Glossary of Important Real Estate Terms

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  Abstract of Title - A summary of all of the recorded instruments and proceedings which affect the title to property, arranged in the order in which they were recorded.
  Accretion - The addition of land through processes of nature, as by water or wind.
  Accrued Interest- Accrue; to grow; to be added to. Accrued interest in interest that has been earned but not due and payable.
  Acquisition - An act or process by which a person procures property.
  Acre - A measure of land equaling 43,560 square feet.
  Adjacent - Lying near to but not necessarily in actual contact with.
  Administrator - A person appointed by court to administer the estate of a deceased person who left no will; i.e., who died interstate.
  Ad Valorem - According to valuation.
  Adverse Possession - A means of acquiring title where an occupant has been in actual, open, notorious, exclusive, and continuous occupancy of property under a claim of right for the required statutory period.
  Affidavit A statement or declaration reduced to writing, and sworn to or affirmed before some officer who is authorized to administer an oath or affirmation.
  Affirm - To confirm, to ratify, to verify.
  Agency - That relationship between principal and agent which arises out of contract either expressed or implied, written or oral, wherein an agent is employed by a person to do certain acts on the person's behalf in dealing with a third party.
  Agent - One who undertakes to transact some business or to manage some affair for another by authority of the latter.
  Agreement of Sale - A written agreement between seller and purchaser in which the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms and conditions set forth therein.
  Air Rights - Rights in real property to use the space above the surface of the land.
  Alienation - A transferring of property to another; the transfer of property and possession of lands, or other things, from one person to another.
  Alienation Clause - Allows lender to require the balance of a loan to be paid in full if the collateral is sold (also knows as a "die on sale" clause).
  Amortization - A gradual paying off a debt by periodical installments.
  Annuity - An amount of money or its equivalent which represents one of a series of periodic payments.
 Apportionment - Adjustment of the income, expenses or carrying charges of real estate usually computed to the date of losing of title so that the seller pays all expenses to that date. The buyer assumes all expenses commencing the date the deed is conveyed to the buyer.
  Appraisal - An estimate of a property's valuation by an appraiser who is usually presumed to be expert in this work.
  Appraisal by Capitalization - An estimate of value by capitalization of productivity and income.
  Appraisal by Comparison - Comparability with the sale prices of other similar properties.
  Appraisal by Summation - Adding together all parts of a property separately appraised to form a whole; e.g., value of the land considered as vacant added to the cost of reproduction of the building, less depreciation. 
 Appurtenance - Something which is outside the property itself but belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling.
  Arbitration Clause - Sometimes appears in a long-term lease or other contract requiring a third party referee's decision in the event of a dispute
  Assessed Valuation - A valuation placed upon property by a public officer or a board, as a basis for taxation.
  Assessment - A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer.
  Assignee - The person to whom an agreement or contract is assigned.
  Assignment - The method or manner by which a right or contract is transferred from one person to another.
  Assignor - A party who assigns or transfers an agreement or contract to another.
  Assumption of Mortgage - The taking of title to property by a grantee, wherein the grantee assumes liability for payment of an existing note or bond secured by a mortgage against a property and becomes personally liable for the payment of such mortgage debt.
  Attest - To witness to; to witness by observation and signature.
  Avulsion - The removal of land from one owner to another, when a stream suddenly changes its channel.
  Axial Growth - City growth which moves out along main transportation routes, taking the form of fingerlike extensions.

