AAA TENANT
A tenant with a top credit rating. To a real estate
developer, attracting such a tenant is important since
the ability to arrange both construction and permanent
financing for a major commercial project, such as a
shopping center or office building, is often dependent
upon pre- leasing a certain amount of the space to an
AAA tenant(s).
Back
to top -- View
Real Estate Listings
AAE
Accredited Assessment Evaluator. A professional designation
awarded by the International Association of Assessing
Officers.
Back
to top -- View
Real Estate Listings
ABANDONMENT
The voluntary release of a claim or right one has in
a piece of property with the clear intention of terminating
possession or interest and without giving this interest
to anyone else. Abandonment includes both the intention
to release any claim one has against the property as
well as the actual act of "abandoning" the
property.
Back
to top -- View
Real Estate Listings
ABATEMENT
A decrease or reduction in the amount of a charge such
as rent. For example, a tenant receives an abatement
of rent during the time the leased space cannot be inhabited
due to fire or flood damage.
Back
to top -- View
Real Estate Listings
ABLE
A term referring to the financial capability of a purchaser.
The word is often used in a phrase appearing in real
estate listing agreements and sales contracts as "ready,
willing and able."
Back
to top -- View
Real Estate Listings
ABNORMAL
SALE A sale that is not typical within the
context of what is happening in the marketplace.
Back to
top -- View
Real Estate Listings
ABODE
A home or place of residence. Back
to top -- View
Real Estate Listings
ABROGATE
To repeal or cancel. For example, a law could be repealed
(abrogated) by legislative action. Back
to top -- View
Real Estate Listings
ABSENTEE
OWNER The owner(s) of property who does not
physically reside on the property. When this occurs
both the rental as well as the upkeep of the property
are normally done by someone other than the actual owner,
such as a property manager. Back
to top -- View
Real Estate Listings
ABSORPTION
RATE The percentage of a particular type of
real estate that can be sold or leased in a particular
location during a certain period of time. Back
to top -- View
Real Estate Listings
ABSTRACT
OF TITLE A condensed chronological history
of all recorded instruments in the chain of title which
affect the title. Back
to top -- View
Real Estate Listings
ABSTRACTION
(EXTRACTION) METHOD A method of estimating
the value of land by establishing a ratio of site value
to total property value based on data from comparable
improved properties. The ratio derived from comparable
properties is then applied to the total value of the
property being appraised to estimate the value of the
land. Back
to top -- View
Real Estate Listings
ABUT
To border on or to share a common boundary. For example,
a property owner could have land that "abuts"
a highway, which means the two properties border each
other. Back
to top -- View
Real Estate Listings
ACCELERATED
DEPRECIATION The method(s) of depreciation
for income tax purposes which increases the write-off
at a rate higher than under the straight-line method
of depreciation. Back
to top -- View
Real Estate Listings
ACCELERATION
CLAUSE A clause in a promissory note, mortgage
or deed of trust giving the creditor (mortgagee) the
legal right to demand immediate payment of all future
payments due to the occurrence of some event such as
the default on an installment payment or the failure
to keep the property adequately insured. Back
to top -- View
Real Estate Listings
ACCEPTANCE
A voluntary expression by the person receiving the offer
(the offeree, and quite often the seller of the property)
to be bound by the exact terms of the offer in the manner
requested or authorized by the person making the offer
(the offeror, and quite often the potential buyer of
the property). An acceptance must be unequivocal and
unconditional. Back
to top -- View
Real Estate Listings
ACCESS
The right to enter upon and leave property. The owner
of land which abuts or adjoins a road or highway normally
has a vested right to come and go from his or her land
to the highway without obstruction, subject to limitations
imposed by the governing body. Back
to top -- View
Real Estate Listings
ACCESSIBILITY
The ease with which a person can either enter or exit
a particular parcel of land. The accessibility of a
particular parcel is a function of many things such
as frontage to a road, traffic flow, and topography.
Good accessibility will usually result in higher value;
likewise, a parcel of land with poor accessibility will
normally sell for less in the marketplace. Back
to top -- View
Real Estate Listings
ACCESSION
The legal right that entitles the owner of land to all
that the soil produces or all that is added to the land
either intentionally or by mistake. Back
to top -- View
Real Estate Listings
ACCESSORY
BUILDING A second building on a lot and one
that is not considered to be the primary building. A
storage shed or a detached garage would be an accessory
building. Back
to top -- View
Real Estate Listings
ACCORD AND
SATISFACTION An agreed-to substitution of a
different performance for the original obligation, the
accord being the agreement and the satisfaction the
execution or performance. Back
to top -- View
Real Estate Listings
ACCREDITED
RESIDENTIAL MANAGER (ARM) A professional designation
awarded by the Institute of Real Estate Management (IREM),
an affiliate of the National Association of Realtors.
The designation is intended for those persons specializing
in the management of residential property. Back
to top -- View
Real Estate Listings
ACCRETION
The accumulation of land (soil) as a result of the gradual
washing or motion of water (alluvion). Back
to top -- View
Real Estate Listings
ACCRUED
An accumulation over a certain period of time, such
as accrued depreciation or accrued interest. Back
to top -- View
Real Estate Listings
ACCRUED DEPRECIATION
Any diminishment or loss of utility or value of a building
from the time of initial construction to the present.
Accrued depreciation is calculated as the difference
between what it would cost to replace the building new
and the current appraised value of the building. Back
to top -- View
Real Estate Listings
ACCRUED INTEREST
Unpaid interest that has already been earned. Back
to top -- View
Real Estate Listings
ACKNOWLEDGMENT
A formal declaration to a public official by a person
who has signed (executed) an instrument which states
that the signing was voluntary. Back
to top -- View
Real Estate Listings
ACQUISITION
The act or process by which property ownership is achieved.
