Your Online Legal Resource Center for Property Management

ABANDONMENT - An action indicating the voluntary surrender of a right. For instance, the failure to use a right-of-way or easement for a long period of time.

ABATEMENT - A decrease in the amount of noise, value, rent, etc.

ABC SOIL - Three-layered soil. A(upper), B(middle), C(lower).

ABSENTEE LANDLORD - An owner who rents out his property and does not live on any portion of it.

ABSORPTION RATE - The period of time it takes to completely sell the lots in a new subdivision or to rent the units in an apartment building; considered part of a builder's or developer's costs.

ABSTRACT OF TITLE - A past history of ownership of a particular property examined by an attorney to determine if there are any defects which would prevent passage or transfer of clear title to the next owner.

ABUTTING - adjoining, adjacent, bordering.

ACCELERATED DEPRECIATION - Fast depreciation of property in the early years of ownership rather than spreading it evenly over the total time allowed.

ACCELERATION CLAUSE - A statement in a mortgage or deed of trust giving the lender the right to call all money owed to him to be immediately due and payable upon the occurrence of a certain event, such as a late payment or transfer of title.

ACCEPTANCE - Agreement to the terms and price of a contract or sale agreement through the act of signing the document.

ACCESSIBILITY - The ease with which the property can be reached by those people and vehicles essential to the intended use of said property.

ACCESSION - The legal addition to an owner's property of land deposited by flood water, etc.

ACCESS RIGHT - The right of entrance to and exit from one's property.

ACCOMMODATION PARTY - One who signs a negotiable instrument without receiving any benefit therefrom, so that another party may obtain a loan.

ACCORD - A compromise agreement in which a creditor accepts an amount different from that which was originally claimed as owing.

ACCOUNTS PAYABLE - An accounting term referring to money owed to creditors in return for goods and services performed.

ACCOUNTS RECEIVABLE - An accounting term referring to money which is due to be received for goods and services rendered to another firm or individual.

ACCRETION - The gradual deposit of land onto a riverbank or shore created by the movement of water which may be added to an owner's adjoining property.

ACCRUE - To accumulate, increase.

ACCRUED DEPRECIATION - For tax purposes, the amount of credit given toward the replacement of a structure or other asset; the remaining value of a property.

ACKNOWLEDGMENT - A signed, voluntary affirmation before an authorized official (usually a notary public) verifying identity.

ACQUISITION APPRAISAL - A determination of the market value of property to be acquired by the government through condemnation (eminent domain) so that the owners may receive just compensation.

ACQUISITION COSTS - Costs in addition to the purchase price of real property such as escrow fees, lender's fees and title insurance.

ACRE - A measure of land area; 1/640th of a square mile, 160 sq. ft., or approximately 209' x 209'.

ACREAGE CONTROL - A federal regulation limiting the number of acres which may be planted with crops having federal price supports.

ACTION TO QUIET TITLE - A legal proceeding to determine ownership of real property; does not cure defects.

ACTIVE LICENSEE - A real estate associate (agent) actively engaged in the business of selling other people's real property under the auspices of a broker.

ACT OF GOD - A destructive act of nature such as earthquakes, floods, and storms as distinguished from damage caused by man.

ACTUAL AGE - The historical age of a building or structure regardless of its physical condition (see economic age).

ACTUAL CASH VALUE - The market value.

ACTUAL NOTICE - Expressed or implied notification.

ADDENDUM - An addition to a sale agreement, escrow instructions, contract, etc.; may be an amendment of conditions.

ADDITIONAL DEPOSIT - A second, usually a more substantial deposit made by the buyer after acceptance by the seller of an offer to purchase; establishes buyer's earnest desire to purchase.

ADJOINING - Adjacent to, abutting, next to.

ADJUDICATION - A court decision or judgment.

ADJUSTED COST BASIS - The original cost of an asset (real property), plus improvement costs, less depreciation.

ADJUSTED GROSS INCOME - The total amount of rent received on income property at 100% occupancy less a vacancy factor.

AD VALOREM - A tax imposed on real property, based on current market value.

ADVANCE COMMITMENT - See Commitment.

ADVANCE FEE - A fee paid in advance by the seller to the broker to cover advertising and promotion costs; the fee is nonrefundable and is credited against commissions in the event of sale. Typically used when large properties require big promotion budgets.

ADVANCES - Money paid in advance by the lender )mortgagee, beneficiary) to cover carrying charges (taxes and insurance) and other obligations of the borrower (mortgagor, trustee) needed to protect the secured property.

ADVERSE LAND USE - A use of land which devalues the surrounding land, such as a truck terminal in the midst of a residential community.

ADVERSE POSSESSION - A method of acquiring title to property after a period of years of use by taking possession of it under an owner's objections. When permission is given by an owner to another for use, adverse possession does not exist.

AEOLIAN SOIL - A type of soil composed of windblown materials; wind transported deposits.

