Real Estate Glossary

The act of voluntarily surrendering a real estate property with the intention of removing your possession or interest.
A decrease in the value or amount of worth.
Absorption Rate
An estimated rate at which a property (like condo units, new housing or office spaces) will be sold or occupied each year.
Abstract of Title
A brief summary of history for the title for a real estate property; including all liens and burdens against the property. It does NOT assure that the title is valid for the property. It simply includes information that is public record; items like forgeries and encroachments are not part of the abstract of title.
Accelerated Depreciation
A way to calculate the depreciation of a property at a faster rate than would be accomplished through straight-line deprecation.
Acceleration Clause
A clause within a mortgage, contract or sale agreement which gives a lender the authority to request all monies due in advance of a fixed payment date based on an event such as a sale, assignment, encumbrance of property or default.
The agreement to terms of an offer by a seller.
The general or specific right to enter and exit a property.
An increase of land along the shores of a body of water, as by clay, silt, sand, and gravel left by flowing streams in a river.
Accumulation over a period of time such as interest, expenses or depreciation.
A formal signed statement made in front of an authorized officer; often a Notary Public.
A piece of land that equals 160 square rods; 4,840 square yards; 43,560 square feet.
Adhesion Contract
A very one-sided contract that favors heavily the party the drafter of the document.
Ad Valorem
Often a referenced to a specific tax/assessment the term is Latin for “according to valuation.”
Adverse Possession
The occupation of property that belongs to another person with a title with the intention of acquiring as one’s own.
A sworn written statement witnessed by an official authorized by law such as a Notary Public.
The term for the relationship that is created between one person (the principal) when they grant the right to act on their behalf to another (the agent) in business transactions.
A party authorized to act on behalf of another individual (the principal).
Agreement of Sale
The agreement between a buyer and seller for the purchase of a property.
Air Rights
The authority to use the air space or vertical planes above a property.
Alienation Clause
A clause within a mortgage, contract or sale agreement which allows the creditor to demand payment in full of principal and interest due upon the sale of the property.
Allodial System
A system of free ownership of property by the individual.
Both intangible and tangible features that increase the value of a real estate property.
the systematic repayment of debts with payments to the principal and interest over a specific time frame until the balance is zero.
Annual Percentage Rate (APR)
The relationship between the total amount(s) to be financed to the total Finance Charge.
The procedures involved in setting, fixing or estimating the market value of a real estate property.
The increase in value of a real estate property which can be either temporary or permanent as a result of economic causes.
Adjacent, belonging to, annexed or appended.
The use of a third party to settle a controversy between two parties.
Assess Valuation
The value of a property determined by the state as a means of calculating property taxes.
A fee for a specific purpose typically by a HOA for things like maintenance, adding sewers, curbs, etc. in a neighborhood.
Assumption of Mortgage
Agreeing to become liable for the terms of an existing mortgage and its payments through acquisition of the title of a property.
The process of legally seizing property of a defendant through a lawsuit and holding it in the custody of the courts for security purposes.
an individual who has been given authority to act in the place of another as power of attorney.
the formal process of transferring an agreement with a landlord from one tenant to another.
Balloon Payment
The last payment on a loan/note. It is substantially larger than the prior payments and installments leaving no remaining balance.
Bargain and sale deed
A deed which conveys real property without any covenants.
Baseline and meridian
a set of imaginary lines used to describe and locate land by surveyors when analyzing land and is used in property descriptions in most of the United States.
the interest attributed to the owner of an asset by the IRS for the purpose of calculating gains or losses on the sale of the asset.
Bench Mark
A marker placed as a permanent reference such as a brass marker or iron post to typically to establish altitudes and elevations on a surveyed property.
An individual who is designated to receive proceeds from another individual typically from a will, trust, or insurance policy.
Bilateral Contract
A contract based on two parties agreement to perform specific act(s) in exchange for the other party’s promise to follow through on their agreement.
Bill of Sale
The transfer of property from one person to another via a written agreement.
Blanket Mortgage
A mortgage that is typically used to finance multiple development projects, subdivisions and/or multiple lots.
Blue Sky Laws
A set of security laws intended to protect the public from fraudulent sales of securities through bonds, syndications and limited partnerships.
Tangible property or money given to equalize any difference in value between two exchanged assets.
The legal description of specific limits or perimeters of a piece of land.
Breach of Contract
The act of violating any of the terms of a contract causing the agreement to become invalid.
An individual who is the intermediary between two parties in a transaction; in real estate they facilitate the sale or lease of a property.
The portion of real estate business that brings both parties (the seller and the buyer) together to complete the real estate transaction.
Budget Mortgage
A specific type of mortgage where payments made go beyond covering just the interest and principal reductions.
Buffer Zone
A division that separates one parcel from another by a strip of land.
Building Permit
A written authorization that is required prior to the start of new construction or other structural improvements given by the County Building Department.
Building Residual Technique
A means of establishing the worth of a structural improvement typically done when appraising a property.
Bulk Transfers
A bulk sale or transfer of goods from one business to another and typically represents all or most of the seller’s inventory.
Bundle of rights
A group of legal ownership rights given to the party holding the real estate title.
Business Days
Days of the week that do not include holidays and weekends; Mondays through Fridays.
An overhanging beam or projection that is supported on only one end.
Capital Gain
The taxable portion from the sale of an investment.
Capital Improvement
Any permanent improvement to a property that is made to add usefulness or increase the value of the property.
A means of taking net income and changing it to a suggested value. This is the typical approach used when evaluating a property for appraisal.
Capitalization Rate (Cap Rate)
The percentage that is used when taking an income approach to evaluate the worth of a renovated or remodeled property. This is done to give an investor an idea of what an original investment will be valued at once an improvement has been completed to determine if the return on investment is worth loaning their capital.
Certificate of Reasonable Value (CRV)
A certificate that states a property’s current market value that has been determined by a Veterans Administration appraisal.
Certified Check
A check that has been guaranteed by a financial institution to be legitimate and does not have the ability to have a stop payment placed on it.
Certified Property Manager (CPM)
A professional who is a member of the Institute of Real Estate Management and has been qualified to be appointed as a CPM.
Chain of Title
The entire history of ownership, liens and encumbrances for a specific piece of real property.
Property that is both transportable and physical.
Clear Title
Also known as a title without clouds this is a title with no defects and is free from liens.
Client Trust Account
A broker established account that keeps the broker’s general funds separated from a client’s money.
The final process of ending a real estate transaction when the buyer receives the title from the seller.
Closing Costs
Expenditures related to a sale beyond the purchase price and must be settled (in relation to a buyer), or must be taken from the profits of the sale (in relation to the seller).
Closing Statement
Sometimes called a settlement statement, this is a record of all cash accounting for a real estate transaction that verifies that all debts have been settled for a transaction and is prepared by an escrow officer.
Cloud on a Title
Any documentation that may raise doubt or impair the title for a property that raises question to its legitimacy.
