Real Estate Glossary of Terms |
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| AAA Tenant | Business tenant with exceptionally high credit rating; one whose well-known name will lend prestige to a shopping center. |
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| Abandonment | Voluntary relinquishment of possession or rights of ownership of real estate. |
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| Abatement | Reduction or decrease. Usually applies to an abatement of rents or an abatement of taxes. |
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| Absentee Owner | A property owner who does not occupy or directly manage the property. |
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| Absorption | Filling of space, such as the rental of office space or apartment units. |
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| Abstract of Judgment | The summary of a court judgment that creates a lien against a property when filed with the county recorder |
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| Abstract of Title | historical summary of all of the recorded instruments and proceedings that affect title to a property. |
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| Abutting Owner | One whose land is contiguous to a public right of way. |
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| Accelerated Cost Recovery System | A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property. |
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| Acceleration Clause | Provision in a loan giving the lender the right to declare the entire amount immediately due and payable upon violation of another specific loan provision, commonly referred to as the Due on Sale Clause. |
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| Acceptance | Act of agreeing to be bound by the price and terms of an offer. |
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| Access Right | Right of an owner to have ingress and egress to and from his property. |
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| Accrued Interest | Interest that has been earned but not paid. |
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| Accumulated Depreciation | In accounting, the amount of depreciation expense that has been claimed to date. |
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| Acknowledgment | Written declaration by a party that a legal document was executed voluntarily act. Made before a duly authorized person. |
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| Acquisition Cost | The price and all fees required to obtain a property. |
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| Acre | Measure of land equaling 4,840 square yards or 43,560 square feet. |
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| Act of God | Acts of nature that are beyond human control, such as tidal waves, earthquakes, or floods. |
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| Additional Principal Payment | Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan. |
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| Adjoining | Contiguous, attached, sharing a common border. |
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| Adjustable Rate Mortgage (ARM) | A mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan, based on a monitored index. |
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| 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. |
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| Adjusted Tax Basis | The original cost or other basis of the property, reduced by depreciation deductions and increased by capital expenditures. |
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| Adjustment Period | The amount of time between interest rate adjustments in an adjustable-rate mortgage. |
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| Administrator | Person appointed by a court to administer the estate of a deceased person who left no will. |
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| Adverse Possession | Acquiring title to real estate where an occupant has been in actual, open, notorious, exclusive and continuous occupancy of property for the period required by state law. |
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| Affidavit | A written statement, sworn to or affirmed before an officer who is authorized to administer an oath or affirmation. |
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| Agency | Legal relationship between a principal and his agent arising from a contract in which the principal engages the agent to perform certain acts on behalf of the principal. |
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| Agreement for Deed | see Contract for Deed. |
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| Alienation | Act of conveying or transferring title and possession of property from one person to another. |
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| All Inclusive Trust Deed | This applies to states that use trust deeds instead of mortgages. It is the same as a wraparound mortgage. |
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| Amortized Loan | Loan that is repaid in a series of installments each of which contains a portion that is applied to reduce the principal amount of the loan and a portion that is applied to pay interest with each successive payment allocates a larger portion to principal reduction and a smaller portion to interest payment until the outstanding balance is ultimately reduced to zero. |
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| Annual Cap | Maximum amount the interest rate on an adjustable rate mortgage can be raised or lowered in the course of one twelve month period. |
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| Annual Percentage Rate (APR) | Effective rate of interest rate for a loan per year including fees and points, disclosure of which is required by the Truth-in-Lending Law. |
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| Anticipatory Breach | A communication that informs a party that the obligations of the original contract will not be fulfilled. |
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| Appraised Value | Opinion or estimate of a value of a property. Values are determined by one of three methods: comparable sales (residential), replacement cost (insurance), or income approach (commercial). |
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| Appreciation | An increase in the value of a property. |
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| Arrears | Mortgage payment includes interest for prior month, or overdue payments in default. |
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| As-Is | Without guarantees as to condition. |
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| Assessed Value | Value placed on real property for tax purposes. |
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| Assignee | The person to whom an agreement or contract is sold or transferred. |
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| Assignment | The method by which a right or contract is transferred. |
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| Assignor | The person who assigns or transfers an agreement or contract to another. |
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| Assumable Mortgage | An existing mortgage which allows the next purchaser of a property to be liable for the payments and other obligations of the note and mortgage. Depending on the type of loan, the assumption of the obligation by this next purchaser may or may not require a qualification and approval process and may or may not release the original mortgagor (borrower) from further liability. A written release from the mortgagee (lender) is required to relieve the original mortgagor of responsibility. |
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| Attornment | Letter from a property owner to a tenant stating that the property has been sold and directing that rent be paid to the new owner. |
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