Glossary of Real Estate Definition & Terms

  1. 1031 Exchange

    Also known as a 1031 Tax Deferred Exchange, a 1031 Exchange...

  2. Abandonment

    The voluntary and permanent withdrawal of use or enjoyment,...

  3. Abstract of title

    A simplified version of the history of a title to a specific...

  4. Abutting

    Land that joins, reaches, or touches adjacent land. Adjacent...

  5. Accelerated depreciation

    A method for calculating the depreciation of...

  6. Acceleration clause

    A clause in a written mortgage, note, bond, or conditional...

  7. Accession

    The acquisition of title to improvements or additions to...

  8. Accretion

    An expansion or addition to land caused by the natural...

  9. Accrued depreciation

    The difference between the cost of replacement new (as of...

  10. Acknowledgment

    A declaration made to a notary public or other public...

  11. Actual eviction

    A lessor-initiated legal procedure in which a delinquent...

  12. Actual notice

    Informative or factual expression; that which is known; true...

  13. Ad Valorem tax

    A tax levied on the basis of value; commonly used to refer...

  14. Administrator

    The county court-appointed person charged with settling the...

  15. Adverse Possession

    Actual, evident, hostile, infamous, exclusive, and...

  16. Affidavit

    A written declaration signed and sworn to in the presence of...

  17. Agent

    One who represents or has the authority to act on behalf of...

  18. Agreement of sale

    A written agreement in which the buyer agrees to purchase...

  19. Air lot

    A specific airspace over a piece of land. Like surface...

  20. Air rights

    The right to use the open area above one's property. It can...

  21. Alienation clause

    Clause in a mortgage instrument that does not allow the...

  22. Alienation

    The act of transferring property from one person to another....

  23. Alluvion

    The real soil growth caused by accretion.

  24. Amendments

    Amendments are changes to previously approved and ratified...

  25. Amenities

    Neighborhood amenities and services that increase the value...

  26. Americans with Disabilities Act (ADA)

    A federal statute that went into force in 1992 to prohibit...

  27. Amortization

    The repayment of a financial obligation through installment...

  28. Amortized loan

    A loan in which the principal and interest are paid monthly,...

  29. Anticipation

    The expectation of specific future occurrences causing...

  30. Antitrust laws

    Laws that are intended to protect the free entrepreneurship...

  31. Appraisal

    An estimate of the amount, quality, or worth of something....

  32. Appraised value

    An estimated value of a specific property current worth in...

  33. Appreciation

    A rise in the worth or value of a property as a result of...

  34. Appurtenant

    Belonging to; incident to; annexed to.

  35. Arbitrage

    The simultaneous purchase and sale of a security in order to...

  36. Arbitration

    A method of resolving a dispute between two parties through...

  37. Assessment

    Imposition of a tax, fee, or levy, generally at...

  38. Assignment

    The transfer of rights or interests in a bond, mortgage,...

  39. Assumed name statute

    Assumed name statute is the law, which is in place in the...

  40. Assumption of mortgage

    The conveyance of property title to a grantee in exchange...

  41. Attorney-in-fact

    The holder of a power of attorney.

  42. Attorney’s opinion of title

    An instrument drafted and signed by the attorney who...

  43. Avulsion

    A pulling away of land caused by natural forces.

  44. Balloon payment

    The final payment on a mortgage loan that is much more than...

  45. Bargain and sale deed

    A deed that contains no guarantees against liens or other...

  46. Base fee

    An inheritable estate with a determinable fee structure.

  47. Base line

    One of a group of imaginary lines flowing east to west and...

  48. Benchmark

    Permanent reference mark or point used by surveyors to...

  49. Beneficiary

    The individual for whom a trust runs or in whose name...

  50. Bequest

    A clause in a will that specifies the disposition of...

  51. Bilateral contract

    A contract in which one party agrees to execute an act in...

  52. Bill of sale

    A document, also known as a written instrument, used to...

  53. Binder

    A contract that may accompany an earnest money deposit for...

  54. Blanket mortgage

    A mortgage on many parcels of real estate that allows for...

  55. Blockbusting

    The unlawful practice of persuading homeowners to sell their...

  56. Blue-sky laws

    State and federal legislation that control the registration...

  57. Boycotting

    Two or more companies plot against other companies in order...

  58. Branch office

    Apart from the major or main office, a secondary location...

  59. Breach of contract

    The failure of one of the parties to a contract to fulfill...

  60. Bridge loan

    A loan that bridges the sale of property.

  61. Broker/Salesperson

    An individual who has passed the broker's test but who is...

