AJAX progress indicator

  • a

  • The failure to occupy and use property, which may result in a loss of rights.
  • A brief summary of the historyof title to a property, listing all recordeddocuments that affect the title.
  • Directly contiguous properties,sharing at least one common boundary.
  • Contract clause giving the lender the right to declare the entire loan balance due immediately because of default, or other reasons stated in the contract.
  • Agreeing to the terms of an offer,thereby creating a binding contract; takingdelivery of a deed.
  • Gives property owners the rightto everything produced by their land. See:Accretion; Annexation; Reliction.
  • An apartment within asingle-family dwelling.
  • The use or occupancy incidental orsubordinate to the principal use or occupancyof a property.
  • An agreement to acceptsomething different (usually less) from what theoriginal contract required.
  • In an agency relationship, theagent’s fiduciary duty to account to theprincipal.
  • The gradual addition of land by theforces of nature.
  • The act of signing a documentbefore a notary public, stating it was signedvoluntarily.
  • When a possessor who holds lessthan fee ownership (i.e., tenant, vendee, andmortgagor) misuses or abuses the property.
  • Fraud meeting certain criteria,so a victim can successfully sue. Victim/plaintiffmust prove the defendant concealed materialfacts or made false statements (intentionallyor negligently) with intent to induce the victimto enter a transaction, and that the victim washarmed by relying on these(...)
  • Earnings received from any ofthe following: wages, salaries, commissions,bonuses, and other payments for servicesrendered; profit from a trade or business wherethe taxpayer is an active participant; gain on sale or disposition of assets used in an activetrade or business; income from(...)
  • Personal property physicallyattached to land. See: Fixture.
  • Authority intentionally given toan agent by the principal, either expressed orimplied.
  • The cost to replacea property item at the time of loss, less anallowance for depreciation. Often used todetermine the amount of reimbursement for aloss (replacement cost minus depreciation).
  • Physically forcing someone offproperty, preventing someone from re-enteringproperty, or using the legal process to makesomeone leave. Compare: ConstructiveEviction.
  • Intentional misrepresentation orconcealment of a material fact; when a personactively conceals material information or makesstatements known to be false or misleading.Also called: Deceit.
  • Actual knowledge; that which isknown.
  • Tax based on the assessed valueof property.
  • Considerationcomparable in value to that which the otherparty to the contract is giving.
  • Mortgage thatpermits the lender to periodically adjust theinterest rate so it reflects fluctuations in the costof money.
  • Original cost of property, plus gainsand minus losses.
  • Government agency(federal, state, or local) that administers anarea of law, adopting and enforcing detailedregulations that have the force of law.
  • Enforcement of licenselaws through reprimand and denial as well asthe suspension and revocation of licenses.
  • Initiated when a taxpayerfiles a grievance with his municipal assessingunit; prerequisite to judicial review.
  • Person appointed by probate courtto manage and distribute a deceased person’s estate when no executor is named in the will, orwhen there is no will.
  • Acquiring title to someoneelse’s real property by possession of it.Possession must be open and notorious, hostileand adverse, exclusive, and continuous for aprescribed number of years (e.g., in New York,10).
  • A person who makes an affidavit.
  • A sworn statement that is written andacknowledged. It may be submitted as evidencein a trial.
  • An appeals court ruling that the lowercourt’s decision was correct, rejecting theappellant’s arguments.
  • Government policiesthat collectively sought to redress pastdiscrimination.
  • Cash flow from incomeproducingproperty, less income taxes, if any,attributable to the property’s income. If a taxloss provides a tax savings from the shelterof income earned outside the property, thatsavings is added to the property’s earned cashflow.

  • Age at which a person gains legalcapacity. Compare: Minor
  • Relationship of trust created when oneperson (principal) gives another person (agent)the right to represent him in dealings with thirdparties.
  • Situation inwhich the agent has a personal interest in thesubject of the agency, as when one co-ownerhas been authorized by the other to sell herproperty.
  • Form used to disclosethe agency relationships permitted, the agencyrelationships a brokerage practices, payment to/from brokers who do not represent the broker’sclient, and required fair housing language.
  • Form that stateswhether an agent is representing the seller,buyer, or both in a transaction.
  • The representation of a partyin a real estate transaction.
  • Person licensed by the state torepresent another in a real estate transactionand a member of the National Association ofREALTORS®; a person authorized to representanother (principal) in dealings with third parties.
  • The right to undisturbed use andcontrol of airspace over a parcel of land (within reasonable limits for air travel); may betransferred separately from the land.
  • Transfer of ownership or an interest inproperty from one person to another, by anymeans.
  • Contract clause giving the lendercertain stated rights when there is a transfer ofownership in the property.
  • System of land ownership underwhich anyone can own land.
  • Solid material deposited along a shore byaccretion.
  • Written agreement, signedby co-op shareholder-tenants, before anyrenovations, modifications, repairs, or alterationscan begin.
  • When real estate is financedwith terms and/or concessions other than thosetypical for conventional loans.
  • Person who values a propertybased on its ability to fulfill his specific businessneeds, unlike investors who value a propertybased primarily on its investment return.
  • Civil rightslaw that prohibits discrimination based ondisability; creates consistent and enforceablestandards regarding discrimination based ondisability.
  • When a loan balance decreasesbecause of periodic installments that pay downboth principal and interest.
  • When monthly payments retirethe debt over the life of the loan instead ofleaving the borrower with a large balloonpayment at the end of the loan term.
  • Amount of money atissue in a lawsuit; used as a limitation on thejurisdiction of some courts.
  • Amount of electricity going throughelectric wires, measured in amps.
  • Major department or chain storestrategically located at shopping centers to givemaximum exposure to smaller satellite stores. Acenter may have several anchor tenants.
  • A trustee appointed to concludethe business of a broker who has died.
  • Attaching personal property to land sothe law views it as part of the real property. See:Fixture.
  • Total cost offinancing a loan in percentage terms, as arelationship of total finance charges to totalamount financed.
  • When one party to acontract informs the other before the time set forperformance that he does not intend to performas agreed. See: Tender.
  • A business activity that attempts tomonopolize, contract, or conspire (or any ofthese things together) in a way that negativelyaffects another’s ability to do business.
  • 1. When someone acts as if sheis a person’s agent even though she has notbeen authorized to do so. 2. When an agent actsbeyond the scope of her authority, giving a third party the impression the acts are authorized.Also called: Ostensible Agency or ApparentAuthority.
  • Process by which a higher court reviewsa lower court’s decision or an administrativetribunal.
  • Party who files an appeal because ofdissatisfaction with the trial court’s decision. Alsocalled: Petitioner.
  • Authority to hear an appealas opposed to conducting a trial.
  • In an appeal, the party who did not filethe appeal. Also called: Respondent.
  • An opinion of the value of property, as ofa specified date, supported by objective data.
  • The primary means ofcommunicating appraisal results to the client.
  • A person who is specially trained to offeran unbiased value of real property.
  • The increase in value of an asset overtime.
  • 1. The authorization of theexpenditure of funds and the source of thosefunds. 2. Taking private property for public use,through the government’s power of eminentdomain. Also called: Condemnation.
  • Water rights allocatedby government permit according to anappropriation system. It is not necessary to ownproperty beside the body of water in order toapply for an appropriation permit. Also called:Prior Appropriation. Compare: Littoral Rights,Riparian Rights.
  • An assessing unitcertified by the New York State Board as havingcompleted a revaluation program implementinga system of real property tax administration,which was or would be eligible for stateassistance, based upon the latest completedassessment roll.
  • A right that goes with real propertyownership; usually transferred with the property,but may be sold separately.
  • An easement that benefitsa particular piece of property (dominanttenement). Compare: Easement in Gross.
  • An alternative to a court proceedingwhere parties agree to submit facts andevidence to an impartial third party.
  • Determines theeffects a proposed building or other structure,or alteration of an existing structure, willhave on the desirability, property values, anddevelopment of surrounding areas.
  • Permission to use land in a waytypically not allowed by current zoning laws.
  • A transaction that occursunder typical conditions in the marketplace, witheach party acting in his or her own best interest.
  • Article of New York Real Property Law,which contains most of the laws relevant to realestate brokers and salespeople.
  • Refers to an article ofthe Civil Practice Law and Rules that allows aggrieved persons to bring an action against agovernment body or officer.
  • Provision in a purchase agreementstating the buyer accepts the property in itspresent condition.
  • Prohibits discrimination amonglandowners in a particular zone.
  • Fibrous material derived from a naturallyoccurring group of minerals commonly used ininsulation. Asbestos fibers released into the airare carcinogenic.
  • A lung disease caused by extendedexposure to asbestos.
  • Value placed on property to whicha local tax rate is applied to calculate the amountof real property tax.
  • City, town, or county departmentof assessment with the power to assess realproperty.
  • A percentage of a property’s marketvalue.
  • Local board that hearscomplaints regarding property assessments andproperty exemption determinations.

  • Listing of the assessedvalue for all real property in a municipality.
  • Elected or appointed local officialswho independently estimate the value of realproperty.
  • 1. To transfer a right or interest to another;2. A tenant transferring his right of possessionor other interest in leased property to anotherfor the remainder of the lease term. Compare:Sublease.
  • Person to whom a right or interest hasbeen assigned.
  • Assigning the purchase rightsto property or a condominium unit to anotherbuyer before that property or unit is closed.
  • One party (assignor) transferringrights or interests under a contract to anotherperson (assignee). In New York, all contracts areassignable unless the contract states otherwise.
  • Person who assigns a right or interest toanother.
  • A real estate broker who works foranother broker.
  • One party taking over responsibilityfor the loan of another party; usually lenderapproval is needed.
  • Court-ordered seizure of propertybelonging to a defendant in a lawsuit tosatisfy a judgment. In the case of real property,attachment creates a lien. Also called: Order ofAttachment. See: Attachment Lien.
  • A lien intended to preventproperty transfer pending the outcome oflitigation.

  • Witnesses signing a legal documentto affirm the parties’ signatures are real; theact of witnessing the execution of a legaldocument (such as a deed or will). Compare:Acknowledgment.
  • Any person authorized to act foranother by a power of attorney (not necessarilyan attorney-at-law).
  • When real property is lost due to suddenacts of nature like tornadoes or earthquakes.
  • b

  • Type of framing with longstuds going up the entire length of the house,from the foundation to the roof. No longerpermitted as a construction method by mostbuilding codes. Also called: Balloon Framing.
  • Loan repaid with small, periodicpayments until a specified date, then either thebalance comes due in a single, lump payment orthe payment amount rises significantly.
  • Final payment at the end ofa loan term to pay off the entire remainingbalance of principal and interest not covered bypayments during the loan term.
  • Deed without anywarranties against liens or other encumbrancesbut does imply grantor has the right convey title.
  • Part of a house or building partially orentirely below grade (ground level) and used tosupport the rest of the structure.
  • Accounting procedure used to determinethe capital gain or loss after the sale of property.It is equal to purchase price, plus capitalimprovements, less depreciation.
  • A wall that carries the load for theroof, ceiling, and/or floors.
  • Gross amount of incomeavailable before considering taxes.
  • Person designated to receive benefitsfrom a certain act.
  • The act of giving personal property toanother by will.
  • A gift of personal property by a will.
  • A fixed rate mortgage, similarto a standard mortgage, but with payments dueevery two weeks instead of every month.
  • A contract in which each partypromises to do something. Compare: UnilateralContract.
  • A proposed law, formally submitted to alegislature for consideration.
  • Document used to transfer title topersonal property from one person to another.
  • A precedent that a particularcourt is required to follow because it wasdecided by a higher court in the samejurisdiction.
  • 1. Mortgage that covers morethan one parcel of real estate. 2. Mortgage thatcovers an entire building or development, ratherthan an individual unit or lot.
  • An ad in which a broker attempts to advertise a property for sale without disclosing the fact she is a licensed real estate broker, or when a broker attempts to mislead the public into believing a property is for sale by owner. Blind ads are illegal in New York.
  • Illegal practice of inducing ownersto sell their homes (often at a deflated price)by suggesting the ethnic or racial compositionof the neighborhood is changing, with theimplication that property values will declineas a result. Also called: Panic Selling or PanicPeddling.
  • Detailed building plans used to evaluatedesign, determine feasibility, and guide astructure’s construction.
  • A package presented to theco-op (or sometimes condominium) board ofmanagers/directors from a potential shareholderor buyer. It often includes financial qualifications,employment verification, letters of reference,and other material requested by the board.
  • In good faith; genuine.
  • Mortgage-backed securitiesissued by Ginnie Mae, which are long term,pay interest semi-annually, and provide forrepayment at a specified date.
  • Extra, non-like-kind property that can bea part of a like-kind exchange to make up forpricing disparity between like-kind properties.
  • Perimeter or border of a parcel of land;the dividing line between one property andanother.
  • Violation of a contract obligation, duty, orlaw.
  • Failure to perform according tothe terms of a contract.
  • Short-term mortgage loan that coversthe gap between selling one property andbuying another.
  • Amount of heat neededto raise the temperature of one pound of waterby one degree Fahrenheit. Used as a measure offurnace or air conditioner capacity.
  • One who is licensed to represent one of theparties in a real estate transaction.
  • Provides the brokeris still entitled to commission if the propertyis sold during a certain time under certaincircumstances.
  • The business of bringing togetherbuyers and sellers of real property and assistingin negotiating such transactions.
  • Engaged and works directly for thebroker—a broker’s agent is not a subagent of theseller or buyer. Still owes the same fiduciary dutyto the broker’s seller or buyer the broker does.
  • A mortgage agreement wherepayments include principal and interest on theloan, plus 1/12 of the year’s property taxes andhazard insurance premiums.
  • The Uniform Fire Preventionand Building Code, as modified by localamendments. Governs the construction detailsof buildings and other structures in the interestof the safety of the occupants and public.
  • Protects a municipality’sresidents by seeing that code restrictions arefollowed, and construction and renovation aredone by licensed professionals.
  • Sometimes called a buildingshell, the building envelope refers to theexterior elements—walls, windows, floor, roof,etc.—which enclose the interior.
  • The process wherebygovernment authorities, usually state or local,are charged with ensuring compliance withprevailing building codes.
  • Oversees the management ofone building for a property owner.
  • Official documents from a localgovernment or other authority that allow thebeginning of a construction or remodelingproject.
  • Provision in a purchase agreementthat allows the seller to keep the property onthe market until a condition in the contract isfulfilled.
  • All real property rights conferredwith ownership, including right of use, right ofenjoyment, and right of disposal.
  • Responsibility for proving ordisproving a particular issue in a lawsuit. Theplaintiff usually has the burden of proof.
  • General swings in business activity,resulting in expanding and contracting activityduring different phases of the cycle.
  • Partnership documentlisting the names and addresses of all partners,which must be filed in the county where thepartnership office is located before property canbe held in a partnership’s name.
  • Additional funds in the form of pointspaid to a lender at the beginning of a loanto lower the loan’s interest rate and monthlypayments.
  • A written agency contractbetween a buyer and a real estate brokerstipulating the broker will be paid a commissionwhen the buyer purchases real estate.
  • Represents and owes all loyalty tothe buyer in a real estate transaction.
  • When an agency relationship with abuyer is exclusive.
  • A situation in the housing marketgiving buyers a large selection of properties atfavorable prices from which to choose. Compare:Seller’s Market.
  • Rules and regulations that govern theactivities of condominium and cooperativeassociations, including the purpose of thebuilding, rules for elections and voting, andfrequency of board of directors or shareholdersmeetings.
  • c

