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ENGLISH GLOSSARY SAMPLE
ABATEMENT OF NUISANCE
Extinction or termination of a nuisance.
ABSOLUTE OWNERSHIP
See Fee Simple Estate.
ABSTRACT OF JUDGMENT
The summary of a court judgment that creates a lien against a property when filed with the county recorder.
ABSTRACT OF TITLE
A summary or digest of all transfers, conveyances, legal proceedings and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title.
ABSTRACTION
A method of valuing land. The indicated value of the improvement is deducted from the sale price.
ACCELERATED COST RECOVERY SYSTEM (ACRS)
The system for figuring depreciation (cost recovery) for depreciable real property acquired and placed into service after January 1, 1981.
ACCELERATED DEPRECIATION
A method of cost write-off in which depreciation allowances are greater in the first few years of ownership than in subsequent years. This permits an earlier recovery of capital and a faster tax write-off of an asset.
ACCELERATION CLAUSE
A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note.
ACCEPTANCE
The act of agreeing or consenting to the terms of an offer thereby establishing the "meeting of the minds" that is an essential element of a contract.
ACCESS
Any means by which a person can enter property.
ACCESSIBILITY
The degree to which a building or site allows access to people with disabilities.
ACCESS RIGHT
The right of an owner to have ingress and egress to and from owner's property over adjoining property.
ACCESSION
An addition to property through the efforts of man or by natural forces.
ACCRETION
Accession by natural forces, e.g., alluvium.
ACCRUED DEPRECIATION
The difference between the cost of replacement new as of the date of the appraisal and the present appraised value.
ACCRUED ITEMS OF EXPENSE
Those incurred expenses which are not yet payable. The seller's accrued expenses are credited to the purchaser in a closing statement.
ACKNOWLEDGMENT
A formal declaration made before an authorized person, e.g., a notary public, by a person who has executed an instrument stating that the execution was his or her free act. In this state an acknowledgment is the statement by an officer such as a notary that the signatory to the instrument is the person represented to be.
ACOUSTICAL TILE
Blocks of fiber, mineral or metal, with small holes or rough-textured surface to absorb sound, used as covering for interior walls and ceilings.
ACQUISITION
The act or process by which a person procures property.
ACRE
A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square.
ACRE FOOT
The volume of material needed to cover an acre of land one foot deep.
ACTIVE SOLAR SYSTEM
A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use.
ACTUAL AGE
The number of years a structure has been standing.
ACTUAL AUTHORITY
Authority expressly given by the principal or given by the law and not denied by the principal.
ACTUAL FRAUD
An act intended to deceive another, e.g., making a false statement, making a promise without intending to perform it, suppressing the truth.
ADDENDUM
An addition or change to a contract.
ADDITIONAL PRINCIPAL PAYMENT
Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.
ADD-ON INTEREST
The interest a borrower pays on the principal for the duration of the loan.
ADJUSTABLE-RATE MORTGAGE (ARM)
A mortgage loan which bears interest at a rate subject to change during the term of the loan, predetermined or otherwise.
ADJUSTED COST BASIS
The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.
ADJUSTMENT PERIOD
The amount of time between interest rate adjustments in an adjustable-rate mortgage.
ADJUSTMENTS
In appraising, a means by which characteristics of a residential property are regulated by dollar amount or percentage to conform to similar characteristics of another residential property.
ADMINISTRATOR
A person appointed by the probate court to administer the estate of a deceased person who died intestate. (Administratrix is the feminine form.)
ADMINISTRATOR'S DEED
A legal document that an administrator of an estate uses to transfer property.
AD VALOREM
A Latin phrase meaning 'according to value'. Usually used in connection with real estate taxation.
ADVANCE
Transfer of funds from a lender to a borrower in advance on a loan.
ADVANCE COMMITMENT
The institutional investor's prior agreement to provide long-term financing upon completion of construction; also known as a 'take-out' loan commitment.
ADVANCE FEES
A fee paid in advance of any services rendered. Sometimes unlawfully charged in connection with that illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale, with no intent to obtain a buyer, by persons representing themselves as real estate licensees, or representatives of licensed real estate firms.
ADVERSE POSSESSION
A method of acquiring title to real property through possession of the property for a statutory period under certain conditions by a person other than the owner of record.
ADVERSE USE
The access and use of property without the owner's consent.
AEOLIAN SOIL
Soil that is composed of materials deposited by the wind.
AFFIANT
One who makes an affidavit or gives evidence.
AFFIDAVIT
A statement or declaration reduced to writing sworn to or affirmed before some officer who has authority to administer an oath or affirmation.
