{"id":498,"date":"2024-02-20T20:39:14","date_gmt":"2024-02-21T04:39:14","guid":{"rendered":"https:\/\/harvinder.dscloud.me\/blog\/?p=498"},"modified":"2026-01-11T23:52:23","modified_gmt":"2026-01-12T07:52:23","slug":"glossary-of-real-estate-terms","status":"publish","type":"post","link":"https:\/\/harvinder.dscloud.me\/blog\/02\/20\/2024\/glossary-of-real-estate-terms\/","title":{"rendered":"Glossary of Real Estate Terms"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"498\" class=\"elementor elementor-498\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-45bfbdf e-flex e-con-boxed e-con e-parent\" data-id=\"45bfbdf\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-de94eda elementor-widget elementor-widget-text-editor\" data-id=\"de94eda\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h6 class=\"p1\">Welcome to your trusted resource for real estate knowledge! As a real estate agent, I provide a comprehensive glossary of essential terms to help both clients and fellow agents navigate the complexities of real estate transactions. Whether you\u2019re buying, selling, or simply seeking to understand the industry, this reference guide offers clear definitions and valuable insights, making it easy to stay informed and confident throughout the process.<\/h6>\n<h4><i style=\"color: #838485; font-family: var( --e-global-typography-primary-font-family ), Sans-serif; font-size: 18px; font-weight: var( --e-global-typography-primary-font-weight ); text-align: var(--text-align);\">Try these shortcut <u>Command + F on a Mac, or Control + F on Windows. <\/u>These shortcuts allow you to quickly find what you need on this page.<\/i><\/h4>\n<h4>Links to this post:<\/h4>\n<p><a href=\"https:\/\/bit.ly\/studyglossary\" target=\"_blank\" rel=\"noopener\">https:\/\/bit.ly\/studyglossary<\/a><\/p>\n<div class=\"w-break-all\">\n<p class=\"ux-text\" data-version=\"2400.6\"><a title=\"https:\/\/HarvinderRealty.com\/glossary\" href=\"https:\/\/HarvinderRealty.com\/glossary\" target=\"_blank\" 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class=\"elementor-element elementor-element-70c9d454 elementor-widget elementor-widget-text-editor\" data-id=\"70c9d454\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div><p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/harvinder.dscloud.me\/blog\/wp-content\/uploads\/2024\/02\/Glossary-300x252.jpeg\" alt=\"\" width=\"300\" height=\"252\" \/><\/p><h1 class=\"title single-title\">Glossary of Real Estate Terms<\/h1><\/div><div><div>\u00a0<\/div><div>\u00a0<\/div><div>\u00a0<\/div><div><span id=\"ext-gen40229\" class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Duress<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The use of force to get agreement in accepting a contract<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"><b>Escrow Holder<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">An independent third party that acts as a neutral agent of both buyer and seller.<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Preliminary Title Report: <\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"><span id=\"fcLabel\" style=\"backface-visibility: hidden;\">An offer to issue a policy of title insurance in the future for a specific fee<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Gross Rent:<\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">Income (figured annually) received from rental units before any expenses are deducted<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Eviction: <\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"><span id=\"fcLabel\" style=\"backface-visibility: hidden;\">The legal process of removing a tenant from the premise for some breach of the lease<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Dual Agent: <\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"><span id=\"fcLabel\" style=\"backface-visibility: hidden;\">An agent who represents both parties in a transaction<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Metes and Bounds:<\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">A method of land description in which the dimensions of the property are measured by distance and direction<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Contractual Intent:<\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">Intention to be bound by an agreement, thus preventing jokes and jests from becoming valid contracts<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Subordination Clause:<\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">A clause in which the holder of a trust deed permits a subsequent loan to take priority<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Sucession:<\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">The legal transfer of a person\u2019s interest in real property under the law of descent and distribution<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Capitalization:<\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">The process of calculating the present worth of a property on the basis of its capacity to continue to produce an income stream<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Rent:<\/span><\/span><\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\">Consideration paid for the use of a property<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Probate Sale: <\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A court approved sale of the property of a deceased person<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Promissory Note:<\/span><\/b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A written promise or order to pay money; evidence of a debt<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Effective Age:<\/span><\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The years or age shown by the condition and utility of a structure, rather than its actual or chronological age<\/span><\/span><\/div><div>\u00a0<\/div><div><b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Financial Intermediaries:<\/span><\/span><\/b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An organization that obtains funds through deposits and then lends those funds to earn a return; savings and loan associations, commercial banks, credit unions, and mutual savings banks<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Future Interest:<\/span><\/span><\/b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An interest in real property that cannot exercised today; but that might be exercised in the future.<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Suspend:<\/span><\/span><\/b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Temporarily make ineffective<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Public Dedication:<\/span><\/span><\/b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">When private property is intended for public use, it may be acquired in this manner<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><b><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">Bulk Transfer<\/span><\/span><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"> Law<\/span><\/span><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\">:<\/span><\/span><\/b> <span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The law concerning the transfer in bulk (not a sale in the ordinary course of the seller&#8217;s business)<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Warranty Deed:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A deed used to transfer title to property, guaranteeing that the title is clear and the grantor has the right to transfer it; no longer used in California<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Closed-End Loan:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Loan in which the borrower receives all loan proceeds in one lump sum at the time of closing. These loans are secured with collateral, i.e., auto and home loans.