New York Real Estate Pre-Licensing Key
Terms
"taking" as defined by courts - answer the power of government to seize private
property for public use
abstract of title - answer an abbreviated history of a property, including info on any
transfers, grants, wills, conveyances, liens, and encumbrances
abutting - answer sharing at least one common boundary with another property
acceleration clause - answer a clause in a security instrument which makes the entire
loan amount due immediately upon default
accession - answer he right to all that one's own property produces, including that which
is added, either naturally or by human action, to the property already owned
accessory apartment use - answer a second dwelling unit located on the same property
as a single family home; usually smaller in size than the primary residence
accessory use - answera use of property that is secondary or incidental to the principal
use of the property
accounting - answeran agent's duty to account for all funds and/or property a client has
entrusted to them during their agency relationship; one of the fiduciary duties an agent
owes the principal that extends beyond termination of the agency relationship
accretion - answerthe process that results in the gradual increase in land area through
deposits of soil by natural forces
acknowledgment - answera formal declaration that the person signing a document is
doing so by choice; takes place in the presence of a notary or other authorized public
officer
acre - answera unit of area measurement used to determine the size of land — 1 acre =
43,560 square feet
act of waste - answerusing a property in a way that damages it or diminishes its market
value
active income - answerearnings (including wages, salaries, commissions, and bonuses)
from a trade or business where the taxpayer is an active participant
,actual cash value - answerreplacement cost less any depreciation; used to determine
the reimbursement amount in a property loss claim for many insurance policies
actual eviction - answerthe process by which a tenant is expelled from a property due to
the tenant's violation of the lease's terms
actual notice - answerwhen an individual has explicit knowledge of a fact, they are said
to have actual notice
ad valorem tax - answera tax calculated according to the assessed value of a piece of
real estate
adjustable rate mortgage (ARM) - answera mortgage with an interest rate that can be
adjusted based on fluctuations in the cost of money
adjusted basis - answerthe loss incurred by selling a capital asset
administrative discipline - answerthe enforcement of real estate license laws by the New
York Department of State through reprimand and denial, as well as the suspension and
revocation of licenses
advance consent to dual agency - answerconsent to a possible dual agency transaction
given prior to the occurrence
adverse possession - answerinvoluntary transfer of title from an owner who does not
use or inspect their land for a number of years to another person who has some claim to
the land and takes possession
after tax cash flow - answera property's annual income that remains after paying its
operating expenses, debt service, and taxes
agency disclosure form - answerrequired disclosure form that describes permitted forms
of agency relationships and the rights and obligations those relationships entail; given
upon the first substantive contact
agent - answeran individual with authority to act on behalf of another; a state license is
required to operate as an agent in real estate
air rights - answerthe right to use the airspace above the surface of the land
alluvion - answerthe soil that gets deposited in the process of accretion
alteration agreement - answera written agreement that is signed by co-op shareholder-
tenants prior to any renovations, modifications, repairs, or alterations
,Americans with Disabilities - answera federal civil rights law enacted to prohibit
discrimination against and create standards for people with disabilities
amortization - answerthe process of paying off a debt/mortgage in regular installments
based on a fixed payment schedule
amperage - answerthe strength of an electric current; measured in amperes, or amps
anchor stores - answermajor retail chain or department stores in a shopping center
which provide exposure to smaller, complementary satellite stores
anchor tenant - answerthe leading tenant in a shopping center who can generate higher
foot traffic than lesser-known neighbor tenants; typically pays a lower rent rate
apartment information vendor - answera person who furnishes a customer with
information concerning the location and availability of residential rental property in
exchange for a fee
apartment sharing agent - answera person or company who, for a fee, arranges,
conducts, or otherwise handles meetings between a potential renter and the current
owner or occupant of legally occupied real property, including apartment housing, who
wishes to share that housing as a private place of residence as roommates or in other
sharing arrangements
appraisal - answeran impartial, qualified appraiser's written opinion of value of a specific
property as of a specific date, supported by relevant market information
appreciation - answerthe increase in value of a property
appropriation - answerthe act of setting aside an amount of money to be used for a