The ways in which title to real property is transferred
may be classified as (1) voluntary conveyance (deed),
(2) transfer by devise (dying with a will) or descent
(dying without a will), (3) transfer by adverse possession,
(4) transfer by accession and (5) transfer by public
action or by operation of law. Back
to top -- View
Real Estate Listings
ACQUISITION
COST The total cost of purchasing or acquiring
title to real property. In addition to the sales price,
additional costs could also include loan origination
fees, appraisal fee, credit report fee, title charges,
attorney fees and other normal closing costs. Back
to top -- View
Real Estate Listings
ACRE
A measure of land in whatever shape equal to 43,560
square feet, 4,840 square yards or 160 square rods.
A square parcel of land measuring 208.71 feet on each
side contains one acre. There are 640 acres in a section
of land.
Back
to top -- View
Real Estate Listings
ACREAGE PROPERTY
A large tract of land that has had few, if any, improvements
made either "to" the land, such as roads or
the platting of individual lots, or "on" the
land, such as buildings.
Back
to top -- View
Real Estate Listings
ACTION TO
QUIET TITLE A lawsuit filed by a person to
remove a cloud on title or clear the claims of others
filed against a parcel of property. The objective of
such action is to have a court rule that the claims
filed against the property are invalid.
Back
to top -- View
Real Estate Listings
ACT OF GOD
Any act of nature such as rain, lightning, floods or
earthquakes. Many casualty insurance policies do not
cover losses resulting from an "Act of God."
Back to
top -- View
Real Estate Listings
ACTUAL AGE
The historical (chronological) age of a building, as
for example a building constructed ten years ago is
ten years old in actual age. Actual age should not be
confused with effective age which is the age of a building
that is indicated by the condition and utility of the
improvement. It should be clear that the amount of maintenance
and care given to a building helps determine its effective
age. For example, a ten-year-old building might have
an effective age of twenty-five years because of poor
or deferred maintenance.
Back
to top -- View
Real Estate Listings
ACTUAL AUTHORITY
The power that a principal has expressly conferred upon
an agent or any power that is incidental or necessary
to carry out the express power of the agency. This power
may be broad, general power or it may be limited, special
power.
Back
to top -- View
Real Estate Listings
ACTUAL CASH
VALUE The monetary worth of a structure for
insurance purposes. Actual cash value is calculated
by taking the replacement cost of the property and then
subtracting the value of the physical wear and tear
of the property.
Back
to top -- View
Real Estate Listings
ACTUAL DAMAGES
The compensation received by an injured party for the
actual injuries or loss suffered by the party.
Back to
top -- View
Real Estate Listings
ACTUAL EVICTION
The violation of any material breach of covenants by
the landlord or any other act which wrongfully deprives
the tenant of the possession of the premises.
Back
to top -- View
Real Estate Listings
ACTUAL POSSESSION
The physical occupancy and control by someone of a parcel
of real estate. For example, if John has clear title
to his house and is living in the house then he is in
actual possession of the house. A distinction should
be made between actual possession and constructive possession
which occurs when a person has the legal right to assume
occupancy but does not actually occupy the space.
Back to
top -- View
Real Estate Listings
ADC LOAN
A type of loan intended to cover the three phases of
a project: (1) acquisition, (2) development, and (3)
construction. Such loans, while considered more risky
than some other types of real estate loans, are normally
made with a variable interest rate and are expected
to be repaid over a reasonably short period of time.
Back
to top -- View
Real Estate Listings
ADDENDUM
Something that is added and thus made part of a document.
Quite often a real estate listing agreement or sales
contract is a pre-printed form and thus may not have
the space within the document to include specific and
detailed information that the parties to the contract
wish to include.
Back
to top -- View
Real Estate Listings
ADD-ON-INTEREST
A method of calculating the amount of interest due by
taking the simple interest that would be charged if
the loan principal amount was not amortized over the
term of the loan. Periodic installments are thus calculated
by dividing the sum of the add-on interest and original
principal by the number of periods in the term.
Back to
top -- View
Real Estate Listings
ADEQUATE
PUBLIC FACILITIES ORDINANCE A local government
ordinance that requires that certain public facilities
such as road and utilities be completed or soon to be
completed before any new real estate development can
be permitted. This technique is used by municipalities
to control growth and direct new development toward
areas where adequate public facilities exist.
Back
to top -- View
Real Estate Listings
ADJACENT
LAND Land lying close to or near another parcel,
though the two parcels may not actually touch. The term
should not be confused with adjoining land which exists
when two parcels are actually jointed to each other.
Back
to top -- View
Real Estate Listings
ADJUNCTION
The process of adding or annexing a parcel of land to
a larger parcel.
Back
to top -- View
Real Estate Listings
ADJUSTABLE
RATE MORTGAGE (ARM) A type of real estate loan
in which either the interest rate charged or the length
of the loan, or both, can change. Adjustable rate mortgages
became very popular during the 1980s due primarily to
the reluctance of lenders to quote a fixed interest
rate loan to potential borrowers. By using an ARM, a
lender is able to pass on the uncertainty of changes
in interest rates to the borrower if rates change during
the life of the loan. ARMs are normally tied to some
index such as government securities.
Back
to top -- View
Real Estate Listings
ADJUSTED
COST BASIS The value of property for accounting
purposes used to determine the amount of gain or loss
realized by the owner upon the sale of the property.
Back
to top -- View
Real Estate Listings
ADJUSTED
SALES PRICE The estimated sales price of a
comparable property after additions and/or subtractions
have been made to the actual sales price for improvements
and deficiencies when compared to the subject property
being appraised.