Cluster Development
The placement of housing on smaller than usual lots and dedicating the remaining land as common areas.
Code of Ethics
The written standards of professional conduct for members within the Realtor® community first drafted in 1913.
An item(s) with intrinsic worth that is given as a deposit for a debt.
Color of title
An instance where a title appears to be valid but is in reality invalid.
Commercial Property
Real estate property that has been designated as income producing and not deemed inhabitable for residence.
The practice of mixing or mingling. For instance if a broker were to deposit a client’s funds into a personal account. This practice can result in the suspension of a license by the Real Estate Commission.
The payment for the services performed by a real estate broker in conjunction with a sale of real property, typically by a seller.
A covenant or guarantee to perform an agreed action; for instance a bank promising a loan at a fixed interest rate to a buyer.
Common Areas
Places and sections within a development made accessible to all residents, tenants and property owners.
Common Elements
Components of a property that are part of the general and overall use, safety and maintenance of a housing complex be it an apartment or condominium; and are typically made available to all residents.
Common Law
The aspect of law that is derived from custom, general acceptance and usage that comes from judgments of the courts in ‘judge-made law’ differing from statutory law.
Common Wall
A partition that is shared by two separate residential spaces.
Community Property
A theory of property ownership that infers that both spouses have equal interest in a real property regardless of which spouse obtained the property during a marriage.
Properties that have been sold recently that share many attributes with the subject property and are then used as indicators for the value of the property being evaluated.
Compound Interest
Interest that is calculated against the principal sum as well as any additional accrued interest.
Incentives provided by landlords (typically a discount) to potential tenants used to persuade them into signing a lease.
A proceeding (typically administrative or judicial) to enact the right of eminent domain. For example the ability of the federal government to seize private property for public use.
The action or promise of action from one party to another to agree upon a contract; a tangible or intangible given in trade for something else.
Constructive eviction
The disruption or impairment of a tenant’s quality of life by a landlord that the tenant is forced to terminate a lease without liability to a contract or lease; owing no further monies to the landlord for rent.
Constructive Notice
Notice that signifies that an entity should have known certain information, as a reasonable person would have through diligence or access to public record.
A term within a contract that requires certain tasks or events are completed prior to the contract becoming binding.
A legally binding agreement between parties who consent to renounce or execute specific tasks for a consideration.
The act of transferring a title via a written document like a lease or deed.
Cooperating Broker
A real estate broker who works in tandem with another broker on the sale of a property.
Cooperative Ownership
In regards to an apartment it means that the owner of the unit owns shares in the organization that holds the title to the entire building.
A type of simultaneous ownership where more than one person has an interest in the same property.
An offer made as a response to a previous offer made by another party effectively rejecting the prior/original offer.
Courtesy to Brokers
The act of sharing a commission with cooperating brokers.
A pledge or written arrangement between parties that agrees to either do or not do certain acts on a real property or that stipulates what uses are deemed acceptable for a particular property.
Covenants and Conditions
Covenants are pledges within contracts where a breach entitles a person to damages. Conditions, conversely, are incidents where a property right could be acquired or relinquished.
Covenants Running with the Land
A covenant that is part of a real property that binds or benefits any present or future owner of the property.
Cul de sac
A street with only one open end and typically terminates in a circular turnaround.
Customer Trust Fund (CTF)
An account that is set up in order to pay specific debts like rent, maintenance fees, insurance premiums and property taxes.
A title given by the IRS for a person who purchases and sells real estate on a frequent basis.
Debt Service
The total sum of money required in order to make recurring payments on the principal and interest when an obligation is repaid.
Declaration of Restrictions
An account of all covenants, conditions and restrictions (CC&R’s) that affect a property.
The donation of privately owned property to the general public; done with the intent that the property will be used for public use.
The written document that transfers ownership of a real property from an owner/grantor to a buyer/grantee.
Deed of Trust
The legal document that a transfers a title to property to a third party trustee as a pledge for a debt to the lender (beneficiary) by the borrower (trustor).
The failure to perform an obligation or mandatory act that was agreed upon; most frequently in the form of a non-payment of monies due.
Deferred Commissions
Commissions that have been earned but have yet to been paid in full.
Deficiency Judgment
A ruling against an entity for the remainder of a debt and is enacted when the collateral for a loan is deficient in satisfying an obligation.
A term associated with zoning for buildings and indicates the allotted amount of buildings allowed per acre or the maximum amount of occupants allowed per section of land.
Monies given by a potential buyer as a gesture of their intent to purchase and enter into a contract.
Depreciation (Appraisal)
Value that has been loss for any reason; anything that negatively impacts the worth of a property.
Depreciation (Tax)
In relation to tax, depreciation is a cost deduction given towards an investment in a depreciable asset.
Depth Table
A means of measuring the added value to parcels of land based on additional depth; which uses tables of percentage in order to create a consistent method.
The means of acquiring an estate via inheritance.
The segment of a document that delineates a property that is having its ownership transferred.
An entity who constructs improvements on a parcel of land in order to yield the most profit possible.
The transfer of property through the use of a will.
An assertion, often written, that denies any legal responsibility.
Discount Points
A fee that is charged by the lender that is additional in order to make up the difference on a lower-than-market interest FHA or VA loan.
Preferential or inferior treatment of a person for any reason; the inability to care for people uniformly.
The legal right of a landlord, via a court order, to take a tenant’s possessions for rent that is past due.
The state in which an entity has their permanent residence established and intends to return to when they are absent.
Double Escrow
An escrow account created to deal with the simultaneous purchase of one property and sale of a separate property by the same individual or party.
The legal right to a partner’s estate in any property that a spouse acquired during a marriage.
Dual Agency
Acting representation for two parties (both a seller and buyer) in a business deal.
Due on Sale Clause
A clause often found in savings and loan mortgages that requires a mortgagor to satisfy a mortgage debt when the specified property is sold.
A two-family dwelling that provides residences with separate entry ways, living areas, porches, bathrooms, bedrooms and kitchen facilities.
The act of unlawfully forcing an individual to perform any act against their will; a contract that is initiated under duress is void.
An interest in a property owned by another person that entitles the individual access or use of the property they hold interest in.
Easement in Gross
The privilege for one person to have access and use to another person’s land or property.
Growing produce on a reoccurring basis through the use of manual labor and industry.
Eminent Domain
The government’s ability to seize a private property, with fair reimbursement to the owner, to make use of the land for the public.
A non-permitted invasion or intrusion upon a property or fixture that reduces the worth and/or size of the property that has been invaded.
Any documentation that may lessen the worth of a property but does not automatically impede its ability for its title to be transferred.
Entirety, Tenancy by
A type of co-ownership of a property between spouses with the power of successor.
Environmental Impact Statement
a written description detailing the existing environmental setting of a proposed development project as well as the potential and plausible environmental impact that the project will have throughout its development phases.
