tenancy	Two or more persons holding title to real property who are named on the same deed, hold an equal interest which was obtained at the same time, and share an undivided possession of the property. Joint Tenants benefit by the "right of survivorship."
Judgment	The official decision of a court regarding the rights and obligations of the parties to a suit.
Judgment Lien	A lien binding the real estate of one who is in debt to the holder of a judgment, giving the holder a right to foreclose on the land for the satisfaction of his judgment.
Judicial Foreclosure	A method of foreclosure where a mortgagee files suit to have the property sold by court order in an advertised sale.
Junior Lien	A lien that is subordinate to other existing liens.
Land Contract	A type of seller financing in which title does not transfer from seller to buyer until the mortgage has been paid in full. Under a land contract, the buyer gains equitable title and seller maintains legal title.
Latent Defect	A property defect which is known by the seller and is not discoverable by an ordinary inspection of the property by an agent or the buyer.
Lawful Source of Income	The source of a person's income, provided that it is legal.
Laws of Agency	The body of law that determines the rights and duties owed by an agent to a principal.
Lead Poisoning	An illness caused by a toxic mineral which may be found in the home in paint or water pipes.
Lead-Based Paint Hazard	Any condition that causes exposure from lead-contaminated dust, soil or paint that is deteriorated or present on accessible, friction, or impact surfaces that would result in adverse human health effects.
Leasehold	A personal property interest in land acquired under a lease.
Lessee	Tenant
Lessor	Landlord
Licensee	A term used by the DRL to refer to any person licensed or registered under state law to practice real estate.
Lien	A legal right to place a claim or encumbrance on property or have it sold for payment of a debt.
Lien Theory	Lien theory states view the buyer as the owner of the property even though the lender has not received payment in full. The mortgage creates a lien on the real estate which is used as collateral for a loan.
Life Estate	An estate with a duration limited to the life of the party holding it or of some other person.
Life Tenant	One who holds an estate in land for the period of his/her own life or that of another person.
Limited Common Elements	Common elements of the condominium which are identified in the declaration or plat as reserved for the exclusive use of one or more unit owner.
Liquidation	A remedy for breach of contract, which is available only to the seller, whereby he/she retains the buyer's earnest money as liquidated damages.
Lis Pendens	Litigation Pending A notice filed on public record to give constructive notice that the property is in litigation and there may be a forthcoming lien.
Listing Agent	An individual employed by the listing broker who actually secured the business for the listing firm. The listing agent is the seller's subagent and the listing broker's agent.
Listing Broker	The listing broker is the firm that the seller has employed under a listing contract.
Listing Contract	A written employment agreement that creates an agency relationship between a broker and a seller.
Loan-to-Value Ratio	The relationship between the loan amount and the selling price.
Management and Control	The ability that a married person has, under Wisconsin's marital property laws, to control marital property.
Marital Property	Property ownership recognized in Wisconsin that views the married couple as equal partners. It establishes ownership rights and the right to manage and control the property. Marital property is the real and personal property of all married persons.
Marital Status	Whether a person is single, married, divorced, separated, or widowed.
Market Analysis (Market Data Approach)	A study of a property, by a real estate agent or appraiser, to establish a likely selling price of the property. It involves a study of recent sales in the market area which are similar to the subject property on the basis of location, terms, physical features and date of sale.
Market Price	The price a ready, willing and able buyer actually pays for a property.
Market Value	The price at which a property would sell in the open market to a buyer who is under no duress, is not related to the seller, is well-informed about the property and who has been found within a reasonable amount of time, has paid cash or its equivalent, and has not been affected by special financing terms.
Marketable Title	A title which is free from defects and encumbrances and may be transferred to another party.
Master Plan	A comprehensive plan used to guide development of an area. It takes into consideration, growth and expansion of public service, transportation, etc.
Material Adverse Fact	An adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee, as being of such significance to a reasonable party, that it affects the party's decision to enter into a contract or the terms of a contract.
Material Fact	Any fact that is relevant to a person making a decision. Agents must disclose all material facts to their clients.
