REAL ESTATE GLOSSARY

 ABANDONMENT- This is the voluntary surrendering of property which is owned or leased, without naming a successor as the owner or tenant.

ABSTRACT OF TITLE- This is a historical summary of all of the recorded instruments and proceedings that affect the title to a specific property.

ABUT- This is land that adjoins or meets other property.

ACCEPTANCE- This the act of agreeing or accepting an offer.

ACCESS RIGHT- This the right of an owner to get to and from the property he/she owns.

ACKNOWLEDGMENT- This is a declaration by an individual who has signed a document voluntarily and before an authorized person.

ACT OF GOD- This is a destructive event occurring from nature that could not have been prevented, such as a hurricane, flood, tornado, earthquake, lightning, etc.

ADDENDUM- This is something added, usually an attachment to a contract.

ADJOINING- Places that share a common border.

ADVERSE POSSESSION- This is a means of acquiring title to real property when the occupant has been using it in an open, exclusive and continuous manner without having actual title to it.

AFFIDAVIT- This is a written statement which is sworn before an individual acting as an official to administer an oath or affirmation.

AIR RIGHTS- This is the space above a designated property which can be used, controlled or occupied at any given time.

APPRAISAL- This is the estimate of the value of a property.

BARGAIN & SALE DEED- This is where the grantor implies to have and interest in the property an doesn’t offer any warranties of title.

BINDER- This an agreement, usually accompanied with a deposit for the purchase of real property to prove "good faith" on the part of the purchaser.

BROKER- This is a licensed agent, who acts for the property owners in real estate transactions.

CAVEAT EMPTOR- This is known as "let the buyer beware". The purchasers must examine the property at their own risk.

CERTIFICATE OF TITLE- This is the opinion given by an attorney regarding the status of a title to a property based on public records.

CHATTEL- This is personal property or anything that is owned and tangible, basically anything other than real estate.

CLOSING- This means the act of transferring ownership of real estate from the seller to the buyer based on the sales contract. It also means the time the actual closing takes place.

COLLATERAL- this property used as security for a debt.

COLOR OF TITLE- This appears to be a good title but actually it isn’t.

CONDOMINIUM-

CONVEYANCE- This is the transfer of the title of a property from one to another.

COOPERATIVE APARTMENT-

DEED- This is a written document which evidences title to real estate.

DWELLING- This is the place of residence.

EASEMENT- This is the right of one entity having an interest of another. For example, a telephone companies sends their cables across property unowned by them for a specific purpose.

EMINENT DOMAIN- This is the right of the government or public utility to take someone’s property for public use.

ENCROACHMENT- Any part of a building that overlaps or trespasses another’s property.

ENCUMBRANCE- This is any interest on a property that affects it value, such as a mortgage.

EVICTION- This is a legal proceeding by a landlord to recover the possession of property.

FACADE- This is the outside material making up the front wall of a building.

FEE SIMPLE- This is absolute ownership of real property.

FIXTURES- This relates to any improvements or personal property which is attached to the property so that it becomes part of the real property.

FORECLOSURE- This is the termination of all rights of the land owner in the property covered by the mortgage.

FREE & CLEAR TITLE- This a title to a property that has no encumbrances such as a mortgage.

GENERAL CONTRACTOR- This is the one who constructs a building or improves the real property for the owner of the building.

GRANT- This the term used when a property owner transfers property to another.

GRANTEE- This is the person to whom the real property was transferred to.

GRANTOR- This is the person who transfers the deed to a property.

HALF BATH- This is a bathroom without a bath or shower area.

HANDYMAN’S SPECIAL- This is a property, usually a house, which requires extensive repair and is sold for a low price.

HIGH RISE- This is a building that is higher than 6 stories tall and is equipped with elevators.

HOLDING COMPANY- This is a company that owns or controls another company.

HOLDOVER TENANT- This a tenant who retains possession of a leased property after the term of lease has expired.

JOINT TENANCY- This is the ownership of real property by 2 or more people (usually related people), whom have an undivided interest with the right of survivorship.

JUNIOR MORTGAGE- This a mortgage that will be satisfied only after previous mortgages have been paid off.

JUST COMPENSATION- This is the amount paid to the owner of real property that was acquired under eminent domain.

LANDLORD- This is the person/entity who rents property to another.

LEASE- This is a contract between the landlord and tenant for possession of real property for a fixed amount of time and price (rent).

LESSEE- This the person to whom the real property is rented to under a lease.

