Course glossary

The number of square feet of office space historically leased per year in a market area; used in neighborhood and property analysis.

Americans with Disabilities Act. Federal law on disability access in employment and public/commercial accommodations; distinct from the Fair Housing Act’s housing rules.

Broker-in-Charge. The designated supervising broker responsible for a real estate office’s licensed activity.

Advertising that omits the licensed company name. Internet ads may satisfy the name rule with a link to the brokerage home page; a written owner agreement is still required to advertise.

Inducing owners to sell or rent by suggesting that persons of a particular protected class are entering the neighborhood—illegal under fair housing law.

Building Owners and Managers Association. Session 1 professional organization for commercial building owners and managers (often listed with IREM and NAA).

Building Owners and Managers Association. Session 7: classifies office buildings (A–D), standard area measurement methods, and standardized income/expense accounting charts.

Office lease list of construction features and alterations included in base rent; extras above the standard are usually paid by the tenant.

Common Area Maintenance. Session 7 retail review: tenant charges for shared area upkeep such as utilities, security, and waste disposal, often allocated by size.

A method to convert a property's projected net operating income into present value; lower cap rates imply lower perceived risk.

Anticipated revenue minus total adjusted operating expenses and debt service—the formula used to predict property cash flow.

Chlorofluorocarbon. Session 4 refrigerant gases (Freon™) that destroy ozone; only EPA-certified technicians may service systems; release penalties can reach $27,500 per day per violation.

Care, Obedience, Accounting, Loyalty, and Disclosure. Session 3–4 memory aid for the agent’s client-level duties to a principal.

Mixing trust money with the BIC/PMIC's own funds. A clearly identified amount of company money may stay in trust only to cover bank charges or keep the account open.

Using trust funds for a purpose other than the purpose for which they are held. Conversion is a breach of trust and a crime.

Consumer Price Index. Session 1 index leases often tie rent changes to the CPI or another published economic index.

The property’s exterior first impression; a primary driver of a prospect’s initial reaction to a rental.

Repairs postponed when needed, causing curable physical depreciation and loss of building value until corrected.

Errors and Omissions. Session 6: professional liability insurance protecting against legitimate professional errors and the cost of defending lawsuits.

Equal Credit Opportunity Act. Federal law barring credit discrimination based on race, color, religion, national origin, sex, marital status, age, or public-assistance income.

Environmental Protection Agency. Session 4: certifies refrigeration technicians and recycling/recovery equipment; investigates lead-paint disclosure compliance.

Under SCRLTA, utilities and services needed for habitability such as heat, running water, hot water, electricity, and gas when those are required to be supplied.

A leasehold for a fixed period. It is not ordinarily terminated by death of either party or by sale of the property.

Fair Housing protected class covering households with children under 18 and pregnant women (added in 1988).

Fair Credit Reporting Act. Federal consumer law regulating credit-report disclosure and requiring identification of the reporting agency used in a denial.

Fair Housing Act. In this course, FHA means Title VIII of the Civil Rights Act of 1968 (residential fair housing). Do not confuse with Federal Housing Administration mortgage insurance.

Federal Insurance Contributions Act. Social Security and Medicare payroll taxes; independent-contractor licensees pay their own under Safe Harbor rules.

Federal Insurance Contributions Act. Session 6: requires employer and employee Social Security and Medicare payroll tax withholding and remittance.

Fair Market Value. Session 2 uses FMV in SCRLTA contexts such as abandoned personal property thresholds and essential-service remedy measures.

For Sale By Owner. Limited Fair Housing Act exemption for certain owner sales/rentals without a broker; never allows discriminatory advertising.

Federal Trade Commission. Session 4: enforces the Sherman and Clayton antitrust acts against price fixing, boycotts, and market allocation.

Loss of value because a building's design or layout is outdated even though it is physically sound—common in specialized industrial properties.

Federal Unemployment Tax Act. Session 6: federal unemployment taxes are levied and reported on FUTA returns for qualifying employees.

An agent authorized to perform a broad range of acts for the principal in an ongoing relationship—typical for property managers under a management agreement.

Physical or mental impairment that substantially limits a major life activity, a record of such an impairment, or being regarded as having one—includes AIDS/HIV and recovering addicts, not current illegal drug use.

Homeowners Policy — Renters. Session 6: renters insurance covering personal property and tenant liability not included in the building blanket policy.

Homeowners Policy — Condominium Unit Owners. Session 6: individual condo owners should purchase HO-6 to cover their unit, personal property, and liability gaps not covered by the association blanket policy.

A tenant who remains after the rental term ends. SCRLTA sets different money remedies for willful versus non-willful holdover.

U.S. Department of Housing and Urban Development. Federal department that enforces the Fair Housing Act through its fair-housing office.

Heating, Ventilation, and Air Conditioning. SCRLTA landlord maintenance duties include keeping supplied HVAC and related systems in reasonably good and safe working order.

A lease where rent moves with a published economic index, most often the Consumer Price Index (CPI).

Institute of Real Estate Management. Session 1 professional group identified as an affiliate of the National Association of Realtors (NAR).