Mechanic's Lien	A specific, involuntary lien placed against real property for the purpose of securing a debt. The lien may be placed by those who perform labor, furnish material or professional services in the improvement of real estate.
Meeting of the Minds	Mutual assent or agreement between the parties to a contract regarding the substance of the contract. There can be no contract unless there is a meeting of the minds.
Mirror Image Offer	An offer to purchase that is written at the price and on substantially the terms set forth in the listing. Even if the seller does not accept this offer a commission may be owed.
Misrepresentation	Any statement of fact by one person to another, either by words or actions, which is not in accordance with the actual facts.
Mixed Marital Property	A combination of both individual and marital property that will always be treated as marital.
Mobile Home	Considered personal property for property tax purposes unless it is permanently attached to the ground, it is receiving utilities, and it lies upon land owned by the mobile home owner.
Mold	Any of various fungous growths often causing disintegration of organic matter.
Mortgage	Financing instrument used to purchase property, comprised of the mortgage document and mortgage note.
Mortgage Document	The document pledging real estate as security for the repayment of a debt. The mortgage gives the lender the right to place a lien on the borrower's property.
Mortgage Lien	Lien rights given to the lender by the borrower in exchange for the loan
Mortgage loan	Financing instrument used to purchase property, comprised of the mortgage document and mortgage note.
Mortgage Note	A document signed by the borrower of a loan and stating the loan amount, the interest rate, the time and method of repayment and the obligation to repay.
Mortgagee	Lender
Mortgagor	Borrower.
Multiple Counter Proposal	A way for a seller to negotiate with more than one buyer at a time. The seller is not bound to a particular buyer until the seller accepts the buyer's approval of the multiple counter proposal.
Multiple Listing Service (MLS)	An agreement whereby brokers pool their listings and offer to cooperate and compensate other brokers and in some buyer's brokers.
National Origin	The country where a person or his or her ancestors originiated or came from.
Navigable Waterway	A waterway with a bed and banks where it is possible to float small water craft at some point during the year.
Net Listing	An employment contract in which the broker receives as commission all excess moneys over and above the minimum sales price agreed on by broker and seller.
Nitrates	A natural constitutent of plants and is found in vegetables at varying levels depending on the amount of fertilizer applied and on other growing conditions.
Nonconforming Loan	Loans that do not conform to the strict guidelines of conventional loans.
Nonconforming Use	A type of permit which allows a building or its use to violate current zoning laws. The building or use of the building will be allowed to continue until the improvements are destroyed, or the current use is discontinued.
Notice Relating to the Offer to Purchase	A form used by the parties to a purchase contract whereby one party is unilaterally giving notice to the other party.
Offer to Purchase	A promise made, usually by a buyer, to purchase a seller's property under certain terms.
One-Party Listing Contract	The broker will earn their commission only if they procure a buyer specified in the listing contract.
Open House	A showing of real estate open to the public for viewing without an individual appointment.
Open Listing Contract	An agency contract between several brokers and a seller. The only broker entitled to a commission is the one that procured the buyer.
Operation of Law	A term that describes the way rights belong to a person by the application of established rules of law.
Opinion of Title	An opinion by a person competent in examining title, usually an attorney, as to the status of the record title of a property.
Option to Purchase	An agreement to keep open, for a set period, an offer to sell or lease real property.
Optionee	The purchaser under an option contract.
Optionor	The seller under an option contract.
Ordinary High Water Mark	The point on the bank or shore where water is present often enough so that the upland begins to look different from the lake or stream bed.
Origination Fee	The dollar amount charged by the lender to cover the time and expenses incurred to arrange a loan. The fee covers the lender's overhead for the processing of the loan throughout the loan term.
Parol Evidence Rule	Prevents the admission into court evidence of any oral negotiations or agreements that vary or contradict the terms of the written contract.
Partition Suit	A court process that divides co-owner's interests in real property when the parties do not all voluntarily agree to terminate the co-ownership.
Party Wall Easement	A wall that is located on a boundary line between two adjoining parcels of land.
Pattern of Sales	Presumptive evidence that a broker's license is required because one has participated in five sales in one year or ten sales in five years.
Pending Property	A property that has an accepted offer to purchase with all the contingencies removed.