The value that remains in a property following all settlements of debts against the property.
Errors and Omissions Insurance
A type of insurance that is used to protect a escrow company or real estate office against negligence, mistakes or errors made during the sale or listing or a property.
When a property is relinquished to the state in the event of the property owner’s death or abandonment with no heirs capable of inheriting the property.
The procedure of an indifferent third party holding monies and/or paperwork until the terms and conditions of the escrow instructions are satisfied.
A principal that precludes someone from reneging on or contradicting a previous agreement or claim.
A code of moral conduct, rules or principles.
The legal procedure of forcing a tenant to vacate the premise and/or possession of a property for breaking the agreement set up in a lease contract.
A transaction where the total or partial sum for the purchase of a property is the transfer for the property of equal value.
Exclusive Agency
A listing agreement that authorizes a single real estate agent the ability to sell a property for an allotted amount of time; while allowing the owner the ability to sell the property on their own without owing the agent a commission.
Exclusive Listing
A listing of a property where the seller authorizes only one real estate broker the ability to sell the property during an agreed upon time frame.
The process of validating a legal document by means of formally acknowledging a deed or signing a contract.
The person designated to follow the instructions and wishes outlined in a person’s will and who must deliver any property in accordance to the directions described in the will.
Executory Contract
An agreement where either one or neither of the parties involved have performed their obligations.
Extender Clause
Also known as a “safety or carry over clause” found within a listing that specifies that a real estate broker is still permitted to collect a commission for an allotted amount of time even after a listing expires if a property is sold to a buyer that the broker previously represented.
An agreement with an agent to continue or prolong services beyond an original agreed amount of time.
Fair Market Value
A selling price that a buyer and seller can agree upon based on the highest monetary price that a property is valued at in the current market.
Farm Area
A specified area, property or structure that a real estate agent dedicates particular interest and study.
Feasibility Study
An assessment of a potential venture to determine its practicality based on possible expenses, achievable income, and the best use.
Federal Housing Administration (FHA)
A United States government agency that was established under the National Housing Act in 1934 to assist in improving housing conditions and standards by establishing ample financing for home mortgages that would assist in stabilizing the market.
Federal Tax Lien
A lien against a property enacted by the United States federal government placed on a taxpayer who has failed to pay the taxes for which they are liable.
Federal Trade Commission (FTC)
A United States government agency dedicated to inspecting and removing all misleading and unjust business practices.
Fee Simple
A complete and absolute ownership of property with the ability to freely transfer, sell or offer as an inheritance; the most common type of ownership.
A relationship with a position of trust typically between a beneficiary and trustee entrusted to manage monies, investments or property.
Filled Land
A region of land where the grade has elevated through the placement of gravel, dirt or other sedimentary fill.
Finance Charge
A fee that represents the total cost of borrowing or the total cost of credit and includes interest as well as financial transaction fees.
Finance Fee
A fee from a mortgage brokerage used to pay for any costs sustained from placing the mortgage with a lending institution.
Financial Statement
An official record that includes the net worth and financial status of a person or organization that sets forth and classifies all assets at a specific date.
Finder’s Fee
A fee given to an individual who produces a seller to list a property or buyer to purchase; sometimes called a referral fee.
Firm Commitment
The explicit responsibility of a lender to loan at a given interest rate, for a specified term, a set amount of money.
First Refusal, Right of
The right of an individual to be given the first chance to either lease or purchase a property.
Fiscal Year
A year based on tax and accounting purposes for a business or corporation and does not necessarily run congruent with the calendar year.
An item that was at one time personal property but has become fastened or attached to the real estate and is now considered real property such as built-ins, plumbing, and stoves. Items that are considered fixtures are included in a real property even if they are not listed in the deed.
Flag lot
A lot that is placed behind another lot that has direct street access. A common driveway goes past the front house(s) to the lot(s) behind them. This is a means of subdividing land when access to a main street is unavailable.
Floor Area Ration
The relationship of land area to floor area in the form of a decimal or percentage, the floor area ration is established by dividing the overall floor area by the lot’s total area.
Floor Duty
Assigning an individual at a real estate agency the task of handling phone calls, office visitors as a shift responsibility.
A legally authorized action when a mortgage is in default and a real property is seized and sold as to fulfill a debt.
Any means of deception, dishonesty or falsification where a party tries to get an unjust or fraudulent gain over another entity.
Free and Clear Title
An absolute title to a property without and encumbrance and free of all liens, mortgages or clouds.
The area of property adjacent to a body of water or street; specifically the number of feet that ‘front’ the water or street.
Functional Obsolescence
Typically caused by design flaws the loss of worth in an improvement caused by deficient functionality.
A legal procedure, which allows a creditor to take personal property belonging to a nonpaying debtor, that is in the possession of a garnishee/third party.
General Agent
An individual with permission to carry out any acts affiliated with a particular business or project.
General Contractor
The construction professional who agrees in a formal contract with the landowner to build a real property or development.
General Partner
An equal stakeholder of a partnership who is able to agree to contracts on the behalf of a partnership and is also completely liable for all partnership related debts.
Gift Tax
An adjusted federal tax, which a donor must pay when giving a sizeable gift.
Good Faith
An action or gesture done with honest intentions even if might be negligent.
Good Will
Assets can be sold that come from a business’ reputation and are intangible.
Government Survey
A means of determining the borders of a piece of land where sizeable areas are partitioned into tracts with imaginary lines that are in compliance with the true meridian.
Graduated Rental Lease
A lease agreement where the initial rent payment is fixed, typically at a low rate, but will increase at established intervals as the lease period advances.
Grandfather Clause
A phrase that is often used to express the concept of something that was once agreed upon contractually and is continually recognized despite any changes in a contract or agreement.
An individual who is given the grant of property from the grantor.
The individual giving, transferring a title, and relinquishing all interests in a real property.
Gross Area
Measured from the exterior of a structure’s walls the entire floor area of a structure. This does not include the walls that are unenclosed.
Gross Income Multiplier
A means of estimation used to determine the market value of a residential property that produces income. The multiplier is created through the use of comparable sales data that is then divided by an average monthly rental cost for a unit that creates a standard.
Gross Lease
A rental agreement for property where the terms of the rent are fixed for the lessee and all insurance, taxes and maintenance charges associated with ownership are paid by the lessor.
Also known as a “ward” a guardian is someone who has been given the lawful custody and placed in charge of another.
Habendum Clause
A section of a deed that confirms the details of ownership that a grantor is giving and is preceded with the phrase “to have and to hold” indicating this is a granting clause.
The state of a property that indicates it is in a suitable condition for residents to live within.
An individual who via a will or other person who releases property through the laws of descent if a descendent dies and does not have a will (intestate).
Highest and Best Use
The use that during the time at which a property is appraised is determined to generate the highest profit for the structure or land.
High Rise
A term used for buildings that are typically taller than six stories.
