See: Lock-in (1).

The annual percentage of return, both of and on invested capital.

A fixed rate mortgage under which the interest rate will go down if rates should fall. The loan is offered when rates appear to be falling. The borrower usually can request the rate reduction only once, during the first few years of the term of the loan.

Affirming a prior act which was not legally binding; the affirmation gives the act legal effect. Occurs when an unauthorized agent acts, and the principal later affirms the action, giving authority retroactively.

Land in its natural state. Land which has not been subdivided into lots, does not have water, sewers, streets, utilities, or other improvements necessary before a structure can be constructed.

To tear down or demolish.

The right to resume possession reserved when the possession was given to another. Not automatic and court action may be necessary.

Capable of present performance. A broker supplying an offer from a ready, willing and able buyer, which meets the price and terms of the listing, is entitled to a commission, even though the seller is not bound to accept the offer. A standard listing agreement would state this.

(1) Lands and anything permanently affixed to the land, such as buildings, fences and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other such items which would be personal property if not attached. The term is generally synonymous with real property, although in some states a fine distinction may be made. (2) May refer to rights in real property as well as the property itself.

Commonly describes one who is licensed to sell real estate but is not a broker. May correctly describe a broker as well as one who works under a broker.

A board composed of regular members (real estate brokers and sales- associates), and affiliate members (lenders, title companies, etc.) for the purpose of furthering the real estate business in a given area.

A division of the REALTORS National Marketing Institute, an affiliate of the NATIONAL ASSOCIATION OF REALTORS, it confers the designation of Certifies Real Estate Brokerage Manager (CRB) upon those who brokerage owners and managers who have reached a high level of expertise in this area.

See: Department of Real Estate.

See: R.E.I.T.

A state license granted to one as a broker or salesperson, after passing an examination. Some states have educational requirements before the brokers’ examination may be taken.

Created by the Tax Reform Act Of 1986, the “Conduit” is a vehicle through which mortgage backed securities can be issued.

Most commonly refers to property owned by a lender from foreclosure of mortgages or trust deeds. This property is usually for sale.

See: RESPA.

See: Real Estate.

A member of the National Association of Real Estate Brokers.