Glossary Flashcards
Abandonment
The relinquishment of all rights and title to a property with no intention of reclaiming ownership
Abstract
A disclosure statement to initial condo purchasers.
Abstract of title
A condensed history or digest of the title to a parcel of land consisting of a summary of every recorded instrument, together with a statement of all liens, charges or encumbrances affecting title to the land.
Abutting Owner
An owner whose land touches a highway or other public places.
Accredited Property Mananger
One awarded such a designation by Institute of Real Estate Management (IREM)
Acceleration Clause
A clause in a mortgage or agreement of sale stating that upon default of a payment due, immediate and full payment of the balance of the obligation becomes due and payable.
Access Right
The right of a property owner to have ingress or egress to and from his property.
Accession
Acquisition of property by its joining or union with other property.
Accretion
Gradual additions to land, by deposits of sand or soil, by bordering waters through natural causes.
Acknowledgement
A formal declaration made before a notary public or other authorized person, by a person who has executed and instrument, that such execution is his free act and deed.
Acre
A measurement of land equal to 4,840 square yards, or 43,560 square feet.
Accrued Depreciation
In appraisal, any loss of utility that causes the actual value of a property to be less than the reproduction cost new.
Actual Authority
The authority that a principal intentionally gives his agent.
Adjoining Owner
One whose property is contiguous to another; to be next to.
Administrator
A person appointed by the court to administer the estate of a deceased person who died intestate, or left no will; a personal representative.
Administrator’s Deed
A deed given by an administrator.
Ad Valorem
Tax according to valuation.
Adverse Possession
The means of acquiring title to land against the real owner, where possession has been actual, open, hostile, exclusive, continuous, and under claim of right for the statuary period of 20 years.
Affidavit
A statement reduced to writing and sworn to before a notary public or some other authorized officer.
Affirm
To confirm or ratify
Agency
The legal relationship resulting from an agreement that the agent is authorized by a principal to perform certain acts on behalf of the principal in dealing with a third party.
Agreement of Sale
A written agreement in which the buyer agrees to buy certain realty and the seller agrees to sell upon terms and conditions set forth therein. The title remains with the seller until terms and conditions are fulfilled; buyer has equitable title; there are two closings.
Air Rights
The rights vested by a grant of an estate in real property to all or any portion of the space above the property.
Alienation
The transferring of real property from one person to another; to transfer.
Allegation
The assertion or declaration of a party setting out what he expects to prove.
Alluvion
That increase of soil on a shore or bank or a river as the result of accretion.
American Land Title Association (ALTA)
An extended coverage title insurance policy usually protecting the mortgagee against loss due to errors in the public records.
American Society of Appraisers (ASA)
A professional organization of appraisers.
Americans with Disabilities Act
An act protecting the rights of persons with physical or mental disabilities from discrimination in employment, public services, and public accommodations; also requires certain buildings to meet strict design standards; employers must make accommodations in hiring and training.
Amortization
The gradual paying off of a debt on an installment basis.
Anchor Tenant
A major tenant in a shopping center that serves as a magnet to attract customers to the center.
Annexation
The act of attaching, adding, joining, or uniting one thing to another.
Annual Percentage Rate (APR)
The effective annual cost of credit calculated on the basis of procedures specified by Regulation Z (Truth-In-Lending).
Annuity
A sum of money that constitutes one of a series of periodic payments.
Anti-Trust Laws
Federal and state laws prohibiting conduct that interferes with business competition, such as price fixing, group boycotts and tying agreements.
Appraisal
An estimate of value of real estate; the report stating and supporting the estimated value of realty.
Appraisal by Capitalization
Determine the value of property by dividing net annual income by the capitalization rate. Used on income producing properties.
Appraisal by Cost Approach
Estimating the value of a piece of property by adding to the estimated land value the estimate of replacement cost or reproduction cost of the building less depreciation. Also called summation or reproduction cost approach.
Appraisal by Market Comparision
An appraisal of property through the examination and comparison of actual sales of comparable properties. Also called a “comparable.”
Appraisal Institute
A professional organization of appraisers.
Appreciation
An increased value of property due to economic or related causes which may prove to be either temporary or permanent.
Appurtenances
The which has been added to a property, which becomes an inherent part of the property, and will pass with it when conveyed; includes improvements.
As-Is
A phrase indicating the property is sold in its present conditions with no warranties.
Assemblage
Putting together two or more lots to form a large parcel. To be distinguished from plottage, which is the resulting value.
Assessment
A charge against real estate made by a unit of government or a condo association to cover the proportionate cost of improvement.
Assignee
The person to whom an agreement or contract is transferred.
Assignor
A party who assigns or transfers an agreement or contract to another.
Assignment
A method or man or by which a right or contract is transferred from one person to another.
Assisted Housing Development
New type of housing similar to Ohana, where an additional dwelling can be added to existing. Only on Oahu.
Assumption of Mortgage
Taking of title to property by assuming liability for payment of an existing note secured by a mortgage.
Attachment
The act of taking realty by judicial order and placing it within the custody of the court.
Attestation
The act of witnessing in writing another’s execution of an instrument; to affirm to be true or genuine.
Attorney-In-Fact
One who is authorized to perform certain acts for another under a power of attorney.
Avulsion
The sudden removal of land of one owner and depositing on the land of another when a stream changes its channel.
Balloon Payment
The final installment payment on a note that is greater than the preceding installment payments and pays the note in full.
Bankruptcy
A condition of financial insolvency in which a person’s liabilities exceed his assets, and he is unable to pay his debts.
Bargain and Sale Deed
A deed used to convey title to real property, which usually does not include warranties; if any, they are generally an assertion by the grantor that he has possession of the property.