Back
to top -- View
Real Estate Listings
ADJUSTMENTS
The additions and subtractions made in the market data
or comparable sales approach to value to account for
differences in location, design, age, etc. between the
properties being used as comparables and the subject
property being appraised.
Back
to top -- View
Real Estate Listings
ADMINISTRATOR
A person appointed by a court to administer or settle
the estate of a deceased person who has died intestate
(dying without a will).
Back
to top -- View
Real Estate Listings
ADMINISTRATRIX
Feminine form of administrator.
Back
to top -- View
Real Estate Listings
ADMINISTRATOR'S
DEED A conveyance of property which is issued
to a grantee (purchaser) who purchases property from
an estate.
Back
to top -- View
Real Estate Listings
ADULT
A person who has attained the age of majority and thus
has the legal capacity to be bound under a contract.
The age of majority varies from state to state.
Back to
top -- View
Real Estate Listings
AD VALOREM
A Latin prefix meaning "according to value."
Local and state governments levy taxes on real property
based on the assessed value of the property. Two different
pieces of property with the same assessed value have
the same ad valorem tax.
Back
to top -- View
Real Estate Listings
ADVANCE
The word has two common meanings in real estate finance:
(1) to pay or advance money before it is due, and (2)
to disburse working capital to a builder/developer through
a construction loan. Under the first meaning, an owner
might have both a first mortgage and a second mortgage
on a parcel of real estate.
Back
to top -- View
Real Estate Listings
ADVERSE POSSESSION
A method of acquiring title to real property by possession
for a statutory period of time.
Back
to top -- View
Real Estate Listings
AESTHETIC
VALUE The intangible value of property created
when the property possesses unique characteristics or
features that make it attractive.
Back
to top -- View
Real Estate Listings
AFFIANT
The person who makes an affidavit.
Back
to top -- View
Real Estate Listings
AFFIDAVIT
Latin meaning "has pledged his faith." A written
statement of facts made voluntarily and sworn to under
oath before a public official or other persons authorized
to administer such an oath.
Back
to top -- View
Real Estate Listings
AFFIDAVIT
OF TITLE A sworn statement by the seller of
real estate that no defects of title other than those
stated in the sales contract or deed exist in the title
being conveyed.
Back
to top -- View
Real Estate Listings
AFFIRM
Ratification of a voidable contract by the party who
is to be bound under the contract.
Back
to top -- View
Real Estate Listings
AFFIRMATION
A solemn and formal declaration attesting to the truth
of some matter. In certain instances, an affirmation
is substituted for an oath, as for example, when a person
for religious or personal reasons does not wish to take
an oath.
Back
to top -- View
Real Estate Listings
AFFIRMATIVE
FAIR HOUSING MARKETING PLAN Action taken with
the intent of encouraging minority integration in housing.
The Department of Housing and Urban Development (HUD)
has required an affirmative fair housing marketing plan
from all subdivisions, multi-family projects and mobile
home parks of five or more units before these projects
are eligible for participation in various federal programs,
including home mortgage programs.
Back
to top -- View
Real Estate Listings
AFTER ACQUIRED
TITLE Legal ownership in real property acquired
by someone who had previously transferred his or her
legal interest in the property.
Back
to top -- View
Real Estate Listings
AFTER-TAX
CASH FLOW The spendable cash from an income-
producing asset, such as an office building or apartment
complex, calculated by taking gross income and subtracting
fixed and variable costs, replacement for reserves,
debt service plus tax savings or minus tax liability.
Back
to top -- View
Real Estate Listings
AFTER-TAX
EQUITY YIELD RATE The internal rate of return
on the equity investment after considering federal income
taxes.
Back
to top -- View
Real Estate Listings
AFTER-TAX
PROCEEDS FROM RESALE The amount of money a
property seller would receive from a property sale after
subtracting transaction costs, capital gains taxes and
other expenses. Generally, this figure is calculated
by taking the selling price less the sum of the existing
debt, the income or capital gains taxes, and the expenses
of sale.
Back
to top -- View
Real Estate Listings
AGE-LIFE
METHOD A method of estimating accrued depreciation
by applying to the reproduction cost new of the property
the ratio of the property's effective age to its economic
useful life.
Back
to top -- View
Real Estate Listings
AGENCY
A relationship in which one party (known as the principal)
authorizes another party (the agent) to act as the principal's
representative in dealing with third parties. Agency
law generally involves rights and liabilities among
these three parties.
Back
to top -- View
Real Estate Listings
AGENCY BY
ESTOPPEL (Ostensible Agency) A type of agency
relationship that occurs when the principal in a principal-agent
relationship leads a third person to believe that someone
is an agent. The principal may create the impression
of agency either intentionally or negligently.
Back to
top -- View
Real Estate Listings
AGENCY BY
NECESSITY An agency relationship in which authority
to act is created by operation of law in an emergency.
During such an emergency, it is generally unnecessary
to gain consent from a principal in order for a person
to act to protect property or person.
Back
to top -- View
Real Estate Listings
AGENCY BY
RATIFICATION A type of agency relationship
that occurs when a principal agrees to be bound by the
acts of a person purporting to act as an agent, even
though the person was not in fact an agent. The principal
may also be bound if there are acts of an agent who
acted beyond the scope of authority.
Back
to top -- View
Real Estate Listings
AGENT One who acts for and in the
place of a principal for the purpose of affecting
the principal's legal relationship with third persons.
The power of an agent to affect the principal's legal
relations for lawful purposes is called authority.
Back
to top -- View
Real Estate Listings
AG LAND Land zoned for agricultural
use such as farmland or land used to raise livestock.