AFFIDAVIT OF TITLE
A statement, in writing, made under oath by seller or grantor, acknowledged before a Notary Public in which the affiant identifies himself or herself and affiant's marital status certifying that since the examination of title on the contract date there are no judgments, bankruptcies or divorces, no unrecorded deeds, contracts, unpaid repairs or improvements or defects of title known to affiant and that affiant is in possession of the property.
AFFIRM
To confirm, to aver, to ratify, to verify. To make a declaration.
AFFIRMATION
A substitution for an oath granted to people based on religious reasons.
A - FRAME DESIGN
An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.
AGENCY
The relationship between principal and the principal's agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.
AGENCY CLOSING
The process by which a lender uses a title company or other firm as an agent to complete a loan.
AGENT
One who acts for and with authority from another called the principal; a person licensed by the state to conduct real estate transactions.
AGREED BOUNDARY
A compromise boundary to which property owners agree in order to resolve a dispute.
AGREEMENT
An exchange of promises, a mutual understanding or arrangement; a contract.
AGREEMENT OF SALE
A written agreement or contract between seller and purchaser in which they reach a “meeting of the minds' on the terms and conditions of the sale. The parties concur; are in harmonious opinion.
AIR RIGHTS
The rights in real property to the reasonable use of the air space above the surface of the land.
ALCOVE
A recessed section of a room, such as a breakfast nook.
ALIENATION CLAUSE
A clause in a contract giving the lender certain rights in the event of a sale or other transfer of mortgaged property; a provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.
ALKALI
Mineral salt found in soil.
ALKALINE SOIL
Soil that contains a higher concentration of mineral salt than natural acid.
ALL-INCLUSIVE TRUST DEED (AITD)
See Wrap-Around Mortgage.
ALLEY
A lane behind a row of buildings or between two rows of buildings.
ALLODIAL TENURE
A real property ownership system where ownership may be complete except for those rights held by government. Allodial is in contrast to feudal tenure.
ALLOWANCES
Budgets offered by builders of new homes for the purchase of carpeting and fixtures.
ALLUVIUM
The gradual increase of the earth on a shore of an ocean or bank of a stream resulting from the action of the water.
ALTA OWNER'S POLICY
An owner's extended coverage policy that provides buyers and owners the same protection the ALTA policy gives to lenders.
ALTA (AMERICAN LAND TITLE ASSOCIATION) TITLE POLICY
A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard type policy to include unrecorded mechanic's liens; unrecorded physical easements; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments.
ALTERNATIVE MORTGAGE
Any home loan that does not conform to a standard fixed-rate mortgage.
ALUMINUM-CLAD WINDOWS
Wooden windows with aluminum covering the exterior.
ALUMINUM SIDING
A metal covering that provides an alternative to paint for owners of wood homes.
AMENITIES
Satisfaction of enjoyable living to be derived from a home; conditions of agreeable living or a beneficial influence from the location of improvements, not measured in monetary considerations but rather as tangible and intangible benefits attributable to the property, often causing greater pride in ownership; parks, swimming pools, health-club facilities, party rooms, bike paths, community centers and other enticements offered by builders of planned developments.
AMERICAN SOCIETY OF HOME INSPECTORS
The American Society of Home Inspectors is a professional association of independent home inspectors. Phone: (800) 743-2744.
AMERICANS WITH DISABILITIES ACT
A law passed in 1990 that outlaws discrimination against a person with a disability in housing, public accommodations, employment, government services, transportation and telecommunications.
AMORTIZATION
The liquidation of a financial obligation on an installment basis; also, recovery over a period of cost or value.
AMORTIZATION TABLES
Mathematical tables that lenders use to calculate a borrower's monthly payment.
AMORTIZED LOAN
A loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity. Also called a Level Payments Loan.
AMPERAGE
The strength of an electrical current.
ANCHOR BOLT
A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.
ANNUAL
Any kind of plant that must be planted every year.
ANNUAL MORTGAGOR STATEMENT
A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.
ANNUAL PERCENTAGE RATE (APR)
The relative cost of credit as determined in accordance with Regulation Z of the Board of Governors of the Federal Reserve System for implementing the Federal Truth in Lending Act.
ANNUITY
A sum of money received at fixed intervals, such as a series of assured equal or nearly equal payments to be made over a period of time, or it may be a lump sum payment to be made in the future. The installment payment due to the landlord under a lease is an annuity. So are the installment payments due to a lender.
ANTICIPATION, PRINCIPLE OF
Affirms that value is created by anticipated benefits to be derived in the future.
ANTICIPATORY BREACH
A communication that informs a party that the obligations of the original contract will not be fulfilled.
