| ABSTRACT |
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| The recorded history of a land title. A compilation of all instruments affecting the title to a tract of land |
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| ACKNOWLEDGEMENT |
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| For real estate purposes , a signature witnessed or notarized in a manner that can be recorded. |
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| ADJUSTABLE RATE MORTGAGE (ARM) |
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| A mortgage design that permits the lender to adjust the interest rate at a periodic intervals with the amount of change generally tied to an independent published index of interest rate or yields. |
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| ALIENATION |
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| The act of transferring rights in real property . Sometimes used to identify the clause in a mortgage that allows the lender to declare the balance due and payable if the mortgaged property is sold |
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| ABANDONMENT |
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| Failure to occupy and use property; may result in loss of rights. |
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| ABATEMENT OF NUISANCE |
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| The extinction, termination, removal, or destruction of a nuisance, either personally by the one injured by nuisance or by a lawsuit instituted by him/her. |
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| ABROGATE |
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| To repeal, annul, nullify, abolish or otherwise bring to an end by official or formal action. ABSOLUTE FEE - Fee Simple Absolute. Absolute or fee simple title is absolute and unqualified ,unlimited in duration and unconditional. It is the highest, most complete, and best title one can have. |
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| ABSTRACT OF JUDGMENT |
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| A summary of the essential provisions of a court judgment which, when recorded, creates a lien upon all real property of the debtor within the county where recorded. |
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| ABSTRACT OF TITLE |
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| An abstract of title is a short account of what appears in the public records affecting the title of a particular parcel of real property. It should normally contain a chronological summaryof all grants, conveyances,wills, transfers and judicial proceedings which in any way affected title, together with all liens and encumbrances of record, showing whether or not they have been released. |
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| ABSTRACTION |
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| A method of valuing land by subtracting the indicated value of improvements from the sale price. |
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| ABUT |
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| To touch, border on, end at, share a common boundary with. |
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| ACCELERATED COST RECOVERY SYSTEM (ACRS) |
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| System which allows for cost recovery on certain qualifying property under the federal income tax laws. |
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| ACCELERATION CLAUSE |
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| A clause in any loan agreement that calls for immediate payment of the entire debt if one or more of the provisions of the agreement is breached by the borrower |
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| ACCEPTANCE |
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| Agreeing to the terms of an offer to enter into a contract,thereby making it a binding contract. Also,the act of accepting delivery of a deed |
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| ACCEPTANCE, QUALIFIED |
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| Where the offeree accepts certain provisions of an offer but rejects others. It is a counter-offer or, more accurately, a new offer. |
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| ACCESSION |
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| The acquisition of title to additional real estate by its annexation to existing property. This can be caused by man,such as the addition of fixtures
to the land ,or by nature,such as the alluvial deposits on the banks of a stream by accretion. |
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| ACCORD AND SATISFACTION |
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| An agreement to accept something different than,and usually less than, what was called for in the original agreement. |
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| ACCRETION |
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| The gradual increase in dry land by the forces of nature, as when water deposits sediment on waterfront property. The owner of that property becomes the owner of the new soil. |
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| ACCRUED ITEMS OF EXPENSE |
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| Those expenses which have been incurred but are not yet due or payable. In a closing statement, the seller's accrued expenses are credited to the buyer. |
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| ACQUISITION COST |
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| The sum required to obtain title to a piece of property. In addition to the selling price, such things as closing costs, appraisal fees, title insurance and legal fees would be included. |
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| ACRE |
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| An area of land equal to 43,560 square feet or 4840 square yards or 160 square rods. There are 640 acres in a section of land and 36 sections in a township |
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| ACTUAL AGE |
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| The age of the structure from a chronological standpoint -as opposed to effective age. Appraisers are concerned with effective age |
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| ADJACENT |
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| Nearby, bordering or neighboring; may or may not be in actual contact. |
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| ADMINISTRATOR |
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| A person appointed by the probate court to manage and distribute the estate of a deceased person when no executor is named in the will or there is no will. |
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| AD VALOREM |
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| Latin phrase meaning "according to value,' used in connection with taxation |
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| ADVANCE COMMITMENT |
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| An agreement to make an investment or provide long-term financing at some time in the future if certain conditions are met. |
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| ADVERSE POSSESSION |
