Real Estate Glossary

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Abandonment

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A unilateral termination of a tenancy by forfeiture, delivered by the landlord based on notices from the landlord

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Absorption rate

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The estimated time required to sell or lease property within a designated area at its fair market value

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Abstract of title

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A summary or digest of all transfers, conveances, 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

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Acceleration

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a demand for immediate payment of all amounts remaining unpaid on a loan or extension of credit by a mortgage lender or carryback seller

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Accession

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The physical addition to property through man made effort or by natural forces

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Accretion

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Accession by natural forces, EG alluvium

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Acknowledgment

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A formal declaration made before an authorized person, a notary public, by a person who has signed an instrument stating that the signature was their 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

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acre

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A measurement of land equaling 160 square rods, or 4840 yd.², or 43,560 ft.², or at tract about 208.71 feet sq

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Addendum

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an attachment to a contract, rental or lease agreement for incorporating any provision agreed to but not included in the boilerplate provisions of the agreement

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adjustable rate mortgage

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A variable interest rate note, often starting out with an introductory teaser rate, only to reset at a much higher rate in a few months or years based on a particular index.

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adjusted basis

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The cost basis of a property after the application of additions for further improvements and deductions for destruction of improvements and depreciation

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adobe

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also known as clay, adobe soil is naturally occurring heavy material which readily cracks and is composed primarily of fine-grained minerals

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advance cost

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deposits handed to a broker to cover out-of-pocket costs incurred on behalf of the depositor while performing brokerage services

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advanced fees

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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 business for sale, with no intent to obtain a buyer, by persons representing themselves as real estate licensees or representatives of licensed real estate firms

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adverse possession

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A method of acquiring title to real property by a person other than the owner of record through open possession of the property for five year statutory period And payment of property taxes

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advertising

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Communication of marketing materials by licensees, such as property flyers, classified ads or first contact brochure

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Ad valorem

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Real estate taxes imposed on property based on its assessed value

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affiliated business arrangement

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referral of a client to a financially controlled business whose earnings are shared with the broker which requires a written disclosure

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agency

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The relationship between a principal and the principal agent which arises out of a contract, either expressed or implied, written or oral, the principal employing the agent to do specified activities dealing with third parties

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Amortization

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The reduction in principle-liquidation-of a mortgage obligation on an installment basis.

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Amortization rate

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a tabular schedule detailing the apportionment of principle and interest on each periodic payment due on an amortization loan

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Annual Percentage Rate

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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

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Anti-deficiency

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A limitation placed on a mortgages lenders ability to recover losses on a default when the secured properties value is insufficient to satisfy the mortgage debt

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Agency law disclosure

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re-statement of agency codes and cases which establish the conduct of real estate licensees. It is delivered to all parties and targeted transactions

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agreed boundary doctrine

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When owners of adjacent properties are uncertain as to the true boundary and agree to establish the location of their common lot line and acquiesce to the boundary line for at least five years

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alienation

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The transfer of an interest in property to another; the transfer of property and possession of land, or other things, from one person to another

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alkaline

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A soil with a pH above seven

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alluvium

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The gradual increase of the earth on a shore of an ocean or bank of a stream resulting from the action of the water

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alquist-priolo maps

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maps which identify earthquake fault areas available from the state mining and geology board and cities or country planning departments

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ATLA title policy

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A type of title insurance policy issued by title insurance companies which expands the risk insured against under the standard type policy to include unrecorded mechanic liens; unrecorded physical easement; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments

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amenities

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Hedonistic benefits derived from a property whose existence increase the properties value or desirability. Amenities are both tangible, such as property fixtures, or intangible ,such as proximity to schools or desirable businesses

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Americans w disabilities act ADA

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Federal regulations prohibiting an employer from discriminating against a qualified person based on a disability

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anti trust

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State and federal regulations that are designed to promote fair competition in the marketplace

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applicable federal rate

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rates set monthly by the internal revenue services for carryback sellers to imputee and report income at the minimum interest when the note rate on the Carryback debt is a lesser rate

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appraisal

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an individual‘s opinion of a property in value on a specific date, documented in appraisal report

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appropriation

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The action of taking something for ones own use, such as water from a stream

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appurtenances

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A right belonging to a property, affect title to other property; all those rights, privileges, and improvements which belong to and pass with the transfer of the property, but which are not a part of the property. appurtenances to real property passed with the real property to which they are appurtenant , unless a contrary intention is manifested. Typically appurtenances are rights of way, easement, water rights, and use of improvements located on the other property

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arbitration

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A form of dispute resolution voluntarily agreed to in contracts authorizing a third-party arbitrator to issue a binding award which cannot be reviewed and corrected by a court of law

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assemblage

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The combining of land parcels to create a value higher than the sum of their parts

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assessment

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The valuation of property for the purpose of levying a tax. also, payments made to a common interest subdivision homeowners association for maintenance and reserves

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assignment

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A transfer to another of rights held by a person. A transfer to another of a person‘s rights under a contract such as a mortgage, lease, purchase agreement or option

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assignor

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One who assigns or transfers the rights or interest they hold in a personal or real property

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assigns/assignees

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those to whom rights or interest in personal or real property are transferred

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assumption

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A promise to pay the debt of another, typically a mortgage, given by a buyer of property

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attorney fee provision

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A provision in an agreement specifying the prevailing party to a dispute is to receive attorney fees of litigation results

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attorney in fact

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One who is authorized by another to perform certain acts for another under the power of attorney, power of attorney may be limited to a specific act or acts or be general

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automatic homestead

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The dollar amount of equity in a home owners principal dwelling the home owner is automatically qualified to exempt from creditor seizure. Also known as statutory homestead exemption

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avulsion

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A sudden and perceptible loss of land by the action of water, such as a rapid change in the course of a river