<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Riparian Rights:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The rights of a landowner whose land is next to a natural watercourse to reasonable use of whatever water flows past the property<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span style=\"backface-visibility: hidden;\"><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Erosion: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The gradual wearing away of land by natural process<\/span><\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Tenant: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A renter<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Vested: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Owned by<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Deregulation:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A process by which financial institutions, that had formerly been restrained in their lending activities by the law, are allowed to compete freely for the profits in the marketplace<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Reliction:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Occurs when land that has been covered by water is exposed by the receding of the water<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Value:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The power of goods or services to command other goods in exchange for the present worth of future benefits arising from ownership<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Divided Interest: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An interest in various parts of a whole property, such as the interest of the fee owner, lessee, or mortgage<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Title Insurance:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An insurance policy that protects the insured against loss or damage due to defects in the property&#8217;s title<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Reconciliation:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Sometimes called correlation, this is the adjustment process of weighing the results of all three appraisal methods to arrive at a final estimate of market value for the subject property.<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Real Estate Investment Trust (REIT):<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A way investors with a small amount of capital can pool their resources to buy real estate<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Adverse Possession: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Acquiring title to property by continued possession and payment of taxes<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Accrued:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Accumulated over a period of time<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Retrofit:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Modification of an existing building or facility to include new systems or components<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Real Estate Salesperson: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Someone holding a real estate license and employed by a licensed real estate broker. In some states, the salesperson is called a sales agent or sales associate.<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Township<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A land description used in the U.S. Public Land Survey System consisting of a six-by-six mile area containing 36 sections, each one mile square<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Parol Evidence:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Oral or written negotiations made prior to a dispute about an executed contract<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Adjustable-Rate Mortgage:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A note whose interest rate is tied to a flexible index <\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Tender<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An offer by one of the parties to a contract to carry out his or her part of the contract<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Mortgage:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A legal document used as security for a debt<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Customer:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A prospective buyer of real estate<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Graduated Lease:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A lease calling for periodic increases in the rental payments; sometimes called a stair-step lease<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Actual Depreciation<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">That depreciation occurring as a result of physical, functional, or economic forces that cause loss in value to a building<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Grantee<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The person receiving the property or to whom it is being conveyed<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Appurtenance:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Those rights, privileges, and improvements that belong to and pass with the transfer of real property, but are not necessarily a part of the actual property<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Sales Contract: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Primary document used to present an offer on real property; also known as a purchase offer<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Default<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Failure to pay a debt or honor a contract<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Conveyance:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The transfer of title to land from one person to another by use of a written instrument<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Curb Appeal: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The impression gained, whether good or bad, of a property when it is first seen, usually from the street while driving by<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Book Value:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The initial cost of the property plus capital improvements and minus the total accrued depreciation<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Junior or 2nd Lien Loan:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Any deed of trust or mortgage that is recorded after a first deed of trust or mortgage, and whose priority is less than the first lien<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Negotiable Instrument<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Any written instrument that may be transferred by endorsement or delivery<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Homestead<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Status provided to a homeowner\u2019s principal residence that protects the home against judgments<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Real Estate Broker: <\/b><span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A person licensed by the state to negotiate and arrange real estate transactions.<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Fraud<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An act meant to deceive in order to get someone to part with something of value<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Net Income<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Sometimes known as net operating income. The remaining income after operating expensed have been subtracted from the gross income of a property<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Depreciation<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Loss in value from any cause<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Hypothecation<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">To give real property as security for a debt without giving up possession<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Working Capital<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Liquid assets available for the conduct of daily business<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Extended Title Policy<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An extended title insurance policy<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Mortgagee<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The lender under a mortgage<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Acknowledgement<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A