  • Clause that lets the lender demandfull payment of a loan immediately (verb: call anote).
  • Termination of a contract withoutundoing the acts already performed under it.Compare: Rescission.
  • Legal ability to perform some act, such asenter into a contract or execute a deed or will.
  • Any asset not specifically excluded bythe Internal Revenue Code.
  • An expense incurred to improveproperty.
  • Profit made from an investment.
  • Monetary loss resulting from aninvestment’s decrease in value.
  • A budget for expenses thatare not fixed (variable).
  • Rate of interest considered areasonable return on investment; commonlyused in the process of determining value basedon net income. Also called: Rate.
  • Colorless, odorless gas thatis a natural byproduct of fuel combustion.
  • Rules of law developed in court decisions,as opposed to constitutional law, statutory law,or administrative regulations.
  • Money available after subtracting allexpenses. Positive cash flow means more moneyis coming in than going out. Negative cash flowis the converse.
  • The bottom line of anyinvestment expressed as a percentage bydividing the investment’s cash flow by thedeposit and settlement costs.
  • Latin phrase meaning, “let the buyerbeware.” The rule that says a buyer is expected toexamine property carefully instead of relying onthe seller to point out problems.
  • List on which propertyowners in a cease and desist zone can registerand once they do, brokers and salespersons areprohibited from soliciting them.
  • Certain areas designatedby the New York Department of State in whichproperty owners can file notice indicating theydo not want to sell, lease, or list their property.
  • Relatively small areas used by the U.S.Census Bureau to track the population of theUnited States.
  • Certificate issued by theVeterans Administration to establish the statusand amount of a veteran’s eligibility to qualify fora guaranteed loan.
  • Summary of the provisionsof a court judgment; when recorded, it createsa lien on all the debtor’s real property in thecounty where recorded.
  • Permit issued to a builderafter all inspections have been made and theproperty is deemed fit for occupancy.
  • Document prepared by anattorney after performing a title search andreviewing public records stating the status of thetitle to a property.
  • Document issued by aprobate court showing transfer of title from adeceased person to her heirs or devisees.
  • Chain of deeds and other documentstransferring title to land from one owner to thenext, as disclosed in public records.
  • Personal property.
  • Personal property closely associatedwith real property, such as a lease.
  • Person who poses as a customer or clientattempting to secure real estate services toensure fair housing is practiced. Also called:Tester.
  • Chemical compoundscontaining chlorine, fluorine, and carbon atoms.Sold under the trademarked name of Freon formany years and used as a coolant in refrigerators,air conditioners, and dehumidifiers. Now knownto contribute to the depletion of the ozone.
  • A device, usually located insidethe electrical breaker panel or circuit breakerbox, designed to break its electrical connectionshould an overload occur.
  • Municipal legislative body responsiblefor public policy including approving budgets,and passing laws, ordinances, and resolutions.
  • Body of law concerned with the rightsand liabilities of one individual in relation toanother; includes contract, tort, and propertylaw. Compare: Criminal Law.
  • Lawsuit in which one person suesanother for compensation.
  • When a government body seeksfinancial compensation for damages. These arenot considered punishment but restitution.
  • Fundamental rights guaranteed toall persons by law. The term is primarily usedin reference to constitutional and statutoryprotections against discrimination.
  • The first major legislationto directly affect equal rights to ownership ofreal property.
  • Government Act requiring theEPA to develop air quality standards for existingpollutants, along with establishing air standardsfor new sources of pollution. Also regulates airpollutant emissions, determines acceptablelevels for emissions, and sets deadlines forcompliance.
  • Title free of encumbrances or defects;marketable title.
  • Open distance between inside faces ofsupport members.
  • Person who employs a broker, lawyer, orother professional. Real estate clients can besellers, buyers, or both. See: Fiduciary.
  • Transfer of real property ownershipfrom seller to buyer, according to the termsand conditions in a sales contract or escrowagreement; final stage in a real estatetransaction.
  • Expenses incurred in the transfer ofreal estate in addition to the purchase price (i.e.,appraisal fee, title insurance premiums, broker’scommission, or transfer tax).
  • Document prepared by theclosing agent itemizing all expenses and costspaid by the buyer and seller to close the realestate transaction. Also called: SettlementStatement or HUD-1.
  • Claim, encumbrance, or defectthat makes title to real property unmarketable.Compare: Marketable Title.
  • A varied selection of lot sizes andhousing choices within a single area.
  • Any form of ownership in which twoor more people share title to a property, holdingundivided interests. Also called: Co-tenancyor Concurrent ownership. See: CommunityProperty; Joint Tenancy; Statutory SurvivorshipTenancy; Tenancy by the Entireties; Tenancy inCommon; Tenancy in Partnership.
  • Anyone who shares ownership of aproperty with another. Forms of co-ownershipinclude joint tenancy, statutory survivorshiptenancy, tenants in common, tenant by theentireties, or tenant in partnership.
  • Referredto simply as the Code of Ethics; a standard ofconduct required by New York State license lawand the National Association of REALTORS®.
  • Addition to or revision of a will. It must beexecuted with the same formalities as a will.
  • Collection and organization of variouslaws into a comprehensive statutory code.
  • An act of force used to get a person tocomply.
  • Agreement between two or morepersons to defraud someone.
  • Title that appears to be good but that,in fact, is not.
  • Financial institutions thatprovide a variety of financial services.
  • Land zoned and usedfor business purposes, such as warehouses,restaurants, and office buildings (asdistinguished from residential, industrial, oragricultural property).
  • Illegally mixing money held in trust on behalf of a client with personal funds.See: Conversion.{"@context": "https://schema.org","@type": "FAQPage","mainEntity": [{"@type": "Question","name": "What is commingling?","acceptedAnswer": {"@type": "Answer","text": "Illegally mixing money held in(...)
  • Compensation paid to a broker forservices provided in a real estate transaction.
  • Land and improvements in acondominium, planned unit development, orcooperative all residents use and own as tenantsin common, such as the parking lot, hallways,and recreational facilities; individual apartmentunits or homes are not included. Also called:Common Elements.
  • Person who owned two ormore neighboring properties then sold them todifferent buyers.
  • 1. Early English law. 2. Longestablishedrules based on English law, stillfollowed in many states. 3. Case law.
  • Dedication resultingfrom the owner’s intention to donate landfor public use, along with the government’sacceptance of the donation. Common lawdedication is actually involuntary in some cases;if an owner acquiesces to public use of hisproperty, intention to dedicate the property maybe implied.
  • Co-ownership limited tohusband and wife; not acknowledged in NewYork State. Compare: Separate Property.
  • Other similar, recently sold propertiesin the same market area as the subject property.
  • A methodof determining the approximate market valueof a home by comparing the subject propertyto other homes that have sold, are presently forsale, or did not sell in a given area. Also called:Competitive Market Analysis and ComparableMarket Analysis.
  • When parties shareliability based on partial fault or negligence incausing the injury or tort.
  • Award, usually money,intended to compensate the plaintiff for harmcaused by the defendant’s act or failure to act.Also called: Actual Damages.
  • 1. Of sound mind, for the purposeof entering a contract or executing a will; notsuffering from mental illness, retardation, orsenility. 2. Of sound mind and having reachedthe age of majority.
  • Party that files a formal charge in acourt of law.
  • Document a plaintiff files with the courtto begin a lawsuit.
  • Written document preparedby a city’s planning board that identifies thegoals, objectives, principles, guidelines, policies,standards, and strategies for growth anddevelopment of a community. Also called: MasterPlan.
  • A foundation made from a layer ofpoured concrete reinforced with steel rods.
  • When more than onecourt has jurisdiction over a case and a plaintiffmay choose in which court to file suit. Compare:Exclusive Jurisdiction.
  • Ownership by more thanone person; co-ownership.
  • The act of taking property forpublic use through the government’s power ofeminent domain.
  • A type of defeasible fee; title maybe terminated by the former owner if conditionsstated in deed are not met. Former owner hasa power of termination. Also called: Fee SimpleSubject to a Condition Subsequent. Compare:Fee Simple Determinable.
  • Land use that does not complywith the general zoning rules for the zone inwhich it is located, but is permitted because itbenefits the public; for example, a hospital in aresidential neighborhood. Also called: SpecialException.
  • Property developed for coownership,with each co-owner having aseparate interest in an individual unit, combinedwith an undivided interest in the common areasof the property. Compare: Cooperative.
  • New York State law governingthe establishment of condominiums.
  • Document filed forrecord when property is developed as, orconverted to, a condominium.
  • A building that has been divided into atleast two condominiums. The first is the co-opresidential units considered one condominiumunit. The second unit is the professional andcommercial units. Compare: Condominium orCooperative.
  • Document filed by the courtto finalize the sale of property at foreclosure,and after which time the equitable right ofredemption is no longer available to the originaldefaulting borrower.
  • Loans that meet Fannie Mae/Freddie Mac standards and, thus, can be sold onthe secondary market.
  • Theory that a particular home (orneighborhood) achieves maximum value whenit is surrounded by homes similar in style andfunction.
  • Occurs when 1. thebroker and all licensees are dual agents for bothparties in the transaction, or 2. the buyer andseller each appoint a designated agent, whofully represents them. The broker, however,would (with consent) act as a dual agent in thetransaction.
  • Studies mattersaffecting the environment, preservation,development, and use of a city’s natural andphysical features and conditions regardingecologic integrity, aesthetic appeal, and quality.
  • Anything of value such as money,goods, services, or promises, given to induceanother person to enter into a contract. Alsocalled: Valuable Consideration.
  • Fundamental document establishinga government’s structure and setting limits onits power.
  • 1. Pertaining to or based on aconstitution. 2. Not in violation of the U.S.Constitution or a state constitution.
  • Law derived from theConstitution.
  • Temporary loan used tofinance a construction project.
  • Personal propertyassociated with real property in such a way thatthe law treats it as a fixture, even though it is notphysically attached to the real property.
  • When a landlord’s act(or failure to act) interferes with the tenant’squiet enjoyment of the property, or makes theproperty unfit for its intended use, to such anextent the tenant is forced to move out.
  • A negligent misrepresentationor concealment of a material fact; when a personcarelessly fails to disclose material information,or makes false or misleading statements. Alsocalled: Negligent Misrepresentation.
  • Provides protection to alandowner against all unrecorded titles.
  • An index publishedmonthly by the United States Bureau of LaborStandards (BLS) considered by many to be thebasic indicator of inflation in the U.S.
  • Provision in a contract or deedthat makes the parties’ rights and obligationsdepend on the occurrence (or nonoccurrence) ofa particular event. Also called: Condition.
  • Agreement between two or moreparties to do, or not do, a certain thing. Therequirements for an enforceable contract arecapacity, mutual consent, lawful objective, andconsideration.
  • Theory that a particular item orfeature of a home is worth only what it actuallycontributes in value to that property.
  • Mortgage loan not insured orguaranteed by a government entity.
  • 1. Misappropriating property or fundsbelonging to another. 2. Changing an existingrental apartment building into a condominium.
  • Borrower’s right to convertfrom an adjustable rate mortgage to a fixedrate mortgage one time during the loan term,provided certain conditions are met.
  • Instrument that conveys a grantor’sinterest, if any, in real property. Also called: Deed.
  • A broker from another company who brings the other party (the buyer or the seller) to a transaction.
  • A building owned by a corporation,where residents are shareholders in thecorporation; each shareholder receives aproprietary lease on an individual unit and theright to use the common areas. Also called: Co-opor Stock Cooperative. Compare: Condominium.
  • Applicable to cooperatives, condominiums, andhomeowners associations and is used to test themarket, explore the venture, and determine theneeds to meet a variety of conditions.
  • Action passed by acorporation authorizing the sale or purchase ofreal estate.
  • An association organized according tostrict regulations in which individuals purchaseownership shares; regarded by the law as anartificial person, separate from the individualshareholders. Compare: Partnership.
  • Deed used to correct minormistakes in an earlier deed, such as misspellednames or errors in the property’s legaldescription.
  • Repairing or restoringbroken or failed equipment to a specifiedcondition. Compare: Cosmetic Maintenance,Preventive Maintenance.
  • Maintenance that increasesa property’s appeal. Compare: CorrectiveMaintenance, Preventive Maintenance.
  • Money needed to develop, produce, buy, orbuild something.
  • Appraisal method that estimatesthe value of real estate by figuring the cost ofbuilding the house or other improvement on theland, minus depreciation, plus the value of thevacant land.
  • An increase in the cost of goods orservices. Compare: Demand Inflation.
  • Books that give estimatedconstruction costs for various types of buildings/structures in different regions of the country.
  • Cost approach appraisalmethod that uses cost manuals to arrive at anestimate of value for property.
  • The interest rate people orbusinesses pay to use another’s money for theirown purposes.
  • A response to an offer to enter intoa contract, changing some of the terms of theoriginal offer; a rejection of the original offer (nota form of acceptance).
  • A human service andregulatory agency responsible for public healthprograms.
  • 1. A contract. 2. A promise. 3. A guarantee(express or implied) in a document such as adeed or lease.
  • Guarantee thata buyer or tenant has the right to exclusive,undisturbed possession of a leasehold estateand will not be disturbed by the previous owner,lessor, or anyone else claiming interest in theproperty.
  • Unfinished space below the first floorof a house or other structure that is less than afull story in height.
  • Money received for an obligation given.
  • A means by which the lender makesa determination regarding the creditworthinessof potential borrowers; involves a lenderassigning a numerical value to different aspectsrelating to a borrower’s financial situation.
  • A non-profit financial institutionowned and operated entirely by its members.By depositing money in a credit union, thedepositor becomes a member and has partialownership in the institution.
  • Person or other entity, such as a bank, whois owed a debt.
  • Lawsuit in which thegovernment sues someone to punish thewrongdoer and protect society.
  • To remedy a default by paying overdue moneyor by fulfilling other obligations.
  • A husband’s interest in his wife’s property;in many states, curtesy has been abolished andreplaced by dower rights. Note: New York doesnot recognize either curtesy or dower rights.
  • A party in a transaction to whoman agent does not have a fiduciary duty orrelationship, but to whom an agent must still befair and honest.
  • d

  • An expense or money applied against acredit.
  • Recurring monetary obligation that cannot becancelled.
  • Amount of money needed to meetthe periodic payments of principal and intereston an amortized loan or debt. If the periodicpayments are constant and equal, then a portionwill pay off accrued interest with the remainderreducing principal.
  • A person or other entity, such as a company,who owes money to another.
  • A person who has died.
  • Gift of land from a landowner to thegovernment. Also called: Dedication by Deed.
  • A dollar amount the insured must payon each loss. The insurance company pays theremainder of each covered loss up to the policylimits
  • An instrument that conveys a grantor’sinterest, if any, in real property. Also called:Conveyance.
  • A deed given bya borrower to the lender to satisfy the debtand avoid foreclosure. Also called: VoluntaryConveyance.
  • An instrument creating a voluntarylien on real property held by a third party assecurity for the payment of a note. Also called:Trust Deed. Compare: Mortgage.
  • Limitations on real propertyuse imposed by an owner through languageincluded in the deed.
  • Failure to fulfill an obligation, duty, orpromise, as when a borrower fails to makepayments, a tenant fails to pay rent, or a party toa contract fails to perform.
  • 1. Clause used to defeat orcancel a certain right upon the occurrence of aspecific event (e.g., on final payment, words ofgrant in a mortgage are void and the mortgageis thereby cancelled and title is revested tomortgagor). 2. Clause used to give a borrowerthe right to redeem real estate after(...)
  • 1. Person being sued in a civil lawsuit. 2.Accused person in criminal lawsuit.Deferment Permission to delay fulfillment of anobligation (e.g., paying taxes) until a later date.
  • Permission to delay fulfillment of anobligation (e.g., paying taxes) until a later date.
  • A court order stating thedebtor owes money to the creditor when thecollateral property does not bring enough at theforeclosure sale to cover the entire loan amount,accrued interest, and other administrative costs.
  • The legal transfer of a deed (or otherinstrument). A valid deed does not convey titleuntil it has been delivered to the grantee. See:Donative Intent.
  • Delivery of the deed bythe grantor with the intention of transferringtitle and acceptance by the grantee receiving theland. When a deed has been properly executed,both have occurred.
  • Too much money chasing toofew goods. Compare: Cost Inflation.
  • Study of the social and economicstatus of a given area or population.
  • The government agency chargedwith overseeing housing related issues andprojects. Among other things, HUD setsminimum building standards for housing andis responsible for enforcing the federal FairHousing Act.
  • 1. Money offered as an indication of goodfaith regarding the future performance of apurchase agreement. Also called: Earnest Money.2. A tenant’s security deposit.
  • In a lawsuit, the formal, out-of-courttestimony of a witness or a party taken beforethe trial; used as part of the discovery processto determine facts of a case, or if the witnessis not able to attend the trial. A transcript of adeposition can be introduced as evidence in thetrial.
  • To decline in value.
  • A loss in value for any reason.
  • When a supervising brokerassumes the role of dual agent and eachaffiliated licensee represents his client asvigorously as possible.
  • Chosen heir. By filing a documentwith probate court, a person can choose anyoneto be his heir in the eyes of the law.
  • 1. Real property transferred in a will. 2. Totransfer real property by will. Compare: Bequest;Bequeath; Legacy.
  • Recipient of real property by will. Compare:Legatee.
  • The cost in labor and materials.
  • An index kept by the countyrecorder, with each recorded document listedin alphabetical order according to grantor’s lastname. Also called: Grantor/Grantee Index.
  • Referring to homeowner’s insurance, asudden loss due to a covered peril—such as fire,lightening, wind, hail, etc.
  • A physical or mental impairment thatsubstantially limits or curtails one or more majorlife activity.

