Modern RE Glossary Words Flashcards
Abandonment
Failure to occupy and use property which may result in loss of rights.
Abstract of title
A short account of what appears in the public record affecting the title of a particular parcel of real property; ordinarily includes a chronological summary of all grants, conveyances, wills, transfers, and judicial proceedings that have in any way affected the title, together with all liens and other encumbrances of record, showing whether or not they have been released.
Abut
To touch, border on, be adjacent to, or share a common boundary with.
Acceleration clause
Provision in a promissory note or a security instrument that allows the lender to declare the entire debt due immediately if the borrower breaches one or more provisions of the loan agreement or is in default in paying on the loan. Also referred to as a call provision.
Acceptance
(1) agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. (2) taking delivery of a deed from the grantor.
Accretion
A gradual addition to dry land by the forces of nature, as when waterborne sediment is deposited on waterfront property.
Acknowledgment
When a person who has signed a document formally declares to an authorized official, usually in notary public, that he signed voluntarily. The official can then a test that the signature is voluntary and genuine, without duress.
Acquisition cost
The sum required to obtain title to a piece of property. In addition to the purchase price, it typically includes an appraisal fee, title insurance cost, and other closing costs paid by the buyer.
Acre
An acre of land is equal to 43,560 square ft. There are 640 acres in a section of land.
Actual age
The age of a structure from a chronological standpoint, as opposed to its effective age, how many years it has actually been in existence.
Adaptation
Used to determine if something is a fixture. If the item is attached and has been adapted to the property, it is most likely a fixture.
Addendum
Additional information attached to a contract at the time the agreement is formed. It may add contractual provisions or provide information.
Adjacent
Nearby, next to, bordering, or neighboring. May or may not be an actual contract.
Adjustable rate mortgage, ARM.
A loan in which the interest rate is periodically increased or decreased to reflect changes in the cost of money. Compare: fixed rate.
Administrator
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.
Ad Valorem
A Latin phrase that means “according to value“ used to refer to taxes that are based on the value of property.
Adverse possession
Acquiring title to real property that belongs to someone else by taking possession of it without permission, in the manner and for the length of time prescribed by statute.
Affirm
(1) To confirm or ratify. (2) to make a solemn declaration that is not under oath.
Agency
A relationship of trust created when one person (the principal) grants another, (the agent) authority to represent the principal in dealings with third parties.
Agency by estoppel
When third parties are given the impression that someone who has not been authorized to represent another is that person‘s agent, or else given the impression that an agent has been authorized to perform ask that are, in fact, beyond the scope of the agents authority. Also called ostensible or a parent agency.
Agent
A person authorized to represent another (the principal) in dealings with third parties.
Air rights
The right to undisturbed use in control of the air space over a parcel of land; may be transferred separately from the land.
Alienation
The transfer of ownership or an interest in property from one person to another, by any means.
Alienation, involuntary
Transfer of an interest in property against the will of the owner, or without action by the owner, occurring through operation of law , example; a mortgage foreclosure, natural processes, or adverse possession.
Alienation, voluntary
Voluntary transfer of an interest in property from one person to another.
Alienation clause
A provision in a security instrument, (mortgage or deed of trust), that gives the lender the right to declare the entire loan balance due immediately if the borrower cells or otherwise transfers the security property. Also called a due-on-sale clause.
Amendment to a contract
an amendment is a mutually agreed change to an existing agreement. It can change the terms of the original contract.
Amenities
Features of a property that contribute to the pleasure or convenience of owning it, such as a fireplace, a beautiful view, or it’s proximity to a good school.
Americans with Disabilities Act, ADA
A federal law enacted acted to ensure access to “places of public accommodation” for the disabled. It applies to places of businesses and public services.
Amortization
Gradual repayment of a debt with installment payments that include both principal and interest, over a set period of time. See also: loan, amortized.
Amortization, negative
The addition of unpaid interest to the principal balance of a loan, thereby increasing the amount owed.
Annexation
Attaching personal property to real property, so that it becomes part of the real property, a fixture, in the eyes of the law. see also; fixture
Annual percentage rate, APR
All the charges that the borrower will pay for a loan (ncluding the interest, origination fee, borrower paid discount points, and mortgage insurance costs) expressed as an annual percentage of the loan amount.
Appraisal
An estimate or opinion of the value of a piece of property by an appraiser as of a particular date. Also called valuation.
Appraiser
One who estimates the value of property, especially an expert qualified to do so by training and experience. State and federal laws require appraisers to be licensed.
Appreciation
An increase in value; the opposite of depreciation.
APPURTENANCE
Anything that is incident to, attached to, or pertains to the land, but is not necessarily a part of it. An APPURTENANCE is ordinarily transferred with the land, but some APPURTENANCES may be transferred separately.
Arm’s length transaction
1), a transaction in which both parties are informed of the properties merits and shortcomings, neither is acting under unusual pressure, and the property has been exposed on the open market for a reasonable length of time. 2), a transaction in which there is no pre-existing family or business relationship between the parties.
Assemblage
Combining two or more adjoining properties into one tract.
Assessment
1) The valuation of a property for purposes of taxation.
2) A nonrecurring specific charge against property for a particular purpose, such as the installation of streetlights or sewers.
Assessment appeal
A property owner’s appeal to a board of assessment regarding the valuation of a property for tax purposes.
Assessor
And official who determines the value of property for taxation.
Asset
Anything of value that a person owns.
Assets, liquid
Cash in other assets that can be readily turned into cash (liquidated), Such as stock. Real estate is not considered a liquid asset.
Assign
(1) (verb) to transfer rights. (Especially contract right) or interest to another.
(2) (noun) hey successor in interest to property, other than an heir. She also; heirs and assigns
Assignee
One to whom rights or interest have been assigned.
Assignment
(1)a transfer of contract rights from one person to another. (2) in the case of a lease, the transfer by the original tenant’s entire leasehold estate to another. Compare: sublease.
Assignor
One who has assigned a right or interest to another.
Associate broker, broker associate
A common term for a licensee who holds a broker license and is employed by and supervised by and employing broker or managing broker.
Assume.
To take on legal responsibility for a debt or other obligation that was formally the responsibility of another.
Assumption
When a property buyer takes on personal liability for paying off the sellers existing mortgage.
Assumption fee
A fee paid to the lender, usually by the buyer, when a mortgage is assumed.
Attachment
Court ordered seizure of property belonging to a defendant in a lawsuit, so that it will be available to satisfy a judgment if the plaintiff wins. In the case of real property, attachment creates a lien.
Attachments, natural
Plants growing on a piece of land, such as trees, shrubs, or crops. See; emblements
Attorney in fact
Any person authorized to represent another created by a power of a tourney; not necessarily a lawyer. (and attorney at law)
Auditing
Verification and examination of records, particularly the financial accounts of a business or other organization.
Authority, actual
Authority actually given to an agent by the principal, either expressly or by implication.
Authority, implied
An agent’s authority to do everything reasonably necessary to carry out the principal’s express order.
Bad debt/vacancy factor
A percentage deducted from a property’s potential gross income to determine to determine the effective gross income, estimating the income that will probably be lost because of
Balance sheets
A summary of facts showing the financial condition, including a detailed list of assets. Also called a balance sheet