signed statement, made before a notary public by a named person; confirming the signature on a document and that it was made of free will<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Alluvium<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Soil that builds up as a result of accretion<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Attorney-in-Fact<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A competent and disinterested person who is authorized by another person to act in his or her place in legal matters<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Executory Contract<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A contract in which an obligation to perform exists on one or both sides of the contract<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Comps<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A term used by real estate agents and appraisers to mean comparable properties<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Purchase Money Loan<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A trust deed created as evidence of a debt at the time of the sale of real property<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Recording<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The act of filing written documents affecting the title to real property with the county recorder<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Percentage Lease:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A lease in which the landlord receives a percentage of the gross sales as part or all of the rental payment<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Implied Contract:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Agreement shown by acts and conduct rather than words<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Contract:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An agreement to do or not do a certain thing<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Will:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A written instrument by which a person makes a disposition of his or her property to take effect after his or her death<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Accretion:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A build-up of soil by natural causes on property bordering a river, lake, or ocean<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Egress:<\/b> <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A way to exit property<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Gift Deed<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Used to make a gift of property to a grantee who is usually a close friend or relative<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Homeowners\u2019 Association<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A group of property owners in a common interest development that manages common areas, collects dues, and establishes property standards<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Unenforceable<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A contract that was valid when made, but either cannot be proved or will not be enforced by a court<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>transferability<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The ability to transfer ownership of an item from one person or entity to another.<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Bundle of Rights<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An ownership concept describing all the legal rights that attach to the ownership of real property<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Annual Percentage Rate (APR)<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The relationship of the total finance charge to the total amount to be financed as required under the Truth in Lending Act<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Assignee<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The person to whom a claim, benefit, or right in property is made<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Appraisal Report<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A written report setting forth an appraiser&#8217;s estimates of value of a subject property<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Assignment of Rents<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An agreement between a property owner and the holder of a trust deed or mortgage by which the holder receives, as security, the right to collect rents from tenants of the property in the event of default by the borrower<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Ingress<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A way to enter property; access<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Good and Indefeasible Title<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Title that cannot be defeated, set aside, or made void by a superior claim<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Police Power<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The power of the state to pass laws, within lawful limits, that promote order, safety, health, morals, and general welfare of its citizens<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Sublease<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Transfer less than the entire leasehold, with the original lessee being primarily liable<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Income approach<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A method of appraising property based on the property\u2019s anticipated future income<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Patents<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Deeds used by the U.S. government when confirming or transferring ownership to private parties<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Writ of Possession<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A court order directing the sheriff to remove the tenant and his or her possessions within five days<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Stigmatized Property<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Psychologically-impacted property that buyers or tenants may avoid, for reasons that are unrelated to its physical conditions or features<\/span><\/span><\/span><\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Instrument<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A written legal document setting forth the rights and liabilities of the parties involved<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Vendee<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The buyer under a contract of sale (land contract)<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Natural Person<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">An individual; a private person, as distinguished from an artificial entity such as a corporation or partnership<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Surrender<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The voluntary giving up of a lease<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Assemblage<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">Putting several smaller, less valuable parcels together under one ownership to increase value of total property<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Offer<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">A presentation or proposal for acceptance to form a contract<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><span class=\"spanFCQuestion\" style=\"backface-visibility: hidden;\"><b>Supply<\/b>: <span id=\"fcLabel\" style=\"backface-visibility: hidden;\"><span class=\"spanFCAnswer\" style=\"backface-visibility: hidden;\">The total amount of an item that is for sale or lease, at various prices, at any given point in time.<\/span><\/span><\/span><\/div><div>\u00a0<\/div><div><p class=\"p1\"><b>Agent<\/b>: A person who acts for and in the place of another, called a principal, for the purpose of affecting the principal\u2019s legal relationship with third persons<\/p><p class=\"p1\"><b>Option<\/b>: A right which is given for consideration to a party (optionee) by a property owner (optionor) to purchase or lease property within a specified time, at a specified price and terms. An option is irrevocable by the optionor and will not be extinguished by death or insanity of either party.