  • The act of asking a court to terminate avoidable contract.
  • A detailed accounting of allfinancials associated with a residential mortgageloan.
  • Points or facts in a real estatetransaction that must be revealed.

  • Amount paid to a lender when aloan is made to make up the difference betweenthe current market interest rate and the ratea lender gives a borrower on a note. Discountpoints increase a lender’s yield on a note,allowing the lender to give a borrower a lowerinterest rate. See: Points.
  • Treating people unequally becauseof their race, religion, sex, national origin, age, orsome other characteristic of a protected class.
  • When a law that is notdiscriminatory on its face but has a greaterimpact on a minority group than other groups.
  • Rule that allows anagricultural tenant to re-enter the land to harvestcrops if the lease ends, through no fault of thetenant, before the crop can be harvested (appliesonly to the first crop).
  • Loss of legal rights because offailure to assert those rights in a timely manner.
  • A corporation doingbusiness in the state in which it was created.
  • The state in which a person has apermanent home.
  • A person with easement rightson another’s property; either the owner of adominant tenement, or someone who has aneasement in gross.
  • Property that receives thebenefit of an appurtenant easement.
  • Intent to immediately andunconditionally transfer title to real property.
  • An accelerated methodof deprecation.
  • The interest held by a married person in thereal property owned by a spouse. Note: dower isnot recognized in New York.
  • A lump sum cash payment paid bya buyer.
  • Gypsum plaster sandwiched between twolayers of coarse paper. Also called: Plasterboard,Wall Board, or Sheetrock.
  • Occurs when a broker or salespersonrepresents both parties (buyer and seller) in atransaction; written consent from both parties isrequired before this can occur.
  • A licensee who represents both theseller and buyer in the same transaction.
  • When real estate licensees holdmore than one license at a time (e.g., when abroker wishes to also be an associate broker withanother firm; or, when a salesperson wishes towork with more than one broker.)
  • Investigation to discover facts orliabilities about a property prior to its purchase.
  • Mortgage clause that prohibitsassignment by making the entire mortgagebalance due when property is sold.
  • Threatening violence against or unlawfullyconfining someone and forcing him to sign adocument; or, threatening or confining a signer’sspouse, child, or other close relative.
  • e

  • 1. Money offered as anindication of good faith regarding the futureperformance of a purchase agreement. 2. Atenant’s security deposit. Compare: Deposit.
  • A right to use some part of anotherperson’s real property. An easement isirrevocable and creates an interest in theproperty.
  • An easement that grantsaccess. Compare: Right of Way.
  • 1. Takingprivate property for public use through thegovernment’s power of eminent domain. 2. Adeclaration that a structure is unfit for occupancyand must be closed or demolished.
  • An easementcreated in a deed when a landowner dividesproperty, transferring the servient tenement, butretaining the dominant tenement.
  • An easement granted toanother in a deed or other document.
  • An easement createdby operation of law (not express grant orreservation) when land is divided, if there is alongstanding, apparent use that is reasonablynecessary for enjoyment of the dominanttenement. Compare: Implied Easement.
  • A special kind ofeasement by implication that occurs when thedominant tenement would be useless withoutan easement, even without a longstanding,apparent use.
  • An easement acquiredby prescription. See: Prescription.
  • A view easement;considered a negative easement. In the case ofnegative easement, the dominant tenement canprevent the subservient tenement from doingsomething on the land because it could affectthe dominant land.
  • An easement that benefitsa person instead of land; there is a dominanttenant, but no dominant tenement. Compare:Appurtenant Easement.
  • The lowest sections of the roof, which projectbeyond the sidewalls.
  • Main business or industrysupporting and sustaining a community. A goodeconomic base is critical for strong home values.Economic Duress Threatening to financially harm aperson to coerce him into signing a contract.
  • Age of a structure based on actualwear and tear, not necessarily its actual age.
  • Potential gross incomeminus vacancy and collection losses.
  • Invisible fieldsproduced by electrically charged objects.
  • Government’s constitutionalpower to appropriate or condemn privateproperty for public use as long as the owner ispaid just compensation.
  • Someone who works under the directionand control of another. Compare: IndependentContractor.
  • Physical object intruding ontoneighboring property often due to a mistakeregarding boundary lines.
  • Property with mortgages,liens, or other restrictions against it, whichprevent or restrict its transfer.
  • Non-possessory interest in property;a lien, easement, or restrictive covenantburdening the title.
  • A situation that existswith potential for harm to persons or propertyfrom conditions that exist outside or within aproperty. See: Internal Environmental Hazard,External Environmental Hazard.
  • Studyrequired by the National Environmental PolicyAct for all federal and federally related projects,which details a development project’s impacton energy use, sewage systems, drainage, waterfacilities, schools, and other environmental,economic, and social areas.
  • Federal lawthat prohibits discrimination in granting creditto people based on sex, age, marital status,race, color, religion, national origin, or receipt ofpublic assistance.
  • Requirement under the fifth andfourteenth amendments to the U.S. Constitution,all citizens are entitled to equal protection ofthe laws; no law may arbitrarily discriminatebetween different groups, or be applied togroups in a discriminatory manner.
  • Attempts to measure the relationshipof locally assessed values to a fluid real estatemarket.
  • A judgment granted to aplaintiff that is something other than an awardof money (damages); for example, an injunction,quiet title, rescission, and specific performance.Compare: Legal Remedy.
  • The right ofa debtor to save (redeem) property fromforeclosure proceedings prior to confirmation ofsale. Compare: Statutory Redemption.
  • Equitable Title An interest created in property uponthe execution of a valid sales contract, wherebyactual title will be transferred by deed at afuture date (closing). Also, the vendee’s (buyer’s)interest in property under a land contract. Alsocalled: Equitable Interest.
  • 1. An owner’s unencumbered interest inproperty; the difference between the value ofthe property and the liens against it. 2. A judge’spower to soften or set aside strict legal rules, tobring about a fair and just result in a particularcase.
  • Gradual loss of soil due to wind or water.
  • Professionalliability insurance that protects real estateprofessionals from mistakes or negligence.
  • Lease clause that allows anincrease in rent for increases in expenses paid bythe landlord, such as real estate taxes, operatingcosts, and cost of living expenses.
  • When property reverts to the state aftera person dies without leaving a valid will andwithout heirs, or when property is abandoned.
  • System in which things of value (e.g., moneyor documents) are held on behalf of parties to atransaction by a disinterested third party (escrowagent) until specific conditions have beensatisfied. Also called: In Escrow.
  • 1. An account maintained by abroker for the deposit of client’s money (i.e.,good faith deposits). Also called: Trust Account.2. An account maintained by a lender for thedeposit of borrowers’ extra 1/12 monthly deposits to cover next year’s insurance and tax payments. Also called: Reserve Account.
  • A closing by a disinterested thirdparty, often an escrow agent.
  • Contract that authorizes anescrow agent to deliver items deposited inescrow once the parties have complied withspecified conditions; can be the real estatepurchase contract or a separate document.
  • 1. Possessory interest in real property; eithera freehold estate or leasehold estate. 2. The realand personal property left by someone who hasdied.
  • Possession of property by atenant who came into possession of the propertyunder a valid lease, but stays on after the leaseexpires without the landlord’s permission.
  • A leasehold estate with no specifiedtermination date and with no regular rentalperiod.
  • Leasehold estate set to last for adefinite period (e.g., one week, three years), afterwhich it automatically terminates. Also called:Term Tenancy. Compare: Periodic Tenancy;Tenancy at Will.
  • Estate that can be willed ordescend to heirs, such as a fee simple estate.
  • Legal doctrine that prevents a personfrom asserting rights or facts inconsistent withearlier actions or statements.
  • Determining the usefulness or utility ofproperty without specifying an estimate of value.
  • Dispossessing or expelling someone fromreal property.
  • Zoning law that effectivelyprevents certain groups from living in acommunity.
  • Listing agreement between abroker and seller that provides the broker theexclusive right to represent the seller in the saleof the seller’s property and the broker will becompensated if he or any other person or entity(excluding the seller) produces a purchaser inaccordance with the listing(...)
  • When there is only one courtin which a particular type of case can be filed,that court has exclusive jurisdiction. Compare:Concurrent Jurisdiction
  • Listing agreement thatentitles the broker to a commission if anyone,including the seller, finds a buyer for theproperty during the listing term.
  • 1. To sign. 2. To perform or complete. See:Executed Contract
  • Contract under which bothparties have completely performed theircontractual obligations.
  • Person named in a will to carryout its provisions, including disbursement ofland.
  • A contract under whichone or more parties have not yet completedperformance of their obligations.
  • Provision holding that a law or rule doesnot apply to a particular person, entity, or group(e.g., a company with a property tax exemptiondoes not have to pay property taxes).
  • Stated in words (spoken or written).
  • Contract that has been put intowords, either spoken or written.
  • Agency relationship based onan expressed agreement, either written or oral.
  • Listing agreement clauseproviding for a specified time after a listingexpires when a broker is still entitled to acommission if the property is sold to someonethe broker dealt with during the listing term. Alsocalled: Carryover Clause, Safety Clause.
  • Concerns that existoutside the boundaries of a property, which canhave a significant impact on its value.
  • Any influence that fallsoutside the actual property site and negativelyaffects a property’s value. Compare: FunctionalObsolescence.
  • f

  • When the intended purpose ofan agreement or arrangement can no longer beachieved, and in most cases, releases the partiesfrom their obligations.
  • Common name for Title VIII of theCivil Rights Act of 1968.
  • The price a buyer and seller agreeupon in a competitive market and under normalcircumstances. Also called: Market Value.
  • A protected group under the federalFair Housing Act and New York State law, makingit illegal to discriminate against a person becauseshe is the parent or guardian of a child less than18 years of age.
  • An individual, or two or more people relatedby blood, marriage, or adoption living togetherin one dwelling; or a group of up to three peoplenot related by blood, marriage, or adoptionliving together as a single housekeeping unit; orone or more people living together in a singlehousekeeping(...)
  • A panel or board facing the outer edgeof the soffit.
  • Interest rate charged byFederal Reserve banks on loans to membercommercial banks.
  • The Federal Reserve’s target forshort-term interest rates.
  • Non-profit federally charteredinstitution that functions as a buyer and seller ofsavings and loan residential mortgages.
  • Government agency that insures mortgageloans.
  • Nation’s largest, and privately owned,investor in residential mortgages.
  • Body that controls the Fed’s sale and purchase ofgovernment securities, and that is made upof the seven members of the Federal ReserveBoard, plus the President of the Federal ReserveBank of New York, and four other Federal ReserveBank presidents.
  • Body responsiblefor U.S. monetary policy, maintaining economicstability and regulating commercial banks.
  • An estate of inheritance; title to real propertythat can be willed or descend to heirs.
  • Defeasible fee that may beassigned and terminated by the grantor uponthe occurrence of an event.
  • A fee estate in real propertythat may be defeated or undone if certain eventsoccur or conditions are not met. Also called:Defeasible Fee. See: Conditional Fee, Fee SimpleDeterminable.
  • A defeasible fee thatautomatically terminated if certain conditionsoccur. Also called: Determinable Fee. Compare:Fee, Conditional.
  • The greatest estate one canhave in real property; freely transferable andinheritable, and of indefinite duration, with noconditions on title. Also called: Fee Simple, FeeTitle, or Fee Simple Absolute.
  • System of land ownership underwhich a king or queen owns all land and allothers are merely tenants.
  • Person in a position of trust held by lawto high standards of good faith and loyalty.
  • Deed executed by a trustee,executor, or other fiduciary, conveying propertythe fiduciary does not own but is authorized tomanage.
  • What is owed to all clients inan agency relationship—obedience, loyalty,disclosure, confidentiality, accountability, andreasonable care.
  • A relationship of trust andconfidence, in which one party owes the other(or both parties owe each other) loyalty and ahigher standard of good faith than is owed tothird parties. See: Client.
  • When one practice has negativeresidual effects. See: Redlining, Blockbusting.
  • Financial institution that usuallyspecializes in making higher risk loans at higherinterest rates.
  • Legal documents that establishthe rights and duties of all parties involved intransaction.
  • A brief document that, whenrecorded, gives constructive notice of a creditor’ssecurity interest in an item of personal property.
  • Referral fee paid for directing a buyeror seller to a real estate agent.
  • The lien with highest prioritywhen there is more than one mortgage or otherdebt or obligation secured by the property.
  • Security instrument with a first lienposition, meaning the first mortgage holder ispaid first from a foreclosure sale’s proceeds.
  • An event triggeringagency disclosure (e.g., prior to entering into alisting agreement, prior to showing a property,at an open house when a buyer displays seriousinterest, etc.).
  • Government’s plan for spending,taxation, and debt management.
  • Occur on a regular basis and haveregular payment amounts; occur whether theproperty is vacant or fully leased, and generallydo not vary in response to changing levels ofoccupancy. Compare: Variable Expenses.
  • Loan with an interest rate thatremains constant for the duration of the loan.
  • A man-made attachment; an item ofpersonal property attached to or closelyassociated with real property in such a way thatit has legally become part of the real property.
  • Material used to cover joints where twoor more types of materials join together for thepurpose of preventing water from penetratingthe joint (e.g., metal over the seam between abrick chimney and a shingle roof).
  • A fee, imposed by the co-op board, for thetransfer of ownership during the sale of the unit.
  • 1. Purchasing a property and immediatelyreselling it for a profit. 2. When a condominiumowner assigns his purchase rights to anotherbuyer before the sale of that property or unithas closed. Also called: Assigning a Contract.
  • Two or more timbers cut lengthwiseand bundled together to provide additionalsupport for the ceiling and roof.
  • The underground base, usually concrete,that supports a foundation.
  • A legally binding promise to refrainfrom doing a particular act.
  • When real property is involuntarilytransferred because the owner defaulted ondebts secured by the property.
  • A lawsuit filed by a creditor tobegin foreclosure proceedings.
  • A corporation doing businessin one state, but created (incorporated) inanother state.
  • Loss of a right or something of valuebecause of failure to perform an obligation orcondition.
  • A written, witnessed will.
  • The basic structure on which a housewill sit. A foundation can be concrete slab, pierand beams, crawl space, or basement.
  • The sidewalls that support astructure, typically made of poured concrete,concrete block, or brick.
  • The basic load-bearing skeleton of astructure to which the interior walls, exteriorwalls, and roof system are attached.
  • Intentional or negligent misrepresentationor concealment of a material fact; makingstatements that a person knows, or shouldrealize, are false or misleading.
  • A possessory interest in real property ofuncertain (and often unlimited) duration; anownership estate in real property; either a feesimple or a life estate. Holder of freehold estatehas title. Compare: Leasehold Estate.
  • The brand name for the chemical compoundCFC used as a coolant in refrigerators, airconditioners, and dehumidifiers; now known as acontributor to the depletion of the ozone.
  • Characteristic of asbestos in which it cancrumble easily or become powdery whenmanipulated by hand, releasing particles intothe air.
  • Contains thestrongest and broadest form of guaranteeof title of any type of deed, and provides thegreatest protection of any deed to the grantee.In this type of deed, the grantor makes variouscovenants, or warranties.
  • Loans for which the totalpayments over the life of the loan pay off theentire balance of principal and interest due atthe end of the loan term.
  • Loss in property valueresulting from changes in tastes, preferences, ormarket standards.
  • A protective device for a wiring system thatcontains a wire designed to melt and open thecircuit when overheating occurs.
  • An interest in real property that maybecome or will become a possessory interestat some point in the future. See: RemainderInterest; Reversionary Interest.
  • g

