Missouri Re General Glossary Definitions A-C

Front 1

Abandonment

Back 1

Non-payment of taxes

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Abstract of Title

Back 2

A history of the ownership of a parcel of land which lists transfers of title, rights, and liabilities.

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Acceleration Clause

Back 3

States that upon default, all of the principal installments come due immediately.

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Accession

Back 4

The idea that the owner of land is entitled to all that the soil produces or all that is added to the land either intentionally or by mistake. Trade fixtures not removed are "assessed" by the owner of the property.

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Accretion

Back 5

Refers to land which is accumulated by the gradual washing or motion of water.

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Accrued

Back 6

An accumulation.

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Acknowledgment

Back 7

A formal declaration made by the grantor conveying the property to the grantee – a necessary element for validity of a deed.

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Acre

Back 8

A measure of land equal to 43,560 square feet.

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Action to Quiet Title

Back 9

The lawsuit filed by a person to remove or clear the claims of others against property.

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Actual Notice

Back 10

The actual knowledge that a person has about the existence of a particular fact.

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Ad Valorem

Back 11

A prefix meaning "based on value". Most local governments levy an ad valorem tax on property.

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Adverse Possession

Back 12

A method of acquiring original title to property by open, notorious and hostile possession for a statutory period of time; also referred to as prescription. POACH.

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Agency

Back 13

A relationship in which one party (the principal) authorizes another party (the agent) to act as the principal's representative in dealing with third parties.

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Agent

Back 14

One who acts for and in place of a principal for the purpose of affecting the principal's legal relations with third persons.

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Air Rights

Back 15

The right to use, control and occupy the space above a particular parcel of land.

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Alienation Clause

Back 16

A provision in a mortgage requiring full payment of the debt upon the transfer of title to the property, due on sale. Prevents loan assumptions.

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Allodial

Back 17

The free and full ownership of rights in land by individuals, which is the basis of real property in the United States.

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Amortization

Back 18

The repayment of a financial obligation over a period of time in a series of periodic installments. In a level-payment mortgage, this is the portion of the debt service that reduces the principal.

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Amortized Loan

Back 19

A financial debt that is paid off over a period of time by a series of periodic payments. A loan can be fully amortized or partially amortized or partially amortized requiring a balloon payment to satisfy the debt at the end of the term.

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Annual Percentage Rate (APR)

Back 20

The yearly cost of credit. Interest Rate plus finance charge.

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Appraisal

Back 21

An opinion or estimate of value.

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Appreciation

Back 22

An increase in value.

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Appurtenance

Back 23

Any right or privilege which belongs to and passes with land.

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Arms-length Transaction

Back 24

Occurs between willing buyer and willing seller with each party completely knowledgeable about the market. A purchaser of property between relatives (father & son) would not be an "arms length transaction".

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Arrears

Back 25

Not on time; late in making payments or completing work. Interest is paid in arrears. Taxes are paid at the end of the year, i.e., in arrears.

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As is

Back 26

A phrase which disclaims any promises or warranties. A person purchasing real estate "as is" takes it in exactly the condition in which it is found. Seller cannot hide latent defects.

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Assemblage

Back 27

Bringing two or more lots together under one ownership.

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Assessed Value

Back 28

The value placed on property, by the tax assessor, for the purpose of determining the property tax.

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Assignment

Back 29

(1) the means by which a person transfers contract rights;(2) occurs when the lessee parts with the entire estate, retaining no interest.

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Attachment

Back 30

The process of taking a person's property into legal custody by a court order called a writ of attachment. Property is frozen.

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Attestation

Back 31

The act of witnessing a person’s signing of an instrument by a notary public.

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Attorney in Fact

Back 32

A person given the authority to act on behalf of another under a power of attorney.

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Attorney's Opinion of Title

Back 33

A statement issued by an attorney after analyzing an abstract as to quality of title.

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Avulsion

Back 34

Occurs in cases where there is a sudden loss of land through nature.

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Bad Title

Back 35

Title with defects making it unmarketable.

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Balloon Payment

Back 36

The remaining balance, at maturity, on a loan that has not been completely repaid through periodic payments. Once paid, the outstanding balance is zero. Partially amortized loan.

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Bargain and Sale Deed

Back 37

An instrument conveying title which recites a valuable consideration and commonly uses the words "bargain and sale" or words of similar import.

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Bench mark

Back 38

A bronze disk permanently placed and precisely identified by government survey teams.

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Bilateral Contract

Back 39

A contract in which a promise is given for the promise of another. It becomes binding when mutual promises are communicated. (A real estate contract).

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Bill of Sale

Back 40

A document used to transfer ownership of personal property.

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Blanket Mortgage

Back 41

A mortgage which covers more than one piece of real estate. Often used by a developer in the financing of undeveloped lots. Contains a partial release clause.

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Block A

Back 42

Means of subdividing large tracts of land into smaller sections, each of which is numbered. For example, Lot 4, Block 8.

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Blockbusting

Back 43

Any activity which attempts to drive prices down for the purpose of causing transition from one ethnic group to another. This is a violation of Federal Fair Housing Laws. Also called "panic selling".

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Bounds

Back 44

Refers to boundaries; used with the word "metes" in the metes and bounds method of land description.

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Breach of Contract

Back 45

A failure to perform, as promised, at the time the performance was due.

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Buffer Zone

Back 46

A means by which planners use space to separate two adjoining districts which have incompatible uses. A buffer zone consists of uses which are compatible with uses in each adjoining district.