specific purpose
appurtenances - answerrights that run with real property ownership; most often
transferred with the property, but possible to sell separately
architectural review board - answeran appointed board that determines the effects that
building or altering a structure will have on the surrounding areas, especially concerned
with signs, fences, and building exteriors
area variance - answera variance that permits the use of land in a manner which is not
allowed by the dimensional or physical requirements of the applicable zoning
regulations
Article 12-A - answerarticle of New York Real Property Law containing most of the laws
that govern real estate brokers and salespersons
, Article 78 proceeding - answera type of legal proceeding in which an aggrieved party
seeks to challenge actions of administrative agencies and other government bodies;
used to appeal the decision of a New York State or local agency to the New York courts
asbestos - answera naturally occurring mineral fiber that is commonly used in insulation
but if airborne or inhaled, can cause severe respiratory health issues
asbestosis - answera lung disease resulting from extended exposure to asbestos
assessed value - answerthe value placed on a property by a governmental unit for use
in calculating property taxes
assessing unit/approved assessing unit - answera department that has the power to
assess real property (city, town, county)
assessment - answerthe determination of the market value of a property
assessment review board - answera local board that hears appeals of tax assessments
assignment - answerthe complete transference of obligations in a contract from one
party to another
associate real estate broker - answersometimes called a broker associate, broker-
salesperson, or affiliate broker, this person has a broker's license but is working under a
managing broker; they are usually not responsible for supervising other agents
attorney review clause - answera section of the contract that makes the sale contingent
on the approval of the parties' attorneys
avulsion - answerthe sudden loss of land by an act of nature
balloon framing - answera type of framing in which closely spaced long vertical studs
extend from the foundation up to the roof
balloon mortgage - answera type of loan that is paid off in small, periodic payments, but
at the end of which the remaining balance is due as a lump sum
bargain and sale deed - answera deed without any warranty against encumbrances;
only implies that the grantor holds the right to convey title
basement - answerthe bottom floor of a building that is partially or completely below
ground level
basis - answerthe buyer's initial cost of real estate
Terms
"taking" as defined by courts - answer the power of government to seize private
property for public use
abstract of title - answer an abbreviated history of a property, including info on any
transfers, grants, wills, conveyances, liens, and encumbrances
abutting - answer sharing at least one common boundary with another property
acceleration clause - answer a clause in a security instrument which makes the entire
loan amount due immediately upon default
accession - answer he right to all that one's own property produces, including that which
is added, either naturally or by human action, to the property already owned
accessory apartment use - answer a second dwelling unit located on the same property
as a single family home; usually smaller in size than the primary residence
accessory use - answera use of property that is secondary or incidental to the principal
use of the property
accounting - answeran agent's duty to account for all funds and/or property a client has
entrusted to them during their agency relationship; one of the fiduciary duties an agent
owes the principal that extends beyond termination of the agency relationship
accretion - answerthe process that results in the gradual increase in land area through
deposits of soil by natural forces
acknowledgment - answera formal declaration that the person signing a document is
doing so by choice; takes place in the presence of a notary or other authorized public
officer
acre - answera unit of area measurement used to determine the size of land — 1 acre =
43,560 square feet
act of waste - answerusing a property in a way that damages it or diminishes its market
value
active income - answerearnings (including wages, salaries, commissions, and bonuses)
from a trade or business where the taxpayer is an active participant
,actual cash value - answerreplacement cost less any depreciation; used to determine
the reimbursement amount in a property loss claim for many insurance policies
actual eviction - answerthe process by which a tenant is expelled from a property due to
the tenant's violation of the lease's terms
actual notice - answerwhen an individual has explicit knowledge of a fact, they are said
to have actual notice
ad valorem tax - answera tax calculated according to the assessed value of a piece of
real estate
adjustable rate mortgage (ARM) - answera mortgage with an interest rate that can be
adjusted based on fluctuations in the cost of money
adjusted basis - answerthe loss incurred by selling a capital asset
administrative discipline - answerthe enforcement of real estate license laws by the New
York Department of State through reprimand and denial, as well as the suspension and