<\/p><p class=\"p1\"><b>Lessor<\/b>: Landlord; property owner<\/p><p class=\"p1\"><b>Estate<\/b>: A legal interest in land that defines the nature, degree, extent, and duration of a person\u2019s ownership in land<\/p><p class=\"p1\"><b>Demand<\/b>: The desire to buy or obtain a commodity<\/p><p class=\"p1\"><b>Legacy<\/b>: A gift of personal property by will (see bequest)<\/p><p class=\"p1\"><b>Assumption Clause<\/b>: A buyer takes over the existing loan and agrees to be liable for the repayment of the loan<\/p><p class=\"p1\"><b>Goodwill<\/b>: An intangible, salable asset arising from the reputation of a business; the expectation of continued public patronage<\/p><p class=\"p1\"><b>Accrued Depreciation<\/b>: The difference between the cost to replace the property and the property\u2019s current appraised value<\/p><p class=\"p1\"><b>Section<\/b>: An area of land, used in the U.S. Public Land Survey method of land description; a land area of one square mile, or 640 acres; 1\/36 of a township<\/p><p class=\"p1\"><b>Notice of Trustee\u2019s Sale<\/b>: Notice given, and published, that a trustee\u2019s sale will be held to sell a property to satisfy a debt<\/p><p class=\"p1\"><b>Redlining<\/b>: The use of a property\u2019s location to deny financing<\/p><p class=\"p1\"><b>Offeree<\/b>: The party receiving an offer<\/p><p class=\"p1\"><b>Brokerage<\/b>: The occupation of a broker. A real estate brokerage is the business of selling real estate through a broker who negotiates the sale for a commission<\/p><p class=\"p1\"><b>ALTA Policy<\/b>: American Land Title Association policy of extended title insurance policy; can be purchased by lender or buyer<\/p><p class=\"p1\"><b>Abstract of Title<\/b>: A full summary of all consecutive grants, conveyances, wills, records and judicial proceedings affecting title to a specific parcel of real estate<\/p><p class=\"p1\"><b>Assignor<\/b>: The person transferring a claim, benefit, or right in property to another<\/p><p class=\"p1\"><b>Arm\u2019s Length Transaction<\/b>: A transaction, such as a sale of property, in which all parties involved are acting in their own self-interest and are under no undue influence or pressure from the other parties<\/p><p class=\"p1\"><b>Easement<\/b>: The right to use another\u2019s land for a specified purpose; sometimes known as right-of-way<\/p><p class=\"p1\"><b>Proration<\/b>: The division and distribution of expenses and\/or income between the buyer and seller of property as of the date of closing or settlement<\/p><p class=\"p1\"><b>Price<\/b>: What is paid for something<\/p><p class=\"p1\"><b>Baseline<\/b>: A survey line running east to west, and used as a reference when mapping land<\/p><p class=\"p1\"><b>Mutual Consent<\/b>: Agreement to the provisions of a contract by the parties involved; a mutual willingness to enter into a contract<\/p><p class=\"p1\"><b>Principle of Anticipation<\/b>: The market anticipates the future benefits that are to be derived from the property.<\/p><p class=\"p1\"><b>Unilateral Contract<\/b>: An agreement in which one party promises to pay consideration for the performance of an act by another party. The party promising to pay consideration is not legally obligated to act unless the party promising to perform does so.<\/p><p class=\"p1\"><b>Puffing<\/b>: Exaggerated comments or opinions not made as representations of facts and thus not grounds for misrepresentations<\/p><p class=\"p1\"><b>Scarcity<\/b>: Less availability of a commodity in the marketplace resulting in increased value when demand exceeds supply.<\/p><p class=\"p1\"><b>Or More Clause<\/b>: A clause in a promissory note that allows a borrower to pay a loan off early without penalty<\/p><p class=\"p2\"><b>Cul-de-Sac Lot<\/b>: A lot on a dead-end street<\/p><p class=\"p1\"><b>Timely Manner<\/b>: An act must be performed within certain time limits as described in a contract<\/p><p class=\"p1\"><b>Agency<\/b>: A relationship in which one party (principal) authorizes another party (agent) to act as the principal\u2019s representative in dealing with third parties<\/p><p class=\"p1\"><b>Principal<\/b>: Someone who directs or authorizes another to act in his or her place in regard to relations with third persons; buyer or seller<\/p><p class=\"p1\"><b>Interest<\/b>: The charge for the use of money<\/p><p class=\"p1\"><b>Ratified<\/b>: Approved<\/p><p class=\"p1\"><b>\u201cDUST\u201d<\/b>: The 4 elements that create value: Demand, Utility, Scarcity, Transerability<\/p><p class=\"p1\"><b>Fiscal Year<\/b>: A year as reckoned for taxing or accounting purposes<\/p><p class=\"p1\"><b>Unlawful Detainer Action<\/b>: A lawsuit filed with the court against a tenant who remains in unlawful possession of rental property after breaching the terms of a lawful lease<\/p><p class=\"p1\"><b>Beneficiary<\/b>: The lender under a deed of trust<\/p><p class=\"p1\"><b>Reconveyance Deed<\/b>: Conveys title to property from a trustee back to the borrower (trustor) upon payment in full of the debt secured by the trust deed<\/p><p class=\"p1\"><b>Mobile Home<\/b>: A factory-built home fabricated prior to June 15, 1976, constructed on a chassis and wheels<\/p><p class=\"p1\"><b>Avulsion<\/b>: The sudden washing or tearing away of the land by action of water<\/p><p class=\"p1\"><b>Legal Title<\/b>: Title that is complete and perfect in regard to the right of ownership; can be held by a trustee<\/p><p class=\"p1\"><b>Usury<\/b>: The act of charging a rate of interest in excess of that permitted by law<\/p><p class=\"p1\"><b>Intermediation<\/b>: The process of transferring capital from those who invest funds to those who wish to borrow<\/p><p class=\"p1\"><b>Open End Loan<\/b>: A loan in which the borrower is given a pre-approved limit up to which may be borrowed, such as a credit card, with each advance secured by the same contract<\/p><p class=\"p1\"><b>Residential Rental Property<\/b>: Property from which 80% or more of the gross rental income is income from dwelling units<\/p><p class=\"p1\"><b>Equitable Title<\/b>: The interest held by the trustor or vendee<\/p><p class=\"p1\"><b>Real Property<\/b>: Land; anything affixed to the land; anything appurtenant to the land; anything immovable by law<\/p><p class=\"p1\"><b>Offeror<\/b>: The party making an offer<\/p><p class=\"p1\"><b>Definite and Certain<\/b>: Precise acts to be performed are to be clearly stated<\/p><p class=\"p1\"><b>Condition Subsequent<\/b>: A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor: for example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence<\/p><p class=\"p1\"><b>Holder<\/b>: The party to whom a promissory note is made payable; the person holding the note<\/p><p class=\"p1\"><b>Subdivision<\/b>: A plot of land divided into smaller portions for the purpose of building<\/p><p class=\"p1\"><b>Present Interest<\/b>: An interest in real property that can be exercised today.<\/p><p class=\"p1\"><b>Request for Notice<\/b>: A notice that is sent, upon request, to any parties interested in a mortgage or deed of trust informing them of a default<\/p><p class=\"p1\"><b>Straight Note<\/b>: A promissory note in which payments of interest only are made periodically during the term of the note, with the principal payment due in one lump sum upon maturity; May also be a note with no payments on either principal or interest until the entire sum is due<\/p><p class=\"p1\"><b>License holder<\/b>: Someone who holds a real estate license issued by a state licensing agency.