Back
to top -- View
Real Estate Listings
AGGRAVATION COSTS The annoyance
and irritation to a driver or passenger during a linkage
trip caused by congestion, bad weather, delay or other
inconveniences.
Back
to top -- View
Real Estate Listings
AGREEMENT An expression of mutual
assent, or a meeting of the minds, by two or more
parties on a given proposition.
Back
to top -- View
Real Estate Listings
AGRICULTURAL PROPERTY Land zoned
for agricultural or farming activities.
Back
to top -- View
Real Estate Listings
AIR RIGHTS The right to use, control
and occupy the space above a particular parcel of
real estate.
Back
to top -- View
Real Estate Listings
ALC Accredited Land Consultant.
A professional designation awarded by the Realtors
Land Institute to people involved in the marketing
and brokerage of land.
Back
to top -- View
Real Estate Listings
ALIENATION The voluntary transfer
of property and possession of the land or tenements
from one party to another.
Back
to top -- View
Real Estate Listings
ALIENATION CLAUSE A provision often
included in a mortgage or deed of trust that legally
permits the lender (mortgagee) to demand payment of
all the outstanding principal if the property is sold
or transferred by the borrower (mortgagor). Such a
provision is also commonly known as a due-on-sale
clause.
Back
to top -- View
Real Estate Listings
ALLOCATION (ABSTRACTION) METHOD
An appraisal technique used to estimate the value
of the site (land) by deducting the value of the improvements
from the total sales price of the property.
Back
to top -- View
Real Estate Listings
ALLODIAL SYSTEM The free and complete
ownership of land by individuals. The allodial system
is the system of property ownership in America today.
The term allodial means free from the tenurial or
vested rights in the king or feudal overlord.
Back
to top -- View
Real Estate Listings
ALLUVION The increase of soil, gravel
or sand upon the bank of a stream or river or the
shore of a sea due to the flow or current of the water.
The actual act of the soil being added is known as
accretion.
Back
to top -- View
Real Estate Listings
ALONSO, WILLIAM An urban economist
who believed that urban sites are composed of both
land and location. In his book, Location and Land
Use, Alonso explained the trade-off that exists between
land rent and the transportation cost incurred by
individuals in determining where to locate within
an urban area.
Back
to top -- View
Real Estate Listings
ALTERATION An unauthorized modification
of a contract by one of the parties to the contract.
The alteration is considered material when it affects
the rights of the parties to the contract. If the
alteration is intentional and material, it will be
treated as fraud and the innocent party may void the
contract at his or her option.
Back
to top -- View
Real Estate Listings
AMENITY A feature or benefit received
from a particular parcel of property which increases
the satisfaction received by the owner or user of
that property. Amenities may be both natural, for
example, location or scenic view, and manmade, such
as a swimming pool or tennis courts. Both material
and manmade amenities increase the desirability of
a certain location or parcel of land and thus that
particular land will normally have a higher value
than a parcel of land without the amenities.
Back
to top -- View
Real Estate Listings
AMERICAN BANKERS ASSOCIATION (ABA)
Membership in the American Bankers Association is
comprised of persons employed in the commercial banking
business. The organization serves as a spokesman for
the banking community. The Association is headquartered
at Connecticut Avenue, N.W., Washington, D.C. 20036;
(202) 663-5000.
Back
to top -- View
Real Estate Listings
AMERICAN ECONOMIC DEVELOPMENT COUNCIL (AEDC)
The American Economic Development Council is an international
organization whose mission is to advance the art and
science of economic development. AEDC publishes a
journal, Economic Development Review, and awards the
professional designation CIDICED (Certified Industrial
or Economic Developer). The council's address is Suite
22, 4849 North Scott Street, Schiller Park, Illinois
60176.
Back
to top -- View
Real Estate Listings
AMERICAN INSTITUTE FOR PROPERTY AND LIABILITY
UNDERWRITER The American Institute for Property
and Liability Underwriters is the main professional
organization of property insurance agents. In addition
to numerous educational programs and seminars, a professional
designation, CPCU (Chartered Property Casualty Underwriter),
is sponsored by the institute. The mailing address
is Providence and Sugartown Roads, Malvern, Pennsylvania
19355; (215) 64-2100.
Back
to top -- View
Real Estate Listings
AMERICAN INSTITUTE OF ARCHITECTS
This institute awards the designation AL4 and is the
primary group for promoting architecture as a profession.
Among the group's activities is its national committee
on housing which provides numerous services in an
effort to improve the quality of the living environment.
The institute is located at 1735 New York Avenue,
N.W., Washington, D.C 20006; (202) 626-7300.
Back
to top -- View
Real Estate Listings
AMERICAN INSTITUTE OF HOUSING CONSULTANTS
This organization works with nonprofit sponsors in
developing low-income housing. The institute also
serves as a spokesman for low-income housing.
Back
to top -- View
Real Estate Listings
AMERICAN LAND DEVELOPMENT ASSOCIATION (ALDA)
The American Land Development Association is a trade
organization comprised primarily of land developers.
The association's primary function is to represent
the interstate land development industry in matters
related to land development. The mailing address is
1200 L Street, N.W., Washington, D.C. 20005; (202)
371-6700.
Back
to top -- View
Real Estate Listings
AMERICAN LAND TITLE ASSOCIATION (ALTA)
An association, founded in 1907, representing more
than 2,100 title abstractors, title insurance companies,
title insurance agents, and associate members. Since
the role and responsibility of the title industry,
and of its ALTA members, is to guarantee the safe,
efficient transfer of real property, the ALTA membership
functions cooperatively and effectively to provide
protection for consumers and lenders alike. Members
of the association use standardized title insurance
forms developed by ALTA to provide uniformity within
the industry. The ALTA staff represents specialists
in the fields of government relations, public affairs,
research and state governmental affairs. ALTA’s
national headquarters is located at 1828 L Street,
N.W., Suite 303, Washington, D.C. 20036; (202) 296-3671.