  62. Broker

    A person who buys and sells on behalf of another for a fee.

  63. Brokerage

    The commission-based business of purchasing and selling on...

  64. Brownfields

    Abandoned, defunct, and abandoned hazardous industrial sites...

  65. Budget loan

    A loan in which the borrower's monthly payments cover not...

  66. Buffer zone

    A strip of land that divides two distinct land uses.

  67. Building code

    A law establishing minimum building construction...

  68. Building line

    A line established at a specified distance from the front...

  69. Building restrictions

    The constraints placed on the amount or kind of property...

  70. Bundle of legal rights

    The argument that land ownership entails ownership of all...

  71. Business plan

    A three to five-year plan for an organization or real estate...

  72. Buydown

    A payment provided, often by the seller, to assist the buyer...

  73. Canvassing

    The activity of making telephone calls or door-to-door...

  74. Capacity of parties

    Capacity to engage into a lawful contract under the law. The...

  75. Capital gain

    The revenue generated from the sale of an asset. Profit...

  76. Capital investment

    Initial investment and ongoing costs incurred to create and...

  77. Capitalization rate

    The rate of return a property will generate for the...

  78. Capitalization

    The procedure of converting a series of projected future...

  79. Cash flow

    The net revenue available for expenditure from an investment...

  80. Casualty insurance

    The sort of insurance coverage that covers a property owner...

  81. Caveat emptor

    A term that translates to "buyer beware" in Latin.

  82. Certificate of sale

    The paperwork often provided to a buyer during a tax...

  83. Certificate of title

    The opinion about the status of the title to a piece of real...

  84. Chain of title

    The chain of conveyances from an agreed beginning point...

  85. Charrettes

    Community planning instrument that encourages and enhances...

  86. Chattels

    Personal property.

  87. Check

    Land parcels placed every 24 miles from a primary meridian...

  88. City planning commission

    A local government agency tasked for directing and...

  89. Claim of right

    Considered in assessing claims of adverse possession....

  90. Cloud on title

    A claim or encumbrance that may impact the ownership of real...

  91. CLUE

    A repository of recorded claim activity and past property...

  92. Codicil

    A testamentary disposition that modifies, clarifies,...

  93. Coinsurance clause

    A condition in property insurance contracts that mandates...

  94. Collateral

    A valuable item provided or promised to a lender as...

  95. Color of title

    Used as a consideration in an adverse possession claim when...

  96. Commercial property

    A category of real estate that comprises properties that...

  97. Commingled property

    Mixed or commingled property of a married couple that makes...

  98. Commingling

    The unlawful behavior of a real estate broker who mixes...

  99. Commission

    The fee paid to a broker for services done, such as the sale...

  100. Common elements

    Parts of a property that are essential or convenient to the...

  101. Common law

    Customary law is a corpus of law based on use and judicial...

  102. Community property

    A mode of property ownership that is predicated on the idea...

  103. Comparables

    The properties indicated in an appraisal report that are...

  104. Competent parties

    People, typically of legal age and sound mind, that are...

  105. Composite depreciation

    A technique for calculating the depreciation of a...

  106. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

    In 1980, the federal government enacted laws forcing owners...

  107. Condemnation

    A legal or administrative action or procedure involving the...

  108. Condominium

    The ownership of an apartment or unit in its entirety,...

  109. Conforming mortgages

    Mortgage loans that have been packaged into securities and...

  110. Consideration

    Something of value that encourages someone to get into a...

  111. Constructive eviction

    1. Actions taken by the landlord that significantly disrupt...

  112. Constructive notice

    Documents that are recorded may serve as notice to the whole...

  113. Contingencies

    A clause or condition in a contract for the acquisition of...

  114. Contract for deed

    A contract for the sale of real estate that stipulates that...

  115. Contract for exchange of real estate

    A contract for the sale of real estate in which all or part...

  116. Contract

    A contract is an agreement that is made between two or more...

  117. Contributory value

    An approach to property valuation that determines the worth...

  118. Conventional loan

    A type of loan that is not guaranteed or insured by any...

  119. Conversion

    Conversion is not just about changing a building's use, but...

  120. Conveyance

    A written document that serves as proof that some interest...

  121. Cooperative

    A residential multi-unit structure in which the title is...

  122. Corporation

    An entity or organization that is produced by the operation...

  123. Correction lines

    The horizontal provisions that were included into the...

  124. Cost approach

    The procedure of assessing the worth of a piece of real...

  125. Counseling

    The practice of giving individuals professional advise on a...