<\/p><p class=\"p1\"><b>Freehold Estate<\/b>: An estate in real property which continues for an indefinite period of time<\/p><p class=\"p1\"><b>Action<\/b>: A lawsuit brought to court<\/p><p class=\"p1\"><b>Valuable Consideration<\/b>: Each party to a contract must give up something to make the agreement binding<\/p><p class=\"p1\"><b>Chattel<\/b>: Personal property<\/p><p class=\"p1\"><b>Retaliatory Eviction<\/b>: An act whereby a landlord evicts a tenant in response to some complaint made by the tenant<\/p><p class=\"p1\"><b>Sheriff\u2019s Deed<\/b>: A deed given to a buyer when property is sold through court action in order to satisfy a judgment for money or foreclosure of a mortgage<\/p><p class=\"p1\"><b>Condemnation<\/b>: A common name for eminent domain, or the right of the government to take private property from an owner for public use, paying fair market value<\/p><p class=\"p1\"><b>Listing<\/b>: A contract by which a principal employs an agent to do certain things for the principal<\/p><p class=\"p1\"><b>Margin<\/b>: A fixed percentage rate that is added to an index to determine the fully indexed interest rate of an adjustable rate mortgage (ARM)<\/p><p class=\"p1\"><b>Alienation Clause<\/b>: A clause in the loan document that allows the lender to call the entire loan due upon the sale of the property; a type of acceleration clause<\/p><p class=\"p1\"><b>Index<\/b>: A publically published number used as the basis for adjusting interest rates of adjustable-rate mortgages (ARMS)<\/p><p class=\"p1\"><b>Linear Foot<\/b>: A measurement meaning one foot or twelve inches in length as contrasted to a square foot or a cubic foot<\/p><p class=\"p1\"><b>CC&amp;Rs<\/b>: Restrictions are placed on certain types of real property and limit the activities of owners<\/p><p class=\"p1\"><b>Subagent<\/b>: An agent of a person who is already acting as an agent for a principal<\/p><p class=\"p1\"><b>Valid<\/b>: Legally binding<\/p><p class=\"p1\"><b>Prepayment Clause<\/b>: A clause in a trust deed that allows a lender to collect a certain percentage of a loan as a penalty for an early payoff<\/p><p class=\"p1\"><b>Sales Comparison Approach<\/b>: An appraisal method using the principles of substitution to compare similar properties<\/p><p class=\"p1\"><b>Standard Policy<\/b>: A policy of title insurance covering only matters of record<\/p><p class=\"p1\"><b>Swing Loan<\/b>: A short-term loan used to enable the purchaser of a new property to buy that property on the strength of the equity from the property the purchaser is now selling<\/p><p class=\"p1\"><b>Trade Association<\/b>: A voluntary, nonprofit organization of independent and competing business units engaged in the same industry or trade, and formed to aid in the industry problems, promote its progress, and enhance its service<\/p><p class=\"p1\"><b>Truth in Lending Act (Regulation Z)<\/b>: A federal law that requires borrowers to be informed about the cost of borrowing money<\/p><p class=\"p1\"><b>Liquid Damages<\/b>: Sets in advance a specified amount of money as a penalty in the event of a breach of contract<\/p><p class=\"p1\"><b>Agreement of Sale<\/b>: A contract for the sale of real property in which the seller gives up possession but retains the title until the purchase price is paid in full; also known as a contract of sale or land contract<\/p><p class=\"p1\"><b>Grace Period<\/b>: An agreement upon time after the payment of a debt is past due during which a party can perform without being considered in default; usually 10 to 15 days<\/p><p class=\"p1\"><b>Public Grant<\/b>: The transfer of title by the government to a private individual<\/p><p class=\"p1\"><b>Estate for Years<\/b>: A leasehold estate with a definite end date; must be renegotiated; commonly used for commercial leases<\/p><p class=\"p1\"><b>Mortgagor<\/b>: The borrower under a mortgage<\/p><p class=\"p1\"><b>Revocation<\/b>: The canceling of an offer to contract by the person making the original offer<\/p><p class=\"p1\"><b>Encroachment<\/b>: The placement of permanent improvements on adjacent property owned by another<\/p><p class=\"p1\"><b>Home Inspection<\/b>: A home inspector examines the readily accessible physical structure, systems, and condition of a home and describes them in a written report<\/p><p class=\"p1\"><b>Beneficiary Statement<\/b>: A statement of the unpaid balance of a loan and the condition of the debt<\/p><p class=\"p1\"><b>Specific Performance<\/b>: An action brought in a court to compel a party to carry out the terms of a contract<\/p><p class=\"p1\"><b>Effective Gross Income<\/b>: The anticipated income resulting from estimated potential gross income from a rental property less an allowance for vacancy and bad debts<\/p><p class=\"p1\"><b>Replacement Cost<\/b>: The cost of replacing improvements with modern materials and techniques<\/p><p class=\"p1\"><b>Demise<\/b>: A conveyance of an estate in real property to someone for a certain length of time, as in a lease<\/p><p class=\"p1\"><b>Cap Rate<\/b>: A term sometimes used to refer to capitalization rate<\/p><p class=\"p1\"><b>Axial Growth<\/b>: City growth that occurs outward along main transportation routes; usually star shaped<\/p><p class=\"p1\"><b>Monument<\/b>: A fixed landmark used in a metes and bounds land description<\/p><p class=\"p1\"><b>Execute<\/b>: To perform or complete; to sign<\/p><p class=\"p1\"><b>Emancipated Minor<\/b>: Someone who is legally set free from parental control\/supervision<\/p><p class=\"p1\"><b>Revoke<\/b>: Recall and make void<\/p><p class=\"p1\"><b>Marketable Title<\/b>: Good or clear salable title reasonably free from risk of litigation over possible defects<\/p><p class=\"p1\"><b>Executed Contract<\/b>: A contract in which the obligations have been performed on both sides of the contract and nothing is left to be completed<\/p><p class=\"p1\"><b>Escrow<\/b>: The deposit of funds or documents with a neutral third party who is instructed to carry out the provisions of an agreement<\/p><p class=\"p1\"><b>Judgment<\/b>: The final legal decision of a judge in a court of law regarding the legal rights of parties to a dispute<\/p><p class=\"p1\"><b>Market Rent<\/b>: The rent a property should bring in the open market<\/p><p class=\"p1\"><b>Estate at Will<\/b>: Possession of real estate belonging to another, with their permission, for an indefinite period of time; can be terminated by either the lessor or lessee; either party must give 30 days notice before ending the tenancy<\/p><p class=\"p1\"><b>Leverage<\/b>: The use of borrowed money to purchase property<\/p><p class=\"p1\"><b>Emblements<\/b>: Annual crops produced for sale by a tenant using or occupying the property<\/p><p class=\"p1\"><b>Quitclaim Deed<\/b>: Transfer any interest the grantor may have at the time the deed is signed with no warranties of clear title<\/p><p class=\"p1\"><b>Manufactured Home<\/b>: A home built in a factory after June 15, 1976 and must conform to the federal Manufactured Home Construction and Safety Standards<\/p><p class=\"p1\"><b>Vacancy Factor<\/b>: Lost income because of a vacant unit<\/p><p class=\"p1\"><b>Land Contract<\/b>: A contract for the sale of real property in which the seller gives up possession but retains the title until the purchase price is paid in full; also known as a contract of sale or agreement of sale<\/p><p class=\"p1\"><b>Alluvial Deposit<\/b>: Sand or mud carried by water and deposited on land<\/p><p class=\"p1\"><b>Vendor<\/b>: The seller under a contract of sale (land contract)<\/p><p class=\"p1\"><b>Life Estate<\/b>: An estate that is limited in duration to life of its owner or the life of some other chosen person<\/p><p class=\"p1\"><b>Lessee<\/b>: Tenant; renter<\/p><p class=\"p1\"><b>Littoral<\/b>: Land bordering a lake, ocean, or sea as opposed to a land bordering a stream or river (running water)<\/p><p class=\"p1\"><b>Fully Amortizing Note<\/b>: A promissory note that is fully repaid at maturity by periodic reduction of the principal; usually paid in equal monthly installments<\/p><p class=\"p1\"><b>Functional Utility<\/b>: The combined factors of usefulness with desirability<\/p><p class=\"p1\"><b>Execution<\/b>: Completion of an act or process<\/p><p class=\"p1\"><b>Bequest<\/b>: A gift of personal property by will (see legacy)<\/p><p class=\"p1\"><b>Possessory Interest<\/b>: Present right to physically occupy land and to exclude others from that same land<\/p><p class=\"p1\"><b>Title<\/b>: Evidence of ownership of land<\/p><p class=\"p1\"><b>Equity<\/b>: Value remaining in a property after payment of all liens; the difference between the amount that is owed and the fair market value<\/p><p class=\"p1\"><b>Doctrine of Correlative User<\/b>: Owners may use only a reasonable amount of the total water supply for beneficial use<\/p><p class=\"p1\"><b>Actual Notice<\/b>: Notice given by possession of property<\/p><p class=\"p1\"><b>Real Estate Associate Licensee<\/b>: A person with a real estate license who is