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 Cancellation Clause - A provision in a lease or other contract which confers upon one or more or all of the parties to the lease the right to terminate the party's or parties' obligations thereunder upon the occurrence of the condition or contingency set forth in the said clause.
 Capital Appreciation - The appreciation accruing to the benefit of the capital improvement to real estate. o
 Capital Asset - Any asset of a permanent nature used for the production of income.
 Capital Gain - Income that results from the sale of an asset not in the usual course of business. (Capital gains may be taxed at a lower rate than ordinary income.)
 Capital Improvement - Any structure erected as a permanent improvement to real estate, usually extending the useful life and value of a property. (The replacement of a roof would be considered a capital improvement.)
 Capital Loss - A loss from the sale of an asset not in the usual course of business.
 Capital Recapture - The manner in which the investment in a property is to be returned to investors; normally stated as a rate or dollar amount per unit of time.
 Caveat Emptor - Let the buyer beware. The buyer must examine the goods or property and buy at the buyer's own risk.
 Cease and Desist Order - An order executed by the Secretary of State directing broker recipients to cease and desist from all solicitation of homeowners whose names and addresses appear on the list(s) forwarded with such order. The order acknowledges petition filings by homeowners listed evidencing their premises are not for sale, thereby revoking the implied invitation to solicit. The issuance of a cease and desist order does not prevent an owner from selling or listing his premises for sale. It prohibits soliciting by licenses served with such order and subjects violators to penalties or suspension or revocation of their license as provided in section 441-c of the Real Property Law.
 Cease and Desist Petition - A statement filed by a homeowner showing address of premises owned which notifies the Department of State that such premises are not for sale and does not wish to be solicited by any means with respect thereto, by licensed real estate brokers and salespersons.
 Certiorari - A proceeding to review in a competent court the action of an inferior tribunal board or officer exercising judicial functions.
 Chain of Title - A history of conveyances and encumbrances affecting a title from the time the original patent was granted, or as far back as records are available.
 Chattel - Personal property, such as household goods or fixtures.
 Chattel Mortgage - A mortgage on personal property.
 Client - The one by whom a broker is employed and by whom the broker will be compensated on completion of the purpose of the agency.
 Closing Date - The date upon which the buyer takes over the property.
 Cloud on the Title - An outstanding claim or encumbrance which, if valid, would affect or impair the owner's title.
 Codicil - Some addition of or amendment of one's last will and testament.
 Collateral - Additional security pledged for the payment of an obligation.
 Color of title - That which appears to be good title, but which is not title in fact.
 Commission - A sum due a real estate broker for services in that capacity.
 Commitment - A pledge or a promise or affirmation agreement.
 Condemnation - Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.
 Conditional Sales Contract - A contract for the sale of property stating that delivery is to be made to the buyer, title to remain vested in the seller until conditions of the contract have been fulfilled.
 Consideration - Anything given to induce entering into a contract such as, money, personal services. Any contracts, lease, obligation or mortgage may be modified without consideration provided it is in writing and signed by the party charged or his agent. (General Obligations Law $5 - 1103.)
 Constructive Notice - Information or knowledge of a fact imputed by law to a person because the person could have discovered the fact by proper diligence and inquiry; (public records).
 Contract - An agreement between competent parties to do or not to do certain things which is legally enforceable, whereby each party acquires a right.
 Conversion - Change from one character or use to another.
 Conveyance - The transfer of the title of land from one to another. The means or medium by which title of real estate is transferred.
 Correlation - The final stage in the appraisal process where the appraiser reviews the data and estimates the subject property's value.
 County Clerk's Certificate - When an acknowledgment is taken by an officer not authorized in the state or county where the document is to be recorded, the instrument which must be attached to the acknowledgment is called a county clerk's certificate. It is given by the clerk of the county where the officer obtained his/her authority and certifies to the officer's signature and powers.
 Covenants - Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or nonuses of the property.
 Cul-de-sac - A blind alley; a street with only one outlet.
 Current Value - The value usually sought to be estimated in an appraisal.

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 Debit - The amount charged as due or owing.
 Debt Capital - Money borrowed for a particular business purpose.
 Debt Service - Annual amount to be paid by a debtor on an obligation to repay borrowed money.
 Decedent - One who is dead.
 Decree - Order issued by one in authority; an edict or law; a judicial decision.
 Dedication - A grant and appropriation of land by its owner for some public use, accepted for such use, by an authorized public official on behalf of the public.
 Deed - An instrument in writing duly executed and delivered, that conveys title to real property.
 Deed Restriction - An imposed restriction in a deed for the purposed of limiting the use of the land such as a restriction against the sale of liquor thereon or a restriction as to the size, type, value or placement of improvements that may be erected thereon.
 DeFacto - In fact or reality
 Default - Failure to fulfill a duty or promise, or to discharge an obligation; omission or failure to perform any acts.
 Defeasance Clause - The clause in a mortgage that permits the mortgagor to redeem his or her property upon the payment of the obligations to the mortgagee.
 Defendant - The party sued or called to answer in any suit, civil or criminal, at law or in equity.
 Deficiency Judgment - A judgment given when the security for a loan does not entirely satisfy the debt upon its default.
 Delivery - The transfer of the possession of a thing from one person to another
 Demand Note - A note which is payable on demand of the holder.
 Demising Clause - A clause found in a lease whereby the landlord (lessor) leases and the tenant (lessee) takes the property.
 Depreciation - Loss of value in real property brought about by age, physical deterioration, or functional or economical obsolescence.
 Descent - When an owner of real estate dies intestate, the owner's property descends, by operation of law, to the owner's distributees.
 Desist and Refrain Order - An order issued by a real estate commissioner to stop an action in violation of the real estate law.
 Devise - A gift of real estate by will or last testament.
 Devisee - One who receives a bequest of real estate made by will.
 Devisor - One who bequests real estate by will.
 Directional Growth - The location or direction toward which the residential sections of a city are destined r determined to grow.
 Dispossess Proceedings - Summary process by landlord to oust a tenant and regain possession of the premises for nonpayment of rent or other breach of conditions of the lease or occupancy.
 Distributee - Person receiving or entitled to receive land as representative of the former owner.
 Documentary Evidence - Evidence in the form of written or printed papers.
 Domicile - A place where a person lives or has his home; in a legal sense, the place here he has his true, fixed, permanent home and principal establishment, and to which place he has, whenever he is absent, the intention of returning.
 Duress - Unlawful constraint exercised upon a person whereby the person is forced to do some act against the person's will.