  126. Counteroffer

    An additional offer that is made in response to another...

  127. Covenants, Conditions, and Restrictions (CC&Rs)

    Papers pertaining to condominiums that serve as operating...

  128. Credit scoring

    A three-digit figure that provides an evaluation of a...

  129. Cul-de-sac

    A route that leads nowhere but has enough space at its...

  130. Curtesy

    A life estate is an interest in real estate, often a...

  131. Cycle

    A series of events that occur repeatedly and follow one...

  132. Datum

    A horizontal plane that serves as a reference point for...

  133. DBA

    Doing business as. A trade name, also known as a trading...

  134. Debenture

    A note or bond that is issued as proof of debt but does not...

  135. Debt

    A debt is an obligation to pay back or refund anything that...

  136. Declining balance method

    A technique of estimating an asset's depreciation that may...

  137. Deed in lieu of foreclosure

    A way for the person who has the mortgage to keep their home...

  138. Deed of reconveyance

    The legal document that is used to retransfer ownership to a...

  139. Deed of trust

    An document that is used to form a lien and through which...

  140. Deed restrictions

    The provisions in a deed that place restrictions on who may...

  141. Deed

    A written document that, once signed and delivered,...

  142. Default

    The act of failing to execute a responsibility, whether that...

  143. Defeasance clause

    A provision that may be found in mortgages and leases and...

  144. Defeasible fee estate

    A qualifying estate in which the grantee may lose their...

  145. Deficiency judgment

    A personal judgment that is issued on the mortgagor in the...

  146. Delinquent taxes

    Past-due taxes that have not been paid in full.

  147. Delivery in escrow

    Not allowing the delivery of a deed to a third party until...

  148. Delivery

    The formal process through which ownership of something is...

  149. Demand

    The degree to which individuals are eager to purchase things...

  150. Density zoning

    The zoning rules that limit the average maximum number of...

  151. Depreciation

    A decrease in the value of a property that may be attributed...

  152. Descent

    The right of an heir to inherit the property of a deceased...

  153. Designed agency

    An agency connection in which a customer chooses a broker to...

  154. Determinable fee estate

    An estate in fee simple in which ownership of the property...

  155. Devise

    A transfer of real property as part of someone's will or...

  156. Diminishing returns

    The idea that states that when a particular piece of land...

  157. Discount points

    A loan fee that is imposed on by the lender to make the...

  158. Discount rate

    The annual percentage rate of interest (APY) that is charged...

  159. Dispossess

    To remove someone from land via the use of legal means.

  160. Dominant tenement

    A piece of real estate that, as part of its ownership, comes...

  161. Dower

    The legal right or interest that may be recognized in...

  162. Duress

    The use of illegal restraint in a manner that compels a...

  163. DVA loan

    A mortgage loan on an approved property that is given to a...

  164. Earnest money deposit

    A sum of money that is put down by a buyer in accordance...

  165. Easement by necessity

    An easement is a legal concession that is granted in the...

  166. Easement by prescription

    An easement is considered to have been obtained when the...

  167. Easement in gross

    A personal easement is one that does not benefit any...

  168. Easement

    A right to use the property of another for a certain...

  169. Economic life

    The length of time during which a property that has been...

  170. Economic obsolescence

    An impairment of attractiveness or usable life resulting...

  171. Emblements

    Cultivation of crops that are produced on a yearly basis by...

  172. Eminent domain

    The legal right of a government or municipal quasi-public...

  173. Employee status

    The relationship between an individual and an employer in...

  174. Employment contract

    A piece of paper that serves as proof of an official...

  175. Encroachment

    A device or building, such as a wall or fence, that...

  176. Encumbrance

    Any encumbrance that may be used to reduce the value of the...

  177. Endorsement

    The act of writing one's name on a negotiable instrument or...

  178. Equal Credit Opportunity Act (ECOA)

    Legislation on the federal level that requires lenders to...

  179. Equalization

    The process of increasing or decreasing the assessed values...

  180. Equitable title

    The equitable right to attain total ownership of property...

  181. Equity

    The interest or value that an owner has in a property that...

  182. Erosion

    The slow wearing away of land by water, wind, and general...

  183. Errors and omissions insurance

    Coverage for claims made against real estate agents in the...

  184. Escheat

    In the case that the owner of a piece of property passes...

  185. Escrow

    The finalization of a transaction by use of a third party...

  186. Estate for years

    A right to use a piece of property for a predetermined and...

  187. Estate in land

    The quality, number, kind, and scope of an individual's...