employed or sponsored by a real estate broker<\/p><p class=\"p1\"><b>Security Interest<\/b>: The interest of a creditor (lender) in the property of a debtor (borrower)<\/p><p class=\"p1\"><b>Economic Age<\/b>: Age of a building determined by its condition and usefulness<\/p><p class=\"p1\"><b>Settlement Statement<\/b>: A complete breakdown of all cash received, all charges and credits made, and all costs involved in the transaction<\/p><p class=\"p1\"><b>Abrogation<\/b>: The revocation, rescission, or annulling of a contract by mutual consent of the parties to the contract, or for cause by either party to the contract<\/p><p class=\"p1\"><b>Intestate<\/b>: Dying without leaving a will<\/p><p class=\"p1\"><b>Deed of Trust<\/b>: A security instrument in which title to a property is transferred to a third party trustee as security for a debt owed by the trustor (borrower) to the beneficiary (lender)<\/p><p class=\"p1\"><b>Acceleration Clause<\/b>: A clause in the loan document describing certain events that would cause the entire loan to be due<\/p><p class=\"p1\"><b>Undivided Interest<\/b>: That interest a co-owner has in property, which carries with it the right to possession and use of the whole property, along with the co-owners<\/p><p class=\"p1\"><b>Front Footage<\/b>: The width of a property along the street<\/p><p class=\"p1\"><b>Closing<\/b>: The act of finalizing the transaction in which the deed is delivered to the buyer, the title is transferred, and all costs are paid<\/p><p class=\"p1\"><b>Codicil<\/b>: A change in a will before the maker\u2019s death<\/p><p class=\"p1\"><b>Statute of Limitations<\/b>: A statute limiting the period of time during which legal action may be taken on a certain issue<\/p><p class=\"p1\"><b>Indirect Costs<\/b>: Development costs not related to the land or structure, such as legal and architectural fees, financing, and insurance costs during construction<\/p><p class=\"p1\"><b>Subject to Clause<\/b>: A buyer takes over the existing loan payments but assumes no personal liability for the loan<\/p><p class=\"p1\"><b>Principal<\/b>: The original amount borrowed<\/p><p class=\"p1\"><b>Fee Simple Defeasible<\/b>: An estate in which the holder has a fee simple title that is subject to return to the grantor if a specified condition occurs; also known as fee simple qualified<\/p><p class=\"p1\"><b>Real Estate Law<\/b>: The law that affects the licensing and conduct of real estate agents<\/p><p class=\"p1\"><b>Market Value<\/b>: The price the property would bring if freely offered on the open market with both a willing buyer and a willing seller<\/p><p class=\"p1\"><b>Condition Precedent<\/b>: A condition which requires something to occur before a transaction becomes absolute and enforceable: for example, a sale that is contingent on the buyer obtaining financing<\/p><p class=\"p1\"><b>Blockbusting<\/b>: Causing panic selling by telling people that values in the neighborhood will decline because of a specific event, such as the purchase of homes by minorities<\/p><p class=\"p1\"><b>Acceptance<\/b>: An unqualified agreement to the terms of an offer<\/p><p class=\"p1\"><b>Steering<\/b>: The illegal practice of only showing clients property in certain areas<\/p><p class=\"p1\"><b>Loan Estimate<\/b>: Disclosure statement created by the Consumer Financial Protection Bureau to provide borrowers with good-faith estimates of credit costs and transaction terms<\/p><p class=\"p1\"><b>Ethics<\/b>: A set of principles or values by which an individual guides his or her own behavior and judges that of others<\/p><p class=\"p1\"><b>Trade Fixture<\/b>: An article of personal property affixed to leased property by the tenant as a necessary part of business; may be removed by tenant as personal property upon termination of the lease<\/p><p class=\"p1\"><b>Recission<\/b>: Legal action taken to repeal a contract either by mutual consent of the parties or by one party when the other party has breached a contract<\/p><p class=\"p1\"><b>Title Commitment<\/b>: A contract to issue a title insurance policy<\/p><p class=\"p1\"><b>Gross rent multiplier (GRM)<\/b>: A figure which, when multiplied by the monthly rental income, equals the property\u2019s market value<\/p><p class=\"p1\"><b>Holographic Will<\/b>: Written in the maker\u2019s own handwriting, dated, and signed by the maker<\/p><p class=\"p1\"><b>Security Instrument<\/b>: Evidence of obligations to pay money, such as a deed of trust or mortgage<\/p><p class=\"p1\"><b>Improvements<\/b>: Any buildings or structures on a lot<\/p><p class=\"p1\"><b>Equity of Redemption<\/b>: The right of the debtor, before a foreclosure sale, to reclaim property that had been given up due to mortgage default; also known as right of redemption<\/p><p class=\"p1\"><b>Estate at Sufferance<\/b>: A tenancy created when one is in wrongful possession of real estate even though the original possession may have been legal<\/p><p class=\"p1\"><b>Grantor<\/b>: The person conveying or transferring the property<\/p><p class=\"p2\"><b>Assessed Value<\/b>: Value placed on property by a public tax assessor as a basis for taxation<\/p><p class=\"p1\"><b>Misrepresentation<\/b>: An innocent or negligent misstatement of a material fact which causes someone loss or harm<\/p><p class=\"p1\"><b>Counteroffer<\/b>: The rejection of an original offer that becomes a new offer<\/p><p class=\"p1\"><b>Trustor<\/b>: The borrower under a deed of trust<\/p><p class=\"p1\"><b>Corner Lot<\/b>: A lot found at the intersection of two streets<\/p><p class=\"p1\"><b>Graduated Payment Adjustable Mortgage<\/b>: A loan with low initial monthly payments which gradually increase over a specified timeframe<\/p><p class=\"p1\"><b>Forbearance<\/b>: Refraining from action by a creditor against the debt owed by a borrower after the debt has become due<\/p><p class=\"p1\"><b>Life Tenant<\/b>: A person to whom a life estate conveys<\/p><p class=\"p1\"><b>Lis Pendens<\/b>: A recorded notice that indicates pending litigation on a property that prevents a conveyance or any other transfer of ownership<\/p><p class=\"p1\"><b>Express Contract<\/b>: The parties declare the terms and put their intentions in words, either oral or written<\/p><p class=\"p2\"><b>Estate in Fee<\/b>: A freehold estate that is the most complete form of ownership of real property; also known as a fee, fee simple, or fee simple absolute. It is an estate of inheritance.<\/p><p class=\"p1\"><b>Reverse Annuity Loan<\/b>: A loan that enables elderly homeowners to borrow against the equity in their homes by receiving monthly payments, from a lender, that are needed to help meet living costs; due upon a specific date or upon the occurrence of a specific event, such as the sale of the property or the death of the borrower<\/p><p class=\"p1\"><b>Variance<\/b>: An exception granted to existing zoning regulations for special reasons<\/p><p class=\"p1\"><b>Operating Expenses<\/b>: Expenditures necessary to the operation of an income-producing building<\/p><p class=\"p1\"><b>Sandwich Lease<\/b>: A lease agreement created when a tenant sublets the property to another person, thus creating a sublessor-sublessee relationship. The person in the \u201csandwich\u201d is a lessee to one party and a lessor to another<\/p><p class=\"p1\"><b>Third Party Originator (TPO)<\/b>: Person who takes mortgage applications from borrowers, but does not underwrite or fund loans<\/p><p class=\"p1\"><b>Title Plant<\/b>: The storage facility of a title company which holds and stores the complete title records of properties in its area<\/p><p class=\"p1\"><b>Unilateral Rescission<\/b>: Legal action taken to repeal a contract by one party when the other party has breached a contract<\/p><p class=\"p1\"><b>Partition Action<\/b>: A court action to divide a property held by co-owners<\/p><p class=\"p1\"><b>Constructive Notice<\/b>: Public notice given by recording a document with the county recorder<\/p><p class=\"p1\"><b>Cost<\/b>: Represents expenses in money, labor, material, or sacrifices in acquiring or producing something<\/p><p class=\"p1\"><b>Meridian<\/b>: A survey line running north and south, used as a reference when mapping land<\/p><p class=\"p1\"><b>Bill of Sale<\/b>: A written agreement used to transfer ownership in personal property<\/p><p class=\"p1\"><b>Patent