  • A person authorized to handle aprincipal’s affairs in one area or in specified areas.
  • A lien against all property of a debtor,instead of just one particular property.
  • A partner who has the authorityto manage and contract for a general or limitedpartnership and who is personally liable for thepartnership’s debts.
  • A partnership in which eachmember has an equal right to manage thebusiness and share in the profits, as well as equalresponsibility for the partnership’s debts. Allpartners are considered general partners.
  • A deed in which thegrantor warrants title against defects thatmight have arisen before or during his period ofownership. Compare: Limited Warranty Deed.
  • The main support beam of a structurespanning the foundation walls.
  • Government-owned corporationthat guarantees payment of principal andinterest to investors who buy its mortgagebackedsecurities on the secondary market.
  • Legal description forland referencing principal meridians and baselines designated throughout the country.
  • The time a borrower has after apayment is due to make the payment withoutincurring penalties.
  • A lease in which the rent changesthroughout the lease term. The contract specifieshow much as well as when the rent will change.
  • Mortgage that allows aborrower to make smaller payments in the earlyyears of the loan term with payments increasingover time.
  • A buydown plan for whichpayment subsidies in the early years keeppayments low, but payments increase each yearuntil they are sufficient to fully amortize the loan.
  • To transfer or convey an interest in realproperty by means of a written instrument.
  • The person who receives a conveyance ofreal property in a real estate transaction.
  • Deed clause stating a grantor’sintent to transfer an interest in real property. Alsocalled: Words of Conveyance.
  • The person who transfers title to realproperty in a real estate transaction.
  • Total income, both cash and noncash,received from an investment or business,before expenses are paid.
  • A number derivedusing annual income figures from comparablecommercial properties in an area, which is usedto estimate the value of real estate. Compare:Gross Rent Multiplier.
  • A lease in which the lessor pays alloperating and maintenance costs associatedwith the property.
  • A number derivedfrom comparable rental properties in an area,which is then used to estimate the value of realestate. The GRM is only used for one- to four-unitresidential properties. Compare: Gross IncomeMultiplier.
  • A lease in which a tenant leasesunimproved land on a long-term basis andtypically include a provision that provides thetenant will construct a building on the property,which he will own upon completion. Thelessor retains the rights to the land. Essentially,ownership of the land and(...)
  • Naturally occurring water found insubterranean crevices or spaces.
  • A residential facility in a residentialzone for three or more unrelated people (i.e.,foster homes, rehabilitation centers, and halfwayhouses).
  • Court-appointed person who administersthe affairs of a minor or someone who isincompetent.
  • h

  • Clause within a deed thatdescribes the type of estate granted; it mustalways agree with the granting clause.
  • Any type of product with toxic,corrosive, flammable, or reactive qualities.Headers In construction, reinforcements madeof wood for door and window placement. Alsocalled: Lintels.
  • Someone entitled to inherit another person’sreal or personal property under the laws ofintestate succession.
  • Large transmissioncables carrying electrical energy.
  • The most profitable, legallypermitted, feasible, and physically possible useof a property.
  • Identifies, evaluates,preserves, and revitalizes any given city’s historic,archaeological, and cultural resources.
  • One who acquires anegotiable instrument in good faith and forconsideration and, thus, has certain rights abovethe original payee.
  • A lessee who remains inpossession of property after the lease hasexpired; a tenant who refuses to surrenderpossession of property at the tenancy’s end.
  • A mortgage a taxpayertakes out to buy, build, or substantially improve aqualified home.
  • A loan that does not qualifyas home acquisition debt but is secured by aqualified home.
  • A credit line securedby a second mortgage on the homeowner’sprinciple residence. Home equity lines of creditare available to the homeowner as expensesarise and payments are made according to thecredit terms. Interest is usually tax deductible.Compare: Home Equity Loan.
  • A loan secured by a secondmortgage on the homeowner’s principleresidence. Home equity loans are usuallyone-time loans for a specific amount of moneyobtained for a specific, and often non-housingrelated,expenditure. Payments are madeaccording to the loan terms and interest isusually tax(...)
  • Small business or otheroccupation conducted in a residence.
  • Alternativefinancing programs through which lenders mayoffer borrowers as tools to help them qualifymore easily, get a larger loan, or pay less of adown payment.
  • Nonprofit associationcomprised of homeowners, responsible forenforcing the subdivision’s CC&Rs and managingother community affairs.
  • Dwellings of four or fewer units,owner-occupied mobile homes, residentialcondominiums, farms, and vacant land suitablefor qualified buildings that may be eligible for aseparate tax rate.
  • Laws that protect propertyowners from lien foreclosure by exemptingsome their equity in real estate. In New York,homestead protection is limited to $10,000individually and $20,000 for land co-owned by amarried couple.
  • Limited protection for adebtor against claims of judgment creditors;applies to property of the debtor’s residence.
  • Laws that create the legalframework for creating a condominium form ofownership and make it possible to define actualownership rights.
  • Possession or use of landwithout the owner’s permission and againstthe owner’s interests; one condition necessaryfor an easement by prescription and adversepossession.
  • The rules and requirementsestablished for condominium and/or co-optenants. These could include rules for commonareas, parking, noise, pets, use of recreationroom, etc.
  • The relationship of totalmonthly housing expense to income, expressedas a percentage: Total Housing Expense ÷Income = Ratio %.
  • An accurateaccounting of all expenses buyers and sellers payin a real estate transaction; required by RESPA.
  • To make property the security for aloan without giving up possession of it (as with amortgage). Compare: Pledge.
  • i

  • The person, to whom realproperty interest is to be conveyed, identifiedin such a way so as to reasonably separate thatperson from all others in the world.
  • Assets that cannot easily be convertedto cash.
  • Program givingsellers up to 60 days to deliver mortgagesFreddie Mac has agreed to buy on the secondarymarket.
  • Physical characteristic of real estatereferring to the fact that it cannot move fromone place to another.
  • Agency relationship createdthrough the behavior (actions or words) of oneor both parties. Compare: Expressed Agency.
  • Required by law to be part of anagreement and treated by a court as part of anagreement even if it contradicts the expressterms agreed to by the parties.
  • A contract not put into words, butimplied by the actions of the parties.
  • Guarantee created by operationof law, whether or not the seller intended tooffer it.
  • An impliedguarantee that the property is safe and fit forhuman habitation; treated by law as an implicitprovision in every residential lease, regardless ofthe express terms of the lease.
  • Manmade additions to realproperty; substantial fixtures, such as buildings.
  • A lawsuit or legal action directed towardproperty, rather than toward a particular person.Judgments are binding to all persons who claimtitle to the property.
  • A system by which developersreceive zoning incentives on the condition thatspecific physical, social, or cultural benefits areprovided to the community.
  • Appraisal method that estimatesthe value of real estate by analyzing the amountof revenue, or income, the property currentlygenerates or could generate, often comparingthe subject property to other similar properties.
  • Not legally competent; not of soundmind; mentally ill, senile, or feebleminded.
  • ndividual who is selfemployed.Compare: Employee.
  • Statistical report that is a generally reliableindicator of the approximate change in the costof money, and is thus often used to adjust theinterest rate for ARMs.
  • Method used to determine rent forlong-term leases.
  • Costs associated with a constructionproject, other than labor and materials.

  • A loss that occurs as a consequence ofthe direct loss. For example, regarding propertyinsurance, on a dwelling policy, fire is coveredas a direct loss. Also called: Consequential Loss.Compare: Direct Loss.
  • Increase in the cost of goods or services;or, too much money chasing too few goods.
  • Written evidence that a client isaware of and has given permission to an agentto perform a specific action or take on a specificrole in the client agent relationship.
  • The support facilities and services fora community, such as roads, parks, sewers, water,schools, trash collection, etc.
  • 1. Entering and exiting; usuallyrefers to a road or other means of access toa property. 2. An easement that gives thedominant tenant access to the dominanttenement.
  • In strict legal usage, to acquire property byintestate succession; commonly used to meanacquiring property either by intestate successionor by will.
  • Court order prohibiting or compellingan act. See: Equitable Remedy.
  • When circumstances indicatea possible problem prompting furtherinvestigation, a person may be held to have hadnotice of the problem even if he does not haveactual knowledge of it.
  • A note that calls for payments ofprincipal only during the term of the note, with aballoon payment to pay off the balance.
  • Agreement for whichthe buyer makes payments to the seller inexchange for the right to occupy and use theproperty, but no deed or title is transferred untilall, or a specified portion of, payments have beenmade. Also called: Land Contract.
  • Any document that transfers title (suchas a deed), creates a lien (such as a mortgage), orgives a right to payment (such as a contract).
  • The amount for which propertycan be insured, usually representing onlythe replacement cost of the structure anddisregarding any value for land.
  • An appurtenant rightthat does not involve ownership of physicalobjects, for example, easements as opposed tomineral rights, which involve tangibles.
  • Contract provision statingthe document contains the entire agreementbetween the parties.
  • 1. A right or share in something. 2. A chargea borrower pays to a lender for the use of thelender’s money.
  • A limit on the amount of interestrate increase that can occur with an adjustablerate mortgage.
  • An environmentalhazard that occurs within a property.
  • Dying without leaving a valid will.
  • Distribution of property to theheirs of a person who died intestate.

  • Not legally binding or legally effective; notvalid.
  • Court action bya private landowner against the government,seeking compensation for damage to propertythat resulted from government action.
  • The highest price an investorwould pay for a property based on how well itwill serve her investment goals.
  • When title to property istransferred during the owner’s lifetime withouthis consent.
  • A lien that arises by operation oflaw, without the consent of the property owner.
  • Subjects out-of-state licenseesto the jurisdiction of the courts of the state ofNew York.
  • j

  • A form of co-ownership in which theco-owners have equal undivided interests andthe right of survivorship.
  • Long beams of wood or steel that span thepiers of a foundation (floor joists) or the loadbearing walls of a roof (ceiling joists).
  • A type of roof framewith joists supported by the outer load-bearingwalls, and a central load-bearing wall that actsas the beams do for the floor joists. The ceilingjoists run horizontally, parallel to the floor; theceiling rafters begin on the outer load-bearingwalls, but rise as they come to(...)
  • 1. A court’s binding determination ofthe rights and duties of the parties in a lawsuit.2. A court order requiring one party to pay thewronged party damages.
  • A person who is owed moneyas a result of a being awarded a judgment in alawsuit.
  • A person who owes money as aresult of a judgment in a lawsuit.
  • A general lien against a judgmentdebtor’s property, which the judgment creditorcreates by recording a certificate of judgment inthe county in which property is located.
  • A lawsuit filed by a lenderor other creditor to foreclose on a mortgageor other lien; a court-ordered sheriff’s sale ofproperty to repay the debt.
  • A court’s written statementoutlining the facts of a particular case andexplaining the legal basis for the decision.
  • court action to divide realproperty among its co-owners so each owns partin severalty, or (if it is not practical to physicallydivide the property) each gets a share of the saleproceeds.
  • When a court considers whether astatute or regulation is constitutional.
  • Loans that exceed the maximumamount established by Fannie Mae and FreddieMac for conforming mortgage loans, makingthem nonconforming loans.
  • Secured creditor with a lowerpriority lien than another lien on the same land.
  • Any mortgage with a lower lienposition than another mortgage.
  • The extent of a particular court’sauthority.
  • Appropriate or fair value forprivate land taken by the government for publicuse. See: Eminent Domain.
  • k

  • Paying part of the proceeds of a sale toanother party that helped secure the sale, but isunlicensed.
  • l