Hold Harmless Clause
A section of a contract where a party consents guard and compensate another party from any potential lawsuits or damages incurred from a transaction.
Holdover Tenant
An individual who remains in a leased property following the expiration of their lease. Typically the landlord has the opportunity to decide to either evict the holdover tenant or allowing them to stay and continue to pay rent.
Homeowner’s Association
An organization that is non-profit and comprised of homeowners who establish rules and policies for other homeowners living within a particular subdivision, planned unit development or condominium complex.
A dwelling that is lived in as a personal lodging.
A structure or group of structures either detached or attached to each other and contain dwelling units often including dining facilities, a front desk and other common areas.
House Rules
A set of policies created by a board of directors to encourage peaceful living among residents a set of policies
A department of the federal government publically recognized as “The Department of Housing and Urban Development.”
The act of offering a guarantee of property as a deposit or collateral for a debt, without giving up your possession of the property.
Implied Warranty of Habitability
The legally binding terms in a lease that require that a landlord is responsible to maintain a leased property in suitable condition for occupancy and make timely repairs throughout the length of a lease.
Impound Account
An account that is created for future needs with funds that have been designated for this purpose.
Improved Land
Real estate property whose worth has increased due to additions made to it both on and offsite via improvements like new buildings, sewer systems, utilities and streets.
Additions that increase the value of a property that are worth more than the cost of the repair or addition.
Imputed Interest
Interest that comes from the federal government’s tax laws.
Income Approach
A means of evaluating or appraising a real property by determining the total net income a property will generate through the course of its economic life.
Income Property
A property that is bought predominantly for its income generating potential as well as the tax benefits that are included like accelerated depreciation.
Incorporeal Rights
Rights that are neither tangible nor possessory in relation to a property; rights like profits, easements and licenses.
Independent Contractor
An individual whom is hired to perform a specific task, however, they are not subject to the direction nor control of another on how they perform the task as long as they deliver the agreed upon end result.
Industrial Park
A region that has been designated for industrial sites and may include separate industries that are managed as a whole, often including common services for all users.
A court authorized act that prohibits a party defendant from performing a specified act or to refrain from doing a particular act.
Innocent Purchaser for Value
An individual who buys property with no notice and has no interests or superior rights in a real property.
A detailed review of a property’s premises.
Institutional Lender
Any financial institution that guarantees loans that are regulated by law.
The total figure that has accrued in return for the use of funds in the form of a loan.
Interim Financing
Also known as a “construction loan” it is a short-term loan often acquired during the construction phase of a project.
Dying without a legally binding will.
A documented list of possessions or property.
Inverse Condemnation
A means of “fair compensation” offered by an individual whose property has in effect been “taken” or significantly meddled with or “taken” without fair compensation.
Joint and Several Liability
A condition where more than one entity is responsible for repaying a loan or debt; a creditor can collect repayment from one or more entities either jointly or individually.
Joint Tenancy
A situation where property is owned or co-owned by two or more individuals where all tenants share the same equal interest.
Joint Venture
When two or more individuals are joined in a business enterprise like the development of a real estate project.
Judgment Lien
A lien that is bound to all real estate a debtor has in their possession that gives the holder of the judgment the authority to seize their property in order to satisfy the judgment.
Judicial Foreclosure
A means of foreclosing on a property via a court ordered sale. Once an appraisal has been done the court sets a price that any bids that come in below will not be accepted.
Junior Mortgage
A mortgage that is secondary in order of priority to an existing mortgage on the same property, IE a second mortgage.
The legal right to act, such as the ability of a court to issue a order that binds two parties.
Just Compensation
The sum of reimbursement given to an individual for the seizure of property via the actions of eminent domain.
In terms of real estate this includes all crops, water, minerals beneath the surface and air rights above a piece of property.
Land Contract
Also known as an installment purchase contract, this type of contract is where a buyer is given the right to use the property through an equitable title while the seller holds onto the legal title as collateral for the remaining balance of the obligation.
Land Description
An account of a specific area of property.
Land Leaseback
A means of financing typically when dealing with undeveloped land that a developer wants to improve. In this case a developer will sell the raw land to an investor who will in turn lease the property back to the developer in a long-term net lease that will subordinate his fee ownership as part of the development financing.
Land Tenements and Hereditaments
A term that denotes any sort of permanent real estate that includes structures, land and all of the inherent rights, associated with ownership.
Land Trust
An organization composed of mutual owners of property; this organization possesses the title to a property in the name(s) of one or multiple members for each trustee’s benefit.
Real estate that lacks access to the public by means of a road or path.
An individual who own and leases a property to another. The landlord retains ownership of the property throughout the duration of a lease and at the lease’s termination full possession is restored.
An object or attribute that is employed for the purpose of marking the boundaries of a territory; as well as a term for an object or attribute that is a symbol for a particular place.
All forms of plant life that surround a building or piece of real property.
Lateral and subjacent support
Lateral support is given to a piece of real estate via land that is directly adjacent to the property. Subjacent support is given to the earth’s surface via the layers of strata beneath it.
Law Day
Also known as the closing date, this is the date when a debt is due.
The contract agreement between a landlord and tenant whereby a lessor agrees to transfer the premises to the lessee.
A piece of real property that a tenant possesses for an allotted amount of time.
Legal Description
A detailed account of a piece of real estate that is thorough enough that an individual surveying the property could easily locate and identify it.
Legal Notice
A notification that can be either required by law or holds legal implication.
Legal Rate of Interest
The absolute highest interest rat permissible by regulation.
Also known as a tenant, this is an individual to whom property is leased or rented.
Also known as the landlord, this is an individual whom leases or rents a property to another individual.
Less-than-freehold estate
A real property owned by an individual who leases or rents the estate.
Letter of Credit
The agreement a financial institution makes at the request of one of their customers to fulfill drafts and other forms of payment to third parties in accordance to the details specified within the letter of credit.
Letter of intent
A means of formally expressing an interest in developing, purchasing or investing in a property without making a solid and legally binding agreement.
Level Payment Mortgage
Scheduled equal recurring payments to a mortgage that include both interest and principal.
To employ funds that have been loaned for the purchase of an investment property with the hope that the purchased property will yield a return that will exceed in profit the amount borrowed.
An individual such as a real estate broker or agent who holds a legal license.
An assertion or allegation that has been placed on the property of a lienee as collateral for a debt by the lienor. These can be made by law as in a tax lien or can be established via an agreement of two parties as in a mortgage.
Life Estate
Estate property that is limited to the extent of the life of its owner or other specified individual.
Limited Common Elements
A particular set of elements within a condominium that have limited access to and use of a specific condo(s) while excluding others.
Limited Partnership
A partnership created by at minimum two individuals where one or more members are general partners and at least one member is a limited partner.
Line of Credit
The greatest sum of money a lending institution will grant to a credit worthy and financial upstanding individual without requiring a formal loan.