Back
to top -- View
Real Estate Listings
AMERICAN PLANNING ASSOCIATION (APA)
A professional trade association comprised of both
publicly and privately employed planners. APA was
formed by the merger of the American Institute of
Planners and the American Society of Planning Officials.
The association is located at 1313 East 60th Street,
Chicago, Illinois 60637; (312) 947-2560.
Back
to top -- View
Real Estate Listings
AMERICAN REAL ESTATE AND URBAN ECONOMICS
ASSOCIATION (AREUEA) The principal professional
organization of real estate education, AREUEA consist
of both educators and professional practitioners.
The association publishes a journal of articles dealing
with land use, urban economics and related topics.
Back
to top -- View
Real Estate Listings
AMERICAN SOCIETY OF APPRAISERS An
appraisal organization consisting of persons involved
in the appraisal of both real and personal property.
The society sponsors the designation ASA. The society's
mailing address is Dulles International Airport, P.O.
Box 17265, Washington, D.C. 20041; (703) 478-2228.
Back
to top -- View
Real Estate Listings
AMERICAN SOCIETY OF CONSULTING PLANNERS
A professional society whose membership is limited
to private planning firms. The society offers various
services to its members and serves as a spokesman
for consulting planners. The address is Suite 647,
210 7th Street, S.E., Washington, D.C. 20003; (202)
544-0035.
Back
to top -- View
Real Estate Listings
AMERICAN SOCIETY OF HOME INSPECTORS, INC.
(ASHI) A professional trade organization
whose membership specializes in the physical inspection
of homes. ASHI publishes numerous pamphlets and proceedings,
conducts seminars and provides a Standards of Practice.
The society's address is 7th Floor, 3299 K Street,
N.W., Washington, D.C. 20007; (202) 842- 3096.
Back
to top -- View
Real Estate Listings
AMERICAN SOCIETY OF REAL ESTATE COUNSELORS
(ASREC) As an affiliate with the National
Association of Realtors, this society consists of
real estate brokers, appraisers, and consultants involved
in assisting people in the buying and selling of real
estate. The professional designation CPE (Counselor,
Real Estate) is awarded by the society. The mailing
address is 430 North Michigan Avenue, Chicago, Illinois
60611; (312) 440-8091.
Back
to top -- View
Real Estate Listings
AMO Accredited Management organization.
A professional designation awarded by the Institute
of Real Estate Management to companies involved in
the management of property.
Back
to top -- View
Real Estate Listings
AMORTIZATION The repayment of a
financial obligation over a period of time in a series
of periodic installments. Specifically, this is the
payback of the principal owed to the lender. The effect
of amortization is to build up the paper value of
the investor's (owner's) equity and to reduce the
debt obligation. It should be noted that a portion
of each payment consists of a blend of interest and
amortization of principal. The interest portion is
tax deductible, whereas the amortization is not.
Back
to top -- View
Real Estate Listings
AMORTIZATION RATE The percentage
of a periodic payment that is applied to the reduction
of the principal; in a level- payment mortgage this
corresponds to the sinking fund factor.
Back
to top -- View
Real Estate Listings
AMORTIZATION TERM The time period
over which the principal amount would be retired on
the basis of the periodic installments paid.
Back
to top -- View
Real Estate Listings
AMORTIZED LOAN A financial obligation
that is repaid over a period of time by a series of
periodic payments.
Back
to top -- View
Real Estate Listings
ANACONDA MORTGAGE A type of mortgage
in which a clause is included which states that the
mortgage secures all debts of the mortgagor (borrower)
that may be due and payable to the mortgagee (lender).
Such a provision is also referred to as a Mother Hubbard
clause.
Back
to top -- View
Real Estate Listings
ANALYST An individual who performs
various studies and calculations to help make decisions
or solve problems concerning real estate investments.
Back
to top -- View
Real Estate Listings
ANCHOR TENANT A well-known commercial
retail business such as a national chain store or
regional department store strategically placed in
a shopping center so as to generate the most amount
of customers for all of the stores located in the
shopping center.
Back
to top -- View
Real Estate Listings
ANNEXATION The act of adding, joining
and attaching one thing to another. With respect to
the annexing of land, from time to time municipalities
legally incorporate into the existing town or city
limits a certain amount of land or territory outside
their legal boundary. This may be done to consolidate
two governments into one or perhaps to increase property
tax revenue for the municipality.
Back
to top -- View
Real Estate Listings
ANNUAL Occurring once a year.
Back
to top -- View
Real Estate Listings
ANNUAL DEBT SERVICE Total payments
required in one year in regard to a loan. The amount
of payment is affected by either a change in the interest
rate or a change in the payback period.
Back
to top -- View
Real Estate Listings
ANNUAL LOAN CONSTANT A ratio of
the annual debt payment on a loan to the original
amount borrowed. The loan constant is also referred
to as a mortgage constant.
Back
to top -- View
Real Estate Listings
ANNUAL PERCENTAGE RATE (APR) The
actual yearly cost of credit stated to the nearest
one-fourth of one percent. Any lender subject to the
federal Truth-in-Lending Act must fully disclose the
APR to the borrower.
Back
to top -- View
Real Estate Listings
ANNUITY A series of payments made
or received at even intervals either for life or for
a fixed number of years.
Back
to top -- View
Real Estate Listings
ANNUITY IN ADVANCE An annuity in
which payments are made at the beginning of each period
as contrasted with an ordinary annuity in which payments
are made at the end of each period.