Deed<\/b>: A deed given by the government to a private individual as evidence of transfer of title from government to the public person<\/p><p class=\"p1\"><b>Eminent Domain<\/b>: The right of the government to take private property from the owner, for public use, and paying for the fair market value<\/p><p class=\"p1\"><b>Servicemembers Civil Relief Act<\/b>: A federal law designed to protect persons in military service from loss of property when their ability to make the payment has been affected by their entering military service<\/p><p class=\"p1\"><b>Principle of Substitution<\/b>: The market value of a property is affected by the cost of obtaining an equally desirable and valuable property as a substitute<\/p><p class=\"p1\"><b>Breach of Contract<\/b>: A failure to perform on part or all of the terms and conditions of a contract<\/p><p class=\"p2\"><b>Convey<\/b>: To transfer ownership of title<\/p><p class=\"p1\"><b>Vesting<\/b>: The way title will be taken<\/p><p class=\"p1\"><b>Severalty<\/b>: Ownership of real property by one person or entity<\/p><p class=\"p1\"><b>Less-Than-Freehold Estate<\/b>: A leasehold estate that is considered to exist for a definite period of time or successive periods of time until termination<\/p><p class=\"p1\"><b>Witnessed Will<\/b>: One prepared by an attorney, that is typed and signed by the maker and two witnesses<\/p><p class=\"p1\"><b>Release Clause<\/b>: A provision found in many blanket loans enabling the borrower to obtain a partial release of specific parcels from the loan<\/p><p class=\"p1\"><b>Partially Amortizing Note<\/b>: A promissory note with repayment that is not sufficient to amortize the loan over its term; usually contains a balloon payment at the end<\/p><p class=\"p1\"><b>Fixture<\/b>: Personal property that has become affixed to real estate<\/p><p class=\"p1\"><b>Void<\/b>: An agreement which is totally absent of legal effect<\/p><p class=\"p1\"><b>Utility Value<\/b>: The usefulness of the property<\/p><p class=\"p1\"><b>Escrow Instructions<\/b>: Written directions, signed by a buyer and seller, detailing the procedures necessary to close a transaction and directs the escrow agent in how to proceed<\/p><p class=\"p1\"><b>Multiple Listing Service<\/b>: A cooperative listing service conducted by a group of brokers for the purpose of marketing listings<\/p><p class=\"p1\"><b>Trustee\u2019s Deed<\/b>: A deed given to a buyer of real property at a trustee\u2019s sale<\/p><p class=\"p1\"><b>Reinstate<\/b>: Bring current and restore<\/p><p class=\"p1\"><b>Guarantee of Title<\/b>: An assurance of clear title<\/p><p class=\"p1\"><b>Land Grant<\/b>: A grant of public lands by the government usually for roads, railroads, or agricultural colleges<\/p><p class=\"p1\"><b>Consideration<\/b>: Something of value, such as money, a promise, property, or personal services<\/p><p class=\"p1\"><b>Environmental Impact Report<\/b>: A study of how a development will affect the ecology of its surroundings<\/p><p class=\"p1\"><b>Contract for Deed<\/b>: A contract for the sale of real property in which the seller gives up possession of the property but retains title until the total of the purchase price is paid off<\/p><p class=\"p1\"><b>Personal Property<\/b>: Anything movable that is not real property<\/p><p class=\"p1\"><b>Deficiency Judgment<\/b>: A judgment against a borrower for the balance of a debt owed when the security for the loan is not sufficient enough to pay a debt<\/p><p class=\"p1\"><b>Collateral<\/b>: Something of value given as security for a debt<\/p><p class=\"p1\"><b>Impound Account<\/b>: A trust account set up for funds set aside for future, recurring cost relating to a property<\/p><p class=\"p1\"><b>Pledge<\/b>: The transfer of property to a lender as a security for re-payment of a debt. The lender takes possession of the property.<\/p><p class=\"p1\"><b>Effective Demand<\/b>: The desire coupled with purchasing power.<\/p><p class=\"p1\"><b>Conversion<\/b>: The appropriation of property belonging to another.<\/p><p class=\"p1\"><b>Reproduction Cost<\/b>: The current cost of building a replica of the subject structure using similar quality materials; refers to exact duplication of the buildings; usually costs more than replacement costs<\/p><p class=\"p1\"><b>Business Opportunity<\/b>: Any type of business for lease or sale<\/p><p class=\"p1\"><b>Grant Deed<\/b>: A type of deed in which the grantor warrants that he or she has not previously conveyed the property being granted, that he or she has not encumbered the property except disclosed, and that he or she will convey to the grantee any title to the property acquired later<\/p><p class=\"p1\"><b>Calendar Year<\/b>: This starts on January 1 and continues through December 31 of the same year.<\/p><p class=\"p1\"><b>Leasehold or Lease<\/b>: An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time<\/p><p class=\"p1\"><b>Actual Age<\/b>: The real age of a building<\/p><p class=\"p1\"><b>Power of Attorney<\/b>: A written instrument giving a person legal authority to act on behalf of another person<\/p><p class=\"p1\"><b>Client<\/b>: The person who employs an agent to perform a service for a fee<\/p><p class=\"p1\"><b>Minor<\/b>: Someone under 18 years of age<\/p><p class=\"p1\"><b>Judicial Foreclosure<\/b>: Foreclosure by court action<\/p><p class=\"p1\"><b>Appreciation<\/b>: An increase in value<\/p><p class=\"p1\"><b>Earnest Money<\/b>: Down payment made by a purchaser of real estate as evidence of good faith; or a deposit or partial payment<\/p><p class=\"p1\"><b>Foreclosure<\/b>: A legal procedure by which mortgaged property in which there has been default on the part of the borrower is sold to satisfy the debt<\/p><p class=\"p1\"><b>Ratification<\/b>: The approval of a previously authorized act, performed on behalf of a person, which makes the act valid and legally binding<\/p><p class=\"p1\"><b>Voidable<\/b>: An agreement which is valid and enforceable on its face, but may be rejected by one or more of the parties<\/p><p class=\"p1\"><b>Hard Money Loan<\/b>: The evidence of a debt given in exchange for cash<\/p><p class=\"p1\"><b>Contract Rent<\/b>: The amount of rental income due from the tenant as agreed in the lease agreement<\/p><p class=\"p1\"><b>Capital Improvements<\/b>: Any permanent improvement made to real estate for the purpose of increasing the useful life of the property or increasing the property\u2019s value<\/p><p class=\"p1\"><b>Mortgage Loan Originator (MLO)<\/b>: A natural person who takes a residential mortgage loan application or negotiates terms of a residential mortgage loan for compensation<\/p><p class=\"p1\"><b>Financing Statement<\/b>: A written notice filed with the county recorder by a creditor who has extended credit for the purchase of personal property; establishes the creditor\u2019s interest in the personal property, which is security for the debt<\/p><p class=\"p1\"><b>Devise<\/b>: A gift of real property by will<\/p><p class=\"p1\"><b>Fee Simple Qualified<\/b>: An estate in which the holder has a fee simple title that is subject to return to the grantor if a specified condition occurs<\/p><p class=\"p1\"><b>Trustee<\/b>: Holds bare legal title to property as a neutral third party where there is a deed of trust used as a security for a loan<\/p><p class=\"p1\"><b>Foreclosure Sale<\/b>: A sale during which property is sold to satisfy a debt<\/p><p class=\"p1\"><b>License<\/b>: Permission to use a property which may be revoked at any time<\/p><p class=\"p1\"><b>Undue Influence<\/b>: Using unfair advantage to get agreement in accepting a contract<\/p><p class=\"p1\"><b>Administrator\/Administratrix<\/b>: A person appointed by the court to handle the affairs of a deceased person when there is no one mentioned in the will<\/p><p class=\"p1\"><b>Economic Life<\/b>: The estimated period over which an improved property may be profitably used to yield a return<\/p><p class=\"p1\"><b>Assignment<\/b>: The transfer of a claim, benefit, or right in property from one person to another person<\/p><p class=\"p1\"><b>Property<\/b>: The rights or interests an owner has in something owned<\/p><p class=\"p1\"><b>Sublease<\/b>: Transfer less than the entire leasehold, with the original lessee being primarily liable<\/p><p class=\"p1\"><b>Fiduciary<\/b>: A relationship that