Liquidated Damages
In the event of a breach of contract this is the predetermined amount of compensation agreed upon by all parties that the injured party would receive.
The capacity to convert an asset to cash that is at or very close to the price it is valued at.
Lis Pendens
Recorded in the Bureau of Conveyances this legal document provides notice that a federal or local court has placed a legal action against a property. It is a Latin term which translated to English is defined as “action pending” which is in essence the same as a quasi-lien.
A written agreement made between a real estate broker and a property owner; one where a property owner authorizes the broker to locate either a tenant or buyer for a specific property.
Littoral Land
Land that is affected by tides due to its adjacency to the ocean, sea or shore.
Loan Commitment
The amount a lender commits to lending to a borrower for a piece of real estate for a designated amount of time under detailed terms.
Loan-To-Value Ratio
The relationship between the amount of a loan for a property to the sales price or the value it was appraised at, whichever is less.
Locus Sigilli
A Latin term that means “under seal” and is often abbreviated as “L.S.,” following a signature line on a document instead of an actual seal.
Loss Payee
An individual specified on an insurance policy who would be paid in the event that the property covered by the policy is damaged or ruined.
The effort taken to keep a building in operational and productive use; the overall upkeep of a property. When a property is not maintained it will inevitably lose value.
A public area that has been set designated for pedestrian traffic and typically landscaped.
Marginal Land
Land that holds very little value due to a defect; such as inadequate rainfall, terrain that cannot be developed or poor access to roads.
Marketable Title
A clear title or a title in good standing that is free from the risk of litigation due to potential defects; sometimes referred to as a merchantable title.
Market Value
The most a property will yield, in terms of money, when sold in the open market.
Master Plan
An all-inclusive plan that details the development for a particular area for the long-term.
Meander Line
A simulated line that surveyors use to measure property lines formed by water sources bordering a property.
Mechanic’s Lien
A legal lien made for mechanics and material men to secure payment for supplies, services for any improvements, repairs or maintenance on a building.
Metes and Bounds
A means of identifying and specifying the boundaries of a piece of land that defines the dimensions by employing terminal angles and points of the property.
Military Clause
A provision found in some residential leases that gives a military tenant to break a lease if they are discharged, transferred or other conditions related to their service create a need for them to move.
Mineral Rights
The given privilege to all subsurface land and any profits derived from them. Typically when property is sold the title includes the rights to the land and everything below or above the property unless otherwise specified.
Any falsities or lies used to conceal facts with the intention of persuading an action by another individual.
Also known as a binder or hand money; this is the cash deposit that a potential buyer of a property pays as an act of their intention to follow through on the sale.
Month-to-Month Tenancy
An intermittent tenancy where the lessee is not on a lease or contract and agrees to rent a property out on a monthly basis.
Tangible symbols that can be either manmade or natural items that are used to designate boundaries and lines on a surveyed property.
An official record that secures the routine payment on a debt. Effectively a mortgage gives a lender the right to seize property if a borrower ceases to make payment on their debt.
Mortgage Banker
A firm or business that typically is able to fund its own financing for a mortgage.
Mortgage Broker
A firm or individual that mediates exchanges between a lender and borrower; additionally they sell, negotiate or secure a loan and occasionally proceeds to service the loans.
The party who holds a mortgage as collateral for an obligation; the lender.
The party who offers a mortgage as collateral for an obligation; the borrower.
Multiple Listing Service (MLS)
The association formed by Realtors® to allow multiple brokers to share their property listings with other brokers.
National Association of Realtors
The leading board for realtors to be a member of as well as the most esteemed real estate association in existence.
Negative Cash Flow
A scenario where the cash being spent to maintain a property surpass the cash income the property is or is not generating.
Negotiable Instrument
Any written document that can be transferred via delivery or endorsement as to give legal title via the transfer.
A business deal where the goal is to reach a transactional agreement.
Net Income
The total amount achieved after subtracting investment or business expenses from the gross income; this includes insurance, taxes and bad debts for what a property will yield during a year of operation.
Net Lease
Typically commercial in nature a lease where the lessee pays for maintenance and operating expenses like utilities, repairs, insurance and tax in addition to paying for rent. Therefore the rent being paid is “net”.
Net Worth
After subtracting all charges from assets the remainder is the “net worth”.
Nominal Consideration
A concern that bears no relation to the actual worth of a contract. Deeds typically mention a nominal consideration like “five dollars and other considerations.”
Non-Competition Clause
A stipulation in a contract that prohibits an individual from starting or operating a business that would compete with one of the parties that would be in direct competition with one of the other entities in the contract.
Nonconforming Use
A use that is allowed and legally merited but no longer conforms to existing use guidelines due to an adjustment in zoning.
Nondisturbance Clause
A clause found in a mortgage where the mortgagee agrees that they will not terminate the leases of tenants who pay their rent if the property is placed into foreclosure.
Normal Wear and Tear
The average and typical deterioration that happens over the course of normal use that a property undergoes not including abuse, accidents, negligence or other acts of vandalism by occupants, guests or other members of a household.
A tangible evidence of a debt. It is a document that states the loan amount, agreed interest rate, the time and method of repayment for the debt and is signed by the borrower.
1) Legal notice is any notice that is mandatory according to law, or which is instructed by a law as a result of ownership of property or the recording of documents. 2) Notice that is specified in a contract, such as when parties agree to terminate a lease by either party providing they give 30 days notification prior to a termination of the lease.
Notice of Completion
A document that gives public notice that a construction project has been finished and a mechanics’ lien must be filed within a certain timeframe in order to be valid.
Notice of Default
Typically given with a grace period this is a notice to a defaulting party that there has been a default and that they have a specified amount of time to reverse the default.
Notice of Nonresponsibility
A legal notice that relieves an owner from the burden of costs to improve a property demanded by another party.
Notice To Quit
A notice written by a landlord and given to their tenant; it states that the landlord intends to recover possession of the leased property and that the tenant must vacate from the premises either immediately, if the contract has been breached, or at the end of the lease term.
The replacement of an existing obligation with a new one; where a new debtor is exchanged with an old one pending the acceptation from all parties involved.
Any action that interferes in the physical lawful use or enjoyment of property by another.
Null & Void
Not having lawful power or consequence; lacking value, not obligatory, noncompulsory.
A loss in utility or value in a property; a type of depreciation.
A pledge made by a party to complete a specific task providing the other party complies by completing the task they agreed to perform as well.
Offer and Acceptance
The two pieces needed to form a valid contract; a formal agreement.
Office Exclusive
When a seller opts out of submitting their listing to the Multiple Listing Service (MLS), even when they have been informed of the benefits of the MLS and they sign a document confirming this knowledge.
Offsite Costs
Costs incurred during the development of raw land but are not actually connected with the construction of physical buildings aka onsite costs; these include utilities, streets, sewers, etc.