Back
to top -- View
Real Estate Listings
ANNUITY METHOD A means of capitalizing
future income streams from an investment. The procedure
uses compound interest formulas that treat the income
stream as an annuity providing for both a return "on"
the investment and a return "of" the investment.
Back
to top -- View
Real Estate Listings
ANTICIPATION, PRINCIPAL OF A basic
value principle which states that value changes in
expectation of some future benefit or detriment affecting
the property. For example, the value of a vacant parcel
of land may increase if an office building is constructed
next to it; likewise, use of land as an open dump
may result in decreased values of surrounding residential
properties.
Back
to top -- View
Real Estate Listings
ANTITRUST LAWS State and federal
laws enacted to protect individuals and business entities
from monopolies and unfair restrictions. For example,
local real estate boards cannot require its members
to charge a certain brokerage commission rate since
to do so would be in violation of federal antitrust
laws.
Back
to top -- View
Real Estate Listings
APARTMENT BUILDING A type of property
intended for permanent residents who lease a specific
space or unit. Payment for use of the space is referred
to as rent.
Back
to top -- View
Real Estate Listings
APPARENT AUTHORITY In agency law
such authority which a third person can reasonably
assume that an agent has on the basis of actions or
inactions of the principal. This is so despite the
fact that the agent may not have actual authority.
Back
to top -- View
Real Estate Listings
APPEALS BOARD A means by which a
property owner can formally protest a tax bill and
seek a change in the assessed value of his or her
property. Jurisdictions that have such a board normally
require the property owner to have first met with
the tax assessor prior to appealing the property tax.
Back
to top -- View
Real Estate Listings
APPOINTMENTS Items such as furniture
or equipment found in a building that may increase
or decrease the intrinsic value of the property.
Back
to top -- View
Real Estate Listings
APPORTIONMENT A division or allocation
of responsibility among two or more persons. In regard
to the sale of real estate, the allocation is typically
of a cost or expense such as property taxes between
the purchaser and the seller, or, in the case of income
producing property, the allocation of rental income
between the purchaser and seller. Normally the seller
is responsible for expenses up to and including the
day of settlement or closing.
Back
to top -- View
Real Estate Listings
APPORTIONMENT CLAUSE A clause normally
included in standard insurance policies to prevent
financial gain by the insured as a result of insuring
the same property with two or more companies and hoping
to collect more than the loss.
Back
to top -- View
Real Estate Listings
APPRAISAL An estimate or opinion
of value supported by factual information as of a
certain date.
Back
to top -- View
Real Estate Listings
APPRAISAL FOUNDATION An educational
self-regulatory organization which functions for the
purpose of developing appraisal standards and appraiser
qualifications. The Appraisal Foundation is comprised
of member organizations representing various appraisal
groups, users of appraisal services and the public
at large. The address is 1029 Vermont Avenue, N.W.,
Suite 900, Washington, D.C, 20005; (202) 347-7722.
Back
to top -- View
Real Estate Listings
APPRAISAL INSTITUTE A professional
real estate appraisal organization whose members specialize
in valuation and market analysis. The mailing address
is 225 North Michigan Avenue, Chicago, Illinois 60611;
(8ffl) 732-7732.
Back
to top -- View
Real Estate Listings
APPRAISAL INSTITUTE OF CANADA An
appraisal organization comprised of persons doing
appraisal work in Canada. The institute offers membership
to those appraisers in the United States who do appraisal
work in Canada. The address is 177 Lombard Avenue,
Winnipeg, Manitoba, Canada; (204) 942-0751.
Back
to top -- View
Real Estate Listings
APPRAISAL PRINCIPLES Economic concepts
used to explain the rationale and process of market
behavior. Appraisal principles include anticipation,
change, competition, substitution, and supply and
demand.
Back
to top -- View
Real Estate Listings
APPRAISAL PROCESS A systematic step-by-step
analysis used by the appraiser to accurately reach
an opinion of value. While each appraisal assignment
varies according to the purpose of the appraisal and
the approach(es) used, a well-done estimate of value
will follow some standardized procedure.
Back
to top -- View
Real Estate Listings
APPRAISAL REPORT A written report
submitted by the appraiser to support and document
the opinion of value rendered by the appraiser. The
form of the appraisal report can be a letter of valuation,
a single page standard form or a more elaborate report.
Back
to top -- View
Real Estate Listings
APPRAISED VALUE An estimate of value
based on the appraiser's analysis of data within the
context of the appraisal problem that the appraiser
was employed to solve.
Back
to top -- View
Real Estate Listings
APPRAISER An individual who has
the experience, training, and legal qualifications
to appraise real or personal property. Effective July
1, 1991, appraisers must be state certified or licensed
in order to appraise property involving a federally
insured or regulated agency.
Back
to top -- View
Real Estate Listings
APPRECIATION An increase in an asset's
market value over its value at some previous point
in time. The increase can be a result of inflation,
increased demand or some other related cause. The
term denotes the opposite of depreciation.
Back
to top -- View
Real Estate Listings
APPROACHES TO VALUE The various
acceptable methods used by appraisers in deriving
an estimate of value. There are three traditional
approaches to value: (1) cost approach, (2) sales
comparison approach, and (3) income approach.
Back
to top -- View
Real Estate Listings
APPURTENANCE That which belongs
to something else and thus passes with the property.
Examples would include riparian rights, easements,
barns and other outbuildings, gardens and orchards.
Back
to top -- View
Real Estate Listings
ARA An appraisal designation for
Accredited Rural Appraiser awarded by the American
Society of Farm Managers and Rural Appraisers.
Back
to top -- View
Real Estate Listings
ARM Accredited Resident Manager.