  188. Estate in severalty

    A piece of land that is owned by a single individual.

  189. Estoppel certificate

    A certificate is a legal document that is signed by a...

  190. Estovers

    Those things that are mandated by law to be present, such as...

  191. Et al

    A term that translates to "and others" in Latin.

  192. Et ux / Et uxor

    A term that translates to "and wife" in Latin.

  193. Et vir

    A term that translates to "and husband" in Latin.

  194. Ethical

    Behavior that is in keeping with the expectations of the...

  195. Eviction

    A legal procedure that is used to remove someone from their...

  196. Evidence of title

    A certificate of title, a title insurance policy, an...

  197. Exchange

    A transaction in which all or part of the consideration for...

  198. Exclusive-agency listing

    A listing contract in which the owner of the property...

  199. Exclusive-right-to-sell listing

    A listing contract in which the owner appoints a real estate...

  200. Executed contract

    A contract in which all of the parties have complied with...

  201. Execution

    The execution of an instrument together with its delivery....

  202. Executor

    The individual named in a will to take care of the dead...

  203. Executory contract

    A contractual arrangement in which one or more of the...

  204. Expenses

    The expenses that are incurred in the short term and are...

  205. Expressed contract

    A verbal or written agreement between two or more parties in...

  206. Fair Housing Act of 1968

    The name for Title VIII of the Civil Rights Act of 1968 as...

  207. Federal Home Loan Mortgage Corporation (FHLMC)

    A business with a federal charter that was established to...

  208. Federal Housing Administration (FHA)

    The Federal Housing Administration (FHA) is a federal...

  209. Federal income tax

    A tax that is paid on a yearly basis and is calculated based...

  210. Federal National Mortgage Association (FNMA)

    This organization, which is established by the federal...

  211. Fee-simple estate

    This organization, which is established by the federal...

  212. FHA appraisal

    A property that will serve as collateral for a loan is...

  213. FHA loan

    A loan that is guaranteed by the FHA and is provided by a...

  214. Fiduciary relationship

    A relationship characterized by mutual trust and confidence,...

  215. First mortgage

    A mortgage that, in comparison to other charges or...

  216. Fiscal policy

    The approach that the government takes toward the collection...

  217. Fixture

    An item that was originally considered to be personal...

  218. Forcible entry and detainer

    A speedy legal action that is used to restore to ownership...

  219. Foreclosure

    In the event that the mortgage note or other stipulations...

  220. Foreign acknowledgment

    An acknowledgement that was performed in a state that is not...

  221. Franchise

    A confidential commercial arrangement to do business under a...

  222. Fraud

    A deliberate or careless misrepresentation of a major fact...

  223. Freehold estate

    In contrast to a leasehold estate, an estate in land in...

  224. Functional obsolescence

    The reduction in functional capacity or efficiency, as well...

  225. Funding fee

    A cost that must be paid to the Department of Veterans...

  226. Future interest

    A person's current right to an interest in real property,...

  227. Gap

    A flaw in the chain of possession of a specific piece of...

  228. General contractor

    A construction expert who, in order to develop a real estate...

  229. General lien

    A claim against all of the real and personal possessions...

  230. General warranty deed

    A document that indicates that the title that is being...

  231. Government lots

    In the rectangular survey system used by the government as...

  232. Government National Mortgage Association (GNMA)

    Ginnie Mae is the name of a government agency and a division...

  233. Graduated lease

    A lease that includes provisions for rent hikes on certain...

  234. Graduated payment mortgage

    A mortgage loan in which the monthly payments are initially...

  235. Grant deed

    A form of the deed that provides the following three...

  236. Grant

    The process of passing on ownership of a piece of real...

  237. Grantee

    A person or entity to whom title to real estate is...

  238. Grantor

    A person who transfers ownership of real property by means...

  239. Gross lease

    A lease or property agreement in which the landlord is...

  240. Gross national product (GNP)

    The sum of all the money made through the sale of products...

  241. Gross rent multiplier (GRM)

    A number that is applied to the gross monthly rental revenue...

  242. Ground lease

    A lease that only applies to the land, on which the tenant...

  243. Guaranteed sale plan

    An agreement between the broker and the seller in which the...

  244. Guardian

    One who watches over or takes care of the legal rights and...

  245. Habendum clause

    The section in the deed that begins "to have and to hold,"...

  246. Heir

    A person who, according to the laws of descent in a state,...

  247. Hereditaments

    A person's whole estate, including their person, real and...

  248. Highest and best use

    The use of property that has the potential to provide the...