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 Fee; Fee Simple; Fee Absolute - Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's distributees and legal representatives upon the person's death intestate.
 Fiduciary - A person who on behalf of or for the benefit of another transacts business or handles money on property not the person's own; such relationship implies great confidence and trust.
 Fixtures - Personal property so attached to the land or improvements as to become part of the real property.
 Foreclosure - A procedure whereby property pledged as security for a debt is sold to pay the debt in the even of default in payments or terms.
 Forfeiture - Loss of money or anything of value, by way of penalty due to failure to perform.
 Freehold - An interest in real estate, not less than an estate for life. (Use of this term discontinued Sept. 1, 1967.)
 Front Foot - Property measurement or sale or valuation purposes; the property measure by the "front foot" on its street line, each "front foot" extending the depth of the lot.

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 Grace Period - Additional time allowed to perform an act or make a payment before a default occurs.
 Graduated Leases - A lease which provides for a graduated change at stated intervals in the amount of the rent to be paid: used largely in long term leases.
 Grant - A technical term used in deeds of conveyance of lands to indicate a transfer.
 Grantee - The party to whom the title to real property is conveyed.
 Grantor - The person who conveys real estate by deed; the seller.
 Gross Income - Total income from property before any expenses are deducted.
 Gross Lease - A lease of property whereby the lessor is to meet all property charges regularly incurred through ownership.
 Ground Rent - Earnings of improved property credited to earning of the ground itself after allowance made for earnings of improvements.
 Guardian's Deed - Issued to the person responsible for the estate of a minor or incompetent.

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 Habendum Clause - The "To Have and To Hold" clause which defines or limits the quantity of the estate granted in the premises of the deed.
 Hereditaments - The largest classification of property; including lands, tenements and incorporeal property, such as rights-of-way.
  Holdover Tenant - A tenant who remains in possession of leased property after the expiration of the lease term.
 Hypothecate - To give a thing as security without the necessity of giving up possession of it.

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 Judgment - Decree of a court declaring that one individual is in debted to another, and fixing the amount of such indebtedness.
 Junior Mortgage - A mortgage second in lien to a previous mortgage.
 Jurat - The clause written at the bottom of an affidavit stating when, where, and before whom such affidavit was sworn.

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 Laches - Delay or negligence in asserting one's legal rights.
 Land, Tenements and Hereditaments - A phrase used in the early English Law, to express all sorts of property of the immovable class.
 Landlord - One who rents property to another.
 Lease - A contract whereby, for a consideration, usually termed rent, one who is entitled to the possession of real property transfers such rights to another for life, for a term of years, or at will.
 Leasehold - The interest or estate which a lessee of real estate has therein by virtue of the lessee's lease. 
 Lessee - A person to whom property is rented under a lease.
 Lessor - One who rents property to another under a lease.
 Lien - A legal right of claim upon a specific property which attaches to the property until a debt is satisfied.
 Life Estate - The conveyance of title to property for the duration of the life of the grantee.
 Life Tenant - The holder of life estate.
 Lis Pendens - A legal document, filed in the office of the county clerk giving notice that an action or proceeding is pending in the courts affecting the title to the property. (Not applicable in commission disputes.)
 Listing - An employment contract between principal and agent, authorizing the agent to perform services for the principal involving the latter's property.
 Litigation - The act of carrying on a lawsuit.

