Glossary

Real Estate glossary

175 definitions · page 1 of 3.

ABSTRACT OF TITLE: The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete…
ACCELERATION CLAUSE: The clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant.
ACCESSION: Acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks of streams.
ACCRETION: The increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake or sea.
ACCRUED ITEMS: On a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.
ACKNOWLEDGEMENT: A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document.
ACRE: A measure of land equal to 43,560 square feet, 4,840 square yards, 4,047 square meters, 160 square rods or 0.4047 hectares.
ACTUAL EVICTION: The legal process that results in the tenant's being physically removed from the leased premises.
ACTUAL NOTICE: Express information or fact; that which is known; direct knowledge.
AD VALOREM TAX: A tax levied according to value, generally used to refer to real estate tax. Also called the general tax.
ADJUSTABLE-RATE MORTGAGE (ARM): A loan characterized by a fluctuating interest rate, usually one tied to a bank or savings and loan association cost-of-funds index.
ADVERSE POSSESSION: The actual, open, notorious, hostile and continuous possession of another's land under a claim of title. Possession for a statutory period may be a means of acquiring title.
AFFIDAVIT OF TITLE: A written statement, made under oath by a seller or grantor of real property and acknowledged by a notary public, in which the grantor (I) identifies himself or herself and indicates marital status, (2) certifies that since the examination of the title on…
AGENCY: The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.
AGENCY COUPLED WITH AN INTEREST: An agency relationship in which the agent is given an estate or interest in the subject of the agency (the property).
Agent: In immigrant visa processing the applicant selects a person who receives all correspondence regarding the case and pays the immigrant visa application processing fee. The agent can be the applicant, the petitioner or another person selected by the applicant.
AGENT: One who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or…
AIR LOT: A designated airspace over a piece of land. An air lot, like surface property, may be transferred.
AIR RIGHTS: The right to use the open space above a property, usually allowing the surface to be used for another purpose.
ALIENATION: The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.
ALIENATION CLAUSE: The clause in a mortgage or deed of trust that states that the balance of the secured debt becomes immediately due and payable at the lender's option if the property is sold by the borrower. In effect this clause prevents the borrower from assigning the debt…
ALLODIAL SYSTEM: A system of land ownership in which land is held free and clear of any rent or service due to the government; commonly contrasted to the feudal system. Land is held under the allodial system in the United States.
AMERICAN LAND TITLE ASSOCIATION (ALTA) POLICY: A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan.
AMORTIZED LOAN: A loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan.
ANNUAL PERCENTAGE RATE (APR): The relationship of the total finance charges associated with a loan. This must be disclosed to borrowers by lenders under the Truth-in-Lending Act.
ANTICIPATION: The appraisal principle that holds that value can increase or decrease based on the expectation of some future benefit or detriment produced by the property.
ANTITRUST LAWS: Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Most violations of antitrust laws in the real estate business involve either price-fixing…
APPRAISAL: An estimate of the quantity, quality or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value.
APPRECIATION: An increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.
APPURTENANCE: A right, privilege or improvement belonging to, and passing with, the land.
APPURTENANT EASEMENT: An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor's land.
ASSEMBLAGE: The combining of two or more adjoining lots into one larger tract to increase their total value.
ASSESSMENT: The imposition of a tax, charge or levy, usually according to established rates.
ASSIGNMENT: The transfer in writing of interest in a bond, mortgage, lease or other instrument.
ASSUMPTION OF MORTGAGE: Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage, including payments.
ATTACHMENT: The act of taking a person's property into legal custody by writ or other judicial order to hold it available for application to that person's debt to a creditor.
ATTORNEY'S OPINION OF TITLE: An abstract of title that an attorney has examined and has certified to be, in his or her opinion, an accurate statement of the facts concerning the property ownership.
AUTOMATIC EXTENSION: A clause in a listing agreement that states that the agreement will continue automatically for a certain period of time after its expiration date. In many states, use of this clause is discouraged or prohibited.
AVULSION: The sudden tearing away of land, as by earthquake, flood, volcanic action or the sudden change in the course of a stream.
BALANCE: The appraisal principle that states that the greatest value in a property will occur when the type and size of the improvements are proportional to each other as well as the land.
BALLOON PAYMENT: A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.
BARGAIN AND SALE DEED: A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion.
BASE LINE: The main imaginary line running east and west and crossing a principal meridian at a definite point, used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
BASIS: The financial interest that the Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property was acquired by purchase, the owner's basis…
BENCH MARK: A permanent reference mark or point established for use by surveyors in measuring differences in elevation.
BENEFICIARY: (1) The person for whom a trust operates or in whose behalf the income from a trust estate is drawn. (2) A lender in a deed of trust loan transaction.
BINDER: An agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser's good faith and intent to complete the transaction.
BLANKET LOAN: A mortgage covering more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt.
BLOCKBUSTING: The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood.
BLUE-SKY LAWS: Common name for those state and federal laws that regulate the registration and sale of investment securities.
BOOT: Money or property given to make up any difference in value or equity between two properties in an exchange.
BRANCH OFFICE: A secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office usually must be run by a licensed real estate broker working on behalf of the broker.
BREACH OF CONTRACT: Violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due.
BROKER: One who acts as an intermediary on behalf of others for a fee or commission.
BROKERAGE: The bringing together of parties interested in making a real estate transaction.
BUFFER ZONE: A strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another use (e.g., residential from commercial).
BUILDING CODE: An ordinance that specifies minimum standards of construction for buildings to protect public safety and health.
BUILDING PERMIT: Written governmental permission for the construction, alteration or demolition of an improvement, showing compliance with building codes and zoning ordinances.
BUNDLE OF LEGAL RIGHTS: The concept of land ownership that includes ownership of all legal rights to the land--for example, possession, control within the law and enjoyment.
BUYDOWN: A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus…