ACCELERATION CLAUSE

A clause in a promissory note, agreement of sale, or mortgage which gives the lender the right to call all sums due and payable in advance of the fixed payment date upon the occurrence of a specified event, such as a sale, default, assignment or further encumbrance of the property. Usually the payee has the option to accelerate the note upon default of payment of any installment when due, provided he gives adequate notice and specifies a time within which the defaulting party can cure the other breaches of provisions in the contract, such as failure to pay taxes and assessments, or failure to keep the property insured or in repair. The provision for acceleration must be expressly set forth in the mortgage or agreement of sale document, otherwise, the right does not exist. There should be a consistency between the acceleration provisions stated in the mortgage and those stated in the promissory note.

ACCEPTANCE

The expression of the intention of the person receiving an offer (offeree, usually the seller) to be bound by the terms of the offer. The acceptance must be communicated to the offeror and must be in writing to be enforceable. The retail buyer has the right to revoke the offer anytime before the seller's acceptance.

ACQUISITION

The act of becoming the owner of certain property; used also of the thing or property acquired.

ACRE

A measure of land equaling 43,560 square feet; or 4,840 square yards; or 160 square rods; or a tract about 208.71 feet square.

ACRE FOOT OF WATER

A volume of water that will cover an area of one acre to the depth of one foot: 43,560 cubic feet.

ADMINISTRATOR

A person appointed by the court to manage and settle the estate of a deceased person who has left no will

AFFIDAVIT -

A written declaration, sworn before an officer who has authority to administer oaths.

AGRET OF SEMENALE

A written agreement whereby the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms and conditions set forth in the agreement.

(Wrap Around Contract): A form of deed of trust that, in addition to any other amounts actually financed, includes the amounts of any prior deeds of trust.

AMORTIZATION

Liquidation or gradual retirement of a financial obligation by periodic installments.

AMORTIZATION PERIOD

The period of time for economic recovery of the net investment in a project. This period is the lesser of 1) the period of time over which the plan can be expected to serve a useful purpose, or 2) the period of time when further discounting of beneficial and adverse effects will not appreciably influence design.

The adjustment of the income, expenses, or carrying charges of real estate that are usually computed to the date of closing of title so that the seller pays all expenses to that date. The buyer assumes all expenses from the data on which the deed is conveyed to the buyer.

APPRAISAL

A written estimate and opinion of value; a conclusion resulting from the analysis of facts

APPRAISER

One qualified by education, training, and experience who is hired to estimate the value of real and personal property based upon experience, judgment, facts, and the use of the formal appraisal processes.

An estimate of value by comparing the sale prices of other similar properties.

APPRECIATION

An increased conversion value of property or mediums of exchange due to economic or related causes which may prove to be either temporary or permanent. ASSESSED VALUATION An assessment of property values, by a unit of Government, for purposes of taxation.

ASSESSMENT

A charge against real estate made by a unit of government to cover a proportionate cost of an improvement, such as street or-sewer.

A number assigned by the county tax assessor to identify a parcel of real property.

ASSETS

All valuable things owned by a person, corporation, or other entity, encumbered or not. ASSIGNMENT (OF TEASE) - A transfer to another of rights, interest, or claim in or to real or personal property. The party who assigns or transfers his interest is the assignor, and the assignee is the one to whom the assignment is made

A clause in a deed or related document under which a buyer who takes over payments on the seller’s old loan also agrees to pay the old loan.

The buyer will normally receive title and make the payments. The assumes and agrees to pay language is often found in the consideration section of the deed that transfers title from the seller to the buyer in such an assumption. The seller may or may not be released from liability, but in either case, the buyer is responsible legally to make payments on the loan.

ASSUMPTION AGREEMENT

An undertaking of a debt or obligation primarily resting upon another person.

ASSUMPTION OF MORTGAGE

The taking of title to property by a grantee wherein he assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property. He becomes a co-guarantor for the payment of the mortgage or deed of trust along with the original maker of the note, who is not released from his responsibility.

ATTACHMENT

The legal process of seizing the real or personal property of a defendant in a law suit, by levy or judicial order, and holding it in the custody of the court as security for satisfaction of the judgment.

ATTORNEY IN FACT

A person authorized to perform certain acts for another person, under power of attorney.