Baseline and Meridian
Imaginary lines used by surveyors in locating and describing land under the rectangular survey method. The north-south line is the meridian; the east-west line is the base line. Used mostly in mid-western states.
Basis
The original cost of property plus value of any improvement put in by the seller, minus the depreciation taken by him.
Before and After Method
An appraisal method used in condemnation cases where there has been a partial taking of the property.
Benchmark
A natural or unnatural permanent reference mark or point established for use in measuring differences in elevation.
Beneficiary
A person who receives and benefits from the gifts or acts of another; one who receives the proceeds from a will, insurance policy, or trust; the lender in a deed of trust.
Bequeath
The giving of personal property by will.
Biannual
Something that occurs twice each year; semi-annual.
Biennial
Happening once every two years.
Bilateral Contract
A contract in which both parties have reciprocal obligations toward each other.
Bill of Sale
A written instrument that passes title of personal property from seller to buyer.
Binder
An agreement to cover a down payment for the purchaser of real estate as evidence of good faith on the part of purchaser; shows the receipt of a deposit and outlines the basic terms of the transaction.
Blanket Mortgage
One mortgage covering two or more specific parcels or realty.
Blockbusting
The discriminatory practice of encouraging members of one race or creed to move into a neighborhood, and then exploiting the situation by persuading residents to sell their houses at deflated prices because of the alleged social deterioration of the neighborhood.
Block Interest
Interest computed on the original face amount and which remains the same as the principal declines.
Bona Fide
Acting in good faith; without fraud; genuine; real.
Boot
The payment to satisfy the difference in equities in an exchange, which may be in cash, personal property, note, financing, or anything of agreed upon value.
Breach of Contract
Violation of any of the terms or conditions of a contract; default; non-performance.
Broker
A licensed person who negotiates the purchase and sale of real estate of another.
Budget Mortgage
A mortgage with payment that covers principal and interest, plus taxes, fire insurance, lease rent, etc.
Building Codes
Rules established by local governments to regulate construction standards.
Building Owners and Management Association (BOMA)
A professional organization made up of property owners and managers. Part of Building Owners and Managers Institute (BOMI).
Building Restrictions
Limitations on the use of property or the size and location of improvements established by legislation or by covenants in deeds.
Bulk Sales Transfer
And transfer of a major part of the materials, inventory or supplies of an enterprise not in the ordinary course of the seller’s business.
Bundle of Rights
Ownership concept in real estate that embraces the rights of possession, use, enjoyment, and disposition.
Bureau of Conveyances
The Hawaii state office which houses all legal documents relative to title to both land court and regular system property recorded since 1848; located in Honolulu.
Buy-down
The one-time, non-refundable prepayment of a portion of the interest of a loan to subsidize reduced monthly payments.
Capitalization
The act of converting future income into current equivalent value.
Capitalization Rate
The relationship or ratio between the net income from a real estate investment and the value of the investment, usually expressed as a percentage; the rate of interest which is considered a reasonable return on the investment, plus the recapture rate which computes a return of the investment.
Capitol Improvement
Any structure erected as a permanent improvement to real property that adds value or extends the useful life of the property. Not general repairs.
Caveat Emptor
Let the buyer beware; the buyer must examine the goods or property and buy at his own risk.
CC&R’s
Stand for covenants, conditions and restrictions.
Certificate of No Defense
An instrument executed by the mortgagor and attesting to its validity; estoppel certificate.
Certificate of Title
Issued by a title company, it assures good title as required by a buyer.
Certified Property Manager
A designation awarded to those who have taken required courses in property management.
Chain of Title
A sequential history of the conveyances, encumbrances, and records of ownership to a piece of property through the years from the original grant to present; the succession of owners as revealed through the public records.
Chattel
Personal property that is tangible and movable; personalty.
Chattel Mortgage
A mortgage on movable personal property.
Cite
To quote as authority or an example; to call to attention or enumerate.
Closing
The time when a transaction is consummated, or the actual signing over of the documents and delivery of the deed; the time after signing when the documents are recorded.
Closing Statement
A statement of settlement made by a broker or an escrow company that reflects the financial position of the buyer or seller in that the particular real estate transaction.
Cloud on Title
Any conditions revealed by a title search which may affect or impair the owner’s title to property because of their apparent or probable validity.
Codicil
A supplement or addition to a will that adds to, subtracts from, alters, revokes, or qualifies the provisions of a will.
Collateral Loan
A loan secured by property; unlike a debenture.
Color of Title
That which appears to be good title but which is not in fact good title, such as title held under a defective deed.
Commingling
Mixing a client’s money with personal funds
Commission
An agent’s compensation for performance of the duties of his agency; in real estate practice, a percentage of the selling price of the property, or percentage of rentals, etc.
Commitment
A pledge or a promise; an agreement.
Common Element
Under condominium ownership, the land and all parts of the building normally used by all of the owners for their mutual convenience or safety.
Common Expense
In a condominium, the expenses of operation; all sums designated as such by the declaration or by-laws.
Common Interest
The percentage of undivided interest in the common elements of a building appertaining to each apartment in a condominium.
Common Law
Laws that have evolved from general usage and legally established through court decision.
Common Profit
The balance of all income, rent, profits and revenues from the common elements remaining after the deduction of the common expenses in a condominium.
Community Property
Property accumulated and owned in common through joint efforts of husband and wife during their marriage. Hawaii is not a community property state.
Compound Interest
Interest paid both on the original principal and on interest accrued from the time it fell due.
Condemnation
The process by which property of a private owner is taken for public use, with just compensation to the owner, under the right of eminent domain.
Condemnee
One whose property is condemned.
Conditional Fee
A fee estate based upon a condition.
Condition Precedent
Where a condition needs to happen prior to the transfer of property.