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| Acqpiring title to real property legally owned by someone else, by means of open, notorious and continuous possession of the property, under color of title, hostile to the title of the owner of record for the statutory period and by paying all taxes assessed on the property during that period |
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| AFFIANT |
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| The one who makes an affidavit. |
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| AFFIDAVIT |
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| Sworn statement made before a notary public ,or other official authorized to administer an oath, and then reduced to writing |
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| AFFIRM |
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| To confirm or ratify.Also,to make a solemn declaration instead of making a statement under oath |
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| AGENCY |
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| A relationship of trust created when one person,the principal ,delegates to another,the agent, the right to represent the principal in dealing with third parties. |
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| AGENCY, DUAL |
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| Representing both parties of a transaction ,such as a broker representing both buyer and seller. This can result in loss of any commission and possibly revocation of the broker's license, if both parties are not fully informed as to the existence of the dual agency |
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| AGENCY, EXCLUSIVE |
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| A written listing agreement giving one agent (broker) the right to sell a piece of property for a specified period of time,but allowing the owner to sell the property himself without having to pay a commission |
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| AGENCY, OSTENSIBLE |
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| Refers to authority which an agent appears to possess that,in fact,does not exist or is in excess of that granted by the principal If through negligence or want of ordinary care the principal allows athird partyto concludeto his ultimate detriment that the apparent authority exists, the principal could be liable for damages to that third party. |
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| AGENT |
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| In an agency relationship, the one who is authorized to represent another (the principal). |
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| AGENT, ACTUAL AUTHORITY OF |
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| The authority which is given to an agent by a principal, either expressly or by implication |
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| AGENT, GENERAL |
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| An agent authorized to handle all the matters of the principal in one area or in specified areas |
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| AGENT, GRATUITOUS |
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| An agent who does not have a valid employment contract and therefore has no right to compensation. |
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| AGENT, IMPLIED AUTHORITY OF |
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| The authority of an agent which is implied as necessary to the performance of the express authority. |
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| AGENT, SPECIAL |
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| An agent with limited authority to do a specific thing or conduct a specific transaction. |
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| AGENT, UNIVERSAL |
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| An agent authorized by the principal to do all things that can be lawfully delegated to a representative |
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| AGREEMENT, EXPRESS |
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| An agreement where the terms are expressed in writing |
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| AGREEMENT, MUTUAL |
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| An agreement where both of the parties reach a "meeting of the minds." |
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| AGREEMENT OF SALE |
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| A contract between seller and purchaser in which they reach a meeting of the minds on the terms of the sale. |
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| AIR LOTS |
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| A parcel of property which does not contain any land,such as a condominium |
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| AIR RIGHTS |
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| The right to undisturbed use and control of the air space over a given parcel of land.Such rights may be acquired for construction of a building above the land or building of another,or for the protection of the light and air for structures on adjoining lands |
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| ALIENATION CLAUSE |
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| A provision in a promissory note or mortgage calling for immediate full payment of the debt if the mortgaged property is sold. Such a provision effectively prevents sales by assumption or land contract |
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| ALIENATION, INVOLUNTARY |
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| The forced sale of real estate by operation of law,such as a mortgageforeclosure, condemnation proceeding or tax sale |
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| ALIENATION, VOLUNTARY |
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| Voluntary transfer of real property from one person to another |
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| AMENITIES |
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| The intangible benefits that accompany ownership of a particular residence,such as proximity to public transportation , schools, or shopping, as well as panoramic views, architectural excellence, or the prestige that goes with living in a given community |
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| AMORTIZE |
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| Gradual payment of a debt in installments including principal and interest over a set period of time, where at the end of the period the entire debt has been paid |
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| AMORTIZED LOAN |
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| A loan that is completely paid off, interest and principal, in equal or nearly equal installment payments |
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| ANNUAL PERCENTAGE RATE (A.P.R .) |
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| The annual percentage rate which reflects all charges paid for the borrowed money, including the nominal interest rate (spelled out in the note) and all other discounts and finance charges |
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| ANNUITY |
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| A sum of money received in series of equal, or nearly equal payments over a period of time |
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| ANTI-DEFICIENCY RULE |