  • Steel support columns filled withconcrete.
  • The surface of the earth, the area above andbelow the surface, and anything attached to thesurface.
  • A real estate installment agreementwhere a buyer makes payment to a seller inexchange for the right to occupy and useproperty, but no deed or title transfers until all,or a specified portion of, payments have beenmade. Also called: Installment Land Contract,Installment Sales Contract, and Land(...)
  • Lease in which a tenant leasesunimproved land on a long-term basis.
  • An instrument conveying public landto an individual.
  • Public or private restrictions onhow land may be used (e.g., zoning).
  • 1. Land without access to aroad or highway. 2. Land not beside water.
  • A landowner who has leased property toanother. Also called: Lessor.
  • TheNew York City agency responsible for identifyingand designating the city’s landmarks.
  • One that is not visible or apparent; ahidden defect that would not be discovered ina reasonably thorough inspection of property.Compare: Patent Defect.
  • A legal purpose.
  • A toxic metallic element found in paint, dust,water, and the ground.
  • The agency under the StateEnvironmental Quality Review Act principallyresponsible for determining whether anenvironmental impact statement is requiredin connection with the action and for thepreparation and filing of the statement ifrequired.
  • Conveyance of a leasehold estate fromthe fee owner to a tenant; a contract whereone party pays the other rent in exchange forpossession of real estate. See: Gross Lease; NetLease; Percentage Lease; Land Lease.
  • Clause that allowslandlords to raise rent to protect their margin ofprofit and, in some cases, prevent the erosion oftheir expected return due to inflation.
  • When a seller leases property tosomeone for a specific term with an optionto buy the property at a predetermined priceduring the lease term, usually with a portionof the lease payments applied to the purchaseprice.
  • An estate that gives the holder(tenant) a temporary right to possession, withouttitle. Also called: Less-than-Freehold Estate.
  • Receiving money by will.
  • A precise description of aproperty. See: Lot and Block; Metes and Bounds;Government Survey System.
  • Money awarded to the plaintiff ina civil lawsuit; damages. Also called: Remedyor Common Law Remedy. Compare: EquitableRemedy.
  • 1. The interest in property held by therightful owner. 2. The seller’s interest in propertyunder a land contract.
  • Person who leases property; a tenant.
  • Person who leases property to another; alandlord.
  • Signifies two or more parties agreeto do business together.
  • A letter accompanying theabstract of title issued by an attorney regardingthe status of title to a property.
  • The ratio of total assessedvalue to the municipality’s total market value
  • A buydown plan where the interestrate reduction (and hence the payment) isconstant throughout the buydown period.
  • The use of borrowed funds to purchaseproperty with the anticipation of a return onthe funds invested, such that the investor sees aprofit not only on his own investment, but alsoon the borrowed funds.
  • 1. Verb: to impose a tax. 2. Noun: the tax itself.
  • Insures individuals againstfinancial losses resulting from the person’sresponsibilities to others imposed by law orcontract.
  • Legally responsible.
  • Revocable, non-assignable permissionto enter another person’s land for a particularpurpose. Compare: Easement.
  • A non-possessory interest in property givinga lienholder the right to foreclose if the ownerdoes not pay a debt owed the lienholder; afinancial encumbrance on the owner’s title.
  • The order in which liens are paid outof the proceeds of a foreclosure sale. Tax liensalways have the highest priority.
  • States in which a mortgageeholds only a lien against property (not actualtitle) until the loan is repaid, and the mortgagorholds the actual title. Compare: Title TheoryStates.
  • A freehold estate lasting only as longas a specified person does lives. That person isreferred to as the measuring life.
  • A life estate “for the life ofanother,” where the measuring life is someoneother than the life tenant. Also called: Pur AutreVie.
  • Someone who owns a life estate; theperson entitled to possession of the propertyduring the measuring life.
  • The maximum increase ordecrease in the periodic payment allowableover the life of an adjustable or variable ratemortgage.
  • Areas in a condominium orco-up owned by all but used by only one owner(i.e., a designated parking space.)
  • A partner in a limited partnershipwho is primarily an investor and does notparticipate in the management of the business,and who is not personally liable for thepartnership’s debts.
  • A partnership comprised ofone or more general partners and one or morelimited partners.
  • A deed in which thegrantor warrants title only against defects arisingduring the time he owned the property andnot against defects arising before that time ofownership. Also called: Special Warranty Deed.Compare: General Warranty Deed.
  • A person’s children,grandchildren, great-grandchildren, and so on.Liquid When an investment can easily beconverted to cash.
  • A sum of money the partiesto a contract agree in advance (at the timeof entering into the contract) will serve ascompensation in the event of a contract breach.
  • The ability to convert an asset into cashquickly without the loss of principal.
  • Recorded notice stating a lawsuit ispending that may affect title to the defendant’sreal estate.
  • A written agency contractbetween a seller and a real estate broker, statingthe broker will be paid a commission for finding(or attempting to find) a buyer for the seller’s realproperty. Compare: Exclusive Agency; ExclusiveRight to Sell.
  • A party to a lawsuit; a plaintiff ordefendant.
  • Lawsuit(s).
  • Water rights of a landowner whoseproperty is adjacent to a lake or contains a lake.Compare: Appropriative Rights; Riparian Rights.
  • Points charged to a borrowerto cover the costs of issuing a loan.
  • The amount of moneyborrowed, compared to the value (or price) ofthe property.
  • The amount of money a bank is willingto lend someone to finance property.
  • The exact position of a property.
  • Survey that determines if aproperty’s buildings encroach on adjoiningproperty, or any adjoining property’s buildingsencroach on the subject property.
  • The difference between rentable squarefootage and usable square footage.
  • A parcel of land; especially, in a subdivision.
  • A type of legal description used forplatted property. The description states only theproperty’s lot number and block number in aparticular subdivision.
  • m

  • A major department or chain storestrategically located within a shopping centerto give maximum exposure to smaller satellitestores.
  • Acceptance of a contract offer iseffective the moment it is mailed, even thoughone party has not yet received it.
  • Monthly fees paid by condominiumowners or co-op shareholders for common areaexpenses like utilities, building maintenance, andupkeep. Also called: Common Area Expenses orMaintenance Fees.
  • A written agreement thatgoverns the relationship between a propertyowner/investor and the property manager andoutlines the duties of the property manager.Also called: Property Management EmployeeContract.
  • A plan created by theproperty manager for overseeing the property,including market analysis, and developinga variety of financial reports including theoperating budget.
  • Difference between the index value andinterest rate charged to the borrower with anARM loan.
  • The position an agent’s listingis in compared to similar homes in the sameneighborhood at a similar price.
  • The actual open market price paid inan arm’s length transaction.
  • The theoretical price a property ismost likely to bring in a typical transaction.
  • Title free and clear ofobjectionable encumbrances or defects, sothat a reasonably prudent person with fullknowledge of the facts would not hesitate topurchase the property.
  • A breach of contract importantenough to excuse the non-breaching party fromperforming his contractual obligations.
  • An important fact; one that is likely toinfluence a decision.
  • A person who supplies materials,equipment, or fuel for a construction project.See: Materialman’s Lien. Compare: Mechanic.
  • Similar to a mechanic’s lien, butbased on a debt owed to someone who suppliedmaterials, equipment, or fuel for a project (asopposed to labor).
  • A person whose life determines thelength of a life estate. See: Life Estate.
  • A person who performs work(construction, remodeling, repairs, or demolition)on real property. See: Mechanic’s Lien. Compare:Materialman.
  • A specific lien claimed by someonewho performed work on property (construction,repairs, or improvements) and has not beenpaid. This term is often used in a general sense,referring to materialmen’s liens as well as actualmechanics’ liens.
  • Uniting two or more properties bytransferring ownership of each to one person.
  • A form of lung cancer caused byextended exposure to asbestos.
  • A land survey process wherebya licensed land surveyor starts at an easilyidentifiable point of beginning (POB) anddescribes a property’s boundaries in terms ofcourses, (compass directions), and distances,ultimately returning to the point of beginning.
  • An illegal, man-made drugthat is extremely addictive. Residues left ina residence from the manufacturing processcan be toxic.
  • Rights to the minerals locatedbeneath the surface of a property.
  • A person who has not yet reached the age ofmajority; n New York, that is age 18.
  • A misdeed triable in a court ofspecial sessions.
  • A false or misleading statement.See: Fraud.
  • When the non-breaching party takesaction to minimize losses resulting from a breachof contract.
  • A fungus that can release toxins into theenvironment causing allergic reactions in somepeople.
  • The means by which thegovernment can exert control over the supplyand cost of money.
  • Insurance coverage designed tocover one specific area—property
  • Fixed physical objects stated as pointsof reference in a metes and bounds description.
  • Suspends the right of property ownersto obtain development approval while locallegislatures consider, draft, and adopt landuse regulations or rules to respond to new orchanging circumstances not adequately dealtwith by current laws.
  • An instrument that creates a voluntarylien on real property to secure repaymentof a debt. The parties to a mortgage are themortgagor (borrower) and mortgagee (lender).
  • One who originates, sells, andservices mortgage loans, and usually acts as theoriginator and servicer of loans on behalf of largeinvestors, such as insurance companies, pensionplans, and FANNIE MAE.
  • One who, for a fee, places loanswith investors, but typically does not servicesuch loans.
  • Clause that states in order to geta mortgage loan, property insurance must beobtained prior to closing. The mortgage clausecovers the lender’s interest in preservation andreconstruction of the property after a loss.
  • Institutions that functionas originators and servicers of loans on behalfof large investors, such as insurance companies,pension plans, or Fannie Mae.
  • Insuranceoffered through the FHA to insure a lenderagainst default on a loan by a borrower.
  • Theinterval at which a borrower’s actual mortgagepayments change with an ARM (adjustable ratemortgage).
  • A limit on the amount ofmortgage payment increases that can occur withan adjustable rate mortgage.
  • The value of an asset for purposesof securing a mortgage loan.
  • A lender who accepts a mortgage assecurity for repayment of the loan.
  • A person who borrows money andgives a mortgage to the lender as security.
  • A service wherebylocal member brokers agree to share listings,and further agree to share commissions onproperties sold jointly. The MLS generallyconsists of online computer services and aregularly published book.
  • The municipal agencyresponsible for the planning, design, andconstruction of New York’s public works facilitiesand projects.
  • When all parties freely agree tothe terms of a contract, without fraud, undueinfluence, duress, or mistake, and achievedthrough offer and acceptance. Also called:Meeting of the Minds.
  • When both parties to a contractwere mistaken about a fact or a law.
  • The name ofthe FHA’s insurance program for residentialmortgages.
  • A toxic substance produced by somemolds.
  • n

  • A type of appraisal report thatprovides the most detailed analysis, as it allowsthe appraiser to comment fully on the opinionsand conclusions of the appraisal.
  • America’s largest trade association, representing1.3 million members involved in all aspectsof the residential and commercial real estate industries, including brokers, salespeople,property managers, appraisers, and counselors.
  • Things growing on a piece ofland, such as trees, shrubs, or crops; consideredpart of real property while growing and personalproperty when removed. Compare: Fixture.
  • The balance of a loangrowing due to deferred interest and resultingin an even larger balloon payment for theborrower.
  • A limit on the amountof negative amortization that can occur with anadjustable rate mortgage.
  • An easement that preventsthe servient tenant from using her own landin a certain way (as opposed to allowing thedominant tenant to use it). Compare: RestrictiveCovenant.
  • Conduct that falls below the standardof care a reasonable person would exerciseunder certain circumstances; an unintentionalbreach of a legal duty resulting fromcarelessness, recklessness, or incompetence. See:Tort. Compare: Strict Liability.
  • Lease for which a tenant pays all taxes,insurance, etc., plus utilities and rent
  • A listing agreement in which the seller sets a net amount acceptable for a property; if the actual selling price exceeds that amount, the broker is entitled to keep the excesses commission; illegal in New York.{"@context": "https://schema.org","@type": "FAQPage","mainEntity": [{"@type":(...)
  • Income left after alloperating costs are paid.
  • An estimate of the money a sellershould receive from a real estate transaction,based on the selling price after all costs andexpenses are paid.
  • Value of a person’s assets less liabilities.
  • AllNew York Real Estate boards fall under this stateboard; a member of the NAR®.
  • Extendsprotected classes beyond those covered in theFair Housing Act to include, age, creed, maritalstatus, military status, and sexual orientation
  • Oversees publicrecreation areas and administers federal andstate preservation projects.
  • Sets forth the construction,materials, safety, and sanitary standards forbuildings in New York as well as standardsfor the condition, occupancy, maintenance,rehabilitation, and renewal of existing buildings.
  • Property that consists of industrialand commercial parcels as well as vacant land.
  • Foreclosure by a trusteeunder the power of sale clause in a deed of trustwithout the involvement of a court; not used inall states.
  • An interest in propertythat does not include the right to possess andoccupy the property; an encumbrance, such as alien or easement.
  • Prohibits the solicitationof residential property listings, and appliesto all real estate brokers and agents; ruledunconstitutional by the U.S. Court of Appeals.
  • Those that do not meetFannie Mae/Freddie Mac standards and, thus,cannot be sold on the secondary market.
  • Land use that does notconform to current zoning laws but is legallyallowed because the land use was establishedbefore the new laws were enacted. Mostnonconforming uses are allowed to continue butmay not be expanded or enlarged.
  • An official whose primary functionis to witness and certify the acknowledgmentmade by one signing a legal document.
  • A notice to a tenant demanding hevacate the leased property. Also called: Notice toVacate.
  • 1. When one party to a contractwithdraws and a new party is substitutedwith the consent of all parties, relieving thewithdrawing party of liability. 2. The substitutionof a new obligation for an old one.
  • Interference with the right of quietenjoyment of property.
  • o

  • What the offeror in a transactionsays and does. Compare: Subjective Intent.
  • Any loss of value anappraiser attributes to physical deterioration,functional obsolescence, or economicobsolescence
  • The loss in property value caused byeconomic and/or functional factors.
  • When one person proposes a contractto another. See: Acceptance. Compare:Counteroffer.
  • The commission that willbe paid on the sale of property.
  • An open invitation to otherbrokers to sell property listed by another broker.
  • A person who receives an offer or to whoman offer is made.
  • A document provided by the sponsor(of a condominium or co-op) that offers detailedinformation regarding the property. Also called:Offering Statement.
  • A person who makes an offer.
  • A licensed associate real estatebroker who elects to work as an office managerunder the name and supervision of an individualbroker or another broker who is licensed undera partnership, trade name, limited liabilitycompany, or corporation.
  • A division of HUD, which is responsiblefor the administration and enforcement offederal laws.
  • A final and conclusive map withrespect to the location and width of amunicipality’s streets, highways, drainagesystems, and parks.
  • When possession or useof land is obvious and unconcealed; one ofthe conditions necessary for easement byprescription.
  • Mortgage loan that allowsborrowers to request additional funds from thelender, up to a certain pre-determined limit,even re-borrowing part of the debt that hasbeen repaid (at the lender’s discretion) withouthaving to re-negotiate the loan.
  • A nonexclusive listing given by a sellerto as many brokers as he chooses. If the propertyis sold, the broker who was the procuring causeof the sale is entitled to the commission.
  • A budget created to projectthe income and expenses for a property over aone-year period.
  • The cost associated withrunning a building and/or business not includingdebt service or depreciation.
  • Document that illustratestotal revenues generated for a given periodbased on rent rolls and management style.
  • A contract giving one party the right to dosomething within a designated period withoutobligation. Compare: Right of First Refusal.
  • A contract giving an optioneethe right, but not the obligation, to buy propertyowned by the optionor during a specified period.
  • Renewal methods and the termsby which a renewed lease will exist.
  • Person to whom an option is given.
  • Person who gives an option.
  • A spoken agreement.
  • A type of appraisal report givenin person or over the phone often withoutsupporting documentation.
  • Legal process in which a courtorders an official (such as a sheriff) to seize andsell property of a judgment debtor to satisfy ajudgment lien.
  • A law passed by a local legislative body.Compare: Resolution.
  • The process of making or initiating anew loan.
  • Occurs when an agent isperceived as the principal’s fiduciary by athird party and the principal does not declareotherwise.
  • Title to property, dominion overproperty; the rights of possession and control ofreal or personal property.
  • Ownership by a singleindividual, as opposed to co-ownership. Alsocalled: Severalty.