  249. Holdover tenancy

    A tenancy in which a lessee maintains possession of a leased...

  250. Holographic will

    A handwritten will is one that has been written, dated, and...

  251. Homeowner’s insurance policy

    A conventional insurance policy that protects the owner of...

  252. Homeowner’s warranty program

    A kind of property insurance that protects the buyer against...

  253. Homestead provision

    The land and any improvements made on it that have been...

  254. HUD

    FHA and GNMA are both subject to regulation by the...

  255. Hypothecation

    The use of property as security for the repayment of a loan,...

  256. Implied contract

    A contract in which the parties' agreement is established by...

  257. Implied grant

    A process that may be used to create an easement. It's...

  258. Improvement

    An improvement on land is any construction, often of private...

  259. Inchoate right

    Unfinished or incomplete right, such as the dower interest...

  260. Income approach

    The method of determining the value of a property that...

  261. Incorporeal right

    A real estate right that does not confer possession.

  262. Increasing returns

    The idea that states that raising one's expenditures for...

  263. Independent contractor

    One who is hired to carry out a certain task, but who is...

  264. Index lease

    A lease that permits the rent to be raised or lowered on a...

  265. Industrial property

    Any land and buildings that are now being utilized, or might...

  266. Installment sale

    A way to declare gain on the sale of real estate when the...

  267. Insurable title

    A title to land that has been guaranteed by a title...

  268. Insurance

    The provision of financial protection against financial loss...

  269. Interest

    A fee that is assessed by a lending institution for the...

  270. Interim financing

    A construction loan is the common name for the kind of...

  271. Intestate

    The situation that arises when a person who owns property...

  272. Invalid

    Having no power or influence whatsoever.

  273. Invalidate

    To make null and void.

  274. Investment

    The expenditure of funds with the intention of generating...

  275. Joint tenancy

    The ownership of real property by two or more individuals...

  276. Joint venture

    The coming together of two or more individuals for the...

  277. Judgment clause

    A provision that may be included in notes, leases, and...

  278. Judgment

    The final and legally binding determination made by a judge...

  279. Laches

    A principle of equity that may be used by the courts to...

  280. Land

    The surface of the earth stretching both downward to the...

  281. Lease

    A contract between a landlord (the lessor) and a tenant (the...

  282. Leasehold estate

    It is common practice to regard a tenant's right to occupy...

  283. Legacy

    A provision in a will for the distribution of money or...

  284. Legal description

    A description of a particular piece of real land that is...

  285. Legality of object

    A component that must be included in a contract in order for...

  286. Lessee

    The person or entity who rents a piece of property.

  287. Lessor

    A person who rents out their property to tenants.

  288. Leverage

    The majority of an investment is financed using money...

  289. Levy

    To evaluate, grab, or gather anything. When a tax is levied,...

  290. License

    The privilege or right that is provided by a state to a...

  291. Lien

    The legal right of some creditors to have their debt paid...

  292. Life estate

    A right or interest in real or personal property that is...

  293. Life tenant

    A person who owns a life estate for their whole lifetime.

  294. Liquidated damages

    Earnest money that is forfeited as a result of a breach of...

  295. Liquidity

    The capability of selling an asset and turning it into cash...

  296. Lis pendens

    A notification to the general public that a lawsuit has been...

  297. Listing agreement

    A listing agreement is a contract that is made between a...

  298. Listing broker

    The broker in a multiple-listing scenario who is responsible...

  299. Littoral rights

    The right of a landowner to utilize water from huge bodies...

  300. Lot and block description

    A description of real property that identifies a parcel of...

  301. Management agreement

    A legal document that outlines the boundaries of a property...

  302. Marginal lease

    A rental agreement that hardly comes close to covering the...

  303. Marginal real estate

    Land that just just pays the expenses of running the...

  304. Market/data approach

    A technique of valuing or evaluating real property that is...

  305. Market price

    The amount of money actually received for the sale of a...

  306. Market value

    The most lucrative price that a property is likely to get in...

  307. Marketable title

    A solid or clear title that may be sold that is fairly free...

  308. Mechanic’s lien

    A statutory lien that is established in favor of...

  309. Metes-and-Bounds description

    A legal description of a piece of land that starts at a...

  310. Mill

    A tax rate that is used by municipalities in the process of...

  311. Millage rate

    A property tax rate that is calculated by dividing the...

  312. Misrepresentation

    To convey an inaccurate impression of; to portray in a...

  313. Monetary policy

    The process through which the government, working via...

  314. Money judgment

    A decision handed down by the court that orders monetary...