revocation of licenses
advance consent to dual agency - answerconsent to a possible dual agency transaction
given prior to the occurrence
adverse possession - answerinvoluntary transfer of title from an owner who does not
use or inspect their land for a number of years to another person who has some claim to
the land and takes possession
after tax cash flow - answera property's annual income that remains after paying its
operating expenses, debt service, and taxes
agency disclosure form - answerrequired disclosure form that describes permitted forms
of agency relationships and the rights and obligations those relationships entail; given
upon the first substantive contact
agent - answeran individual with authority to act on behalf of another; a state license is
required to operate as an agent in real estate
air rights - answerthe right to use the airspace above the surface of the land
alluvion - answerthe soil that gets deposited in the process of accretion
alteration agreement - answera written agreement that is signed by co-op shareholder-
tenants prior to any renovations, modifications, repairs, or alterations
,Americans with Disabilities - answera federal civil rights law enacted to prohibit
discrimination against and create standards for people with disabilities
amortization - answerthe process of paying off a debt/mortgage in regular installments
based on a fixed payment schedule
amperage - answerthe strength of an electric current; measured in amperes, or amps
anchor stores - answermajor retail chain or department stores in a shopping center
which provide exposure to smaller, complementary satellite stores
anchor tenant - answerthe leading tenant in a shopping center who can generate higher
foot traffic than lesser-known neighbor tenants; typically pays a lower rent rate
apartment information vendor - answera person who furnishes a customer with
information concerning the location and availability of residential rental property in
exchange for a fee
apartment sharing agent - answera person or company who, for a fee, arranges,
conducts, or otherwise handles meetings between a potential renter and the current
owner or occupant of legally occupied real property, including apartment housing, who
wishes to share that housing as a private place of residence as roommates or in other
sharing arrangements
appraisal - answeran impartial, qualified appraiser's written opinion of value of a specific
property as of a specific date, supported by relevant market information
appreciation - answerthe increase in value of a property
appropriation - answerthe act of setting aside an amount of money to be used for a
specific purpose
appurtenances - answerrights that run with real property ownership; most often
transferred with the property, but possible to sell separately
architectural review board - answeran appointed board that determines the effects that
building or altering a structure will have on the surrounding areas, especially concerned
with signs, fences, and building exteriors
area variance - answera variance that permits the use of land in a manner which is not
allowed by the dimensional or physical requirements of the applicable zoning
regulations
Article 12-A - answerarticle of New York Real Property Law containing most of the laws
that govern real estate brokers and salespersons
, Article 78 proceeding - answera type of legal proceeding in which an aggrieved party
seeks to challenge actions of administrative agencies and other government bodies;
used to appeal the decision of a New York State or local agency to the New York courts
asbestos - answera naturally occurring mineral fiber that is commonly used in insulation
but if airborne or inhaled, can cause severe respiratory health issues
asbestosis - answera lung disease resulting from extended exposure to asbestos
assessed value - answerthe value placed on a property by a governmental unit for use
in calculating property taxes
assessing unit/approved assessing unit - answera department that has the power to
assess real property (city, town, county)
assessment - answerthe determination of the market value of a property
assessment review board - answera local board that hears appeals of tax assessments
assignment - answerthe complete transference of obligations in a contract from one
party to another
associate real estate broker - answersometimes called a broker associate, broker-
salesperson, or affiliate broker, this person has a broker's license but is working under a
managing broker; they are usually not responsible for supervising other agents
attorney review clause - answera section of the contract that makes the sale contingent
on the approval of the parties' attorneys
avulsion - answerthe sudden loss of land by an act of nature
balloon framing - answera type of framing in which closely spaced long vertical studs
extend from the foundation up to the roof
balloon mortgage - answera type of loan that is paid off in small, periodic payments, but
at the end of which the remaining balance is due as a lump sum
bargain and sale deed - answera deed without any warranty against encumbrances;
only implies that the grantor holds the right to convey title
basement - answerthe bottom floor of a building that is partially or completely below
ground level
basis - answerthe buyer's initial cost of real estate