BALLOON PAYMENT

A final payment on a note. It is usually substantially larger than any of the preceding installments

BENEFICIARY

(1) One entitled to the benefit of a trust:(2) One who receives profit from an estate, the title of which is vested in a trustee:(3) The lender on a security of a note and deed of trust.

BEQUEATH

To leave personal property to another by will. To leave real property by will is to devise.

BILL OF SALE

A written instrument transferring title, right, and interest in personal property to another.

BINDER

An agreement to cover an earnest money deposit for the purchase of real property as evidence of the purchaser's good faith and intention to complete the transaction.

BLANKET MORTGAGE

A single mortgage which covets more than one piece of real estate.

BOND

Any obligation under seal. A real estate bond is a written obligation, usually issued on security of a mortgage or a trust deed

BREACH OF CONTRACT

Violation of any of the terms or conditions of a contract without legal excuse.

An arrangement in which the seller of real estate pays some or all of the buyer’s loan costs, usually measured by increments of 1 percent of the loan called points. The seller pays enough points to the lender to permit it to offer the buyer’s loan at a reduced interest rate, which reduces the monthly payment. The cost to the seller is small, but the reduction in payments to the buyer is often quite substantial.

Buydown arrangements are often structured to focus the entire reduction in interest rate, and therefore monthly payments, in the early years of the loan. In a 3-2-1 buydown, a seller will pay enough points to reduce the buyer’s interest rate by 3 percent, such as from 10 percent to 7 percent, the first year, then by 2 percent the second year and by 1 percent the third year. In the fourth year the loan interest rate and the monthly payments would return to the normal market rate of interest as set when the loan was first obtained.

CASH VALUE

The actual money that an Asset will bring on the open market without any lengthy delay.

CAVEAT EMPTOR

"Let the retail buyer beware" is Latin. Summarizes the rule that the retail buyer must examine, judge and test merchandise/property for himself.

CERTIFICATE OF TITLE

A document stating that title to a particular property is clear. It is prepared by an attorney or qualified person who has examined the abstract of title, but is not to be confused with title insurance. It is only an opinion that title is good. Usually given to a homeowner with the deed.

CLEAR TITLE

A title free and clear of all encumbrances.

CLOSING STATEMENT

An accounting by a broker of funds in a real estate sale, made to the seller and to the retail buyer.

CLOUD ON TITLE

An outstanding claim or encumbrance which would affect or impair the owner's title, if valid. A judgment or dower interest

COMPARABLE

Properties listed in an appraisal report which are substantially equivalent to the subject property, comparable in selling price, rental, income or similar measure.

COMPENSABLE INTEREST

Interest of parties that is to be compensated.

COMPLIANCE INSPECTION

Inspection of outgrants, military and civil, for compliance with terms of the outgrant and to review management/development of the property, particularly of outgrants which provide services to the general public.

COMPOUND INTEREST

Interest paid both on the original principal and on interest accrued from the time it fell due.

CONCESSION

A privilege granted to an individual by the Government, to sell food, etc., on Government land.

CONTRACT

An agreement, either oral or written to do or not to do certain things. In real estate, there are many different types of contracts, including listings, contracts of sale, options, mortgages, assignments, leases, deeds, escrow agreements, and loan commitments, among others

CONTRACT RENT

Payment for use of property, as specified in a lease.

CONVENTIONAL MORTGAGE

A mortgage on real estate securing a loan made by a private investor, not guaranteed by a Government agency such as FHA or VA.

CONVEYANCE

The transfer of title to real property by means of a written instrument, such as a deed.

COOPERATIVE

Multi-unit building owned by a corporation, each owner holding stock equal to the value of his apartment. Title is proprietary lease.

COST OF REPRODUCTION

The normal cost of exact duplication of a property with the same or closely similar materials as of a certain date or period.

COURSES AND DISTANCES

A method of describing or locating real property; this description gives a starting point and the direction and lengths of lines to be run; practically indistinguishable from a metes and bounds description

COVENANT

A written agreement in a deed which pledges that either party will perform or abstain from specified acts on a certain property, or which specifies or forbids certain uses of the property.

CURTESY

The common law life estate of a husband to land his wife possessed in fee at her death. This interest has been abrogated as modified by statute in many states.

DAMAGES

Compensation or indemnity recovered through the courts by any person who has suffered loss, detriment or injury to person, property or rights. A sum of money awarded to a person injured by an act of another. May be compensatory or punitive.