Percentage Interest	Determines the extent of the condominium unit owner's undivided ownership interest in the common elements, their responsiblities for common expenses, their voting power, and the amount of proceeds in the event that the condominium is terminated.
Permitted Use	Uses that are permitted for a particular zoning classification.
Personal Property (Personalty, Chattel)	Property that is portable or unattached to the real estate.
Personal Representative's Deed	A deed most likely to be used by a personal representative when conveying property in settlement of a probate estate. The deed does not contain warranties.
PITI	An acronym used to describe a loan payment which includes principal, interest, taxes, and insurance.
Planned Unit Development (PUD)	A type of zoning that allows a developer to cluster buildings together thereby creating more affordable housing and more park and recreation space.
Plat	A map showing the specific location and boundaries of land that has been subdivided into lots.
Plot Plan	A plan showing the layout of improvements on a property site. It usually includes location, dimensions, parking areas, and landscaping.
Points (Discount Points)	Prepaid interest that is collected at closing. This money is used to buydown the interest rate of a mortgage.
Police Power	The power the government has to preserve order and protect the public health and general welfare.
Possession	The act of occupying a property.
Power of Attorney	A written instrument giving a person the authority to act on behalf of another (the principal).
Predetermined Date Property	A designation of property under Wisconsin's marital property laws. It applies to properties acquired prior to a married couples determination date which could be the couples marriage, the establishment of a domicile within Wisconsin or January 1, 1986.
Prepayment Penalty	A charge imposed against a borrower for paying their loan off early.
Price-Fixing	Competitors conspiring together to eliminate competition by agreeing on the prices they will charge consumers.
Primary Market	The market where loans generally are originated and sold.
Principal	One who has permitted or directed another to act for his/her benefit and subject to his/her direction and control. The amount of money which is borrowed, not including the payment of interest.
Priority of Liens	The order in which liens are paid in a foreclosure sale.
Private Mortgage Insurance	An insurance policy written to insure a portion of a mortgage amount for a borrower.
Probate	Formal judicial proceedings to prove or confirm the validity of a will, to collect the assets of a descedant's estate, to pay debts and taxes, and to determine the persons to whom the remainder of the estate is to pass.
Procurement	Uninterrupted chain of events which lead to the sale. The WB-1 Exclusive Right to Sell listing contract states, "a buyer is procured when a valid and binding contract of sale is entered into between the seller and the buyer or when a ready, willing and able buyer submits a written offer at the price and on substantially the terms specified in the listing contract."
Promissory Note (mortgage note)	An unconditional promise of one person to pay a certain sum of money to another at a future specified time. In real property financing, the promissory note (mortgage note) serves as evidence of debt for which the mortgage on the property is security.
Property Management Agreement	An agreement which establishes the agency relationship and extent of authority, duties, and obligations between a property owner and the property manager.
Proprietary Lease	A written lease in a cooperative apartment building, between the owner/corporation and the tenant/stockholder, in which the tenant is given the right to occupy a particular unit.
Puffing	The common practice of exaggerating a property's benefits in advertising.
Purchase Money Mortgage	A mortgage instrument from the buyer to the seller for all or a portion of the purchase price. Seller has equitable title and buyer gets legal title.
Quiet Enjoyment	The right a property owner has to the uninterrupted use of the property from third party claims.
Quitclaim Deed	A deed which conveys title to real property without making any warranties or representations regarding the quality of the deed.
Race	A person's membership in a group possessing characteristics and traits transmitted by descent.
Radium	A naturally occuring radioactive metal that is usually found at low levels in soil, rock, water and plants.
Radon Gas	An odorless radioactive gas which may enter a home through cracks in the foundation or drains in the floor.
Ready, Willing and Able Buyer	A prospective buyer of property who is legally capable and financially able to consummate the deal.
Real Estate Condition Report	A report used by the seller to disclose to the buyer any known adverse facts.
Real Estate Settlement Procedures Act (RESPA)	A law enforced by HUD created to insure that borrowers in mortgage loan transactions have knowledge of all settlement costs.