Internal Revenue Service. Session 3 Safe Harbor rules for independent-contractor licensees (compensation, written agreement, and self-paid taxes).

Requirements for treating a real estate licensee as an independent contractor (written agreement, substantially commission-based pay, and licensee pays own taxes).

Applies to most residential housing built before 1978. Sellers, landlords, and agents use a federal form, give the EPA pamphlet, and allow ten days for investigation. South Carolina does not require removal. Keep forms three years.

South Carolina Department of Labor, Licensing and Regulation. State department that houses the Real Estate Commission and related professional boards.

The manager’s plan to achieve the owner’s objectives; the one-year operating budget is described as the centerpiece of a good plan.

Mandatory Continuing Education. Session 4: brokers and salespersons complete 10 hours biennially (including a 4-hour core). Property managers and PMICs currently have no CE requirement.

Requires convicted sex offenders to register with local law enforcement. Authorities release the information but need not actively notify neighbors; licensees should refer inquiries to police and not research or disseminate lists.

Limited Fair Housing Act exemption for an owner-occupied dwelling with four or fewer units. Never allows discriminatory advertising; race/color still barred by the 1866 Act.

Mixed Use Development. Session 6: combines two or more uses—such as retail, office, and residential—in one compact complex.

National Apartment Association. Session 1 industry association focused on apartment/multifamily housing professionals.

National Association of Realtors. Session 1: IREM is described as an affiliate of NAR; often listed with BOMA, IREM, and NAA.

Net Operating Income. Session 6: income after operating expenses; used with capitalization rates to value investment property.

Retail lease where rent includes a share of the tenant's gross sales, often with a minimum guaranteed rent and annual true-ups.

A type of surety bond that protects the owner if a contractor goes out of business or fails to finish contracted work.

Property Manager-in-Charge. The designated property manager responsible for supervised licensees and real estate trust accounts.

The authority by which the Real Estate Commission administers and enforces laws made by the legislature. The Commission's purpose is to protect the public, not to enact statutes or set private commission rates.

PSI Examination Services. Session 7 exam prep: administers the 50-question SC Property Manager exam; candidates need 70% to pass within 90 minutes.

Protecting Tenants at Foreclosure Act. Session 1 federal law under which many leases survive foreclosure; month-to-month tenants generally get 90 days’ notice.

A business or facility open to the public that affects commerce—including property management offices—must be accessible. Existing barriers come out when removal is reasonably achievable; new commercial occupancy after January 26, 1993 must comply.

Planned Unit Development. Session 6: master-planned neighborhoods mixing housing and common areas; management resembles condominium associations.

Non-factual sales talk treated as legal in Session 4. It is not a substitute for disclosing material facts such as nearby rezoning or a planned landfill.

Retail lease provision allowing the landlord to terminate a percentage lease if the tenant fails to achieve a specified gross sales level.

Real Estate Investment Trust. Session 1 ownership form: corporate owners may hold real estate through REITs or syndicates as investments.

Real Estate Settlement Procedures Act. Federal law on residential settlement/closing disclosures and related practices; often appears as an exam distractor beside fair-housing statutes.

Landlord action punishing a tenant for exercising legal rights (complaints, joining a tenant organization, etc.). SCRLTA provides retaliatory-conduct protections.

An owner sells property to an investor and simultaneously leases it back, freeing capital for business operations while the investor holds title.

South Carolina Human Affairs Commission. First state contact for South Carolina housing-discrimination complaints under the state Fair Housing Law.

South Carolina Real Estate Commission. State commission under LLR that licenses and regulates brokers, salespersons, and property managers.

South Carolina Residential Landlord and Tenant Act. Session 2 state landlord-tenant statute covering duties, access, deposits, remedies, and retaliation.

Money held to secure performance of a rental agreement. SCRLTA sets notice, accounting, and remedy rules when deposits are mishandled.

An agent authorized for a specific act or transaction. Most real estate listing/selling relationships are special agency; property management is often general agency.

Guiding prospects toward or away from neighborhoods or buildings based on a protected class—an illegal fair-housing practice.

A psychological defect rather than a material defect (death, HIV/AIDS of a former occupant, rumored ghosts). Not required to be volunteered unless asked; then answer honestly. A former meth lab is not mere stigma.

A property manager who works for a BIC/PMIC and, through that firm, represents the owner is a subagent of the owner (the principal).

Cash and certified funds: deposit within 48 hours of receipt excluding Sat/Sun/bank holidays. Checks: same 48-hour clock after the offer is accepted or the lease is signed. Associated licensees turn money over by the next business day.

Underwriters Laboratories. Session 4: residential rental smoke detectors must have a UL or equivalent rating; UL also helps certify CFC recovery equipment.

Underground Storage Tank. Session 6: a tank is classified underground when at least 10% is below the surface; disclosure and cleanup liability may apply.

Existing vacation reservations are enforceable for 90 days after the deed is recorded. If the new owner will not continue renting after that, deposits must be refunded within 45 days of recording.