  315. Money market

    Those businesses, such banks, savings and loan...

  316. Month-to-Month tenancy

    A tenant has a periodic tenancy if they rent for a certain...

  317. Monument

    Fixed natural or manufactured objects, employed in a...

  318. Mortgage lien

    A charge or lien that is placed on the property of the...

  319. Mortgage

    A transfer or pledge of real property that is subject to...

  320. Mortgagor

    One who promises property as security for the repayment of a...

  321. Multiple listing

    An exclusive listing, which is often accompanied by an...

  322. Municipal ordinances

    A municipality's governing body is responsible for enacting...

  323. Mutual rescission

    The process through which two or more parties to a contract...

  324. Negligence

    Negligence and lack of attention leading to a breach of...

  325. Net lease

    A rental agreement in which the renter is responsible for...

  326. Net operating income

    The property's net income after deducting vacancy,...

  327. Nonconforming use

    A use of property that is allowed to continue even after a...

  328. Nonhomogeneity

    A lack of regularity; a difference from one another. Real...

  329. Notarize

    To validate or confirm the authenticity of a document, often...

  330. Notary public

    A governmental official who is empowered to certify and...

  331. Note

    A document of credit that is issued in order to certify to a...

  332. Novation

    A new debtor is going to take the place of an older one, and...

  333. Offer and notification of acceptance

    The two essential elements that must exist in order for a...

  334. Officer’s deed

    A document signed by sheriffs, trustees, guardians, and...

  335. One hundred percent commission plan

    A salesperson compensation scheme in which the salesperson...

  336. Open-end mortgage

    A mortgage loan that may be increased in value by...

  337. Open listing

    A listing contract in which the broker's commission is...

  338. Option

    The privilege of purchasing real estate within a defined...

  339. Optionee

    The recipient of an option and the holder of that option.

  340. Optionor

    The party that allows another to choose from available...

  341. Ownership

    Ownership is the exclusive and exclusive right to keep, own,...

  342. Package mortgage

    A kind of financing in which the acquisition of land also...

  343. Parcel

    In real estate terms, a parcel refers to a specific piece of...

  344. Parol evidence rule

    A rule of law that stipulates that the terms of a contract...

  345. Partial eviction

    A situation in which the tenant is prevented from using all...

  346. Participation financing

    A mortgage in which the lender obtains a yield on the loan...

  347. Partition

    Court processes are used to divide cotenants' interests in...

  348. Partnership

    A group of two or more people who run a continuous company...

  349. Party wall easement

    A wall that is constructed on or near the boundary line...

  350. Payee

    The person who is on the receiving end of the payment.

  351. Payor

    The party who is responsible for making payments to another.

  352. Percentage lease

    A kind of lease that is often used for retail property and...

  353. Performance bond

    A legally enforceable agreement, which is sometimes...

  354. Periodic estate

    An interest in leased property that is maintained from one...

  355. Permanent reference marker

    A point of reference marker, often known as a PRM, is a...

  356. Personal assistant

    A person who is employed by a broker or salesperson who is...

  357. Personal property

    Items, sometimes known as chattels, that are not considered...

  358. Physical deterioration

    A decrease in usefulness brought on by a degradation of...

  359. Plat book

    A book that documents the many land divisions that have been...

  360. Plat

    A map of a municipality, sector, or subdivision that shows...

  361. Point of beginning

    In a description using metes and bounds, the place at which...

  362. Point

    One point is equivalent to one percent of the total amount...

  363. Police power

    The authority of the government to enact laws, regulations,...

  364. Power of attorney

    A legal document that gives one person (the...

  365. Premises

    The particular portion of a deed that specifies the names of...

  366. Prepayment clause

    In a mortgage, the declaration that outlines the parameters...

  367. Prepayment penalty

    A fee that a lending institution levies on a borrower in the...

  368. Principal meridian

    One of the thirty-five survey lines running north and south...

  369. Principal

    An amount of money that has been leased out or used as a...

  370. Principle of conformity

    The appraisal theory that states that buildings that are...

  371. Priority

    The sequence of events or positions in time. The...

  372. Probate

    The formal legal process that is followed to verify or...

  373. Procuring cause

    The action that is necessary to achieve the aimed-for...

  374. Property disclosure acts

    Disclosure reports that are required to be provided by...

  375. Property management

    The use of one party's property in return for monetary...

  376. Property tax

    Taxes are financial obligations imposed by the government on...

  377. Proration

    The process of proportionately dividing or distributing the...

  378. Prospectus

    A piece of printed advertising, often in the form of a...