Recording	The act of entering or recording documents affecting or conveying interests in real estate in the register of deeds office. Until it is recorded, a deed or mortgage is not usually effective against subsequent purchasers or mortgagees. The buyer and seller will be required to pay a fee to record their documents in public records.
Redlining	A lender's refusal to lend or an insurance company's refusal to insure property within a geographic area on the belief those loans or insurance policies in the area would be of high risk.
Regression/Progression	Properties dissimilar in value in a neighborhood affect the value of all properties.
Religion	A person's religious or spiritual beliefs and practices, or his or her denominational affiliations.
Rescission	A way of terminating the rights of the parties under a contract whereby the parties act as if the contract never existed and forfeit their right to sue.
Reverse-Annuity Loan	A loan program established to meet the needs of the cash tight elderly. Monthly payments are made by the lender to the borrower, based on the equity on the borrowers home. The loan is usually paid off from the sale of the property upon the borrowers death.
Revocation	The act of terminating, canceling or annulling.
Right of First Refusal	The right of a person to have the first opportunity either to purchase or lease real property.
Right of Redemption	A time frame in which the borrower can pay the lender off in full, stop the foreclosure proceeding, and keep possession of the property.
Riparian Right	The right that governs running waters, such as rivers and streams, but may also include lakes. Property owners who have riparian rights own the land to the center of the navigable water.
Rural Housing Service	A loan program under the Department of Agriculture designed to meet the needs of low-income and moderate-income rural residents to purchase, construct, repair or relocate a dwelling and related facilities.
Salesperson	Any person other than a broker who is employed by a broker to perform any act authorized by Chapter 452 to be performed by a broker.
Satisfaction of Mortgage	A certificate issued by the mortgagee when a mortgage is paid in full which removes the lien from public records.
Secondary Market	A market for the purchase and sale of existing mortgages.
Selling Broker/Agent	The selling broker is the firm which procured the buyer for a seller. The selling agent is the actual person, within the selling broker's firm, who actually procured the buyer.
Servient Tenement	The landowner who grants or serves the right to use their land to another in an appurtenant easement.
Setback Lines	The amount of space required by zoning restrictions between the lot line and any improvements on the lot.
Severalty	The state of being separate.
Sex	A class protected under fair housing laws referring to gender.
Sexual Orientation	Having a preference for heterosexuality, homosexuality or bisexuality, having a history of such a preference or being identified with such a preference.
Single Agency	The practice of representing either the buyer or the seller but never both in the same transaction.
Special Agent	One who is authorized by a principal to perform one particular act or transaction.
Special Assessment	A tax placed against property owners in the area of the improvement such as new curbs and gutters.
Specific Lien	A claim against a particular piece of property, instead of a claim against all of the property.
Specific Performance	An action brought by a court to force a party to carry out the terms of a contract.
Spot Zoning	Occurs when a single parcel is granted special privileges which are not extended to other land which is similarly situated. Is permissible only when in the public interest.
Statute of Frauds	The statute requiring all contracts that transfer an interest in real estate to be in writing, state the date, describe the property, state the terms of payment, and be signed by the party incurring the debt.
Statute of Limitations	The law pertaining to the period of time during which certain actions must be brought to court or the right to sue is lost.
Statutory	Authorized by statute or state law.
Statutory Lien	A lien created by the enactment of a law established by legislation.
Steering	The illegal practice of channeling home seekers to or away from certain areas.
Stigmatized Property	A property defect which is more psychological than material.
Strict Foreclosure	A method of foreclosure, where the seller sues the defaulted buyer for possession of the property. Used under land contracts.
Subagent	An agent who works under another agent.
Subject Property	A reference to the real property under an appraisal.
Subordination	A written agreement by a lien holder that changes the priority in which liens would be paid in a foreclosure sale.
Substitution	Properties tend to be worth what an equally desirable or substitute property sold for.
Sue for Damages	A remedy for breach of contract whereby a party sues the breaching party for cash damages.
Suit to Quiet Title	A court action intended to establish the title to a particular property where there is a cloud of title.
Supply and Demand	Economic theory of pricing stating that demand increases price and that over-supply reduces price.
Survey	A process by which the physical boundaries of a property are measured.
