NATIONAL REAL ESTATE VOCABULARY
1. Abandonment: the relinquishment of all rights and title to a property with no intention of
reclaiming ownership
2. Abstract of Title: A condensed history of the title to a parcel of land consisting of a summary
of every recorded instrument, together with a statement of liens, charges or encumbrances
affecting title to that land
3. Abutting Owner: An owner whose land touches a highway or other public place.
4. Acceleration Clause: A clause in a mortgage or installment contract stating thatupon default
of payment due, immediate and full payment of the balance of the obligation becomes due
and payable
5. Access Right: The right of property owner to have ingress and egress to andfrom his
property
6. Accession: The acquisition of title to additional property by its annexation to realestate
already owned. This can be the result of human actions (as in the case of fixtures) or natural
processes (such as accretion or reliction)
7. Accretion: Gradual additions to land by deposits of sand or soil by borderingwaters through
natural causes
8. Accrued Depreciation: The difference between the cost of replacement new, onthe date of
the appraisal, and the present appraised value
9. Acknowledgment: A formal declaration made before a notary public or other authorized
person, by a person who has executed an instrument, that such executionis his free act and deed
10. Acre: A measure of land equal to 60 square rods, 4,840 square yards, or 43,560square feet
11. Action of Ejectment: A legal action brought about to regain possession of real property;
used when there is no relationship of landlord and tenant, such as re-entry by the actual owner
against a claimant under adverse possession
12. Actual Authority: Such authority that a principal intentionally gives his agent
13. Ad Valorem: Tax according to value
14. Adjoining Owner: One whose property is contiguous; to be next to
15. Adjustable-Rate Mortgage (ARM): A loan in which the interest rate is periodi-cally
increased or decreased to reflect changes in the cost of money
16. Administrator: A person appointed by the court to administer the estate of adeceased
person who died intestate, and left no will
17. Adverse Possession: The means of acquiring title to land against the real owner, where
possession has been actual, open, hostile, exclusive, continuous, andunder claim of right for the
statutory period
,18. Affidavit: A statement reduced to writing and sworn to before a notary public orsome
other authorized officer
19. Affirm: To confirm or to ratify
20. Agency: The legal relationship resulting from an agreement that the agent is authorized
by a principal to perform certain acts on behalf of the principal in dealingwith a third party
21. Agreement of Sale: A written agreement in which the buyer agrees to buycertain realty
and the seller agrees to sell upon terms and conditions set forth therein. Title remains with the
seller until terms and conditions are fulfilled
22. Air Rights: The rights vested by a grant of an estate in real property to all or anyportion of
the space above the ground
23. Alienation: The transferring of real property from one person to another
24. Alienation Clause: A provision in a security instrument that gives the lender the right to
declare the entire loan balance due immediately if the borrower sells ofotherwise transfers the
security property. Also called a due-on-sale clause
25. Alluvion: That increase of soil on a shore or bank of a river as a result ofaccretion
26. Amenities: Those things which are marked by such qualities as pleasantness,
comfortableness, and agreeableness. In appraising, the amenities of property are those
qualities which increase the pleasure of ownership and are not necessarily related to monetary
values
27. Amortization: The gradual paying off of a debt on an installment basis
28. Annexation: The act of attaching, adding, joining, or uniting one thing to another
29. Appraisal: An estimate of value of real estate: the report stating and supportingthe
estimated value of realty
30. Appraisal by Capitalization: Determining the value of property by dividing newannual
income by the capitalization rate. Use on income producing properties
31. Appraisal by Market Data: An appraisal of property through the examinationand compare
actual sales of comparable properties. Also called a "comparable"
32. Appreciation: An increased value of property due to economic or related caus-es which
may prove to be either temporary or permanent
33. Appurtenance: That which has been added to a property, which becomes aninherent part
of the property, and will pass with it when conveyed
34. Assemblage: Putting together two or more lots to form a large parcel. To bedistinguished
from plottage, which is the resulting value
35. Assessed Value: An assessment of property values by the government for thepurpose of
taxation
, 36. Assessment: A charge against real estate made by a unit of government tocover the
proportionate cost of improvements
37. Assignee: The person to whom an agreement or contract is transferred
38. Assignment: The method of manner by which a right, specialty, or contract istransferred
from one person to another
39. Assignor: A party who assigns or transfers an agreement or contract to another
40. Assumption of Mortgage: Taking of title to property by assuming liability forpayment of
an existing note secured by a mortgage
41. Attachment: The act of taking realty by judicial order and placing within thecustody of
the court
42. Avulsion: The sudden removal of land of one owner and deposition on the landof another
when a stream changes its channel
43. Balance: An appraisal principal which holds that the maximum value of real estate is
achieved when the agents in production (labor, coordination, capital, andland) are in proper
balance with each other
44. Balloon Payment: The final installment payment on a note which is greater thanthe
preceding intallment payments and pays the note in full
45. Bargain and Sale Deed: A deed used to convey title to real property, which mayor may not
include warranties; if any, they are generally limited to an assertion by the grantor that he has
possession of the property.