A professional designation awarded by the Institute
of Real Estate Management to individuals involved
in the management of property.
Back
to top -- View
Real Estate Listings
ARBITRATION A procedure for resolving
disputes out of court by an impartial third party
chosen by the disputing parties who agree to abide
by the decision of the arbitrator. While disagreements
and disputes involving real estate often result in
court action, disputing parties sometimes agree to
settlement through arbitration.
Back
to top -- View
Real Estate Listings
"ARM'S LENGTH" TRANSACTION
A transaction such as a sale of property or the lending
of money in which all parties involved are acting
in their own self-interest and are under no undue
influence or pressure from the other parties. Such
a situation is the basis for deriving fair market
value, and if the transaction is not at arm's length
then the actual selling price will likely be less
than or greater than the market value.
Back
to top -- View
Real Estate Listings
ARPEN(ARPENT) A French measurement
term used to denote an area equal to seven-eighths
of one acre. (See Acre)
Back
to top -- View
Real Estate Listings
ARREARS Money which is not paid
on time, as for example, if a borrower has not made
the last two mortgage payments, he or she is said
to be in arrears. In many political jurisdictions,
property taxes are paid at the end of the year rather
than at the beginning and are thus referred to as
due in arrears rather than in advance.
Back
to top -- View
Real Estate Listings
ARTERIAL STREET A major road designed
to be a through street and to handle a large volume
of traffic.
Back
to top -- View
Real Estate Listings
ARTIFICIAL PERSON A person created
and recognized by law as having legal rights, an example
being corporation. Within a legal context, such a
person should be distinguished from natural person.
Back
to top -- View
Real Estate Listings
ASA Senior Member, American Society
of Appraisers. A professional designation awarded
to individuals involved in the appraisal of both real
and personal property.
Back
to top -- View
Real Estate Listings
AS IS A phrase included in a contract
of sale disclaiming any warranty or guarantee on the
part of the seller. A person purchasing real estate
"as is" takes it in exactly the condition
in which it is found and must trust his or her own
inspection of the property.
Back
to top -- View
Real Estate Listings
ASKING PRICE The listed price of
the property. Often such a price denotes a willingness
on the part of the owner to sell the property for
a lower price.
Back
to top -- View
Real Estate Listings
ASSEMBLAGE The combining of two
or more adjoining lots into a single large lot. Often
the purpose of bringing a number of lots together
under one ownership is to allow a developer/investor
to construct a large building or buildings on a single
lot. By assembling the lots, the single value of the
one large lot is often greater than the total single
values of each of the smaller lots.
Back
to top -- View
Real Estate Listings
ASSESSED VALUE The worth or value
of a piece of property as determined by the taxing
authority for the purpose of levying an ad valorem
(property) tax. The assessed value of property is
normally based on some percentage of market value.
Property may be assessed at full market value or,
as is more commonly the case, assessed at something
less.
Back
to top -- View
Real Estate Listings
ASSESSMENT (1) A determination of
the value of a parcel for the purpose of levying a
property tax on that parcel. (2) The term also is
used to denote the means by which local governments
raise the money to pay for certain improvements which
directly benefit property owners adjoining or adjacent
to the improvements. For example, the cost of paving
a previously unpaved road could be assessed to the
land on each side of the road. The actual cost to
a particular landowner would be based on his or her
front footage as a percentage of the total footage
being improved. (3) Joint forms of ownership such
as condominiums and cooperatives allocate the expenses
incurred for the maintenance and upkeep of the common
areas and limited common areas and assess each unit
owner for his or her proportionate share.
Back
to top -- View
Real Estate Listings
ASSESSMENT RATIO The ratio of assessed
value to full market value as set by a taxing authority.
Back
to top -- View
Real Estate Listings
ASSESSMENT ROLL A list of all taxable
property showing the assessed value of each parcel.
Such information is public and is normally available
in the tax assessor's office or in the local land
records.
Back
to top -- View
Real Estate Listings
ASSESSOR A public official either
appointed or elected to appraise property and place
an assessed value on that property for the purpose
of levying a property (ad valorem) tax.
Back
to top -- View
Real Estate Listings
ASSETS An accounting term used to
denote the real and personal property one possesses,
as distinguished from debts and obligations which
are known as liabilities. Assets minus liabilities
equals net worth.
Back
to top -- View
Real Estate Listings
ASSIGN To transfer to another.
Back
to top -- View
Real Estate Listings
ASSIGNEE The person to whom a claim,
benefit, or right in property is made.
Back
to top -- View
Real Estate Listings
ASSIGNMENT The transfer of a claim,
benefit or right in property belonging to one person
(the assignor) to another person (the assignee). Real
estate instruments in which assignments occur include
sales contracts, mortgages, options, and leases. Rights
under contracts are valuable property rights which
can ordinarily be assigned to third persons. The legal
effect of an assignment is to substitute the assignee
for the assignor in the contractual relationship with
the other original contracting party.
Back
to top -- View
Real Estate Listings
ASSIGNMENT OF LEASE A transfer by
the tenant (lessee) of his or her interest in the
lease to a third person. Both the lessor and lessee
may transfer their respective interests in a lease
to a third person, unless prohibited by the terms
of the lease.
Back
to top -- View
Real Estate Listings
ASSOCIATE BROKER A person who has
met the qualifications necessary for a real estate
broker's license but who works jointly with and is
employed by another broker.
Back
to top -- View
Real Estate Listings
ASSOCIATED GENERAL CONTRACTORS OF AMERICA
(AGCA) AGCA serves as a leading spokesman
for the construction industry. Four classifications
of construction contractors are represented: buildings,
heavy industrial, municipal utility construction,
and highway. The association's address is 1957 E Street,
N.W., Washington, D.C. 20006; (202) 393-2040.