Survivorship Marital Property	Upon death of a spouse, the ownership rights of that spouse in the property vest solely in the surviving spouse by nontestamentary disposition at death.
Target Housing	Housing constructed prior to 1978, which under the Lead Based Paint Disclosure Law, requires a Lead Based Paint Addendum included with the Offer to Purchase. The exemptions to this law include housing for the elderly, housing for the disabled or 0-bedroom dwellings.
Taxation	The right the government has to place a charge on real estate to raise funds to meet the public need.
Tenant in Common	A form of ownership where two or more people hold title on the same property. Each person's interest is held in severalty and each person retains the right to will away their interest.
Tie-In Agreement	Selling one product only if the buyer agrees to purchase another product as well.
Time of the Essence	The specified date in the contract by which agreed-upon acts must be completely performed or the non-performing party will breach the contract.
Time Share Ownership	A type of ownership that permits several individuals to hold legal title to a property. Time shares are distinguished by the fact that each unit is sold in time intervals.
Title	The legal right to the possession of property. It implies that the title owner has acquired the property and the bundle of legal rights which accompany ownership.
Title Insurance Policy	An insurance policy which protects the insured against loss or defects which may occur in the title.
Total Unity	A requirement for joint tenancy. Joint tenancy requires unity of possession, interest time and title.
Trade Fixtures	Items of personal property, which have become permanently attached to leasehold property, used for the purpose of operating a trade or business.
Trade Name	The name appearing on the broker's license under which the broker advertises or does business.
Transfer Fee	A state imposed fee on the sale of property. The rate of the transfer fee is 30 cents for each 100 dollars of value.
Triggering Terms	Advertising phrases that may not be used unless all of the terms of the loan are disclosed in the advertisement.
Truth in Lending Act	A law enforced by the FTC requiring lenders to disclose to borrowers the true cost of obtaining credit.
Underground Storage Tank	Tanks used in the storage of fuel or heating oil for noncommercial purposes or consumptive use.
Unenforceable Contract	A contract whereby neither party can sue the other for performance. However, an unenforceable contract may be valid between the parties by mutual agreement.
Unilateral Contract	A one-sided agreement where one party makes a promise to another and is bound by the promise. The second party is not bound.
Unlicensed Personal Assistant	Person who is not licensed under Chapter 452 or licensed but not employed for the purpose of providing services for which a license is required.
Use-Value Assessment	A method of assessing Wisconsin agricultural land for property tax purposes. The land is asessed based upon its agricultural productivity rather than its potential for development or fair market value.
Valid Contract	A contract that contains all of the necessary elements and is enforceable in a court of law.
Valuable Consideration	Something of monetary and legal value that is given in exchange for a promise.
Variance	Grants permission to deviate from a zoning restriction.
Vendee	The buyer under a land contract.
Vendor	The seller of realty under a land contract.
Veteran's Administration Loans	A government-sponsored mortgage assistance program, where eligible veterans or unremarried spouses of veterans, who died in service, may obtain partially guaranteed loans for the purchase or construction of a home.
Void Contract	An unenforceable contract that lacks legal purpose or essential requirements.
Voidable Contract	A contract that can be voided by an injured party.
Volatile Organic Compound	Widely used as cleaning and liquefying agents in fuels, paints, degreasers, solvents, polishes, cosmetics and dry cleaning solutions.
Voluntary Lien	A lien created by the debtor's action.
Warranty Deed	A deed in which the grantor warrants clear title to the property. The warranty deed is the most protective of all deeds, and offers the grantee five covenants seisen, against encumbrances, further assurance, quiet enjoyment, and warranty forever.
Wetland	An area where water is at, near or above the land surface long enough to be capable of supporting aquatic or hydrophytic vegetation.
Writ of Attachment	The method by which the court gains custody of a deed to assure that the collateral will not be sold without satisfaction of a court ordered judgment
Writ of Execution	A court order instructing the officer of the court to carry out the decision of the court.
Zoning	The laws that determine how land may be used so that an area has orderly development and there is a minimization of conflicts between incompatible land uses.

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Broker's License - All Vocab

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