DEBT SERVICE

Periodic payment on a debt, for interest on and retirement of the principal.

DECLARATION OF TAKING

Part of a condemnation package; a document stating the need for the property, describing the property, and stating that the property is being taken by eminent domain. Filing the declaration in court, with the deposit of estimated compensation, transfers title to the condemner

DECREE

DEDICATION

The application of privately-owned land to the public for no consideration, with the intent that the land will be accepted and used for public purposes. A landowner may dedicate the entire fee simple interest, or an easement such as a public right-of-way across his property. Lands thus dedicated are normally taxed at a preferential rate.

DEED

A legal instrument in writing, duly executed, sealed, and delivered, whereby the owner of real property (grantor) conveys to another (grantee) some right, title, or interest in real estate.

DEED RESTRICTION

A provision in a deed controlling or limiting the use of the land.

DEFAULT

Failure to perform a specific, required legal duty.

DEFERRED MAINTENANCE

Existing but unfulfilled requirements for repairs and rehabilitation, deferred until a later date.

DEFICIENCY JUDGMENT

At a foreclosure sale, the difference between the indebtedness sued upon and the sale price or market value of the real estate. See also DEFICIENCY PAYMENT

DEFICIENCY PAYMENT

Additional compensation required in a final judgment in condemnation proceedings. See also DEFICIENCY JUDGMENT.

The arm of the federal government that guarantees loans and performs other services for veterans. This agency was formerly known as the Veterans Administration (VA).

DEPRECIATION

(1) A lowering of value. A reduction; lessening. The decline in value of property. Loss in market value. Deterioration over a period of time. The opposite of appreciation. (2) In appraising, depreciation is the reduction on value of a property as measured from the cost to replace it. It is the difference between the replacement cost and the market value. (3) In accounting, it is a write-off (usually annually) of a portion of an asset on the records.

DESCENT

Succession to ownership of an estate by inheritance. Title by which one person, upon death of another, acquires real estate of the latter as an heir at law. The person who inherits is controlled by state statutes.

DESIGN MEMORANDUM

A planning document prepared by the division/District Commander before any land may be acquired for a project.

DETERIORATION

Impairment of condition. One of the causes of depreciation and reflecting the loss in value brought about by wear and tear, disintegration, use in service, and the action of the elements

DEVISE

A transfer of real property under a will. The donor is the devisor and the recipient is the devisee. Where there is no will, the real property "descends" to the heirs.

DISCOUNT

(1) That which can be taken off the established amount. Mortgages, for example, are frequently discounted when paid in advance of maturity. (2) A sum paid to obtain certain preferred mortgages, as the payment of points to a lending institution for FHA and VA mortgages.

DISPOSAL

An authorized method of permanently divesting the Government of control and responsibility for real and personal property. Sale of Government-owned property.

DISPOSSESS

To deprive a person of possession and/or use of real property.

DOWER

A common law estate in land given to the wife in her husband's real property upon his death, consisting of a life estate in one-third of all the real estate owned by the husband during the marriage.

A clause in a mortgage that demands that the borrower pay off the loan in full if the house is ever sold. The lender can’t prevent the sale, but it can demand payment in full on the loan balance, which often has the same practical effect. In the absence of a due on sale clause, the loan is assumable without the lender’s consent

Older FHA and DVA loans are assumable without the consent of the lender

DURESS

Forcing action or inaction against a person's will.

EASEMENT

A privilege or right which the owner of one parcel of land may have to use or enjoy the lands of another, i.e., a right-of-way

EASEMENT APPURTENANT

An easement which is attached to, accompanies, and passes with a greater interest; it has no existence apart from the superior interest. Also called PERTAINING EASEMENT.

EARNEST MONEY

The cash deposit made by a purchaser of real estate as evidence of good faith.

ECONOMIC LIFE

The period over which a property will yield a return on the investment, over and above the economic or ground rent due to land.

ECONOMIC OBSOLESCENCE

Impairment of desirability or useful life arising from economic forces, such as changes in optimum land use, a legislative enactment which restrict or impair property rights, and changes in supply-demand relationships.

EFFECTIVE AGE

Age in years, indicated by the condition and utility of a structure.

EJECTMENT

A form of action to regain possession of real property, with damages for the unlawful retention.

