ABANDONMENT
- The voluntary relinquishment of rights of ownership or another
interest (such as an easement) by failure to use the property, coupled
with an intent to abandon (give up your interest). Time limits vary by
state.
ABATEMENT
- A reduction or decrease. Usually applies to a decrease of assessed
valuation of ad valorem taxes after the assessment and levy.
ABSORPTION
- The filling of space, such as the rental of units or sale of a tract
of land. The time or rate must be estimated and considered as part of
the owner's (often a builders) cost.
ABSTRACT - A Summary; an abridgement.
ABSTRACT OF JUDGMENT
- A summary of the essential provisions of a court judgment, which when
recorded in the county recorder's office, creates a lien upon the
property of the defendant in that county, bout presently owned or after
acquired.
ABSTRACT OF TITLE
- A compilation of the recorded documents relating to a parcel of land,
from which an attorney may give an opinion as to the condition of
title. Still used in some states, but being replaced by title
insurance.
ABUTMENTS
- The vertical members (walls or heavy columns) which bear the load or
pressure of the cross member, such as a arch, pier, or similar
structure.
ABUTTING OWNER - One whose land is contiguous to (abuts) a public right of way.
ACCELERATION CLAUSE
- Condition in a mortgage that may require the balance of the loan to
become due immediately, if regular mortgage payments are not made or
for breach of other contract conditions.
ACCELERATED DEPRECIATION - A general term including any method of depreciation greater than straight line depreciation.
ACCEPTANCE - Voluntarily agreeing to the price and terms of an offer. Offer and acceptance create a contract.
ACCESSION - The right of an owner to an increase in his property by natural means.
ACCESS RIGHT - A right to ingress and egress to and from one's property. May be expressed or implied.
ACCRETION
- The gradual addition to the shore line or bank of a waterway. The
land generally becomes the property of the owner of the shore or bank,
except where statutes specify otherwise.
ACKNOWLEDGEMENT
- A written declaration by a person executing an instrument, given
before an officer authorized to give an oath (usually a notary public),
stating that the execution is of his own volition.
ACQUISITION COSTS - Costs of acquiring property other than purchase price: escrow fees, title insurance, lenders fees, etc.
ACRE - A measurement equal to 160 square rods or 43,560 square feet.
ACT OF GOD - Damage caused by nature: floods, winds, etc.
ADDENDUM - Something added. (A list added to a document, letter or contract.)
ADJOINING - touching or contiguous to.
ADJUDICATION - A judgment or decision by a court.
ADJUSTED GROSS INCOME - Gross income of a building if full rented, less an allowance for vacancies. A person's income after taxes.
AD VALOREM - "According to value". In real estate it refers to the property tax rate per thousand.
AGREEMENT OF SALE - Meaning varies by state. It is synonymous with either a purchase agreement or a land contract.
AGENCY
- Any relationship win which one party (agent) acts for or represents
another (principle) under the authority of the latter. Agency involving
real property should be in writing, such as listing, trusts, power of
attorney, etc.
Agent - Acts of behalf of another, representing that person's interests and serving as an intermediary.
ALIENATION - Transfer of property from one owner to another.
Alienation Clause - A clause within a
loan instrument calling for a debt in its entirety upon the transfer of
ownership of the secured property. Also called a "due on sale" clause.
AMENDMENT
- A change, either to correct an error or to alter a part of an
agreement without changing the principal idea or essence.
AMENITIES
- Those settings or improvements to property which increase the
desirability or enjoyment other than necessities. For example a
swimming pool.
AMORTIZATION - Payment of a debt over equal installments of principal and interest, rather than interest only payments.
Annual Percentage Rate (APR) - The
total cost or finance charge for a loan per year, expressed as a
percentage of the loan amount. It is the sum of the interest and any
other fees, such as discount points, compared to the amount of the
loan. The lender is required by the Truth-In-Lending Act to disclose
the APR using a procedure prescribed by the federal government.
ANTENUPTIAL AGREEMENT
- An agreement between a man and a woman in contemplation of marriage,
setting forth the property rights of each during the marriage, and in
the even of death or divorce.
APPRAISAL
- An opinion of value based upon a factual analysis done by a
disinterested person of suitable qualifications. The three methods are:
Cost, Market Value, or Income.
ARMS LENGTH TRANSACTION
- A transaction in which the parties have no special interest or
relationship. Example: A property is owned by a Mother and is to be
sold to her son. The mortgage company denies the loan because it is a
non-arms-length transaction.
ARTESIAN WELL
- A well well bored into a subterranean body of water, which, being
under pressure, rises naturally to the surface without artificial
pumping.
"AS IS" CONDITION
- Premises accepted by a buyer or tenant in the condition
existing at the time of the sale or lease, including all physical
defects.
ASKING PRICE
- The price a seller is offering property for sale. The eventual
selling price may be lower after negotiation with a buyer. In a tight
market competition among buyers may cause the final price to
exceed asking price.
ASSEMBLAGE - The acquisition of contiguous properties into one ownership for a specific use.
ASSESSED VALUE - Value placed upon property for property tax purposes by the tax assessor.
ATTACHMENT - An act of seizing persons or property by judicial order.
ATTESTATION CLAUSE - The clause in a document (deed or mortgage) in which the witnesses certify that the documents has been properly executed