Archives: Glossary Terms

An owner or landlord who entered into a lease agreement and granted a tenant possession and use.

A mortgage on real estate that is paid off by making a series of nearly-equal payments at regular intervals where a part of the payment goes to interest and the remainder goes to reduce the amount of the unpaid principal on the loan. See Amortized loan or Installment note.

A person to whom a license has been granted.

A written test given to a propective real estate BROKER or salesperson to determine ability to represent the public in a real estate transaction.  Most states offer examinations on at least 5 dates each year.  

        EXAMPLE:  Assessment Systems, Inc. (ASI), Psychological Systems, Inc. (PSI), Applied Measurement Professional (AMP), Experior, and National Assessment Institute     ( NAI) prepare licensing examinations for most states.  Some states prepare their own licensing examination.

A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation such as judgments, taxes, mortgages, deeds of trust, etc.

 In an adjustable rate mortgage this is the ceiling rate that the note cannot exceed over the life of the loan. See Capitalization rate.

A person who is in possession of a life estate.

A contract by which a party employs an licensed real estate broker to assist them in a real estate transaction which usually refers to the sale of property.

The real estate broker who has obtained a signed listing contract from an owner/seller.

See Listing contract.