LESSOR- This the person/entity that rents real property to another under a lease agreement.

LIEN- This is the charge against real property making it a security for payment of a debt such as a mortgage or any other encumbrance.

LIFE TENANT- This is the ability of one to use property for their lifetime.

LOT & BLOCK- This the method used of locating a parcel of land.

MAINTENANCE- This is the routine repair and proper handling of a premises. To keep it in good condition.

MAINTENANCE FEE- This is the assessment by a entity in control of the premises, such as a condominium owner’s association, which determines the costs associated with operating the shared areas of the property.

MANAGEMENT AGREEMENT- This is an agreement between the owner of real property and the entity that will manage the property.

MARKET PRICE- This the actual sale price paid for real estate.

MARKET VALUE- This is the price a property would command in the present real estate market. It’s between the highest price someone would pay and the lowest price the seller will accept.

MECHANIC’S LIEN- This is the lien protected by statute upon a property or improvement on a specific property which acts a security for payment for labor done and materials required for improvement.

METES & BOUNDS- This is the land description method used to detail all of the boundary lines of a specific property.

MINERAL RIGHTS- This is the privilege of receiving income from the sale of any resources found on their land, (such as oil, gold, etc.)

MORTGAGE- This a written document that creates a lien upon real property to act as a security to confirm payment of a specific debt.

PERSONAL PROPERTY- This is that property that is movable or not affixed to the land they are situated on. Appliances, furniture and mobile homes are examples.

PROPERTY TAX- This is a tax the government puts on a property which is based on the current market value of the real estate in that location.

QUIET ENJOYMENT- This is the right of the owner of a property to use his/her property without interference.

QUITCLAIM DEED- This is a deed which releases the grantor’s interest without stating any warranties in the property. Usually involves abandoned property.

REAL ESTATE- This is the land and everything attached to it. Above and under included.

REIT- Real Estate Investment Trust- This is a mutual fund of real estate which was designed by tax law to avoid corporate income tax on property. Instead, the owners of the funds are taxed on the real estate on their personal returns.

RECORDING- This is the act of entering into the public record any change that affects the title to a specific piece of real property.

REFINANCE- This is when a property owner substitutes a new loan for an old loan.

RELEASE- This is when a property is free from a mortgage commitment.

RENT CONTROL- This is the statute that governs the price that can be charged for a space.

RIGHT OF SURVIVORSHIP- This is the right of the living joint tenant to acquire the interest of the deceased joint owner in the real property shared.

RIPARIAN RIGHTS- These are the rights to the use of water on, adjacent to or under the owner’s land.

SECURITY- This is property that acts as collateral for a debt.

SURVEY- This the method by which a piece of land is measured with all contours and boundaries.

SURVIVORSHIP- This the right of a joint tenant to keep ownership rights after the death of another joint tenant.

SYNDICATION- This is the process of selling real estate where a sponsor sells to investors.

TAX FORECLOSURE- This is the enforcement of a lien against a property for nonpayment of property taxes.

TAX LIEN- This is a debt which is attached to real property for failure to pay taxes.

TENANCY- This is the right to possession to real property.

TENANCY BY THE ENTIRETY- This is when a husband and wife shares equal possession of a property and upon death of one the other automatically obtains control of the property. They enjoy the right of survivorship.

TENANCY IN COMMON- This the ownership of real property by two or more individuals, who don’t enjoy the right of survivorship and must await the outcome of the Will.

TENANCY IN SEVERALTY- This is the ownership of real property by one individual or a legal entity, (such as a corporation).

TENANT- This is the one who is given the possession of real property for a period of time.

TITLE- This is the document that evidences that a particular owner of a parcel of land is in lawful possession of it.

TITLE COMPANY- This a business which examines the title to real property and provides title insurance for it.

TITLE INSURANCE- This is actually an insurance policy which protects the holder from any losses as a result of defects in the title.

TITLE REPORT- This the document that identifies the current state of a title to land, (includes encumbrances and previous claims).

TITLE SEARCH- This the examination of public records to determine the ownership of real property.

TRANSACTION COSTS- These are the costs involved with buying and selling real property.

WARRANTY DEED- This is a deed which protects the grantee against all claims to a property.

WARRANTY OF HABITABILITY- This is the assurance of a landlord for an apartment being offered.

ZONING- This is the legal method local governments use to regulate the use of real property owned by a private individual to prevent conflicting uses of land and to promote orderly development of land.

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