AERATION ZONE - The upper zone of ground water where moisture is retained in the soil for use by plants; the excess seeps into the lower saturation zone.

AESTHETIC VALUE - Property value derived from the beauty of the surroundings or of improvements made.

AFFIDAVIT - A written statement or declaration made under oath before an official with the authority to administer such an affirmation (such as a notary public).

AFFINITY - A relationship by marriage, not by blood; any group with special, common interests (clubs, churches, schools, etc.) is an affinity group.

AFFIRMATION - A sworn statement used where the affiance has religious or moral objections to taking an oath.

A-FRAME - A structure in the shape of a capital letter "A", commonly seen in mountain resort areas.

AFTER ACQUIRED PROPERTY - In reference to a judgment lien, the lien will attach to property of the debtor obtained after the judgment.

AFTER ACQUIRED TITLE - A legal principal which automatically gives title to the grantee ( the deed has been completed and delivered) once the grantor obtains title to the property.

AGENCY - A relationship where one party (the principal) delegates to another (the agent) the authority to represent him/her in business transactions.

AGENCY AGREEMENT (LISTING) - An agreement between the seller of real property and a real estate broker wherein the broker's commission is protected against a sale by other agents, but not by the seller; often referred to as a nonexclusive agency agreement.

AGENCY BY ESTOPPEL(OSTENSIBLE AGENCY) - A legal, agency relationship created by proof of action when the principal causes another to believe that a third party is his agent or by negligence allows his agent to act in an unauthorized capacity.

AGENCY COUPLED WITH INTEREST - A non-revocable contractual agreement whereby the agent receives an interest or share in the property (a broker agrees to find land for a developer in return for an exclusive listing to sell the finished structures; referred to as a list-back). Illegal in some states.

AGENT - A person who is authorized to represent or act for another in a business matter.

AGRARIAN - Pertaining to the land or to division and distribution.

AGREEMENT - An understanding between two people with regard to the rights and obligations of each in a given situation, concerning a given subject.

AGREEMENT OF SALE - A written contract between the buyer and seller where both parties are in full agreement on the terms and conditions of sale.

AGRICULTURAL LIEN - A claim against crops only, as payment for supplies used to grow the crops.

AGRICULTURAL PROPERTY - Land which is zoned and/or used for growing crops and raising livestock.

A HORIZON - The top layer of soil, the content of which is affected by water seeping through it.

A.I.R. (AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION) - An association of real estate associates and brokers mainly dealing in industrial properties.

AIR RIGHTS - The rights to use the space above a property; land ownership includes air rights, though these may be sold later.

AIR SPACE - That part of a condominium which an owner holds exclusive title to, along with joint ownership in common areas; legally described cube of air.

ALCOVE - A small, recessed part of a room.

ALIAS - Another name by which a person is known; (AKA) also known as.

ALIENATION - The transfer of title to property from one party to another.

ALIENATION CLAUSE - A clause within a loan instrument (note) calling for immediate payment of the balance of the debt upon transfer of title to the secured property; also known as a "due-on-sale" clause.

ALLEY INFLUENCE - An appraisal term referring to the effect of an adjoining alley upon the value of a property.

ALL INCLUSIVE DEED OF TRUST - A second deed of trust which is subordinate to, but includes the face value of the first deed of trust.

ALLOTMENT - A small plot of land given or sold to farmers for cultivation as an additional source of income prior to World War II.

ALLUVION - Soil deposited by accretion.

A.L.T.A. (AMERICAN LAND TITLE ASSOCIATION - A group to title insurance companies which has standardized forms to establish uniform coverage throughout the industry; offers extended coverage.

ALTERATIONS - Remodeling the interior or exterior of a structure without changing the exterior dimensions.

AMENDMENT - A change in the terms or conditions of an agreement that does not enter the main idea or substance.

AMENITY - An attractive or desirable improvement to a property or setting that adds value to real estate, such as a pool, built-ins, or a view.

AMORTIZATION - The repayment of a debt in equal installments which are applied to principal and interest over a specific period of time to arrive at a zero balance.

ANCILLARY - Subordinate to, supplementary.

ANNEX - An addition to a main building; to join or add.

ANNEXATION - Permanent additions to real property such as the United States annexing the Louisiana Territory.

ANNUAL PERCENTAGE RATE (A.P.R.) - The actual annual interest rate paid on a loan; disclosure is a requirement under federal truth-in-lending laws.

ANNUITY - A regular stream of equal payments (or income) paid periodically for a specified period of time.

ANNUITY METHOD - A method of appraisal using future estimated net income before depreciation and discounting it to determine present value.

ANNUM - A year.

ANTENUPTIAL AGREEMENT - An agreement made before marriage establishing the property rights of both parties during the marriage and in the event of death or divorce.

ANTICIPATION - A method of appraisal basing value on estimated future benefits.