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| A law which limits a secured creditor to recovery of the security property in the event of a default under a deed of trust |
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| APPEAL |
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| To present a case or cause for rehearing to a higher decision making body |
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| APPELLANT |
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| The party appealing a decision or ruling. |
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| APPELLEE |
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| The party against whom a case is appealed. Also known as the respondent |
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| APPORTIONMENT |
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| A division of property (as among tenants in common when the property is sold or partitioned) or liability (as between seller and buyer with closing costs) into proportionate, but not necessarily equal, parts. |
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| APPRAISAL |
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| An estimate or opinion of the value of a piece of property as of a certain date |
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| APPRAISER |
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| One who estimates the value of real or personal property, particularly one qualified by education, training and experience to do so. |
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| APPRECIATION |
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| Increase in valueorworth Opposite of depreciation |
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| APPROPRIATION |
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| Taking or reducing to personal possession property to the exclusion of others. Example: The doctrine of appropriation holds that the water in a natural stream belongs to the public, but an individual can take it for beneficial use, and the first one taking the water for a particular use becomes prior in right as against all others for use of the water for that purpose. |
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| APPURTENANCE |
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| Anything that is incident to, attached to, or pertains to the land and is transferred with it, but is not necessarily a part of it. |
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| APPURTENANCES, INTANGIBLE |
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| Rights which go with or pertain to real property and which do not involve ownership of physical objects; for example,easements or covenants |
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| ARM'S LENGTH TRANSACTION |
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| Transaction where there are no preexisting family or business relationships, both parties have an equal bargaining position, and each protects his own interests |
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| ASSEMBLAGE or ASSEMBLING LAND |
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| Combining two or more adjoining properties into one tract |
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| ASSESSMENT |
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| 1. The valuation of property for taxation. 2. A non-recurring specific charge against property for a definite purpose, such as curbs or sewers |
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| ASSESSOR |
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| Official who determines the value of property for taxation. |
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| ASSET |
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| Anything of value owned by a person. |
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| ASSETS, LIQUID |
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| Cash on hand or other assets that can be readily turned into cash. Real estate holdings are not considered very liquid |
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| ASSETS, SECTION 1231 |
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| Properties used in a trade or business or held for the production of income are considered section 1231 assets for federal income tax purposes |
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| ASSIGN |
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| To transfer a right title or interest in property to another |
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| ASSIGNEE |
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| The one to whom a right title or interest in property has been transferred. |
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| ASSIGNMENT |
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| A transfer of contract rights from one person to another |
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| ASSIGNMENT OF CONTRACT AND DEED |
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| The substitution of a new person for the original seller in an installment sales contract. |
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| ASSIGNOR |
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| One who transfers a right,title or interest in property |
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| ASSUME |
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| To take upon oneself. Example:A buyer may assume the seller's loan and mortgage when purchasing a piece of property, thereby becoming personally liable for repayment |
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| ASSUMPTION AGREEMENT |
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| An agreement to undertake or pay an obligation origially incurred by another, as when a buyer agrees to assume the seller's mortgage |
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| ASSUMPTION FEE |
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| A sum paid to the lender,usually by the purchaser,when a mortgage is assumed |
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| ATTACHMENT |
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| Seizure of real or personal property of a defendant in a lawsuit, by court order,so that it will be available to satisfy a judgment. |
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| ATTACHMENTS, NATURAL |
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| Things attached to land by nature, such as irees,shrubs or crops |
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| ATTORNEY-IN-FACT |
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| One who has authority to act for another under a power of attorney. The power of attorney may be limited to particular act or purpose, or It may be general. In real estate transactions ,the power of attorney must be written and recorded |
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| AUDITING |
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| Verification and examination of the records, particularly bookkeeping accounts, of a business or other organization |
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| AVIATION EASEMENT |
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| Easement granted by an owner permitting use of airspace above a certain heig hi for aircraft flight. |
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