Open-end Mortgage
A mortgage where a lender gives the borrow a specified limit that they are able to borrow, this includes any advances of funds up to but not exceeding the initial borrowing amount that was set up by the same mortgage.
Open House
The practice in real estate of having a listed home shown to the general public during predetermined hours that have been advertised.
Open Listing
A listing that is not designated to a specific broker but rather open to any broker. However, the broker who secures a buyer for the listing earns the commission for the property.
Open Space
An area of land that has not been developed or built on that is set to be reserved in its natural state for parks, squares, public gardens or other recreational uses.
Operating Expenses
Expenses that are critical to the continual operation and general upkeep of a property.
Opinion of Title
The opinion of an individual who is familiar with titles, typically a title attorney, as to the standing of the title for a property.
The decision to keep an offer to sell or purchase property, open, for an allotted amount of time.
Origination Fee
A finance fee that covers initial costs for preparing documents, credit checks, appraisal and inspection fees; and is charged to the borrower for taking out a mortgage.
Due to its excessive size or cost an improvement that is not the most beneficially or fiscally responsible use for the property on which it is located.
Typically determined as a percentage of the overall sales commissions earned by a salesperson this is commissions paid to management (for example the primary broker) for sales made by their subordinates.
Package Mortgage
A means of financing where the loan finances purchases for personal items like appliances in addition to the purchase of the home itself.
A lot or specified area of a larger tract of land.
Partial Release
A section of a mortgage that instructs a mortgagee to liberate specific parcels from the lien of a blanket mortgage once a certain sum of money has been paid.
Participation Mortgage
A mortgage where the lender is involved in the profits of a mortgaged venture exceeding a fixed return, or they receive an additional yield above the straight interest rate on a loan.
The division of mutual interests in a piece of property that is jointly owned by two or more parties.
A relationship between two or more individuals to work together as co-owners of a business with the goal of generating a profit; according to the Uniform Partnership Act, which is recognized in a majority of the states.
Party Wall
A wall that is on or near the boundary line between two connected parcels of land and is shared by both owners on either side of the wall.
The apartment or condominium located on the top floor of a structure although sometimes located on the actual roof of a structure.
Percentage Lease
A lease agreement that is based on the percentage of gross sales, either monthly or annual, that the property generates.
Percolation Test
A hydraulic engineer’s test that is performed in order to establish how well the soil on a property is able to soak up and drain water.
Performance Bond
A bond, typically placed by an individual who is doing work for another party; this bond guarantees that the project or service agreed upon will be finished in accordance with the contract.
Periodic Tenancy
A lease that is intermittent and is based on a cycle, such as a month-to-month lease or year-to-year. This type of lease carries over from each period and will continue inevitably or until a formal termination is given.
Permanent Financing
A long that is based on the long-term, as opposed to a provisional loan.
Personal Property
Items that are physical and material; property that isn’t classified as real property; assets; belongings.
Piggyback Loan
A joint loan where multiple lenders share one mortgage.
Planned Unit Development (PUD)
A contemporary idea in housing that is designed to utilize to the maximum efficiency open spaces for the development of high-density residences.
A map of an area, city, or development that indicates the location and boundaries of each separate property.
The consolidation or merging of adjoining lots into a bigger lot, the resulting lot will have increased worth and usability; sometimes referred to as assemblage.
Pocket Listing
A listing that is reserved for a salesperson or listing broker, the listing is not made available to other agents in the office or to other Multiple Listing Service members.
Point of Beginning
The opening point in the metes and bounds account of a property, which typically is a landmark or monument or sometimes where two roads intersect.
A standard expression for a portion of the principal loan amount that a borrower is charged for taking a loan; each point equals one percent of the total sum of the loan.
Police Power
The legal right and intrinsic authority of a state to create and enforce laws and mandates to service the public’s need for safety, health, and overall wellbeing.
Porte Cochere
A building that has a roof which extends from the entry of a structure over the adjoined driveway to aid in sheltering individuals when they enter or exit their automobile.
To physically occupy or posses a property.
Power of Attorney
A written document that sanctions an individual (the attorney-in-fact) to act on the behalf of an individual to the degree that is specified by the document.
Power of Sale
A provision within a mortgage that authorizes a mortgagee to put a property up for sale if the borrower defaults on the mortgage.
The specified property, for instance the unit that is designated on a lease or the property included in a deed.
Prepaid Interest
The payment of interest prior to its due date.
Prepayment Penalty
An amount established by a lender as a penalty to a borrower for paying off a before it reaches maturity. This is charged to the borrower as a means for the lender to recover some of the interest that they would have earned had the debt reached maturity.
Prepayment Privilege
The benefit for the borrower to pay off a portion or an entire loan without a fine before the debt reaches maturity, in regard to a mortgage or agreement of sale.
A sale program for a condominium by a developer that begins prior to its construction. The developer must sell a specific amount of units that the lender agreed upon in order to finance the project.
The acquisition of a right of ownership in a property, typically in the form of an insubstantial right like an easement.
Present Value of One Dollar
A set of principles that is founded on the idea that money has a time value.
Prime Rate
The lowest interest rate that a commercial financial institution will charge on a short-term loan to its biggest most financially stable clients.
The investment sum; where interest is paid to the principal.
Principal Broker
The licensed real estate broker who is the primary broker responsible for all operations conducted by a brokerage company.
Private Mortgage Insurance
A particular type of insurance that allows permit lenders to boost their loan-to-market-value ration, typically up to 95% of the market value.
The legal proceeding to validate the legitimacy of a will.
Procuring Cause
An attempt that results in the desired outcome, such as locating a buyer for a property.
Pro Forma Statement
A forecast for future earnings and expenditures.
Promissory Note
A written statement with no conditions by an individual who guarantees to pay a specific amount of money to another at a future date.
Not in a technical sense, but in the physical sense; the rights and interest an individual has in an item they own.
Property Management
The portion of real estate dedicated to the tasks of marketing, leasing, maintenance and leasing property that belongs to others.
Property Report
A disclosure document that is mandatory according to the federal interstate land sales act and is included, where relevant, to the interstate sale of lots that have been subdivided.
Proprietary Lease
A lease that is part of a cooperative apartment building, it is between a stockholder-tenant and corporation-owner, it entitles the tenant to occupy the agreed upon unit.
To equally divide or distribute.
An entity that is potentially interested in selling or purchasing real property.
A tangible statement that describes, advertises and gives investment information for a project, stock issue, venture or business.
Opinions or comments that are over exaggerated and not based on factual representation yet not substantial enough to qualify as misrepresentation. For example the opinion that “the house has a beautiful interior,” is puffing as a potential buyer may have opposing viewpoints on this comment.
Punch List
A list that highlights the deficiencies in construction that require correction in order to have the structure meet the standards that plans and building codes specify.
Purchase Money Mortgage
Given to a seller by a buyer, this type of mortgage is part of a consideration for the purchase of a property, and is delivered simultaneously in the transaction of the transfer of property.