APPELLANT
A party appealing a court decision or ruling.
APPLICATION
A document that details a potential borrower's income, debt and other obligations to determine credit worthiness
APPLICATION FEE
The fee that a lender charges to process a loan application.
APPRAISAL
An estimate of the value of property resulting from an analysis of facts about the property; an opinion of value.
APPRAISAL FEE
The fee that an appraiser charges to estimate the market value of the property.
APPRAISAL REPORT
A detailed written report on the value of a property based on recent sales of comparable sites in the area.
APPRAISED VALUE
An opinion of the current market value of a property.
APPRAISER
One qualified by education, training and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal processes.
APPRECIATION
An increase in the value of a home or other property.
APPROPRIATION OF WATER
The taking, impounding or diversion of water flowing on the public domain from its natural course and the application of the water to some beneficial use personal and exclusive to the appropriator.
APPURTENANCE
That which belongs to something, but not immemorially; all those rights, privileges, and improvements which belong to and pass with the transfer of the property, but which are not necessarily a part of the actual property. Appurtenances to real property pass with the real property to which they are appurtenant, unless a contrary intention is manifested. Typical appurtenances are rights-of-way, easements, water rights, and any property improvements.
APPURTENANT
Belonging to; adjunct; appended or annexed to. For example, the garage is appurtenant to the house, and the common interest in the common elements of a condominium is appurtenant to each apartment. Appurtenant items pass with the land when the property is transferred.
APR
See Annual Percentage Rate.
ARBITRATION
A method of resolving a dispute in which a third party renders a decision.
ARBOR
An area shaded by trees, shrubs or vines on a latticework structure.
ARCH
A curved structure that supports weight over an area, such as a doorway.
ARCHITECT
A licensed professional who designs homes, buildings and other structures.
ARCHITECTURAL FEES
The fee an architect charges for services. In general, architects charge for their services by the hour, by the square foot, or by a percentage of the project budget.
ARCHITECTURAL STYLE
Generally the appearance and character of a building's design and construction.
ARM
See Adjustable-Rate Mortgage.
ARPENT
A French measurement of land equal to 84,625 acres.
ARTICLES OF INCORPORATION
An instrument setting forth the basic rules and purposes under which a private corporation is formed.
ASBESTOS
A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.
AS-IS CONDITION
The purchase or sale of a property in its existing condition.
ASKING PRICE
A seller's initial price for a property.
ASSESSED VALUATION
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
ASSESSMENT
The valuation of property for the purpose of levying a tax or the amount of the tax levied. Also, payments made to a common interest subdivision homeowners-association for maintenance and reserves.
ASSESSMENT ROLLS
A list of taxable property compiled by the assessor.
ASSESSOR
The official who has the responsibility of determining assessed values.
ASSETS
Items of value which include cash, real estate, securities and investments.
ASSIGNMENT
A transfer to another of any property in possession or in action, or of any estate or right therein. A transfer by a person of that person's rights under a contract.
ASSIGNMENT OF RENTS
A provision in a deed of trust (or mortgage) under which the beneficiary may, upon default by the trustor, take possession of the property, collect income from the property and apply it to the loan balance and the costs incurred by the beneficiary.
ASSIGNOR
One who assigns or transfers property.
ASSIGNS, ASSIGNEES
Those to whom property or interests therein shall have been transferred.
ASSUMABLE MORTGAGE
A mortgage that can be transferred to another borrower.
ASSUMPTION AGREEMENT
An undertaking or adoption of a debt or obligation primarily resting upon another person.
ASSUMPTION FEE
A lender's charge for changing over and processing new records for a new owner who is assuming an existing loan.
ASSUMPTION OF MORTGAGE
The taking of a title to property by a grantee wherein grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property, becoming a co-guarantor for the payment of a mortgage or deed of trust note.
ATTACHMENT
The process by which real or personal property of a party to a lawsuit is seized and retained in the custody of the court for the purpose of acquiring jurisdiction over the property, to compel an appearance before the court, or to furnish security for a debt or costs arising out of the litigation.
ATTEST
To affirm to be true or genuine; an official act establishing authenticity.
ATTORNEY IN FACT
One who is authorized by another to perform certain acts for another under a power of attorney; power of attorney may be limited to a specific act or acts or be general.
AVERAGE PRICE
The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the number of homes.
AVIGATION EASEMENT
An easement over private property near an airport that limits the height of structures and trees.
AVULSION
A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river.
AWNING WINDOWS
Single-sash windows that tilt outward and up.
AIN WATER SHUT-OFF VALVE
The primary valve that halts the flow of water from the water meter into a home.
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