46. Baseline and Meridian: Imaginary lines used by surveyors in locating and describing land
under the rectangular survey method. The north-south line is themeridian, the easst-west line
is the base line. Used in 30 states.
47. Basis: A figure used in calculating a gain on the sale of real estate for federalincome tax
purposes. Also called cost basis
48. Benchmark: A permanent reference mark or point established for the use inmeasuring
differences in elevation.
49. Beneficiary: A person who receives and benefits from the gifts or acts ofanother; one who
receives the proceeds from a will, insurance policy, or trust.
50. Bequeath: The giving of personal property by will
51. Bilateral Contract: A contract in which both parties have reciprocal obligationstowards
each other.
52. Bill of Sale: A written instrument which passes title of personal property fromseller to
buyer
53. Blanket Mortgage: One mortgage covering two or more specific parcels ofrealty.
1. Abandonment: the relinquishment of all rights and title to a property with no intention of
reclaiming ownership
2. Abstract of Title: A condensed history of the title to a parcel of land consisting of a summary
of every recorded instrument, together with a statement of liens, charges or encumbrances
affecting title to that land
3. Abutting Owner: An owner whose land touches a highway or other public place.
4. Acceleration Clause: A clause in a mortgage or installment contract stating thatupon default
of payment due, immediate and full payment of the balance of the obligation becomes due
and payable
5. Access Right: The right of property owner to have ingress and egress to andfrom his
property
6. Accession: The acquisition of title to additional property by its annexation to realestate
already owned. This can be the result of human actions (as in the case of fixtures) or natural
processes (such as accretion or reliction)
7. Accretion: Gradual additions to land by deposits of sand or soil by borderingwaters through
natural causes
8. Accrued Depreciation: The difference between the cost of replacement new, onthe date of
the appraisal, and the present appraised value
9. Acknowledgment: A formal declaration made before a notary public or other authorized
person, by a person who has executed an instrument, that such executionis his free act and deed
10. Acre: A measure of land equal to 60 square rods, 4,840 square yards, or 43,560square feet
11. Action of Ejectment: A legal action brought about to regain possession of real property;
used when there is no relationship of landlord and tenant, such as re-entry by the actual owner
against a claimant under adverse possession
12. Actual Authority: Such authority that a principal intentionally gives his agent
13. Ad Valorem: Tax according to value
14. Adjoining Owner: One whose property is contiguous; to be next to
15. Adjustable-Rate Mortgage (ARM): A loan in which the interest rate is periodi-cally
increased or decreased to reflect changes in the cost of money
16. Administrator: A person appointed by the court to administer the estate of adeceased
person who died intestate, and left no will
17. Adverse Possession: The means of acquiring title to land against the real owner, where
possession has been actual, open, hostile, exclusive, continuous, andunder claim of right for the
statutory period
,18. Affidavit: A statement reduced to writing and sworn to before a notary public orsome
other authorized officer
19. Affirm: To confirm or to ratify
20. Agency: The legal relationship resulting from an agreement that the agent is authorized
by a principal to perform certain acts on behalf of the principal in dealingwith a third party
21. Agreement of Sale: A written agreement in which the buyer agrees to buycertain realty
and the seller agrees to sell upon terms and conditions set forth therein. Title remains with the
seller until terms and conditions are fulfilled
22. Air Rights: The rights vested by a grant of an estate in real property to all or anyportion of
the space above the ground