ELEVATION

Surveying: The distance above or below a datum. Architecture: A sketch of the front or side of a building

EMBLEMENTS

Growing crops (called "fructus industriales") which are produced annually through labor and industry. Emblements are regarded as personal property even prior to harvest; thus, a tenant has the right to take the annual crop, even if the harvest does not occur until after his tenancy has ended. A landlord cannot lease his land to a tenant farmer and then terminate the lease without giving the tenant the right to re-enter to harvest his crops.

EMINENT DOMAIN

The right of the government, both state and federal, to take private property for a necessary public use, with just compensation paid to the owner. Through eminent domain, the state may acquire land (either fee, leasehold, or easement) for streets, parks, public buildings, public rights-of-way, and the like. The state may delegate the power of eminent domain to local governments and to public corporations and associations such as school districts. No private property is exempt from this exercise of government power.

ENCROACHMENT

Trespass; the building of a structure or any improvements partly or wholly intruding upon the property of another.

ENCUMBRANCE

Any claim, lien, charge or liability attached to and binding upon real property which may lessen the value of the property but will not necessarily prevent transfer of title. There are two general classifications of encumbrances: (1) those that affect the title, such as judgments, mortgages, mechanic's liens and other liens which are charges on property used to secure a debt or obligation; and (2) those that affect the physical condition of the property such as restrictions, encroachments, and easements

ENDANGERED SPECIES

Plants and animals which are in danger of extinction throughout a significant portion of their ranges, as listed by U.S. Department of Interior.

ENGINEERING FEASIBILITY STUDY

Evaluation of a proposed construction at a particular site, to determine whether the proposed project is economically, structurally, and environmentally feasible.

ENVIRONMENTAL ASSESSMENT

A written evaluation, made early in the planning process, of the potential environmental impact of a proposed action.

ENVIRONMENTAL IMPACT ASSESSMENT

Analysis of a proposed action; the basis for deciding whether the proposed action will have a significant impact on the environment.

ENVIRONMENTAL IMPACT STATEMENT

A detailed, full-disclosure report pursuant to National Environmental Policy Act of 1969 (NEPA). An EIS identifies and analyzes the anticipated environmental impact of a proposed action, discusses how adverse effects will be mitigated.

EQUITY

In real estate, the interest or value of the real estate over and above the amount of the indebtedness thereon

EQUITY OF REDEMPTION

Also known as Statutory Redemption or Redemption. The right of the mortgagor, before a foreclosure sale, to reclaim property which has been forfeited due to mortgage default. The mortgagor can redeem the property by paying the full debt, plus interest and cost. Takes place in Title Theory states.

EROSION

Wearing away land through processes of nature, for example by streams and wind.

ESCALATION CLAUSE

A clause in a lease which causes a rent increase, contingent on a specific action.

ESCHEAT

The reverting of property to the state by reason of failure of person legally entitled to hold or when heirs capable of inheriting are lacking.

ESCROW

In real estate, it is the state or condition of a deed which is conditionally held by a third party, called the escrow agent, pending the performance or fulfillment of some act or condition.

ESCROW AGREEMENT

A written agreement between two or more parties whereby the grantor, promisor or obligor, delivers certain instruments or property into the hands of a third party, the escrow agent, to be held by said third party until the happening of a contingency or performance of a condition, and then to be delivered to the grantee, promisee, or obligee

ESTATE

In real estate it refers to the degree, quantity, nature, and extent of interest which a person has in real property, such as a fee simple absolute estate, an estate for years.

ESTATE AT SUFFERANCE

An estate in land arising when the tenant wrongfully holds over after the expiration of his term; the landlord has the choice of evicting the tenant as a trespasser or accepting such tenant for a similar term and under the conditions of the tenant's previous holding; often called a tenancy at sufferance.

ESTATE FOR LIFE

A freehold estate, not of inheritance, but which is held by the tenant for his own life or the life or lives of one or more other persons, or for an indefinite period that may extend for the life or lives of persons in being, and beyond the period of life.

ESTATE FOR YEARS

An interest in land for a fixed period of time, from one day upwards; often called a tenancy for years.

ESTATE FROM PERIOD TO PERIOD

An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month or year; often called tenancy from year to year.

ESTATE IN REVERSION

The residue of an estate left in the grantor to commence in possession after the termination of some particular estate

ESTOPPEL

A legal doctrine which prevents one from asserting rights that are inconsistent with a previous position or representation.