APARTMENT HOTEL - A lodging which offers a combination of features characteristic of hotels and apartments; residents receive maid service, etc., but may stay for long periods of time, paying on a monthly or weekly basis.

APARTMENT HOUSE - A structure containing two or more separate residential units which are rented or leased to tenants.

APPARENT AUTHORITY - A condition existing when an agent appears to have more authority than he/she has in fact, as a result of actions (or lack of) by the principal.

APPOINTMENTS - Fixtures, furnishings and equipment in a building which may affect its value; prearranged meetings at appointed times.

APPORTIONMENT - Pro-rating of costs between seller and buyer, usually as of date of possession.

APPRAISAL - An estimate or opinion of value based on analysis of pertinent data by a qualified appraiser.

APPRAISAL METHODS - The three most common approaches are: the market data (comparable approach), the cost approach and the income approach.

APPRECIATION - An increase in the value of property from improvements made, the elimination of negative factors or economic conditions other than inflation; rate of appreciation is determined by supply and demand.

APPROPRIATION - Taking public property for private use, such as water from a stream.

APPROVED ATTORNEY - An attorney whose opinion is accepted by title companies where state laws require examination of the chain of ownership or title before insurance is issued.

APPURTENANCE - Something belonging to the land and conveyed with it upon transfer of title, such as a building or fixtures.

APPURTENANT EASEMENT - The right to gain access to one's property by going through land belonging to another.

APRON - The flared portion of a driveway that meets the street; a windowsill; anything that widens out.

AQUATIC RIGHTS - Rights to use oceans and waterways; including use of soil, navigation and fishing rights.

AQUEDUCT - A pipeline or channel for carrying water; may be open or underground.

ARABLE - Land suitable for farming.

ARBITRAGE - The difference between interest rates on the original and secondary mortgages in a wrap-around-mortgage; the purchase of money and securities in one market and sale of them in another for profit.

ARBITRARY MAP - A map drawn by a title company and arbitrarily divided into number lots, to describe their location; documents are filed by these numbers.

ARBITRATION CLAUSE - A clause in a lease agreement where the rent is negotiated, requiring the decision of a third party (arbiter) in the event of a dispute; used in other contracts as well.

ARCH - A concave, curved construction spanning a doorway or other opening.

ARCHITECTURE - The art of structural design; the style in which a structure is designed and built.

AREAWAY - A cellar or room below ground level.

AREA ZONING (BULK ZONING) - Zoning which establishes the ratio of improvements per unit of land area and the distance of buildings to the street.

ARMAGEDDON CLAUSE - Determines who is responsible for insurance until date of possession; shields against unforeseen disasters, such as floods, tornadoes, etc.

ARREARS - Back-payments made after a due date.

ARTESIAN WELL - A deep well in which water is under pressure and rises to the top without being pumped.

ARTIST'S CONCEPTION (RENDERING) - A perceived, unscaled drawing of a real estate development, used to promote the project or make a sale.

ASBESTOS - A fire resistant fiber used as insulation.

AS-IS CONDITION - Property and buildings sold or leased with no guarantees as to their condition, defects, etc.

ASPECT - The appearance or view of an object.

ASSEMBLAGE - The combining of adjoining properties under one ownership for a specific use; such as creating a large piece of commercial property from a group of formerly residential properties to build a shopping center, etc.

ASSESS - To appraise, to give an opinion of the value of property in question; usually for tax purposes.

ASSESSED VALUE - A valuation of property by the tax assessor.

ASSESSMENT - The amount of tax levied.

ASSETS - Anything owned by a company or an individual which can be sold to repay debts.

ASSIGNMENT - The signing over of title, rights and ownership interest in property to another person, etc.

ASSUMPTION - The taking over by a buyer of a seller's existing mortgage obligations and/or liabilities.

ATTACHMENT - Seizure by court order of property belonging to the defendant in a law suit as security in the event of a money judgment.

ATTESTATION CLAUSE - A written statement by witnesses confirming that a document has been properly signed.

ATTIC - The space between the ceiling of the top story and the roof of a building.

ATTORNEY-IN-FACT - A disinterested party who is authorized by another to represent him/her in matters specified by the power of attorney.

ATTRACTIVE NUISANCE - Something on a property of danger to children which may attract them, but which they must be protected from, such as a swimming pool.

AUTOMATIC APPRAISER - An equation to compute the upper limits of value on apartment houses with more than 20 units using a 10% vacancy factor and a 35% expense ration.

AVERAGE DAILY TRAFFIC - The normal number of vehicles passing a particular point during a 24 hour period.

AVULSION - The sudden washing away of land and its deposit on land belonging to another. Ownership is determined by original boundaries.

AWARD - The sum of money paid for condemned property; the acceptance of a bid for construction by a contractor.

AZIMUTH - In surveying, the horizontal distance between true north and the object in question (expressed in degrees).

AZONAL SOIL - Soil not composed of distinct layers.