  • p

  • A mortgage where personalproperty, like furniture, is included in theproperty sale and financed together with oneloan.
  • Two or more lines of coveragecombined into one insurance policy. AHomeowners policy is a true package policybecause it combines property insurance withliability insurance.
  • A lot or piece of real estate particularly aspecified part of a larger tract.
  • Evidence concerning negotiationsor oral agreements not included in a writtencontract that alter or contradict the terms of thewritten contract.
  • The legal doctrine that allowsa court to enforce an oral agreement thatshould have been in writing when the promiseehas taken irrevocable steps to perform hiscontractual obligation and failure to enforce thecontract would result in an unjust benefit for thepromisor.
  • A loan when the buyer andanother investor (or seller, lender, etc.) enter intoa partnership, with the buyer paying an equityshare in lieu of interest. Also called: SharedEquity Plan or Mortgage.
  • Allows any co-owner to end a jointtenancy.
  • Association of two or more peopleto carry on business for profit. Law generallyregards a partnership as a group of individuals,not as an entity separate from its owners.
  • The property partners bringinto a business at the outset, or later acquirefor the business; property owned as tenants inpartnership. See: Tenancy in Partnership.
  • A wall shared by two separateproperties; the owners on each side share theright of use.
  • Mortgage backedsecurities issued by Ginnie Mae, which payinterest and principal payments on a monthlybasis.
  • Defined in Section 469 as earningsderived from any trade or business or incomeproducingactivity in which the taxpayer doesnot materially participate.
  • The instrument used to convey governmentland to a private individual.
  • A visible, apparent defect that canbe seen in a reasonably thorough inspection ofproperty. Compare: Latent Defect.
  • The one promised payment in a note.
  • Protects borrowers from largepayment increases in their mortgages.
  • Lease under which a tenant paysa percentage of gross sales in addition to rent.
  • The rate at which water movesthrough soil.
  • Anything that can cause a loss (i.e., fire, wind,and hail).
  • A leasehold estate that continuesfor successive equal periods of time (i.e., weekto-week or month-to-month) until terminated byproper notice from either the lessor or the lessee.Also called: Periodic Lease and Periodic Tenancy.
  • When points are paid toa lender to reduce the interest rate and loanpayments for the entire life of the loan.
  • System used by state and localgovernments to monitor compliance with, andenforce building codes and other regulations.
  • Tangible items that (usually) arenot permanently attached to, or part of, the realestate. Also called: Personalty or Chattel.
  • Personal property.
  • A roof’s vertical rise in inches, divided by itshorizontal span in feet.
  • Typical payment on a mortgage loan thatincludes principle, interest, taxes, and insurance,
  • The party who brings or starts a civillawsuit; the one who sues.
  • A special typeof subdivision that may combine nonresidentialuses with residential uses, or otherwisedepart from ordinary zoning and subdivisionregulations; some PUD lot owners co-ownrecreational facilities or open spaces as tenantsin common.
  • Holds public hearings, investigatessolutions for the planning issues at hand, andmakes recommendations to the appropriatelegislative authority. In New York City, theplanning board and the zoning board are oneentity known as the Board of Standards andAppeals.
  • A local government agencyresponsible for preparing a community’scomprehensive development plan.Plaster Board Gypsum plaster sandwichedin-between two layers of coarse paper. Itiscommonly used in homes as a wall covering.Also called: Wall Board, Dry Wall, or GypsumBoard.
  • A detailed survey map of a subdivisionrecorded in the county where the land is located.Subdivided property is often called plattedproperty. Also called: Plat Map.
  • A large book containing subdivisionplats; kept at the county recorder’s office.
  • A type of framing used tobuild a house or building one story at a time,with each story serving as a platform for thenext. Also called: Platform Framing.
  • When a debtor transfers possessionof property to the creditor as security forrepayment of the debt. Compare: Hypothecate.
  • An escrow accountestablished with part of a buyer’s downpayment. The borrower/buyer’s lender thenwithdraws money from the account each monthand applies it to the monthly payment.
  • An increase in value (to cover the cost ofacquiring the parcels) by successful assemblageusually due to use.
  • Contains a licensee’s photo, name,and business address as well as the name andaddress of the affiliated broker; prepared, issued,and delivered by the Department of State incooperation with the Department of MotorVehicles.
  • The starting point and ending point for a metes and bounds description.
  • One percent of the loan amount. Points canbe charged for any reason but are often used forbuydowns. Also called: Discount Points.
  • The constitutional power of state andlocal governments to enact and enforce lawsthat protect the public’s health, safety, morals,and general welfare.
  • Organiccompounds manufactured as cooling andinsulating agents for transformers and capacitorsused in industry.
  • Ties rentescalation to the wages of a building’s cleaningand maintenance personnel (called “porters”).The formula provides tenant’s rent will increasea specific amount per square foot for a specifiedincrease in the porter’s hourly wages.
  • 1. Earnings from interest,dividends, annuities, and royalties not derivedfrom the ordinary course of business. 2.Gain or loss from the disposition of propertythat produces portfolio income or held forinvestment purposes.
  • Financial institutions that makereal estate loans, which they keep and service inhouse instead of selling them on the secondarymarkets.
  • An easement that allows thedominant tenant to use the servient tenement ina particular way.
  • 1. The holding and enjoyment ofproperty. 2. Physical occupation of real property.
  • Interest that entitles the holderto possess and occupy property, now or in thefuture; an estate, which may be either a freeholdor leasehold.
  • The interest held by agrantor (or grantor’s heirs) who has transferreda fee simple determinable. Also called: Reverter.Compare: Power of Termination.
  • A type of framingwith the floor for higher stories (and the roof)supported by beams that sit on top of posts andthe outside wall perimeter. Also called: Post andBeam Framing.
  • The potential income aproperty would produce in an ideal situationincluding no vacancy and collection losses.
  • An instrument authorizingone person (called an attorney in fact) to actas another’s agent to the extent stated in theinstrument.
  • A clause that allows a trusteeto sell trust deed property without courtsupervision if the terms of the trust deed areviolated.
  • The right to terminate aconditional fee estate if the estate holder fails tomeet the required conditions. Also called: Rightof Re-entry. See: Conditional Fee. Compare:Possibility of Reverter.
  • One reason for issuing azoning area variance—the zoning preventsthe owner from making permitted use of theproperty.
  • Process by which a lender determineswhether potential borrowers can be financedthrough the lender for a certain amount ofmoney.
  • Process by which an agent orlender reviews potential borrowers to determineif they are likely to be approved for a loan and forapproximately what amount.
  • Practice of making loans withexcessively high fees and misrepresented loanterms; predatory lenders often target borrowerswho are financially unstable and who do notqualify for conventional loans.
  • Additional money chargedby a lender for paying off a loan early.
  • Acquiring an interest in property(usually an easement) by using it openly andwithout the owner’s permission. See: Easementby Prescription. Compare: Adverse Possession.
  • Routine maintenanceand inspections that keep equipment and theproperty in good working order.
  • The amount a ready, willing, and able buyeragrees to pay for a property and a seller agreesto accept.
  • An antitrust violation in whichcompetitors set a standard commission rate.
  • Lenders who make mortgageloans directly to borrowers. Also called: PrimaryMortgage Markets. Compare: SecondaryMarkets.
  • 1. A person who grants another person(an agent) authority to represent him indealings with third parties. 2. One of the partiesto a transaction (such as a buyer or seller), asopposed to those who are involved as agents oremployees (such as a broker or escrow agent).3. With regard to a loan,(...)
  • Insuranceoffered by private companies to insure a lenderagainst borrower default.
  • A restriction imposed onproperty by a previous owner or the subdivisiondeveloper; a restrictive covenant or a conditionin a deed.
  • A proportionate share.Proration The division of expenses between buyerand seller in proportion to the actual usage ofthe item represented by a particular expense.Also called: Adjustments.
  • A judicial proceeding in which the validityof a will is established and the executor isauthorized to distribute the estate property; or,when there is no valid will, a judicial proceedingin which an administrator is appointed todistribute the estate to heirs according to thelaws of intestate(...)
  • A court that oversees thedistribution of property under a will or intestatesuccession.
  • A law that establishes a legalprocedure for enforcing a right. Compare:Substantive Law.
  • The real estate agent who isprimarily responsible for bringing about a sale,such as by introducing the buyer to the propertyor by negotiating the agreement between thebuyer and seller. Sometimes more than oneagent contributes to a sale. See: Open Listing.
  • A schedule of the projected income and expenses for a real estate investment over a given period.
  • A person who has been promisedsomething; a person who is supposed to receive the benefit of a legally binding contractualpromise.
  • A person who has made a contractualpromise to another.
  • A doctrine applied whensomeone makes a technically unenforceablepromise, but another person acts in reasonablereliance on the promise. If the person whorelied on the promise will suffer harm unless it isenforced, a court may enforce it.
  • A written, legally binding promiseto repay a debt.
  • Coverage that indemnifies aperson with an interest in the property for a losscaused to the property by a covered peril.
  • Leasing or renting, oroffering to lease or rent real property of othersfor a fee, commission, compensation, or othervaluable consideration pursuant to a propertymanagement employee contract.
  • A report preparedby property managers to inform owners on thestatus of their property, often including income,expenses, and disbursements information.
  • A person hired by a realproperty owner to administer, market,merchandise, and maintain property, especiallyrental property.
  • Exclusive, longer term leasegiven to a person who lives in a cooperative andowns stock in the cooperative.
  • Title III of the Americanswith Disabilities Act requiring all public andcommercial facilities are100% accessible to thedisabled.
  • When land owned by the governmentis transferred to an individual.
  • A land use that threatens publichealth, safety, morals, or welfare, or constitutes asubstantial annoyance to the public.
  • The official collection of legaldocuments filed with the county recorder. See:Constructive Notice; Recording.
  • A law or regulation limiting orregulating the use of real property.
  • Superlative statements about the qualityof a property that should not be consideredassertions of fact.
  • Court-ordered monetary awardmeant to punish the defendant for malicious oroutrageous conduct and discourage others fromengaging in similar acts. Also called: ExemplaryDamages.
  • A contract in which a sellerpromises to convey title to real property inexchange for the purchase price. Also called:Purchase and Sale Agreement, PurchaseContract, or Earnest Money Agreement.
  • When the seller finances all orpart of the sale price of a property for a buyer.
  • q

  • When a grantor puts a conditionor requirement in the deed and limits the titleto real property. Also called: Conditional Fee,Determinable, Fee Simple Defeasible, orDefeasible Fee.
  • A cost approach appraisalmethod where the appraiser counts the numberand type of each part and material used toconstruct a building, and add the cost for labor,profit, permits, etc.
  • Use and possession of realproperty without interference from previousowners, the lessors, or anyone else claiming title.See: Covenant of Quiet Enjoyment.
  • A lawsuit to determine who hastitle to a piece of property or to remove a cloudfrom the title.
  • Conveys any interest in a parcelof land the grantor has at the time the deedis executed; conveys whatever right, title, orinterest the grantor holds in the propertywithout representation that there is any interestat all.
  • r

  • A way to measure the insulating value orresistance to heat flow through a material or anobject. The more effective the insulation, thehigher the R-Value it will have.
  • Insulation’s R-Factor multiplied by theamount of material. See: R-Factor
  • A naturally occurring radioactive gas thatemanates from rocks, soil, and water because ofthe decay of uranium.
  • Sloped support beams that follow the pitchof the roof and serve to hold the outer roofcovering. See: Joist and Rafters.
  • North-south lines running parallel toprincipal meridians at six-mile intervals in thegovernment survey system.
  • The interval at which aborrower’s interest rate changes with an ARM(adjustable rate mortgage).
  • Used with ARMs to protect borrowersfrom large interest rate increases.
  • The rate at which an investorrecaptures his investment in income-producingproperty.
  • Confirmation or approval of an act notauthorized when it was performed.
  • Making an offer topurchase on terms acceptable to the seller, andhaving the financial ability to complete thepurchase.
  • Land and everything permanentlyaffixed to it.
  • A person who is speciallytrained to offer an unbiased value of realproperty.
  • A person who is licensed torepresent one of the parties in a real estatetransaction for compensation.
  • 1. A purchase agreement. 2. Aland contract. 3. Any contract having to do withreal property.
  • General swings in real estateactivity, resulting in increasing or decreasingactivity and property values during differentphases of the cycle.
  • A real estateinvestment business with at least 100 investorsorganized as a trust.
  • Property acquiredthrough foreclosure and held in inventory by alending institution.
  • A licensed real estateprofessional associated with a broker and, assuch, who may perform most of the acts as abroker, on behalf of him.
  • Requires lenders, mortgage brokers, or servicersof home loans to provide borrowers withpertinent and timely disclosures of the natureand costs of the real estate settlement process.
  • An annual tax levied on the valueof real property. Also called: Property Tax orGeneral Real Estate Tax.
  • A tax levied on the transferof real property.
  • The physical land and everythingattached to it as well as the rights of ownership(bundle of rights). Compare: Personal Property.
  • A real estate licensee who is a member ofNational Association of Real Estate Brokers.
  • Any real estate licensee who is a memberof the National Association of REALTORS® andits affiliated boards; only members may use theterm REALTOR® as it’s a registered trademark ofthe NAR®.
  • Real property.
  • The new assessment of a percentageof a property’s market value.
  • Occurs on a personalasset used for business purposes when the assetis sold.
  • Municipal official responsiblefor managing the day-to-day operations of theOffice of Receiver of Taxes, which collects localtaxes. Other functions include tax billing andcollection, banking, record maintenance, mailand accounting functions.
  • When states agree to allow licenseesfrom other states to sell real estate in their own.
  • An agreement betweenthree parties—the lender, the co-op, and theshareholder—that recognizes the rights oflenders who finance the shareholder.
  • Verifying debits and credits havebeen added and subtracted correctly on a realestate settlement statement.
  • An instrument that releases securityproperty from the lien created by a deed of trust.Also called: Satisfaction of Mortgage.
  • Filing a document at the countyrecorder’s office so it is public record.
  • When a lender refuses to make loanssecured by property in a certain neighborhood because of the racial or ethnic composition ofthe neighborhood.
  • A fixed rate mortgagethat gives borrowers a limited opportunity toreduce the interest rate once during the courseof the loan, provided certain conditions are met.
  • Someone who is empowered by the courtto exercise judicial power to convey land.
  • Deeds that contain no covenants orwarranties although ownership is implied.
  • A description on a deed thatincludes the property’s location on a plat map.
  • When citizens vote on an issue.
  • A legal action to correct a mistake,such as a typographical error, in a deed or otherdocument.
  • When the value of the “best” home in agiven area is negatively affected by other homesin the area.
  • 1. A rule adopted by an administrativeagency. 2. Any governmental order having theforce of law.
  • Federal guidelines under the Truthin-Lending Act that require full disclosure of allcredit terms for consumer loans.
  • 1. To give up a legal right. 2. A document inwhich a legal right is given up.
  • A clause in a mortgage agreement for a subdivision that allows the borrower to pay a certain amount of money to release one or more lots with the mortgage continuing to cover the other lots.
  • When a body of water gradually recedes,exposing land that was previously under water.Also called: Dereliction.
  • A future interest that becomespossessory when a life estate terminates andthat is held by someone other than the grantorof the life estate. Compare: ReversionaryInterest.
  • The person who has an estate inremainder.
  • The means by which a court enforces aright, imposes a penalty, or makes some otherorder to impose its will. Compare: EquitableRemedy and Legal Remedy.
  • Recurring fee to continue aninsurance policy.
  • Consideration paid by a tenant to a landlord inexchange for possession and use of property.
  • Governmental restrictions on howmuch rent a landlord can charge.
  • Spreadsheet or listing of key informationabout a property (i.e., total number of units,tenant names and apartment numbers, leasedates, and the rent each tenant pays).
  • The amount of spaceused in calculating a lease payment; rentablesquare footage is larger than the actual spacetenants occupy because it includes their shareof the property’s service areas like the lobby,corridors, and other common areas.
  • When someone who has beengranted something or has accepted somethinglater gives it up or rejects it; as when an agent withdraws from the agency relationship.Compare: Revocation.
  • Building a functional equivalent of anoriginal building. Compare: Reproduction.
  • The cost, for insurancepurposes, of replacing property withoutdeduction for depreciation.
  • Building an exact replica of anoriginal building, duplicating the materials,design, functional layout, workmanship, andeven inadequacies.
  • The cost to build an exactreplica of an original building, giving the newstructure the same look and feel as the original.
  • When a contract is terminated and eachparty gives anything acquired under the contractback to the other party (verb form is rescind).Compare: Cancellation.
  • A document a condominium buyersigns to reserve a particular unit. Also called:Reservation Request and Intent to PurchaseAgreement.
  • An account maintained by abroker for the deposit of client’s money (i.e.,good faith deposits). Also called: Trust Account.2. An account maintained by a lender for thedeposit of borrowers’ extra 1/12 monthlydeposits to cover next year’s insurance and taxpayments. Also called: Escrow Account.
  • The percentage ofcustomers’ deposits commercial banks arerequired to keep on deposit, either on hand atthe bank or in the bank’s own accounts; moneythe bank cannot lend to other people.
  • Represents a propertymanagement firm and may live on the premisesof the building she manages.
  • Residential Lead-based Paint Hazard ReductionAct
  • In-depth study of alisting as it stands on its own, as well as in light ofcurrent market conditions.
  • The amount of income a borrowerhas left after subtracting taxes, housingexpenses, and all recurring debts and obligations(used for VA loan qualifying).
  • Restoring something to a person ofwhich she was unjustly deprived.
  • A limitation on the use of real property.Compare: Public Restriction; Private Restriction.
  • 1. A limitation on realproperty use, imposed by the owner. 2. Apromise to do, or not to do, an act relating to realproperty.
  • Where a specific typeof business activity occurs—retail sales andrelated business activities.
  • When a landlord evicts atenant in retaliation for complaining about codeviolations or violations of the Landlords andTenants Act, or for participating in a tenants’rights group.
  • A saver/investor’sexpectation that he will eventually get back theinterest paid while the equity was invested.
  • To overturn a lower court’s decision onappeal, ruling in favor of the appellant. Compare:Affirm.
  • When a homeownerover age 62 with little or no outstanding liens,mortgages her home to a lender and, in return,receives a monthly check. Also called: ReverseMortgage.
  • A future interest thatbecomes possessory when a temporary estate(such as a life estate) terminates, and is held bythe grantor (or grantor’s successors in interest).Compare: Remainder Interest.
  • When someone who granted oroffered something withdraws it, as when aprincipal withdraws the authority granted to theagent, an offeror withdraws the offer. Compare:Renunciation.
  • An amendment to a zoning ordinance,usually changing the uses allowed in a particularzone. Also called: Zoning Amendment. Compare:Spot Zoning.
  • An amendment to a contract.
  • A right to transfer all or some of aperson’s ownership interest in real property.
  • A right to enjoy the benefitsof land ownership without outside interference.See: Quiet Enjoyment.
  • A right to have the firstchance to buy or lease property if the ownerdecides to sell or lease it. Also called: Right ofPre-emption. Compare: Option.
  • A characteristic of statutorysurvivorship tenancy, joint tenancy, andtenancy by the entireties; surviving co-tenantsautomatically acquire a deceased co-tenant’sinterest in the property.
  • The right landowners have to makeproperty productive (part of bundle of rights).
  • An easement giving the holderthe right to cross another person’s land.
  • The consumer’s right to rescindany credit transaction involving her principalresidence as collateral (except first mortgages),up to midnight of the third business day afterthe transaction.
  • The water rights of a landownerwhose property is adjacent to or crossedby a river (or any body of water). Compare:Appropriative Rights; Littoral Rights.
  • The probability that events will not occur asexpected.
  • Identifying, managing, andminimizing the potential risks on the property.
  • Items hidden by finished walls, but thatare vital to the operation of the house.
  • Binding or benefiting thesuccessive owners of a piece of property, ratherthan terminating when a particular ownertransfers his interest. Usually refers to easementsor restrictive covenants.
  • s

