Real Estate Glossary

The voluntary relinquishment of rights of ownership or another interest (such as an easement) by failure to use the property, coupled with an intent to abandon (give up the interest).

A reduction or decrease. Usually applies to a decrease of assessed valuation of ad valorem taxes after the assessment, and levy

The ratio of the number of properties in an area that have been sold against the number available. Used to show the volatility of a market.

A summary of money judgment obtained in court. (When this summary or abstract is recorded in the county recorder's office, in some states the judgment becomes a lien on the debtor's property, both presently owned or after-acquired.)

A summary prepared by a licensed abstractor of all documents recorded in the public records of the political subdivision where the land is located. An abstract in some states or areas is reviewed by an attorney or other experienced title examiner to determine the status of title. Virtually every abstractor today provides actual copies of the records rather than an abstract of each document

A summary.

This method of estimating the value of property uses similar properties available in the same market to extract the value of a parcel of land.

A provision in a mortgage that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstances. Usually when the borrower defaults on the loan.

Clause in a deed of trust or mortgage, which "accelerates," or hastens, the time when the indebtedness becomes due. For example, some deeds of trust contain a provision (an acceleration clause) stating that the note shall become due immediately upon the sale of the land or upon failure to pay interest or an installment of principal and interest

A building separate from the main structure on a property. Often used for a specific purpose, such as a workshop, storage shed or garage.

Recording of instruments with the county recorder by a title company merely as a convenience to a customer and without assumption of responsibility for correctness or validity.

The natural growth of a piece of land resulting from forces of nature

A formal declaration before a duly authorized officer (such as a notary public) by a person who has executed an instrument that such execution is his own act and deed. An acknowledgment is necessary to entitle an instrument (with certain specific exceptions) to be recorded, to impart constructive notice of its contents and to entitle the instrument to be used as evidence without further proof. The certificate of acknowledgment is attached to the instrument or incorporated therein.

43,560 square feet. A measurement of area.

The amount of time that has passed since a building or other structure was built. See also: EFFECTIVE AGE

Taxes assessed based on the value of the land and improvements

A supplement to any document that contains additional information pertinent to the subject. Appraisers use an addendum to further explain items for which there was inadequate space on the standard appraisal form.

Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM'S), Flexible Rate Loans, Variable Rate Loans. (See also: Indexing, Rate Index).

A type of mortgage where the interest rate varies based on a particular index, normally the prime lending rate.

The value of an asset (property or otherwise) that includes the original price plus the value of any improvement, and less any applicable depreciation.

An opinion of a property's sales price, after adjustments have been made to account for differences between it and another comparable property.

The date the interest rate changes on an adjustable rate mortgage.

A person appointed by the probate court to carry out the administration of a decedent's estate when the decedent has left no will. If a woman is appointed, she is called an administratrix.

A process of acquiring title to real property by possession for a certain (statutory) period of time, in addition to fulfilling other conditions.

The additional value a property enjoys based on subjective criteria such as look or appeal.

A written statement or declaration, sworn to before an officer who has authority to administer an oath.

A declaration that a certain set of facts are truthful.

A calculation used to determine an individual's likelihood of being able to meet the obligations of a mortgage for a particular property. Takes into account the down payment, closing costs and on-going mortgage payments.

A person who has been appointed to act on behalf of another for a particular transaction.

One who has authorization, either expressed or implied, to act for or represent another party, usually in business matters, such as issuing title insurance policies on behalf of a title insurer for a portion of the premium.

A written contract entered into between the seller (vendor) and buyer (vendee) for sale of real property (land) on an installment or deferred payment plan. It is also known as an agreement to convey, a long form Security Agreement or a real estate installment contract.

Rate which includes charges for title insurance, searching or abstract fees and examination fees.

Organization composed of title insurance firms which sets standards for the industry, including title insurance policy forms used on a national basis.

A change either to alter, add to, or correct part of an agreement without changing the principal idea or essence.

Any feature of a property that increases its value or desirability. These might include natural amenities such as location or proximity to mountains, or man-made amenities like swimming pools, parks or other recreation.

An organization of appraisal professionals and others interested in the appraisal profession.

The repayment of a loan through regular periodic payment.

The breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution and debt service (interest) fees.

The length of time over which an amortized loan is repaid. Mortgages are commonly amortized over 15 or 30 years.

A loan that is paid off, both interest and principal, by regular payments that are equal or nearly equal.

A measure of electric current describing the magnitude.

The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. For example: 6% add-on interest would be much more than 6% simple interest, even though both would say 6%. The A.P.R. is disclosed as a requirement of federal truth in lending statutes.

The rate of annual interest charged on a loan.

A sum of money paid at regular intervals, often annually.

A form used to apply for a mortgage loan that details a potential borrower's income, debt, savings and other information used to determine credit worthiness.

A ''defensible'' and carefully documented opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser.

A not-for-profit educational organization established by the appraisal profession in the United States in 1987. It is dedicated to the advancement of professional valuation and responsible for establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP).

A world-wide organization dedicated to real estate appraisal education, publication and advocacy.

The basic building blocks of the property valuation process, including property inspection, market analysis and basic economics.

The end result of the appraisal process, usually consists of one major, standardized form such as the Uniform Residential Appraisal Report form 1004, as well as all supporting documentation and additional detail information. The purpose of the report is to convey the opinion of value of the subject property and support that opinion with corroborating information.

An independent board of the APPRAISAL FOUNDATION, which writes, amends, and interprets USPAP. The ASB is composed of up to seven appraisers appointed by the Foundation's Board of Trustees. The ASB holds public meetings throughout the year to interpret and amend USPAP.

An estimate of value of property resulting from analysis of facts about the property; an opinion of value.

An opinion of the fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principals.

An educated, certified professional with extensive knowledge of real estate markets, values and practices. The appraiser is often the only independent voice in any real estate transaction with no vested interest in the ultimate value or sales price of the property.

The natural rise in property value due to market forces.

An attorney whose opinion is acceptable to a title company as the basis for issuance of a title insurance policy by the insurer. The insurer, rather than the attorney, executes the policy.

Any transaction in which the two parties are unconnected and have no overt common interests. Such a transaction most often reflects the true market value of a property.

The value of a property according to jurisdictional tax assessment.

The function of assigning a value to a property for the purpose of levying taxes.

The comparative relationship of a property's assessed value to its market value.

The jurisdictional official who performs the assessment and assigns the value of a property.

Any item of value which a person owns.

Transfer of ownership of a mortgage - usually when the loan is sold to another company.

A mortgage that can be taken over by the buyer when a home is sold.

When a buyer takes over, or "assumes" the sellers mortgage.

The act of conveying real property; taking title to a property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the property.

Any number of houses or other dwellings which are physically attached to one another, but are occupied by a number of different people. The individual houses may or may not be owned by separate people as well.