Jamaica REB Salesman Exam key terms

A written contract in which a seller promises to transfer land to a buyer once conditions and payments are completed, with title passing later at completion rather than on signing.

A notice registered against a title warning that a third party claims an interest in the land, which prevents later dealings from defeating that claim without notice to the caveator.

The document issued under the registered title system naming the proprietor and recording the land, its boundaries and any registered encumbrances, and treated as conclusive evidence of ownership.

A registered encumbrance over land securing repayment of money owed, giving the lender rights to enforce against the property if the debt is not paid.

The fee a broker earns for bringing about a completed sale, usually calculated as an agreed percentage of the sale price and payable only when the transaction closes or as the listing agreement states.

The stage at which the balance of the purchase price is paid, the transfer is delivered and the buyer takes possession, ending the seller's obligations under the sale agreement.

A term making a contract effective only after a stated event occurs, such as the buyer obtaining mortgage approval, so that no binding obligation arises until that event happens.

A promise contained in a deed or lease that binds land, such as a promise to keep buildings in repair or to use the property only for residential purposes.

Money paid by the buyer on signing the sale agreement as part payment of the price and as evidence of good faith, usually held by the seller's attorney or an agent as stakeholder.

A situation where one broker acts for both buyer and seller in the same transaction, which requires full written disclosure and informed consent from both parties because their interests may conflict.

A right one owner has to use another person's land for a limited purpose, such as a right of way for access or a right to run utility lines across the property.

Any registered interest, claim or burden affecting a property that limits the owner's free use or transfer of it, including mortgages, caveats, easements and restrictive covenants.

An arrangement where money or documents are held by a neutral third party until agreed conditions are met, then released to the party entitled under the contract.

The legal obligation of an agent to act in the client's best interest, placing the client's interests above the agent's own and avoiding secret profits or undisclosed conflicts.

An estate in land of unlimited duration, giving the owner the fullest bundle of rights recognised by law, as distinct from a leasehold interest for a fixed term.

Co-ownership in which each owner holds an undivided share with a right of survivorship, so that on the death of one owner the property passes automatically to the surviving owners.

An estate in land held for a fixed period under a lease, with the tenant enjoying possession and use while the landlord retains the reversionary interest.

The contract between a property owner and a broker setting out the type of authority granted, the asking price, the commission rate and the period during which the agency operates.

The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller, each acting knowledgeably and without compulsion.

Recent sale prices of similar properties in the same area, adjusted for differences in size, condition, location and date, used as the main evidence of value in the sales comparison approach.

The rate used to convert a property's net operating income into an estimate of value, calculated by dividing net income by price or value.

A property's effective gross rental income less operating expenses such as repairs, management and insurance, but before mortgage interest, tax and depreciation are deducted.

A loss in property value from physical deterioration, functional obsolescence or external factors, deducted from replacement cost in the cost approach to valuation.

A security arrangement under which a borrower charges property to a lender as security for a loan, with the lender able to enforce against the property on default.

A clause in a mortgage allowing the lender, after default and proper notice, to sell the mortgaged property to recover the debt without first going to court.

The amount of a loan expressed as a percentage of the property's appraised value or purchase price, used by lenders to measure risk and set deposit requirements.

The process of paying off a loan through scheduled periodic payments of principal and interest, so that the balance reduces to zero by the end of the term.

A condition in an offer making the buyer's obligation depend on obtaining loan approval within a stated period, failing which the buyer may withdraw and recover the deposit.

The public officer responsible for maintaining the register of titled land, issuing certificates of title and recording dealings such as transfers, mortgages and caveats.

A government tax charged on instruments such as transfers and leases, usually calculated on the consideration paid and paid before the document is registered.

The instrument that legally conveys ownership of land from one person to another, which must be executed, stamped and registered before the new owner is recognised.

The official recording of a dealing with land in the public register, which under the registered title system gives the holder priority and protection against later unregistered interests.

Co-ownership in which each owner holds a distinct, transferable share with no right of survivorship, so a deceased owner's share passes under their estate.

A promise in a deed or lease limiting how land may be used, such as a ban on commercial activity, which can bind later owners of the land.

The unpaid seller's equitable right to retain an interest in the land until the purchase price is fully paid, even where title has already been transferred.

A false statement of fact made by one party that induces the other to enter the contract, which may entitle the innocent party to rescind or claim damages.

The anti-money-laundering process by which an agent verifies a client's identity, source of funds and beneficial ownership before acting in a property transaction.

Funds such as deposits and rents received by an agent on behalf of clients, which must be kept in a separate designated account and accounted for accurately.

The reasonably probable, legally permissible and financially feasible use of a property that produces the greatest value, forming the basis for most valuation opinions.