Real Estate Glossary "A"

Question 1

Abstract of Title

Answer 1

A summary of al1 of the recorded instruments and proceedings which affect the title to property, arranged in the order in which they were recorded.

Question 2

Accretion

Answer 2

The addition of land through processes of nature, as by water or wind.

Question 3

Accrued Interest

Answer 3

Accrue; to grow; to be added to. Accrued

interest is interest that has been earned but not due and payable.

Question 4

Acknowledgment

Answer 4

A formal declaration before a duly authorized

officer by a person who has executed an instrument that such execution is the person’s act and deed.

Question 5

Acquisition

Answer 5

An act or process by which a person procures

property.

Question 6

Acre

Answer 6

A measure of land equaling 43,560 square feet

Question 7

Action for Specific Performance

Answer 7

A court action to compel a defaulting principal to comply with the provisions of a contract.

Question 8

Adjacent

Answer 8

Lying near to but not necessarily in actual contact with

Question 9

Adjoining

Answer 9

Contiguous; attaching, in actual contact with

Question 10

Administrator

Answer 10

A person appointed by court to administer the

estate of a deceased person who left no will; i.e., who died intestate.

Question 11

Ad Valorem

Answer 11

According to valuation

Question 12

Adverse Possession

Answer 12

A means of acquiring title where an occupant
has been in actual, open, notorious, exclusive, and continuous occupancy of property under a claim of right for the required statutory period.

Question 13

Affidavit

Answer 13

A statement or declaration reduced to writing, and sworn to or affirmed before some officer who is authorized to administer an oath or affirmation.

Question 14

Affirm

Answer 14

To confirm, to ratify, to verify

Question 15

Agency

Answer 15

That relationship between principal and agent which arises out of a contract either expressed or implied, written or oral, wherein an agent is employed by a person to do certain acts on the person’s behalf in dealing with a third party

Question 16

Agent

Answer 16

One who undertakes to transact some business or to manage some affair for another by authority of the latter

Question 17

Agreement of Sale

Answer 17

• A written agreement between seller and
  purchaser in which the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms and conditions set forth therein.

Question 18

Air Rights

Answer 18

Rights in real property to use the space above the

surface of the land.

Question 19

Alienation

Answer 19

A transferring of property to another; the transfer of

property and possession of lands, or other things, from one person to another.

Question 20

Alienation Clause

Answer 20

Allows lender to require the balance of a loan
to be paid in full if the collateral is sold (also known as a “due on sale”
clause).

Question 21

Amortization

Answer 21

A gradual paying off of a debt by periodic

installments

Question 22

Apportionment

Answer 22

Adjustment of the income, expenses or carrying
charges of real estate usually computed to the date of closing of title so that the seller pays all expenses to that date. The buyer assumes all expenses commencing the date the deed is conveyed to the buyer

Question 23

Appraisal

Answer 23

An estimate of a property’s value by an appraiser who

is usually presumed to be expert in his work

Question 24

Appraisal by Income Capitalization Approach

Answer 24

An estimate of value by capitalization of productivity and income

Question 25

Appraisal by Sale Comparison Approach

Answer 25

Comparability with the sale prices of other similar properties.

Question 26

Appraisal by Cost Approach

Answer 26

Adding together all parts of a
property separately appraised to form a whole: e.g., value of the land considered as vacant added to the cost of reproduction of the building, less depreciation.

Question 27

Appurtenance

Answer 27

Something which is outside the property itself but

belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling

Question 28

Assessed Valuation

Answer 28

A valuation placed upon property by a public

officer or a board, as a basis for taxation.

Question 29

Assessment

Answer 29

A charge against real estate made by a unit of

government to cover a proportionate cost of an improvement such as a street or sewer.

Question 30

Assessor

Answer 30

An official who has the responsibility of determining

assessed values.

Question 31

Assignee

Answer 31

The person to whom an agreement or contract is

assigned.

Question 32

Assignment

Answer 32

The method or manner by which a right or contract is

transferred from one person to another

Question 33

Assignor

Answer 33

A party who assigns or transfers an agreement or

contract to another.

Question 34

Assumption of Mortgage

Answer 34

The taking of title to property by a grantee, wherein the grantee assumes liability for payment of an existing note or bond secured by a mortgage against a property and becomes personally liable for the payment of such mortgage debt.

Question 35

Avulsion

Answer 35

A sudden and perceptible loss or addition to land by the action of water, or a sudden change in the bed or course of a stream.