Glossary of Terms Flashcards
abandonment
the voluntary and permanent ending of use or enjoyment with no intention to resume or reclaim one’s possession or interest. May pertain to easement or a property
abrogation
tenants cannot sign away their rights in advance of signing the lease.
abstract of title
a condensed version of the history of title in particular parcel of real estate as recorded in the county clerk’s records; consists of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property.
abutting
the joining, reaching, or touching, or adjoining land. Abutting parcels of land have a common boundary.
accelerated depreciation
a method of calculation for tax purposes the depreciate of income property at a faster rate than would be achieved using the straight-line method. Note that any depreciation taken in excess of that which would be claimed using the straight-line rate is subject to recapture as ordinary income to the extent of gain resulting from the sale.
acceleration clause
a provision in a written mortgage, note, bond, or conditional sales contract that in the event of default, the whole amount of principal and interest would be declared due at once
accretion
an increase or addition to land by the deposit of sand and soil washed up naturally from a river, lake, or sea
accrued depreciation
the actual depreciation that has occurred to a property at any given date; the difference between the cost or replacement new (as of the date of appraisal) and the current appraised value.
acknowledgement
a declaration made by a person to a notary public, or other official authorized to take acknowledgments, that an instrument was executed by that person as a free and voluntary act.
actual eviction
the result of legal action originated by a lessor, whereby a defaulted tenant is physically outsted from the rented property pursuant court order.
actual notice
express information or fact.
adjustable-rate mortgage (ARM)
a mortgage in which the interest rate changes at the predetermined intervals. the mortgage has no caps, that limits the amount it can change to.
administrator
the party appointed by the county to settle the estate of a deceased person who died without leaving a will
ad valorem tax
a tax levied according to value; generally used to refer to real estate tax. also called general tax.
adverse possession
the right of an occupant of land to acquire title against the real owner, where the possession has been actual, continuous, hostile, visible, and distinct for the statutory period.
affidavit
a written statement signed and sworn to before a person authorized to administer an oath.
agent
one who represents or has power to act for another person (called principal). The authorization may be expressed or implied. 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 the owner’s agent.
agreement of sale
a written agreement whereby the purchaser agrees to buy certain real estate and the seller agrees to sell, upon terms and conditions set forth in the agreement.
air lot
a designated airspace over a piece of land. Air lots, like surface property, can be transferred.
air rights
the right to use the open space above a property, generally 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 such 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 mortgagee’s option if the property is sold by the mortgagor. In effect, this clause prevents the mortgagor from assigning the debt without the mortgagee’s approval.
alluvion
new deposits of soil as the result of accretion
americans with disabilities act (ADA)
the ADA is a federal law that became effective in 1992. It is designed to eliminate discrimination against individuals with disabilities by mandating equal access to jobs, public accommodations, public transporation, telecommunications, and government services.
amortization
the liquidation of financial burden by installment payments
amortized loan
a loan in which the principal, as we’ll as the interest, is payable in monthly or other periodic installments over the term of the loan.
antitrust laws
the laws designed to the free enterprise of the open market place by making illegal certain private cons