Qualified Fee
An estate fee that has specific limitations created by the owner.
Quantity Survey
A way of determining the costs of reproduction or construction; an extremely technical procedure that establishes the cost estimate of new construction. It is also referred to as “the price take-off method.”
Quiet Enjoyment
The authority of a tenant or owner, who has the legal possession of property, the uninterrupted use without interference from a previous tenant, owner or other entity claiming to have a superior title.
Quiet Title Action
An action via a circuit court that is executed in order to settle or determine the title for a particular property; often where there is a cloud on a title.
Quitclaim Deed
Also referred to as a release deed, this is a deed of conveyance that essentially releases any interest a grantor might have in a property.
Implemented in government surveying, this is a measurement that consists of a piece of land that is six miles wide and runs in a north-south direction.
Rate of Return
Represented as a percentage, this is the relationship between the capital invested in a business and its annual net income; but could also be the gross income or the appraised value of the business.
Raw Land
Land in its natural and undeveloped state.
Real Estate
The tangible land and paraphernalia, which includes all buildings on it and for all intents and purposes synonymous with real property.
Real Property
Any land and paraphernalia associated with the land, this includes all structures, buildings, fixtures or improvements that have been attached or built upon the land; with the exclusion of crops.
A word that has a registered trademark attached to it; and can only be used by a member of the state and local real estate board that is affiliated with the National Association of Realtors and is an active broker.
Land as well as anything attached to it indefinitely.
A specified kickback or reduction credit.
Recapture Clause
A provision typically located in a percentage lease, specifically commercial shopping center leases, and gives a landlord the authority to end a lease (therefore recapturing the property) if a tenant does not sustain the agreed amount of business.
A third party that has been chosen by the court to receive without bias, maintain and manage a property that is involved in litigation, until a decision is made by the court.
To enter into public records any written documents that affect the title of a real property, including contracts, mortgages, deeds, assignments etc.
Redemption, Equitable Right of
The authority given to a mortgagor who is in default on a mortgage loan to get back their title to a property via payment of the loan’s entire sum prior to a foreclosure sale.
Reduction Certificate
A document that presents the total remaining balance to be paid on a mortgage, the interest rate and the date the loan reaches maturity.
The process of obtaining an additional loan to pay off a loan already in existence.
The legal act of correcting or modifying a contract that has does not reflect accurately the intentions of the parties involved due to an error.
To give up or relinquish all rights, claims or privilege; in the case of real property transactions a release should be recorded and documented.
Release Clause
A clause often found in blanket mortgages that allows for the mortgagor to obtain a partial release for particular parcels from the mortgage once the payment of a portion of the loan that is often larger than its prorate.
Remainder Estate
An estate that vests following the termination of a previous estate.
Renewal Option
A pledge in a lease that grants the tenant the authority to extend the lease term for a specific amount of time, on terms that both parties agree upon.
Recurring payments that are fixed and made by an occupant or tenant of property to the owner for the explicit use thereof, typically through a previous agreement and contract between parties.
Rent Control
Directives from either state or local government agency that restricts the amount landlords are able to charge their tenants for rent; this is a legitimate use of the state’s police power.
Rental Agreement
The agreement either oral or written that ascertains or changes a provision that concerns the use and tenancy of a private residence and its premises.
Rental Pool
A rental agreement where owners of rental units participate in putting their units up for rental collectively through a rental agent, they then agree to share in all profits and losses of the units in the pool in accordance to the agreed method.
Reproduction Cost
An estimated cost of reproducing a replica of a property, based on current prices of construction and similar materials.
The legal procedure of annulling, terminating or cancelling a contract and returning parties to the initial positions; restoring the status quo.
Reserve Fund
Funds that have been saved to use as a buffer of capital for future payments for insurance, furniture, maintenance, taxes, etc; also referred to as an impound account.
Residual Process
An appraisal procedure implemented in an income approach to evaluating land and/or the structure, as signified by the capitalization of residual income.
Instructions found in a contract detailing specific limitations in use of a property.
Restrictive Covenant
Typically found in a deed, this private agreement limits the use and tenancy of real property.
Retaliatory Eviction
When a landlord evicts a lessee due to a complaint made by the lessee.
A future estate in real property established by the legal procedure by a grantor conveying a lesser estate than they own.
Right of Survivorship
The distinguishing attribute of a joint tenancy where a surviving joint tenant(s) is given all rights, title and interest of a deceased tenant bypassing all need for a probate proceeding.
Obtained via contract or accepted usage, the right or privilege, to cross over an area of the property to another.
Rights and responsibilities that are subsidiary to ownership of adjacent land or property abutting waterways like ponds and rivers.
Risk of Loss
Accountability for any loss or damages incurred to improvements.
Running with the land
Rights or guarantees that bind or benefit all future owners of a property this includes restrictive building covenants that have been detailed in a deed and will affect all successive owners and said to run with the land.
Sale and Leaseback
A business deal where an owner often sells a developed property and as part of the same deal they sign a long-term lease and the property remains in their possession.
The beginning sketches and drawings for a project; including very basic and rough layouts but not the final draft or details of an architectural design.
Second Mortgage
A mortgage that is subsidiary to a first or primary mortgage; often an extra loan taken out in addition to the first mortgage when a borrower needs additional funds.
Secondary Mortgage Market
A market created to provide increased liquidity for mortgages and allows for the buying and selling of mortgages that already exist.
Security Agreement
Previously known as a chattel mortgage this agreement establishes a lien against chattels, which extends to all chattels that are going to be attached to land as fixtures.
Security Deposit
Funds deposited for or by the lessee with the lessor, they are held by the lessor for these purposes: to cover possible defaults or damages to the premises, failure to pay rent or failure to return all keys and accessories related to the rental.
Septic Tank
A tank for sewage settling where part of the waste is turned into gas and or liquids prior to being expulsed via gravity into a leaching bed underground.
A zoning restriction that dictates how much land is necessary around potential improvements; it is specifically the amount of space needed between the building line and lot line.
The conclusion of a real estate transaction that includes the adjustment and proration of outstanding credits, settlement costs and charges.
The exclusive ownership of property.
Shell Lease
A lease where an occupant leases an incomplete shell of a structure, typically in commercial leases; the tenant agrees to take on the responsibility to finish construction via installation of ceilings, electrical, plumbing etc.
Shopping Center
A categorization for retail stores, distinguished by clusters of stores that are subject to a development plan and include off-street parking.
The line that divides a public beach and private land in reference to waterfront property.
Simple Interest
Interest that is only computed based on the principal balance.
Special Assessment
A unique tax that is typically only imposed against particular parcels of realty that can benefit from a public improvement and not imposed upon an entire community.
Special Warranty Deed
A deed where the grantor pledges the title only against defects that occurred during their ownership of the property and does not cover any defects that happened prior.