implies a position of trust or confidence<\/p><p class=\"p1\"><b>Notice of Default<\/b>: A notice to a defaulting party that there has been a nonpayment of debt<\/p><p class=\"p1\"><b>Commingling<\/b>: To deposit client funds in the broker\u2019s personal account<\/p><p class=\"p1\"><b>Love and Affection<\/b>: The consideration used in a gift deed<\/p><p class=\"p1\"><b>Menace<\/b>: Using a threat of violence to get agreement in accepting a contract<\/p><p class=\"p1\"><b>Rollover Mortgage<\/b>: A loan that allows the rewriting of a new loan at the termination of the prior loan<\/p><p class=\"p1\"><b>Blind Advertising<\/b>: Advertising that fails to disclose that the party is a licensee acting as an agent<\/p><p class=\"p1\"><b>Deferred Maintenance<\/b>: Negligent care of a building<\/p><p class=\"p1\"><b>Closing Disclosure<\/b>: Settlement statement created by the Consumer Financial Protection Bureau that must be used for any conventional residential mortgage loans that will be sold to Fannie Mae or Freddie Mac, or that are subject to RESPA<\/p><p class=\"p1\"><b>Holder in Due Course<\/b>: A person who has obtained a negotiable instrument (promissory note, check) in the ordinary course of business before it is due, in good faith and for value, without knowledge that it has been previously dishonored and without notice of any defect or setoff at the time it is negotiated<\/p><p class=\"p1\"><b>Net Lease<\/b>: A lease where the tenant pays such costs as taxes, insurance, and repairs, as well as a set amount for rent. A triple net lease is one in which the tenant pays all expenses of operating the property as well as a set amount for rent.<\/p><p class=\"p1\"><b>Range<\/b>: A land description used in the U.S. Public Land Survey System (PLSS) consisting of a strip of land located every six miles east of each principle meridian<\/p><p class=\"p1\"><b>Testator\/Testatrix<\/b>: A person who has made a will<\/p><p class=\"p1\"><b>PITI<\/b>: Abbreviation for principal, interest, tax, and insurance<\/p><p class=\"p1\"><b>Trustee\u2019s Sale<\/b>: The forced sale of real property, by a lender, to satisfy a debt<\/p><p class=\"p1\"><b>Reversionary Rights<\/b>: The lessor (landlord) grants the right of possession to the lessee (tenant) but retains the right to retake possession after the lease\u2019s term has expired<\/p><p class=\"p1\"><b>Balloon Payment<\/b>: Under an installment loan, a final payment that is substantially larger than the other payments and repays the debt in full<\/p><p class=\"p1\"><b>Statute of Frauds<\/b>: A state law which requires that certain contracts must be in writing and contain certain essential elements in order to be enforceable<\/p><p class=\"p1\"><b>Security Agreement<\/b>: The device commonly used to secure a loan on personal property<\/p><p class=\"p1\"><b>Executor\/Executrix<\/b>: A person named in the will to handle the affairs of a deceased person<\/p><p class=\"p1\"><b>Gross Income Multiplier (GIM)<\/b>: A figure which, when multiplied by the annual gross income from all sources, not just annual rent, equals the property\u2019s market value.<\/p><p class=\"p1\"><b>Landlord<\/b>: Lessor; property owner<\/p><p class=\"p1\"><b>Power of Sale<\/b>: A clause in a trust deed or mortgage that gives the holder the right to sell the property in the event of default by the borrower<\/p><p class=\"p1\"><b>Private Grant<\/b>: The granting of private property to other private persons<\/p><p class=\"p1\"><b>Ad Valorem<\/b>: A Latin prefix meaning according to value. Local governments levy real property tax based on the assessed value. Property taxes are known as ad valorem taxes.<\/p><p class=\"p1\"><b>Estate from Period to Period<\/b>: A leasehold estate that is automatically renewed for the same term; a conveyance for an indefinite period of time; does not need to be renegotiated upon each renewal; commonly a month-to-month rental<\/p><p class=\"p2\"><b>Novation<\/b>: The substitution by agreement of a new obligation for an existing one<\/p><p class=\"p1\"><b>Estoppel<\/b>: A legal doctrine which prevents a person from denying something to be true or a fact, if the denial is contrary to previous statements or actions made by that same person<\/p><p class=\"p1\"><b>Equal Credit Opportunity Act<\/b>: A federal law that requires lenders to assure that credit is available with fairness, impartiality, and without discrimination<\/p><p class=\"p1\"><b>Chain of Title<\/b>: A chronological history of a property\u2019s ownership<\/p><p class=\"p1\"><b>Bilateral Contract<\/b>: A contract in which each party to the contract promises to perform some act or duty in exchange for the promise of the other party<\/p><p class=\"p1\"><b>Easement in Gross<\/b>: An easement that is not appurtenant to any one parcel, for example, public utilities<\/p><p class=\"p1\"><b>Chattel Real<\/b>: An item of personal property which is connected to real estate, for example, a lease<\/p><p class=\"p1\"><b>Blanket Loan<\/b>: A loan that is secured by several properties<\/p><p class=\"p1\"><b>Appraisal<\/b>: An act or process of developing an opinion of value<\/p><p class=\"p1\"><b>Accession<\/b>: The acquisition of title to additional land or to improvements as a result of the annexation of fixtures or as a result of alluvial deposits along the banks of streams by accretion<\/p><p class=\"p1\"><b>Assignee<\/b>: Party to whom a lease is assigned or transferred<\/p><p class=\"p1\"><b>Cost Approach<\/b>: An appraisal method that estimates replacement cost of the improvements, deducts estimated accrued depreciation, and then adds market value of the land.<\/p><p class=\"p1\"><b>Alienate<\/b>: Transfer ownership or sell<\/p><p class=\"p1\"><b>Homeowner Equity Loan<\/b>: A cash loan made against the equity in the borrower\u2019s home.<\/p><\/div><\/div><div><div><div><div><span style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><span style=\"backface-visibility: hidden;\"><a href=\"https:\/\/www.dre.ca.gov\/files\/pdf\/refbook\/ref27.pdf\" target=\"_blank\" rel=\"noopener\">California Department of Real Estate (DRE)<\/a><br \/><\/span><\/span><\/span><\/div><\/div><div><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-weight: var( --e-global-typography-text-font-weight ); text-align: var(--text-align);\">\u00a0<\/span><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4ac6916 e-flex e-con-boxed e-con e-parent\" data-id=\"4ac6916\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f7fbaf0 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"f7fbaf0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Welcome to your trusted resource for real estate knowledge! As a real estate agent, I provide a comprehensive glossary of essential terms to help both clients and fellow agents navigate the complexities of real estate transactions. Whether you\u2019re buying, selling, or simply seeking to understand the industry, this reference guide offers clear definitions and valuable [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sfsi_plus_gutenberg_text_before_share":"","sfsi_plus_gutenberg_show_text_before_share":"","sfsi_plus_gutenberg_icon_type":"","sfsi_plus_gutenberg_icon_alignemt":"","sfsi_plus_gutenburg_max_per_row":"","footnotes":""},"categories":[46],"tags":[58,54,51,56,6,53,52,37,27,57,50,55],"class_list":["post-498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-dre","tag-education","tag-glossary","tag-harvinder","tag-harvinderbalu","tag-re","tag-real-estate","tag-realestatetips","tag-realtorharvinder","tag-study","tag-terms","tag-test"],"_links":{"self":[{"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/posts\/498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/comments?post=498"}],"version-history":[{"count":75,"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/posts\/498\/revisions"}],"predecessor-version":[{"id":5953,"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/posts\/498\/revisions\/5953"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/media\/499"}],"wp:attachment":[{"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/media?parent=498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/categories?post=498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harvinder.dscloud.me\/blog\/wp-json\/wp\/v2\/tags?post=498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}