23. Alienation: The transferring of real property from one person to another
24. Alienation Clause: A provision in a security instrument that gives the lender the right to
declare the entire loan balance due immediately if the borrower sells ofotherwise transfers the
security property. Also called a due-on-sale clause
25. Alluvion: That increase of soil on a shore or bank of a river as a result ofaccretion
26. Amenities: Those things which are marked by such qualities as pleasantness,
comfortableness, and agreeableness. In appraising, the amenities of property are those
qualities which increase the pleasure of ownership and are not necessarily related to monetary
values
27. Amortization: The gradual paying off of a debt on an installment basis
28. Annexation: The act of attaching, adding, joining, or uniting one thing to another
29. Appraisal: An estimate of value of real estate: the report stating and supportingthe
estimated value of realty
30. Appraisal by Capitalization: Determining the value of property by dividing newannual
income by the capitalization rate. Use on income producing properties
31. Appraisal by Market Data: An appraisal of property through the examinationand compare
actual sales of comparable properties. Also called a "comparable"
32. Appreciation: An increased value of property due to economic or related caus-es which
may prove to be either temporary or permanent
33. Appurtenance: That which has been added to a property, which becomes aninherent part
of the property, and will pass with it when conveyed
34. Assemblage: Putting together two or more lots to form a large parcel. To bedistinguished
from plottage, which is the resulting value
35. Assessed Value: An assessment of property values by the government for thepurpose of
taxation
, 36. Assessment: A charge against real estate made by a unit of government tocover the
proportionate cost of improvements
37. Assignee: The person to whom an agreement or contract is transferred
38. Assignment: The method of manner by which a right, specialty, or contract istransferred
from one person to another
39. Assignor: A party who assigns or transfers an agreement or contract to another
40. Assumption of Mortgage: Taking of title to property by assuming liability forpayment of
an existing note secured by a mortgage
41. Attachment: The act of taking realty by judicial order and placing within thecustody of
the court
42. Avulsion: The sudden removal of land of one owner and deposition on the landof another
when a stream changes its channel
43. Balance: An appraisal principal which holds that the maximum value of real estate is
achieved when the agents in production (labor, coordination, capital, andland) are in proper
balance with each other
44. Balloon Payment: The final installment payment on a note which is greater thanthe
preceding intallment payments and pays the note in full
45. Bargain and Sale Deed: A deed used to convey title to real property, which mayor may not
include warranties; if any, they are generally limited to an assertion by the grantor that he has
possession of the property.
46. Baseline and Meridian: Imaginary lines used by surveyors in locating and describing land
under the rectangular survey method. The north-south line is themeridian, the easst-west line
is the base line. Used in 30 states.
47. Basis: A figure used in calculating a gain on the sale of real estate for federalincome tax
purposes. Also called cost basis
48. Benchmark: A permanent reference mark or point established for the use inmeasuring
differences in elevation.
49. Beneficiary: A person who receives and benefits from the gifts or acts ofanother; one who
receives the proceeds from a will, insurance policy, or trust.
50. Bequeath: The giving of personal property by will
51. Bilateral Contract: A contract in which both parties have reciprocal obligationstowards
each other.
52. Bill of Sale: A written instrument which passes title of personal property fromseller to
buyer
53. Blanket Mortgage: One mortgage covering two or more specific parcels ofrealty.