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Net Listing - A price below which an owner will not sell the property, and at which price a broker will not receive a commission; the broker receives the excess over and above the net listing as the broker's commission. (See rule 175.19).
 No Ordinary Joe - See Virnig, Joe below.
 Notary Public - A public officer who is authorized to take acknowledgments to certain classes of documents, such as deeds, contracts, mortgages, and before who affidavits may be sworn.

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 Obligee - The person is whose favor an obligation is entered into.
 Obligor - The person who binds himself/herself to another; one who has engaged to perform some obligations; one who makes a bond.
 Obsolescence - Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned, and not in keeping with modern means, with consequent loss of income.
 Open Listing - A listing given to any number of brokers without liability to compensate any except the one who first secures a buyer ready, willing and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer; the sale of the property automatically terminates the listing.
 Open Mortgage - A mortgage that has matured or is overdue and, therefore, is "open" to foreclosure at any time.
 Option - A right given for a consideration to purchase or lease a property upon specified terms within a specified time; if the right is not exercised the option holder is not subject to liability for damages; if exercised, the grantor of option must perform.

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Quiet Enjoyment - The right of an owner or a person legally in possession to the use of property without interference of possession.
 Quiet Title Suit - A suit in court to remove a defect, cloud or suspicion regarding legal rights of an owner to certain parcel of real property.
 Quitclaim Deed - A deed which conveys simply the grantor's rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title.

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 Setback - The distance from the curb or other established line, within which no buildings may be erected. oSitus - The location of a property.
 Special Assessment - An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited.
 Special Performance - A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract.
 Statute - A law established by an act of the Legislature.
 Statute of Frauds - State law which provides that certain contracts must be in writing in order to be enforceable at law.
 Statute of Limitations - A statute barring all right of action after a certain period of time form the time when a cause of action first arises.
 Stipulations - The terms within a written contract.
 Straight Line Depreciation - A definite sum set aside annually from income to pay costs of replacing improvements, without reference to the interest it earns.
 Subdivision - A tract of land divided into lots or plots.
 Subletting - A leasing by a tenant to another, who holds under the tenant.
 Subordination Clause - A clause which permits the placing of a mortgage at a later date which takes priority over an existing mortgage.
 Subscribing Witness - One who writes his/her name as witness to the execution of an instrument.
 Sui Juris - Having legal ability to handle one's own affairs; not under any legal disability.
 Surety - One who guarantees the performance of another; guarantor.
 Surrender - The cancellation of a lease of mutual consent of the lessor and the lessee.
 Surrogate's Court (Probate Court) - A court having jurisdiction over the proof of wills, the settling of estates and of citations.
 Survey - The process by which a parcel of land is measured and its area ascertained; also the blueprint showing the measurements, boundaries and area.

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 Unearned increment - An increase in value of real estate due to no effort on the part of the owner; often due to increase in population.
 Urban Property - City property; closely settled property.
 Usury - On a loan, claiming a rate of interested greater than that permitted by law.

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 Valid - Having force, or binding force; legally sufficient and authorized by law.
 Valuation - Estimated worth or price. The act of valuing by appraisal.
 Variance - The authorization to improve or develop a particular property in a manner not authorized by zoning.
 Vendee's Lien - A lien against property under contract of sale to secure deposit paid by a purchaser. }
 Verification - Sworn statements before a duly qualified officer to the correctness of the contents of an instrument.
 Violations - Act, deed or conditions contrary to law or permissible use of real property.
  Virnig, Joe- The most creative and competent Real Estate Professional in Ventura County!
 Void - To haw no force or effect; that which is unenforceable.
 Voidable - That which is capable of being adjusted void, but is not void unless action is taken to make it so.

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 Waiver - The renunciation, abandonment, or surrender of some claim, right or privilege.
  Warranty Deed - A conveyance of land in which the grantor warranted the title to the grantee.
  Will - The disposition of one's property to take effect after death.
  Without Recourse - Words used in endorsing a note or bill to denote that the future is not to look to the endorser in case of nonpayment.
  Wraparound Loan - A new loan encompassing any existing loans.

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 Zone - An area set off by the proper authorities for specific use; subject to certain restrictions or restraints.
  Zoning Ordinance - Act of city or county or other authorities specifying type and use to which property may be put in specific areas.   

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