Specific Performance
An officially authorized action mandated by a court of equity to force a party to fulfill the terms of an agreement.
Spot Loan
A note on a specific property, typically a condo unit, by a lender who prior to this loan, has not financed units within the condominium building.
Standing Loan
A pledge by a interim or construction lender to save monies already collected for a project for a certain amount of time following the conclusion of a loan, often until permanent financing is secured.
Statute of Frauds
A law that dictates specific contracts must be written and signed by the party who is to be charged in order to validate the agreement and make it legally enforceable.
Statute of Limitations
A law regarding the amount of time allotted that specific actions must be brought to the attention of a court.
Step-Up Lease
Also known as a graduated lease; a lease agreement where the initial rent payment is fixed, typically at a low rate, but will increase at established intervals as the lease period advances.
Straight Note
A promissory note substantiating a loan where payments consisting of only interest are made occasionally throughout the term of the note; in this case the principal payment will be due in full when the loan matures.
Subject to Mortgage
A title for real property that is “subject to mortgage” means that the grantee will not be personally liable to the lender for the mortgage payments of the note. However, if the mortgage goes into default, the grantee could lose the property and their equity in a potential foreclosure sale.
Subordination Agreement
An agreement where a previous mortgagee consents to lower or release their superior position to the existing or potential future lien.
Summary Possession
A lawful procedure enacted by a landlord to reclaim control of a leased property if an occupant has breached a lease or continuing to occupy the premises following the termination of tenancy.
An unanticipated early transfer of possession of an estate to a party who has a future interest.
The procedure of measuring land areas to determine boundaries; measuring the on-site lot lines, positioning of structures and dimensioning of all structures; as well as noting all existing encroachments and easements.
A special feature included in a joint tenancy where the right to title and interest of a decedent joint tenant in a specific property passes on to any surviving joint tenants free of any claims by heirs or creditors of the decedent.
Take-out Financing
A long-term loan secured for a property and replaces any short-term financing in existence.
Tax Lien
Placed on real property, a general legal lien for failing to pay taxes; it can be either a state or federal lien.
Tax Shelter
Typically used when describing the tax advantages of investing in real estate, the benefits (such as deductions for depreciation, taxes, interest, etc.) that can offset an investor’s standard income and reduce their tax payments.
Tenancy at Sufferance
A wrongful tenancy that takes place after a lessee holds occupancy past the expiration of a lease, without permission from a landlord, in essence when a lessee fails to turn over possession of a property following the termination of a lease.
Tenancy at Will
A tenancy where a party is given possession of property granted by the owner, for an undetermined or indefinite time frame. Tenancy by the Entirety- A unique type of joint tenancy between legally married spouses, where all title and rights to a property are placed into a marital unit, which gives both partners equal and undivided interest in the property.
Tenancy for Years
A less-than-freehold estate where a property is leased for a specific and fixed period of time; this can be for any portion of a year or longer.
Tenancy in Common
A type of simultaneous ownership of real property between two or more parties, where all parties have an equal and undivided interest in the property.
Tenancy in Severalty
Also known as Sole Tenancy, this type of property ownership is vested in only one person and not shared with any other party or parties.
Typically the party who possesses property, as in a tenant for years or life tenant and often referred to as the lessee in the case of a rented property.
Time is of the Essence
A phrase in a document that highlights the need to act with haste.
Time Sharing
An approach to mutual ownership and operation of real estate that allows more than one party to purchase undivided interest in a real property (often a hotel or resort condo) with the right to use and posses the property for a fixed variable time frame.
Title Insurance
An all-inclusive contract of guarantee where a title company consents to refund the insured party for any loss if the title isn’t reflected as it was in the policy.
Title Search
A search of public records to verify that there are no problems in the chain of title.
A residential unit that typically has two floors, with the bedrooms upstairs and the kitchen and living areas on the main level.
A term for a piece of property that is 6 miles square, consists of 36 sections that are each 1 mile square and contains 23,040 acres; part of a government survey system used in land description.
Trade Fixtures
Items that are considered personal property that are included with the leased property to be used as necessary for the occupant’s trade or business.
Triple Net Lease
A net lease where the tenant is responsible for all operating expenses associated with the property; in addition to the predetermined and agreed upon rent.
Trust Deed
Also known as a deed of trust; this is a security device for real property and closely related to a mortgage with the exception that it includes three parties: the trustee, trustor and lender/beneficiary.
Trust Fund Account
Established by a broker at a financial institution or other depository, this is an account where funds entrusted to the broker, by their principal or other parties, are deposited.
Turnkey Project
A term used in development, which means the entire construction package from beginning to the finished project. The only act that remains is turning over the keys to the owner.
Unilateral Contract
A contract where one party agrees to act without receiving in exchange any promise of performance from another party, as in an open listing contract, where a seller promises to pay a commission to the first broker who is able to close a sale on their property.
Upset Price
The lowest price a court deems to be acceptable in a judicial foreclosure; anything below this price will not be accepted at public auction and is based on the value the property was appraised at.
Useful Life
The time frame that an asset, such as a structure, is estimated to be economically practical to an owner.
An illegal action of charging an interest rate that is beyond what is permitted by law.
Vacancy Factor
A discount or stipend for unrented units or vacancies in a rental complex.
The ability of a service or product to require other goods in exchange for the current worth of forthcoming rights to amenities and profits.
Authorization given by governmental zoning authorities to construct a building or conduct a use that would otherwise be explicitly forbidden by the zoning laws currently in place.
The buyer entering a contract of sale; the purchaser of real property.
The seller entering a contract of sale; the seller of real property.
The absence of legal authority, lacking the ability to bind, not being able to enforce, a nullity.
Having a flaw that allows for a contract to be voided, it may seem valid at face value, however, is subject to being rescinded by a party who performed under a disability, like being underage or coercion or other undue pressure.
To offer up or surrender a right voluntarily.
A structure that is meant to house materials, equipment or other merchandise.
A financing term used to describe the procedure loan correspondents use to assemble a package of multiple mortgage loans, which they then sell in the secondary mortgage market.
A pledge a seller makes to cover the title in addition to the physical condition of a property.
Warranty Deed
Also referred to as a general warranty deed, this deed is fully guaranteed by the grantor that it has a clear title to the property.
The wrongful use or abuse of property by the party in possession, who doesn’t hold the full ownership, such as a lessee, mortgagor, vendee or tenant.
Wear and Tear
The slow material deterioration of property as a result of use, weather and climate corrosion and the passing of time.
Wrap-Around Mortgage
A refinancing process where a new mortgage is subordinate or secondary in position to any mortgage in existence.
Year-to-Year Tenancy
A tenancy based on intervals where the rent is set aside from year to year.
Recorded as a percentage of the total invested, the sum of the profit or return on investment.
The rules for buildings and the uses of property inside specified areas or zones. It covers and affects things like the use of land, construction limitations, structure heights, setbacks and density.