ESTOVERS

Wood which a tenant is allowed to take from the landlord's premises for the necessary fuel, implements, repairs, etc., of himself and his (resident) servants. ET AL. Abbreviation for et alii, Latin meaning and others. ET UX. Abbreviation for et uxor, meaning and wife.

ET VIR

Latin meaning and husband.

EVICTION

Dispossession by process of law; the act of depriving a person of the possession of lands he has held pursuant to a judgment of the court.

EXCESS

Designates real property which is no longer required by the Federal agency accountable for it.

EXCESSING

The process of determining that real estate is not needed by the Army; reporting excess property to the disposal agency for disposal.

EXCHANGE

Disposal of any real interest by exchanging it for another real interest of equal value instead of cash.

EXCLUSIVE LEGISLATIVE JURISDICTION

Jurisdiction under which the Federal Government holds all the authority of a state legislate over a particular area, except authority to serve process in cases arising from occurrences outside of the area.

EXECUTOR

An individual or institution designated in a will and appointed by a court to settle the estate of the testator.

EXPERT WITNESS

Persons with particular knowledge or skill which enables them to give an opinion on the facts in dispute.

FAIR MARKET VALUE

Legal term synonymous with MARKET VALUE.

A corporation formerly run by the federal government that insured deposits in S&Ls; FDIC took over this function

FSLIC deposit insurance funds, what were left of them, were transferred to an FDIC fund called Savings Association Insurance Fund, SAIF for short

FEE

When applied to property, an inheritable estate in land.

FEE SIMPLE

The most comprehensive ownership of real property known to law; the largest bundle of ownership rights possible in real estate. Fee simple title is sometimes referred to as "the fee".

FEE TAIL

An estate or interest in land which cannot be conveyed but which must descend to the heirs of the holder; abolished in most states

FIRST MORTGAGE

The mortgage on property that is superior in right to any other mortgage.

FIXTURE

A chattel which is affixed to and becomes a part of real property.

FORECLOSURE

Procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms.

FOREIGN EXCESS REAL ESTATE

Excess real property located outside the U.S., Puerto Rico, American Samoa, Guam, the Trust Territory of Pacific Islands, or Virgin Islands. May not include timber or installed equipment. Check regulations for definition of real estate at each location: Japan USARJ 405-1; Korea USFK 405-7; Europe USAREUR 405-8.

FORFEIT

Loss of money, property, or the right to property by failure to act or by negligent or improper action. Property lost is called a forfeiture.

FRAUD

The intentional perversion of truth to deceive another person, whereby that person acts upon it to his legal injury.

FREEHOLD

An estate in fee simple or for life.

FRONT FOOT

One foot along the street frontage of a property

FUNCTIONAL OBSOLESCENCE

A loss in value of an improvement due to functional inadequacies, often caused by age or poor design. For example, functional obsolescence may be attributable to such things as outmoded plumbing or fixtures, inadequate closet space, poor floor plan, excessively high ceilings or antiquated architecture. Thus a warehouse with nine foot ceilings would probably suffer a loss in value because a modern forklift could not operate in such a small space.

GENERAL LIEN

A lien which attaches to all property owned by the debtor.

GENERAL WARRANTY

A covenant in the deed whereby the grantor agrees to protect the grantee against the world.

GRADUATED LEASE

A lease that provides for the varying rental rate, often based upon future determination; sometimes rent is based upon result of periodic appraisals; used largely in long-term leases.

GRADUATED RENTAL SYSTEM

A concession lease in which lessee's percentage rental fluctuates with the ratio of his gross income to gross fixed assets. Also provides for a nonrefundable Fixed Minimum Rental (FMR). Percentage rental is offset against the FMR

GRANT

The act of conveying or transferring real property, the operative words in a conveyance of real estate are to "grant, bargain, and sell". The grantor (the person who conveys the real estate) delivers the grant, in the form of a deed, to the grantee.

GRANTEE

Entity to whom a grant is made, or to whom real estate is conveyed. The retail buyer.

GRANTOR

Entity who makes a grant, conveys real estate by deed. The seller.

GROSS INCOME

The projected annual income from operation of a business or from management of a property.

GROSS RENT MULTIPLIER

Ratio of sales price to monthly rental income for single family residential properties.

GROUND LEASE

A lease to use land for a stated period; may be secured by improvements which the tenant will provide.