  • A governmentact established by the EPA that sets qualitystandards for water intended for humanconsumption.
  • A method for financingcommercial or industrial properties in which acompany constructs the building then becomesa tenant by selling the building to an investor.
  • Any licensed real estate salespersonassociated with a broker; sales associates neveract independently, they act on behalf of thebroker. Also called: Salesperson.
  • An appraisal methodthat estimates the value of real property byperforming a market analysis of the area wherethe subject property is located. Data is collectedand adjustments made for differences.
  • Contracts in which a seller promisesto convey title to real property to a buyer inexchange for the purchase price. Also called:Purchase Agreements, Sale Agreements,Purchase and Sale Agreements, Offers toPurchase, and Earnest Money Agreements.
  • The document amortgagee gives the mortgagor when themortgage debt is paid in full acknowledgingthe debt has been paid and the mortgage is nolonger a lien against the property.
  • Institutionsthat specialize in taking savings deposits andmaking mortgage loans.
  • Characteristic of real property that saysthere is a limited supply of real estate.
  • A security instrument in asecond lien position.
  • When a party is not completelyreleased from liability of an obligation; thus ifthe lender cannot recover the loan from the newparty, the party who is secondarily liable may stillbe pursued.
  • Private investors andgovernment agencies that buy and sellmortgages. Also called: Secondary MortgageMarket. Compare: Primary Markets
  • A financial benefit an agent takesfrom a transaction without authorization fromthe principal, nor informing the principal of thebenefit retained. See: Self-dealing.
  • A one-mile-by-one-mile square withina township used for the government surveysystem; one section equals 640 acres, 36 sectionsequal one township.
  • An index that lists recordeddocuments under the tax parcel number ofthe property they apply to, grouping togetherall recorded documents affecting a particularproperty. Also called: Tract Index.
  • A creditor with a lien on specificproperty that enables him to foreclose andcollect the debt from the sale proceeds if it is nototherwise paid.
  • Act of pooling mortgages and thenselling them as mortgage-backed securities.
  • Money a tenant gives a landlordat the beginning of tenancy to ensure the tenantwill comply with the terms of the lease. Thelandlord may retain all or part of the depositto cover unpaid rent, repair costs, or otherdamages, if necessary.
  • Instruments (i.e., mortgages and trust deeds) that give a creditor the right to have the collateral sold to satisfy the debt if the debtor fails to pay according to the terms of the agreement.
  • The interest a creditor mayacquire in the debtor’s property to ensure thatthe debt will be paid.
  • The possession of a freehold estate; ownership. Also spelled: Seisin or Seizin.{"@context": "https://schema.org","@type": "FAQPage","mainEntity": [{"@type": "Question","name": "What is seizen?","acceptedAnswer": {"@type": "Answer","text": "The possession of a freehold estate; ownership."}},(...)
  • When a real estate agent buys the principal's property (or sells it to a relative, friend, etc., or to a business the agent has an interest), without disclosing that fact to the principal, then sells it for a profit.{"@context": "https://schema.org","@type": "FAQPage","mainEntity": [{"@type":(...)
  • When a landlord uses physicalforce, a lockout, or a utility shutoff to remove atenant, instead of the legal process.
  • When a seller extends credit to abuyer to finance the purchase of the propertyinstead of or in addition to the buyer obtaining aloan from a third party.
  • The agent who is representing onlythe seller in a transaction and owes, all loyalty tothat seller/client.
  • A situation in the housing marketwhen there are more buyers than there areproperties for sale.
  • Any mortgage that has a higherlien position than another mortgage.
  • In states with a communityproperty system, any property owned by amarried person that is not held jointly withthe spouse as community property. Compare:Community Property.
  • A type of private sewage disposalsystem used in areas that do not have publicsewers.
  • The continued maintenance of a loanafter it has been made (e.g., collecting payments,keeping records, and handling defaults).
  • The owner of a servient tenement;that is, someone whose property is burdened byan easement.
  • Property burdened by aneasement; the owner of the servient tenement(the servient tenant) is required to allowsomeone who has an easement (the dominanttenant) to use his property.
  • Provisions that require residences belocated a specified distance between the frontproperty line to the building line, as well as fromthe interior property lines.
  • 1. An agreement between the partiesto a civil lawsuit, in which the plaintiff agrees todrop the suit in exchange for a sum of money or the defendant’s promise to do or refrain fromdoing something. 2. Closing.
  • A document preparedby the buyer’s and seller’s attorney or bankrepresentatives that itemizes all expenses andcosts paid by the buyer and seller to close thereal estate transaction.
  • When one part or provision in a contractcan be held unenforceable without making theentire contract unenforceable.
  • A type of co-op loan signifying a buyeris purchasing shares in a corporation, rather thana mortgage for ownership of property.
  • Loan for which the buyerand another investor (or seller, lender, etc.) enterinto a partnership, with the buyer paying anequity share in lieu of interest.
  • Stockholders in a corporation.
  • A structural covering, often made ofplywood, placed over a building frame’s exteriorwall studs or roof rafters.
  • A deed issued by the court to aproperty purchaser from a foreclosure sale.
  • A foreclosure sale held after a judicialforeclosure. Also called: Execution or ExecutionSale.
  • When poor air quality in abuilding causes symptoms of headache, fatigue,nausea, sore throat, nose and eye irritation, etc.among its occupants.
  • The area between a building and one sideboundary of the lot on which it is located.
  • The outer covering for a home’s exteriorwalls, designed to shed water and protect thehome from the elements.
  • Bottom piece of a frame horizontallyanchored to the foundation providing a nailingsurface for the floor or wall system.
  • A seller financing techniqueused when an investor or seller creates a privatemortgage note and then simultaneously closeswith the buyer on the same day.
  • When all negotiating isconducted in one place at one time with allparties to the contract and their attorneyspresent.
  • A plot of land with enhancements that make itready for a building or structure.
  • Place where something exists; an area ofpreference thus giving it economic attributes(value).
  • A concrete foundationbuilt directly on the ground level. A slabon-grade house or building does not have abasement.
  • The underside of an arch, beam, overhang,or eaves.
  • An agent with limited authority toact on behalf of the principal.
  • A tax or levy against realproperty for improvements; not imposed on allresidents of a community, but only to ownerswho will benefit from the improvement.
  • A geographicarea designated to pay for infrastructure costs for a specific project. Properties within thedistrict each pay a portion of the total projectcost. Creates a special assessment lien (aninvoluntary lien).
  • Properties consideredhaving a limited use, such as a church or tennisclub.
  • Permit issued in certain zoningdistricts when conditions designed to protectsurrounding properties are met.
  • A lien that attaches only to a particularproperty. Compare: General Lien.
  • A legal remedy in whicha court orders someone who has breached acontract to perform as agreed rather than simplypaying monetary damages.
  • Tax laws that can encourage ordiscourage a particular behavior or activity.
  • In construction, specifications arewritten documents explaining the requirementsfor the scope of the work including materials,standards, and expected quality of the finishedproduct. Also called: Plans.
  • People you know and whomyou can ask for referrals.
  • Also known as the developer, a sponsoris the person, corporation, or other entitythat is part of the sale and development of acondominium or co-op property.
  • The broker for whom a licenseeworks.
  • The illegal rezoning of a single parcelor a small area to benefit one or more propertyowners rather than carry out the objectives ofthe master plan.
  • A property’s income andexpenses averaged over a five year period.
  • Income that can reasonably beexpected to continue in the future.
  • A type of mold known as “black mold”that produces mycotoxins.
  • Legal doctrine requiring judges tofollow precedents (from the same jurisdiction) tomake laws consistent and predictable.
  • In constitutional law, action by agovernment (federal, state, or local) rather thanby a private party.
  • Study requiredby the Environmental Protection Agency to helpstates meet national air quality standards.
  • Offers programs funded by the sale of taxexemptbonds and designed to make housingaffordable to low- and moderate-incomehouseholds.
  • A law enacted by a state legislature or theU.S. Congress. See: Statutory Law. Compare:Ordinance; Resolution.
  • A law that requires certain typesof contracts to be in writing and signed to beenforceable.
  • A law requiring a particulartype of lawsuit to be filed within a specified timeafter the event giving rise to the suit occurred.
  • Independent contractorsspecifically classified as employees by statute forSocial Security and Medicare taxes.
  • Laws adopted by a legislative body(Congress, state legislature, or a county or citycouncil), as opposed to constitutional law, caselaw, or administrative regulations.
  • A life estate held by a personwhose dower rights have vested (because aperson’s spouse sold property without a dowerrelease, and subsequently died).
  • Direct sellers and licensesreal estate agents; treated as independentcontractors for all tax purposes if certainconditions are met.
  • Allows a mortgagor toredeem property for a set period of time aftera foreclosure sale regardless of the timing ofother events. Compare: Equitable Right ofRedemption.
  • A form of coownership,used in some states, to replace jointtenancy and tenancy by the entireties; eachco-tenant has an equal undivided interest in realproperty and the right of survivorship.
  • Channeling prospective buyers or tenantsto particular neighborhoods based on their race,religion, national origin, or ancestry.
  • Properties that do not haveany physical defects but have become lessmarketable because they were the scene of acrime, suicide, or other undesirable event. .
  • Simple depreciationmethod that takes the total cost of a buildingand divides that by the number of years thebuilding is expected to be useful.
  • A loan that comes due ona specified date, often before the periodicpayments would pay it off. Also called: TermMortgage
  • A note that calls for payments ofinterest only during the term of the note, witha balloon payment at the end to pay off theprincipal balance.
  • Foreclosure with a strictdeadline, past which a mortgagor can nolonger reclaim interest in the real property outof the foreclosure proceedings by bringing themortgage current.
  • When someone is held legallyresponsible for an injury to another, even thoughhe did not act negligently. Compare: Negligence.
  • The vertical beams that serve to frame thehouse. Drywall and/or siding are attached tostuds.
  • Created when an offer of subagencyis accepted (e.g., when a listing broker offerscompensation to other brokers as a subagent,the cooperative broker agrees to represent theinterest of the seller).
  • An agent of an agent; a person that anagent has delegated authority, so the subagentcan assist in carrying out the principal’s orders.