Back
to top -- View
Real Estate Listings
ASSUMPTION FEE A charge levied by
a lender to a purchaser who takes title to property
by assuming an existing mortgage. The charge can be
a fixed amount; for example, $100, or perhaps a percentage
of the outstanding balance, for example, one percent.
The assumption fee is paid to the lender at the time
of settlement or closing.
Back
to top -- View
Real Estate Listings
ASSUMPTION OF MORTGAGE Taking title
to property which has an existing mortgage and agreeing
to be personally liable for the payment of the existing
mortgage debt. A distinction exists between "assuming"
a mortgage and taking title 'subject to' a mortgage.
If the purchaser agrees to assume the mortgage, he
or she becomes personally liable on any deficiencies,
such as not making payments, occurring in a foreclosure
sale. When a purchaser takes title subject to the
mortgage, no personal liability is undertaken to the
lender; thus, the purchaser could walk away from the
mortgage and lose nothing but the equity already invested.
In both situations the original borrower is liable
to the lender unless specifically released in a novation.
A mortgage may obtain a non-assumption clause or due
on sale clause which prohibits an assumption without
consent of the lender. Such consent is normally given
for a fee and a possible jump in the interest rate
if the contract rate is below the prevailing market
rate.
Back
to top -- View
Real Estate Listings
AT-RISK RULE A part of the Tax Reform
Act of 1986 which limits the amount that an investor
can claim as a loss suffered from a real estate investment.
Back
to top -- View
Real Estate Listings
ATTACHED HOUSING Two or more units
that are physically attached but intended and designed
for occupancy as individual housing units. Such units
may be in the form of a duplex, triplex or fourplex
as well as row houses which may extend for a complete
city block. In contrast, most residential units are
in the form of detached units.
Back
to top -- View
Real Estate Listings
ATTACHMENT The act of taking a person's
property into the legal custody of a court for the
purpose of serving as security for satisfaction of
a judgment which has been filed. The action itself
is often called a writ of attachment and serves to
create a lien against the property. As a result the
property may not be sold free of the attachment unless
the attachment has either been satisfied or released.
Back
to top -- View
Real Estate Listings
ATTESTATION The act of witnessing
a person's signing of a written instrument. Some states
require that a deed be witnessed by at least two witnesses
one of whom may need to be an official witness such
as a notary. Without the attestation the deed is void
in those states that have this requirement. Some deeds
may require a witnessing in cases involving grantors
who have not learned to write or are paralyzed. Such
a grantor would be required to make a mark or at least
a thumbprint which manifests intent to sign. Both
the marking and the statement or declaration of intent
by the grantor would need to be witnessed.
Back
to top -- View
Real Estate Listings
ATTORNEY AT LAW A person authorized
to practice law in his or her respective state and
thus permitted to give legal advice, draft legal instruments,
and represent clients in courts of law.
Back
to top -- View
Real Estate Listings
ATTORNEY IN FACT A person authorized
to act on behalf of another by virtue of a power of
attorneys. Anyone of legal capacity may be an attorney
in fact, and depending on the desire of the person
creating the relationship, the attorney in fact's
authority could be that of a universal, general, or
specific agent.
Back
to top -- View
Real Estate Listings
ATTORNEY'S OPINION OF TITLE A statement
issued by an attorney as to the quality of title after
examining an abstract of title. Commonly referred
to as "opinion of title."
Back
to top -- View
Real Estate Listings
ATTRACTIVE NUISANCE A potentially
hazardous object, such as a swimming pool, or a condition,
such as an open pit on a parcel of land, that is inviting
and potentially dangerous to young children.
Back
to top -- View
Real Estate Listings
AUCTION The selling of real or personal
property to the highest bidder by a person licensed
and authorized to sell the property. The auctioneer
is employed by the owner or seller of the property
as an agent and normally receives a percentage of
the sales price as his or her commission.
Back
to top -- View
Real Estate Listings
AUCTIONEER A person licensed or
authorized to sell real or personal property belonging
to someone else at public auction. In some states
an auctioneer selling real property must be licensed
as a real estate broker, whereas in others he or she
is licensed as an auctioneer.
Back
to top -- View
Real Estate Listings
AUTHORITY The power of an agent
to affect the principal in legal relations with third
persons for lawful purposes. Authority may be classified
into: (1) actual authority, (2) implied authority,
(3) apparent or ostensible authority, (4) inherent
authority, and (5) other authority which may be implied
from particular circumstances. Generally, the authority
of an agent is strictly construed by the courts.
Back
to top -- View
Real Estate Listings
AUTHORIZATION TO SELL A listing
agreement entered into by the owner of property and
a broker determining the rights and responsibilities
of both parties in the selling of the property.
Back
to top -- View
Real Estate Listings
AVERAGE RATE OF RETURN A technique
used to estimate a rate of return. To compute this
rate, investment outflows are subtracted from total
investment inflows. The result is divided by the number
of years the investment was held, and that result
is divided by the total investment to arrive at the
average annual rate of return.
Back
to top -- View
Real Estate Listings
AVULSION A sudden loss or gain of
land as the result of action of water or a shift in
a bed of a river which has been used as a boundary
by property owners. If land is lost as a result of
avulsion the riparian owner does not lose title to
the land that has been lost; the boundary lines remain
the same. This is not true when land is lost by erosion.
Back
to top -- View
Real Estate Listings
AXIAL THEORY OF GROWTH A pattern
of land growth and development which takes the form
of a star and occurs along the main transportation
routes outward from a city. The city or central business
district remains the center of the "star."
Back
to top -- View
Real Estate Listings
|
The Complete Guide to Las Vegas real estate.