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Building Code

Back 47

Ordinances passed by local governments with special minimum standards of construction for new buildings. They also apply to major additions to old construction.

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Bundle of Rights

Back 48

The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property.

Front 49

Bylaws

Back 49

Legal documentation in a condominium regime which provides the establishment of the home-owner's association; provides the powers and authority given to the board of directors; and indicates various rights and responsibilities of the unit owners.

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Capital Gains

Back 50

The tax profit realized from the sale of property. (A "tax free" exchange is a deferment of capital gains).

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Capitalization

Back 51

Used in the income approach to value. To capitalize income means to convert future income into present (current) value.

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Capitalization Rate

Back 52

The rate of interest considered to be a reasonable return on investment - given the risk.

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Caveat Emptor

Back 53

Means "Let the Buyer beware".

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Certificate

Back 54

The first thing a veteran should request if attempting to purchase a property using VA eligibility.

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Certificate of Eligibility Certificate

Back 55

Given to veterans bearing evidence of their qualifications for a VA mortgage loan.

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Certificate of Reasonable Value (CPR)

Back 56

Issued by the Veterans Administration to certify the value of property secured by a VA mortgage. Appraisal.

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Certificate of Title

Back 57

A document given by the title examiner stating the quality of title the seller possesses.

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Chain of Title

Back 58

A history of the ownership affecting title to a parcel of land.

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Chattel Mortgage

Back 59

One in which personal property is pledged to secure a note.

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City Planning

Back 60

The effort on the part of the city to coordinate, direct and control the type of development taking place, so as to ensure maximum benefits to the populace.

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Civil Rights Act of 1866

Back 61

A law which prohibits discrimination in all real estate transactions based on race - commercial and residential.

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Closing Costs

Back 62

The expenses incurred and paid at the time of settlement in the transferring of property.

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Cloud on Title

Back 63

Any claim affecting title to property.

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Collateral

Back 64

Property which has been pledged as security for a loan.

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Color of Title

Back 65

Adverse possession.

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Commercial Banks

Back 66

The largest financial intermediary directly involved in the financing of real estate. Their primary real estate activity involves short-term loans.

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Commingling

Back 67

Illegally mixing deposits or monies, collected from a client, with one's personal or business account. Taking money out too soon or putting it into escrow too late (10 banking days).

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Common Elements

Back 68

Property jointly owned on a pro-rata basis with other unit owners in a condominium regime.

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Common Law

Back 69

(1) a body of legal rules derived from accepted customs and procedures in England. Serves as the foundation for most laws in every state except Louisiana, which uses the system of civil law; (2) system of judge-made law (“case law”) as opposed to codified or statutory law.

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Community Property

Back 70

Any property acquired in certain states by purchase, or as compensation by either spouse during the period of marriage, is considered to be owned in an undivided half interest by each.

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Comparable

Back 71

Comparable property recently sold which is used in the market data approach.

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Comparative Analysis

Back 72

A method of appraising property in which the selling prices of similar properties are used as the basis for estimating the value of the subject property.

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Competent Parties

Back 73

Those who are legally capable of entering into contracts.

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Condemnation

Back 74

The process of exercising eminent domain through court action.

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Consideration

Back 75

Anything of value offered to induce someone to enter into a contractual agreement. For example, sale price, earnest money, a promise for a promise.

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Constructive Eviction

Back 76

Occurs when the tenant's use of the premises is substantially disturbed or interfered with by the landlord's actions or failure to act where there is a duty to act. The tenant is effectively forced to move out and terminate the lease without further liability for further rent.

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Constructive Notice

Back 77

The knowledge that the law presumes a person has about a particular fact irrespective of whether the person knows about the fact or not. (Recording).

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Contract

Back 78

An agreement resulting from the objective expression of mutual assent by competent parties, which the law recognizes in some way as a duty, and the breach of which the law gives a remedy.

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Contract for a Deed

Back 79

A means by which the seller passes possession but retains title to the property until the total or a substantial portion of the purchase price is paid. Installment contract. The two parties here are the vendor (owner) and the vendee (buyer).

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Conveyance

Back 80

The transfer of title to land from one party to another.

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Cooperative

Back 81

A form of property ownership in which a corporation is established to hold title in property and to lease the property to shareholders in the corporation. Own stock.

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Corporation

Back 82

A legal entity organized to have perpetual legal existence and to have legal power to carry on certain activities such as owning real estate.

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Cost Approach

Back 83

A method of estimating value based on the economic principle of substitution; the value of a building cannot be greater than the cost of purchasing a similar site and constructing a building of equal utility.

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Counteroffer

Back 84

An implied rejection of the original offer by proposing new offer or by making conditional acceptance.

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Covenant

Back 85

Included in a deed; a guarantee.

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Covenant Against Encumbrances

Back 86

The assurance that no encumbrances other than those specified in the deed exist.

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Covenant of Further Assurance

Back 87

A promise that the grantor will perform further acts reasonably necessary to correct any defects in the title or in the deed instrument.

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Covenant of Quiet Enjoyment

Back 88

A promise that no one has superior or paramount title to that of the grantor; assures the grantee of peaceful possession without fear of being ousted by a person with a superior claim to the property.

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Covenant of Seisin

Back 89

Gives the assurance that the grantor has the exact estate in the quantity and quality which is being conveyed. "I own and I have the right to sell it."

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Curable Depreciation

Back 90

Depreciation is considered curable if the cost of the repair is less than what the repair adds to the value of property.

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Curtesy

Back 91

The rights that a husband acquires in the wife's property upon her death.