  379. Public utility easement

    A right that is given by a property owner to a public...

  380. Pur autre vie

    Latin phrase that literally translates to "for the life of...

  381. Purchase-money mortgage

    A note that is secured by a mortgage or deed of trust that...

  382. Qualifying

    The process of discovering a prospect's motivation in order...

  383. Quitclaim deed

    A conveyance in which the grantor conveys whatever interest...

  384. Range

    A stretch of land consisting of six miles that is measured...

  385. Ready, willing, and able buyer

    One who is willing to purchase real estate on the conditions...

  386. Real estate broker

    Any individual, partnership, association, or corporation...

  387. Real Estate Investment Trust (REIT)

    Ownership of real estate held by a collection of individual...

  388. Real Estate Settlement Procedures Act (RESPA)

    When the acquisition of a one- to four-family residential...

  389. Real estate

    Land is defined as the section of the surface of the world...

  390. Real property

    Real property consists of the land itself, as well as...

  391. Reality of consent

    An element of all legitimate contracts. When a contract has...

  392. REALTOR®

    A word that is protected by a registered trademark and is...

  393. Recapture

    All depreciation or cost recovery taken on depreciable...

  394. Receiver

    The person who has been assigned by the court to take care...

  395. Recission

    The ending of a contractual arrangement with the parties'...

  396. Reconciliation

    The concluding phase of the appraisal procedure, in which...

  397. Recording

    The act of entering or registering papers affecting or...

  398. Recovery fund

    A fund that has been formed in some jurisdictions using...

  399. Rectangular survey system

    A method of surveying and documenting land that was first...

  400. Redemption period

    A period of time that has been established by state law...

  401. Redlining

    The unethical and unlawful practice of rejecting loans to...

  402. Regulation Z

    A policy enacted by the Board of Governors of the Federal...

  403. Release

    The act of giving up a claim or interest in a particular...

  404. Reliction

    Increases in dry land that are caused by a moderate...

  405. Relocation service

    A company that assists individuals in selling a home in one...

  406. Remainder

    When an owner conveys a life estate to one party and the...

  407. Renegotiable rate mortgage

    A mortgage loan that is issued for a length of three to five...

  408. Rent schedule

    A statement of the projected rental rates for a building,...

  409. Rent

    A rent is a regular payment paid by a renter of a property...

  410. Replacement cost

    The amount of money that would need to be spent to create,...

  411. Reproduction cost

    The cost of constructing an identical copy or replica at...

  412. Reservation in a deed

    The process of establishing a new right in favor of the...

  413. Restriction

    A restriction placed on the use of real property, which is...

  414. Reverse annuity mortgage

    A kind of mortgage loan that enables the homeowner to...

  415. Reversion

    The portion of an estate that remains in the ownership of...

  416. Reversionary right

    The right of a property owner to retake ownership of leased...

  417. Rezoning

    The steps that must be taken in order to alter the current...

  418. Right of first refusal

    The privilege enjoyed by a person of being given the first...

  419. Riparian rights

    The rights that an owner has in property that is bordered by...

  420. Rural development

    Formerly known as the Farm Service Agency and the Farmer's...

  421. Sale and leaseback

    A transaction in which an owner sells their renovated...

  422. Sales contract

    A legal document that specifies all of the terms and...

  423. Salesperson

    A person who engages in real estate activities while working...

  424. Satisfaction

    A piece of paper that states that a debt has been paid in...

  425. Secondary mortgage market

    A market for the acquisition and selling of existing...

  426. Section

    A section of a township that was surveyed using the...

  427. Self-proving will

    A will in which the witnesses deliver their evidence at the...

  428. Separate property

    The land or other real estate that both the husband and wife...

  429. Servient tenement

    The property on which an easement has been granted in favor...

  430. Setback

    The minimum amount of distance that must exist between a lot...

  431. Severalty

    One person's ownership of a whole piece of real estate;...

  432. Short sale

    A sale of secured property that results in less money than...

  433. Situs

    The subjective preference of individuals for one area of...

  434. Sovereignty of the soil

    The commencement of the record of ownership of land, which...

  435. Special assessment

    A tax or charge that is traditionally applied on just those...

  436. Special warranty deed

    A deed in which the grantor warrants or guarantees the title...

  437. Specific lien

    A lien that is solely applicable to one particular tract of...

  438. Specific performance suit

    A kind of legal action that may be taken in certain...

  439. Specific performance

    Specific performance clauses ensure that all parties...

  440. Sponsoring broker

    A real estate broker that has all of their licenses in order...

