GA Real Estate key terms

The most complete form of ownership; the owner holds title indefinitely and may sell, lease, mortgage, or leave the property to heirs, subject only to government powers and private restrictions.

A right to use a neighboring parcel of land that benefits and runs with the dominant parcel, passing automatically to later owners of that parcel.

A right to use another person's land gained by using it openly, continuously, and without permission for the full period set by state statute.

A use of property that was lawful when it began but no longer matches current zoning; it may usually continue, though it cannot normally be expanded and may be lost if abandoned.

A private limitation on land use written into deeds or subdivision plats and enforceable by property owners; it may be stricter than zoning but cannot authorize what public law forbids.

The duties an agent owes a client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care; breaching them can bring license discipline and civil liability.

A brokerage representing both sides of one transaction; in Georgia it requires the informed written consent of all parties, and the firm owes limited, disclosed duties to each client.

Mixing money held for clients, such as earnest money or rents, with the broker's own funds, or failing to keep it in a proper trust account; a license violation by itself.

An agency relationship created by conduct rather than a written agreement, as when a licensee's words or actions lead a consumer to reasonably believe the licensee represents them.

The use of a property that is legally permitted, physically possible, financially feasible, and produces the greatest value; it is the assumption behind most value estimates.

A valuation method that estimates value by comparing the subject to recently sold similar properties and adjusting for differences in size, condition, location, and sale date.

A rough income tool found by dividing a property's price by its gross rent; multiplying the subject's rent by the same factor gives an estimated value.

The ratio of a property's net operating income to its price or value; dividing the income by the rate produces an income-approach estimate of value.

The loan amount divided by the property's value or the lower of price and appraisal, shown as a percentage; higher ratios mean more lender risk and often require mortgage insurance.

Interest prepaid at closing to lower the note rate; one point equals one percent of the loan amount and generally reduces the rate for the life of the loan.

The four parts of a typical monthly payment on a home loan, principal, interest, property taxes, and insurance, used by lenders to measure a borrower's housing expense.

The process of paying off a loan with scheduled payments that cover interest first and an increasing share of principal, so the balance reaches zero at maturity.

The rule that certain agreements, including real estate sales contracts and leases longer than one year, must be written and signed by the party being sued to be enforceable.

A condition in a contract, such as loan approval, inspection, or appraisal, that must occur before a party is bound to close; it can give the buyer a way out.

A court order requiring a party to complete the contract as written; it is used in real estate because each property is unique and money damages may not compensate the buyer.

A deposit showing the buyer's good faith, held in trust and credited to the purchase price at closing; the contract states who receives it if the transaction fails.

A deed in which the grantor promises that title is good and defends the buyer against title defects, using covenants of seisin, right to convey, quiet enjoyment, warranty, and further assurances.

A deed that releases only whatever interest the grantor may hold, with no promises about title; often used in family transfers, gift deeds, and to clear title problems.

Georgia's standard document securing a lender's loan: the borrower conveys title to the lender as security while keeping the right to redeem by paying the debt.

A policy paid for once at closing that protects an owner or lender against covered title defects existing before the policy date, subject to the exceptions listed in the policy.

A way to gain title to another's land through possession that is open, actual, exclusive, hostile, and continuous for the statutory period, generally many years.

Title free of serious defects and encumbrances that a reasonable buyer would accept and a court would enforce; most sale contracts require it at closing.

Information that would influence a reasonable person's decision about a property, such as a known defect, zoning change, or flood risk; licensees must disclose it truthfully.

A hidden problem with a property that a careful inspection would not reveal; a seller or agent who knows of one must disclose it rather than stay silent.

Splitting an item such as property taxes, rent, or association dues between buyer and seller at closing according to the number of days each owned or will own the property.

What the seller actually keeps from a sale after deducting the loan payoff, brokerage fees, closing costs, prorations, and other agreed charges from the sale price.

The state agency that licenses and regulates brokers and salespersons, adopts rules, investigates complaints, and can fine, suspend, or revoke licenses.

Standard agreements and disclosures adopted by the Georgia Real Estate Commission; licensees must use them where the rules require, and improper use can bring discipline.

A separate bank account a broker uses to hold money belonging to clients or tenants, with required records and no mixing with the broker's own funds.

A Georgia practice in which the firm represents both sides while assigning different licensees to each client, so each party deals with an agent loyal to that party.

Georgia rules require advertisements to show the brokerage's registered name and the licensee's licensed name; team names and assumed names must be registered with the Commission.

A written Georgia contract hiring one broker for a stated period and setting out compensation, duties, and termination; it must contain required disclosures and be signed by the client.

Groups shielded from housing discrimination by federal law, including race, color, religion, sex, national origin, familial status, and disability, with state and local laws adding more.

Guiding buyers or renters toward or away from an area because of race, religion, disability, or another protected trait; illegal under fair housing law.

Money a landlord holds to cover unpaid rent or damage; Georgia law limits how it is held and requires a written accounting and return by the statutory deadline after move-out.