  • 1. Land divided into two or moreparcels. 2. A residential development.
  • State and local laws withwhich developers must comply before the landcan be subdivided.
  • The support land receives fromthe land beneath it.
  • Property for which a valueestimate is sought.
  • When property is transferred to abuyer along with an existing mortgage or lien,but without the buyer accepting personalresponsibility for the debt. The buyer must makethe payments to keep the property, but onlyloses her equity in the event of default. Compare:Assumption; Novation.
  • What the offeror in a transactionis actually thinking but necessarily what he does.Compare: Objective Intent.
  • When a tenant transfers only part of hisright of possession or other interest in leasedproperty to another person for part of theremaining lease term. Compare: Assignment.
  • A contract that gives amortgage recorded at a later date priorityover an earlier recorded mortgage. Also called:Subordination Agreement.
  • Document ordering a person to appearat a deposition or court proceeding to testify orproduce evidence.
  • A loan with a higher interest ratethan a conventional loan.
  • Later granteesof a deed who paid consideration for it andthey are given some protection from claims notrecorded).
  • When a promisor doesnot perform all of his contractual obligations, butdoes enough so the promisee is required to fulfillhis obligations. Compare: Material Breach.
  • A law that establishes a right orduty. Compare: Procedural Law.
  • Theory that an informed buyer willnot pay more for a home than a comparablesubstitute.
  • The implication that alandowner has rights to the land below thesurface to the center of the earth, even though itis not documented.
  • A person (i.e., a buyer or anheir) who has acquired property previously heldby someone else.
  • Act that amended the CERCLA,designated more money to the Superfund trust,and established new environmental laws andregulations.
  • Law of economics that saysfor all products, goods, and services, whensupply exceeds demand, prices will fall, andwhen demand exceeds supply, prices will rise.
  • The right to have one’s landsupported by the land adjacent to and beneathit.
  • Giving up an estate (such as a life estateor leasehold) before it has expired.
  • The process of locating and measuringthe boundaries of a property, and indentifyingimprovements, encroachments, and easementsassociated with the land.
  • A real estate agent’s license beingtemporarily withdrawn. Usually, reactivation isautomatic the day after the suspension is lifted.Compare: Revocation.
  • An association of people or entitiesformed to operate an investment business. Asyndicate is not a recognized legal entity; can beorganized as a corporation, partnership, or trust.
  • t

  • When successive periods of use orpossession by more than one person are addedtogether to equal the 21 years required forprescription or adverse possession.
  • A loan that is used to pay offa construction loan when construction iscomplete.
  • When the government acquires privateproperty for public use by appropriation. Thedifference between a “taking” and eminentdomain is that the property is regulated bya government authority to the economicdetriment of the owner, without compensation.
  • An annual tax levied on the value of realproperty.
  • An official who evaluates property forthe purpose of taxing it.
  • The ability to write-off a portionof interest from a loan on the amount of taxesowed to the government.
  • Exchanges where taxablegain is deferred until a later date.
  • Calculating depreciation that canbe used to determine any expense that can bededucted from income to determine net profit.
  • Determine tax rates by developing andadopting a budget, evaluating the revenue fromall sources other than property taxes (state aid,sales tax, user fees, etc.), and then subtractingthe revenues from the original budget.
  • A lien on real property to secure thepayment of taxes.
  • Sale of property after foreclosure of a taxlien.
  • Any method used to reduce taxableincome, thereby reducing the amount of tax paidto a government.
  • The process of a government levying acharge on people or things.
  • When points are paid to alender to reduce the interest rate and paymentsearly in a loan, with interest rate and paymentsrising later.
  • Lawful possession of real property; anestate.
  • Possession of property by aholdover tenant.
  • When a tenant is in possession withthe owner’s permission, but with no definitelease term and no rent being paid (or rent is notpaid on a regular basis); e.g., a landlord lets a holdover tenant remain on the premises withoutpaying rent until a new tenant is found.
  • A form of property coownershipby husband and wife, in which eachspouse has an undivided one-half interest andthe right of survivorship, with neither spouseable to convey or encumber his or her interestwithout the other’s consent.
  • A form of co-ownershipin which two or more persons each have anundivided interest in the entire property (unityof possession), but no right of survivorship.
  • The form of co-ownershipin which general partners own partnershipproperty, whether or not title to the property isin the partnership’s name. Each partner has anequal undivided interest, but no right to transferthe interest to someone outside the partnership.
  • see: Estate for Years
  • Someone in lawful possession of realproperty, especially, someone who has leasedproperty from the owner; can also refer tosublessees.
  • An unconditional offer by one party to a contract to perform his or her part of the agreement; made when the offer or believes the other party will breach to establish the offeror’s right to sue if the other party doesn’t accept it. Also called: Tender Offer or Tendering Performance.
  • Everything of a permanent natureassociated with a piece of land and ordinarilytransferred with the land. Tenements are bothtangible (buildings, for example) and intangible(air rights, for example).
  • The public recordlisting assessed value for all real property in amunicipality.
  • A prescribed period of time; especially, thelength of time a borrower has to pay off a loan,or the duration of a lease.
  • Wood eating insects that can underminethe structural integrity of a building.
  • The geographical area overwhich a particular court has authority.
  • Refers to someone who has died and left awill. Compare: Intestate.
  • A man who makes a will.
  • A woman who makes a will.
  • See: Checker.
  • Requiring the consumer, asa condition of a transaction, to use, or not use aparticular service or product.
  • A contract clause that meansperformance on the exact dates specified isan essential element of the contract; failure toperform on time is a material breach.
  • An ownership interest that gives theowner a right to possession of the property onlyfor a specific, limited period each year.
  • The relationshipbetween time, money, a rate of return andearnings growth.
  • The actual lawful ownership of real propertyand refers to holding the bundle of rightsconveyed. Title is not a document, but rather atheory pertaining to ownership.
  • The final stage in a real estatetransaction; transfer of real property ownershipfrom seller to buyer occurs, according to theterms and conditions in a sales contract orescrow agreement.
  • An insurance policy that protectsthe lender (and sometimes the property owner)against loss due to disputes over the ownershipof a property and defects in the title that werenot found in the search of the public record.
  • A duplicate (usually microfilmed) of acounty’s public record, maintained by a titlecompany at its offices for use in title searches.
  • A report issued by a title company,disclosing the condition of the title to a specificpiece of property.
  • An inspection of the public record todetermine all rights and encumbrances affectingtitle to a piece of property.
  • States in which a mortgageeholds actual title to property until the loan isrepaid. Compare: Lien Theory States.
  • The physical characteristics of thecontour a parcel of land.
  • Title registration systemadministered by the state, which guaranteesindefeasible title to those included in theregister; adopted in New York and other states,but is costly and rarely used.
  • A breach of the standards of reasonableconduct imposed by law (as opposed to a dutyvoluntarily taken on in a contract) that causesharm to another person, giving the injuredperson the right to sue the one who breachedthe duty. Also called: Civil Wrong (in contrast to acriminal wrong, a crime).(...)
  • Relationship of totalmonthly debt obligations to income, expressedas a percentage.
  • Legal doctrine thatsays restrictive covenants must be related toactual landuse to be enforceable.
  • East-west lines that run parallel tobase lines at six-mile intervals in the governmentsurvey system.
  • Square divisions of land, 6 miles by 6miles, in the government survey system. Onetownship contains 36 sections.
  • Equipment a tenant installs for usein his or her trade or business, and which can beremoved by the tenant before the lease expires.
  • The exchange ofzoning privileges from areas with low populationneeds to areas of high population needs.
  • Transfer power from one circuit toanother.
  • An unlawful physical invasion of propertyowned by another.
  • The fundamental court proceeding in alawsuit, in which a judge (and in some cases, ajury) hears evidence presented by the plaintiffand defendant and issues a judgment. Compare:Appeal.
  • All documents and transcripts from atrial.
  • A word or phrase that describes aloan, including the down payment, terms, andmonthly payment. If an ad uses a trigger phrase,disclosures are needed to tell everything aboutthe loan.
  • A lease in which the tenant paysall the expenses associated with the property,including rent.
  • The amount that would be paid beforeany exemptions held by the present owner aresubtracted.
  • A legal arrangement in which title to property(or funds) is vested in one or more trustees whomanage the property (or invest the funds) onbehalf of the trust’s beneficiaries, in accordancewith instructions set forth in the documentestablishing the trust.
  • A bank account, separate from a realestate broker’s personal and business accounts,used to segregate trust funds from the broker’sown funds.
  • Money or things of value received byan agent, not belonging to the agent but beingheld for the benefit of others.
  • A person appointed to manage a trust onbehalf of the beneficiaries.
  • A non-judicial foreclosure sale undera deed of trust.
  • the borrower who owes payment of a noteon a deed of trust.

  • Act that requires lendersto disclose consumer credit costs to promoteinformed use of consumer credit.
  • u

  • Provides broad coveragefor an insured’s liability over and above liabilitycovered by underlying contracts.
  • Violating a provision of the U.S.Constitution or a state constitution.
  • Holding tanks thatcan used to store chemicals, fuels, toxic wastesand other substances. Regulated by the EPA.
  • A person who evaluates a loanapplication to determine its risk level for a lenderor investor.
  • The process of evaluating anddeciding whether to make a new loan.
  • Occurs when both principal parties in the same transaction are represented by a fiduciary without full disclosure to and approval from all parties in the transaction.{"@context": "https://schema.org","@type": "FAQPage","mainEntity": [{"@type": "Question","name": "What is undisclosed dual(...)
  • A co-tenant’s interest, givinghim or her the right to possession of the wholeproperty, rather than a particular section of it.See: Unity of Possession.
  • This is given up by the buyerand seller when they consent to dual agency.
  • Exerting excessive pressure onsomeone to overpower the person’s free willand prevent him or her from making a rationalor prudent decision; often involves abusing arelationship of trust.
  • Property whose seller hasclear title free of mortgages or other liens.
  • A contract that a courtwould refuse to enforce. For example, a contractmay be unenforceable because its contentscannot be proven, or because it is not in writing,or because the statute of limitations has run out.
  • Sets out certainrequirements for negotiable instruments.
  • Astandard appraisal report form used by lendersand appraisers because it has been developedand approved by secondary mortgage marketplayers Fannie Mae and Freddie Mac.
  • Professional appraisalstandards developed by The AppraisalFoundation, and now recognized throughout theUnited States as accepted standards of appraisalpractice.
  • When only one party makes alegally binding promise and the other has not.The promise will become legally binding if theother party chooses to accept it (similar to anoffer). Compare: Bilateral Contract.
  • When only one of the parties toa contract was mistaken about a fact or a law.
  • Characteristic of real property thatsays each piece of land, each building, and eachhouse is a different piece of real estate. Alsocalled: Non-homogeneity.
  • The organization thatmanages the operation of a condominium,imposing assessments and arranging forthe maintenance of the common areas. Theassociation’s members are the unit owners andthey usually elect a board of directors. Alsocalled: a Condominium Association.
  • Fourunities required to form a joint tenancy wherebyall owners share equally and simultaneously inthese conditions.
  • Each co-owner having an equalinterest (equal share of ownership) in a piece ofproperty.
  • Each co-owner being equallyentitled to possession of the entire property,because the ownership interests are undivided.See: Undivided Interest.
  • When each co-owner acquired title atthe same time.
  • When each co-owner acquired titlethrough the same instrument (deed, will, orcourt order).
  • An agent authorized to doeverything that can be lawfully delegated to arepresentative.
  • An unfairly obtained benefit byone party at the expense of another.
  • A summary legal actionto regain possession of real property; especially,a lawsuit filed by a landlord to evict a defaultingtenant and regain possession of the property.Also called: a Forcible Detainer Action.
  • Reason for a zoning usevariance if permitted uses of the property are noteconomically feasible and the property cannotbe used without the variance.
  • Not fit for occupancy (used todescribe rental property).
  • A clear chemical that is used inmanufacturing including building materials suchas particle board, plywood paneling, carpeting,and insulation.
  • A typeof housing insulation used in the 1970’s. It wasbanned because of the formaldehyde fumesit released that caused a myriad of symptomsamong homeowners who had it.
  • The amount of actual spacewithin the perimeter of the tenant’s premises,including walls, columns, and airshafts; the floorarea where tenants can actually lay carpet andplace furniture.
  • Allows landowners to use their landin a way that is not permitted under currentzoning laws. This type of variance is grantedonly in cases of unnecessary hardship. Toprove unnecessary hardship, owners mustestablish that the requested variance meets fourstatutorily prescribed conditions.
  • Laws limiting the maximum interest rate that can be charged.
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  • Estimate as tohow much future income may be lost when abuilding isn’t fully occupied or tenants don’t payrent.
  • Unimproved land or land with nobuilding on it.
  • The legal classification of a contract that isbinding and enforceable in a court of law.
  • A binding, legally enforceablecontract.
  • The process of gathering and analyzinginformation to determine the value of a piece ofproperty.
  • Amount of goods or services offered in themarketplace in exchange for something.
  • The present worth of the future benefits of ownership.
  • Expenses that are not consistentand regular amounts, and depend on issuesincluding the type, size, age, and condition of aproperty.
  • A form of administrative relief that allowsproperty to be used in a way that does notcomply with the literal requirements of thezoning ordinance. There are two basic types ofvariances: use variances and area variances.
  • A buyer or purchaser; particularly someonebuying property under a land contract.
  • A seller; particularly, someone sellingproperty by means of a land contract.
  • A lien to secure payment of thepurchase price balance, held by a real estateseller if the buyer does not pay the seller in fullat closing (unless the buyer gives the seller amortgage for the balance).
  • When a person has a present, fixed right orinterest in property, even though he or she maynot have the right to possession until sometimein the future. For example, a remainderman’sinterest in property vests when it is granted, notwhen a life estate ends.
  • Government agencythat guarantees mortgage loans for eligibleveterans.
  • When the president or governor formallyrejects a bill that Congress or the legislature haspassed. The bill will not become law unless thelegislature votes to override the veto.
  • When one person is responsiblefor the actions of another.
  • Serve as the primarygoverning bodies of New York villages.
  • An action which goes against specificrules or regulations set by national, state or localgovernment and those set by specific governingbodies of a trade or profession. Such as when alicensee goes against any Act set forth in Article12-A.
  • Having no legal force or effect.
  • A contract that is not an enforceablecontract because it lacks one or more of therequirements for contract formation, or isdefective in some other respect.
  • A contract that one of theparties can disaffirm, without liability, because ofa lack of legal capacity or a negative factor suchas fraud or duress.
  • A measure of the force that pusheselectricity through a wire.
  • These programs are designed toaffirmatively promote fair housing to all homeseekers through a series of commitments andshared responsibilities.
  • When title to property istransferred voluntarily through a sale, gift,dedication, or grant.
  • When a debtor returns property to the lender in lieu of foreclosure.Generally, the debtor does not receive any compensation for surrendering title to the property, but does avoid foreclosure.
  • A lien placed against property withthe consent of the owner; a mortgage (or, inother states, a deed of trust).
  • When co-owners agree to terminate their co-ownership, dividing the property so each owns a piece of the property in severalty.
  • w

  • The voluntary relinquishment or surrenderof a right.
  • A deed carrying warranties(guarantees) of clear title and the grantor’s rightto convey. See: General Warranty Deed; LimitedWarranty Deed.
  • Destruction, damage, or materialalteration of property by someone in possessionwho holds less than a fee estate (such as a lifetenant or lessee).
  • The right to use water in or from ariver, stream, or lake. See: Appropriative Rights;Littoral Rights; Riparian Rights.
  • Ecosystems where the land is permeatedwith water, which either lies on or near thesurface of the land.
  • A person’s legally binding instructionsregarding how his or her estate should bedisposed of after death. Also called: Testament.
  • Anorganization devoted to addressing the issues,needs, and concerns of women in the real estateprofession. (Now affiliated with the NAR.)
  • A clause in a deed that states that the grantor intends to convey title to the land. Also called: Granting Clause.{"@context": "https://schema.org","@type": "FAQPage","mainEntity": [{"@type": "Question","name": "Is words of conveyance and granting clause the same thing?","acceptedAnswer":(...)
  • When a seller keeps theexisting loan and continues to pay on it, whilegiving the buyer another mortgage. Also called:Wraparound Financing.
  • A court order directing a public officer (often the sheriff or marshal) to seize and/or sell property to regain possession for the owner and/or satisfy a debt.
  • A court order issued after an unlawful detainer action, informing a tenant that he must vacate the landlord’s property within a specified period or be forcibly removed by the sheriff.
  • When a landlord evicts a tenant in violation of the tenant’s rights.
  • y

  • The total amount of money that can be madefrom an investment.
  • z

  • By issuing variancesprotects landowners from the unfair applicationof zoning laws in particular circumstances.Hears appeals from the decisions of zoningenforcement officers and building inspectorswhen interpretations of zoning ordinances areinvolved.
  • Sets forth the type of use permitted under each zoning classification and specific requirements for compliance.