  441. Squatter’s rights

    Those rights which were obtained by means of hostile...

  442. Statute of frauds

    The provision of a state law that stipulates that certain...

  443. Statute of limitations

    The statute of limitations is the legal limit placed on the...

  444. Statutory lien

    A lien that is placed on property by legislation, such as a...

  445. Steering

    The unethical activity of steering people looking for homes...

  446. Stigmatized property

    A piece of real estate that some people consider to be...

  447. Straight-line method

    A technique of computing depreciation for the purposes of...

  448. Subagency

    An agent may often engage a subagent to assist the agent in...

  449. Subdivision

    A parcel of property that has been subdivided by the owner,...

  450. Subletting

    The act of a lessee subletting a portion of their space to a...

  451. Subordination agreement

    An agreement between two creditors that reorders the...

  452. Subordination

    A move to a lower position, often with regard to a right or...

  453. Subrogation

    The process of exchanging one creditor for another, with the...

  454. Substitution

    An appraisal theory that states that the maximum value of a...

  455. Suit for possession

    A legal proceeding that is brought by a landlord against a...

  456. Suit for specific performance

    A judicial proceeding that may be initiated by either a...

  457. Suit to quiet title

    A legal proceeding that aims to establish or resolve the...

  458. Summation appraisal

    A method of determining value in which the estimated worth...

  459. Supply

    The quantity of an item or service that may be purchased on...

  460. Surety bond

    An arrangement made by an insurance or bonding business in...

  461. Survey

    The process of measuring boundaries and determining land...

  462. Syndicate

    A group consisting of two or more individuals or companies...

  463. Tax lien

    A liability that is imposed on property as a result of the...

  464. Tax rate

    The percentage of a property's market value that is levied...

  465. Tax sale

    A sale of real estate that is mandated by the court in order...

  466. Taxation

    Fundraising is the procedure that a government or local...

  467. Tenancy at sufferance

    A lessee who legitimately comes into possession of a...

  468. Tenancy at will

    An estate that allows the lessee to have ownership of the...

  469. Tenancy by the entirety

    The acquisition of property by a husband and wife throughout...

  470. Tenancy in common

    A kind of joint ownership in which each owner has an...

  471. Tenant

    A person who has or occupies lands or tenements by any form...

  472. Tenement

    Everything that a renter has the potential to occupy under...

  473. Termination (lease)

    The unilateral termination of a rental agreement by one of...

  474. Termination (listing)

    The termination of an employment contract between a broker...

  475. Testate

    Having created and handed down a legal will.

  476. Testator

    The person or entity who creates a will.

  477. “Time is of the essence”

    A clause in a contract that specifies a specific action must...

  478. Title insurance

    Insurance intended to compensate the policyholder for losses...

  479. Torrens system

    A means of proving ownership by registration with the...

  480. Township lines

    In the rectangular survey system, the horizontal lines that...

  481. Township

    The primary measuring device used by the rectangular...

  482. Trade fixtures

    The items that are permitted to be placed by a tenant in...

  483. Trust deed

    An instrument that is used to form a lien and transfers...

  484. Trust

    A trust is a fiduciary arrangement in which property is...

  485. Trustee

    One who, in the capacity of agent for another, manages money...

  486. Trustee’s deed

    A legal document that is drawn out and signed by a trustee...

  487. Unearned increment

    An rise in the value of a property that is not the result of...

  488. Uniform Commercial Code

    A code of commercial law that has been accepted in the...

  489. Uniform Residential Appraisal Report (URAR)

    Uniform Residential Appraisal Report (URAR), or Form 1004,...

  490. Uniform Residential Loan Application Report (URLA)

    Uniform Residential Loan Application Report (URLA), or Form...

  491. Unilateral contract

    A unilateral agreement in which one party makes a commitment...

  492. Unity of ownership

    Unity of title, unity of time, unity of interest, and unity...

  493. Urban renewal

    The purchasing of run-down parts of a city with the goal of...

  494. Useful life

    The estimated number of years during which an investment...

  495. Usury

    The act of charging an interest rate that is higher than the...

  496. Valid contract

    A contract that fulfills all of the necessary requirements...

  497. Valid lease

    A lease that may be legally enforced will include the...

  498. Value

    The value, expressed in the now, of the advantages that will...

  499. Variable rate mortgage

    A mortgage loan that is characterized by a variable interest...

  500. Variance

    A departure from the zoning rules, a Variance is the...

  501. Writ of attachment

    The process through which a debtor's property is taken into...