Real Estate Terms and Definitions presented by MORGENSTERN TEAM
Many terms in real estate are universal throughout the nation. For example “title insurance,” which protects your property against hidden liens or potential ownership issues, always means “title insurance.” However, words describing or relating to the same thing often differ considerably in various parts of the country. For example, “closing” in one area is sometimes called a “settlement” or “escrow” in another.
This Real Estate Glossary provides simple definitions for some of the most common terms you can expect to hear during the closing process.
A person who supervises the keeping of financial records pertaining to properties being managed. Generally more qualified than a bookkeeper.
- Accredited Residential Manager (ARM)
A property management designation offered by the Institute of Real Estate Management (IREM).
- Accredited Management Organization (AMO)
A property management designation offered by the Institute of Real Estate Management (IREM) to property management companies that meet prescribed high standards.
- Administrative Assistant
A position that assists any of the executive or middle management personnel in the achievement of their job objectives.
- Agricultural Land
Land used for farming purposes including growing crops and raising livestock.
The American Hotel and Motel Association the only trade association representing the lodging industry.
- AIDA Formula
In marketing a formula for writing an ad that is designed to get maximum results. A=Attention I=Interest D=Desire A=Action.
- Airport Hotel
A lodging accommodation to meet travelers’ needs at the beginning or end of a journey. The modern ones include conference rooms fitness centers and restaurants.
- All-Suite Hotel
A hotel offering full suites to its guests similar to a one-bedroom apartment.
American Land Title Association
- A.L.T.A. Owner’s Policy
American Land Title Association policy of extended title insurance
- Abstract of Title
A full summary of all consecutive grants, conveyances, wills, records and judicial proceedings affecting title to a specific parcel of real estate
A person who, historically, searches out anything affecting the title to real property and summarizes the information in the findings
- Acceleration Clause
A clause in a loan document describing certain events that would cause the entire loan to be due
An unqualified agreement to the terms of an offer
The acquisition of title to additional land or to improvements as a result of annexing fixtures or as a result of natural causes such as alluvial deposits along the banks of streams by accretion
- Access to Property
Seller will provide reasonable access to the property to buyer inspectors representing buyer to representatives of lending institutions for appraisal purposes or for any other purpose relating to the sale.
- Accommodation recording
I hand you herewith executed by-to which you are authorized to use in connection with the subject escrow. It is agreed that shall assume no responsibility in connection with recording of said- on my behalf as an accommodation to the undersigned. Affix $ documentary transfer tax (if a Deed) as total consideration is $-. Charge $-for transfer tax if applicable and for recordation of document.
A buildup of soil by natural causes on property bordering a river, lake or ocean
Accumulated over a period of time
- Accrued Depreciation
The difference between the cost to replace the property and property’s current appraised value
A signed statement, made before a notary public, by a named person confirming the signature on a document and that it was made of free will
A lawsuit brought to court
- Actual Age
The real age of a building
- Actual Depreciation
That depreciation occurring as a result of physical, functional or economic forces, causing loss in value to a building
- Actual Notice
Knowledge gained based on an actual observance, as opposed to Constructive Notice
- Additional Interest Due/Payoffs
The buyer and seller agree that disbursement of any payoffs for encumbrances being paid off at close of escrow must be received by the Lender by a specific date to avoid further accrual of interest. You are instructed to forward payoff funds to the lender and charge the appropriate account any fees at close of escrow. In the event the lender demands additional funds after the close of escrow buyer or seller agrees to deposit additional funds according to lender’s instructions.
- Ad Valorem
A Latin prefix meaning ‘according to value.’ Local governments levy real property tax based on the assessed value; property taxes are known as ad valorem taxes
- Adjustable Rate Mortgage (ARM)
A loan which allows for the interest rate to adjust periodically in relationship to a predetermined index based on the maintenance of a pre-established margin
- Adjusted Cost Basis
Original basis plus capital improvements and costs of the sale, less depreciation if income producing
- Administrator / Administratrix
A person appointed by the court to handle the affairs of a deceased person when there is no one mentioned in a will to do so
- Adverse Possession
Acquiring title to property by continued possession and payment of taxes
- After Acquired Title
Any benefits that come to a property after a sale must follow the sale and accrue to the new owner
A relationship in which one party (principal) authorizes another party (agent) to act as the principal’s representative in dealing with third parties
A person who acts for and in the place of another, called a principal, for the purpose of affecting the principal’s legal relationship with third persons
- Agency Relationship Confirmation
The following agency relationship is hereby confirmed for this transaction: The selling agent is the agent of the buyer exclusively; or seller exclusively; or both the buyer and seller.
- Agreement of Sale
A contract for the sale of real property where the seller gives up possession, but retains the title until the purchase price is paid in full
Transfer ownership or sell
- Alienation Clause
A clause in a loan document that would allow the lender to call the entire loan due upon the sale of the property
- All-Inclusive Trust Deed
A purchase money deed of trust subordinate to-but still including-the original loan
- Alluvial Deposit
Sand or mud, carried by water and deposited on land
Soil that builds up as a result of accretion
- Amending Previous Instructions
These instructions supersede and amend any previous instructions in your escrow no.- relative to the terms set forth. These instructions shall be your authority to act as directed in your capacity as escrow agent.
- Americans with Disabilities Act (ADA)
A law passed by Congress in 1990 requiring any business or public facility to be accessible to everyone including those with disabilities.
- Americans with Disabilities Act Accessibility Guidelines (ADAAG)
A document which provides standards to be observed in the design, construction, and alteration of buildings that come under the jurisdiction of the ADA.
- Annual Net Income
Also called net operating income the amount of income left from an income -producing property after all expenses have been deducted.
- Annual Percentage Rate (APR)
The relationship of the total finance charge to the total amount to be financed as required under the Truth-in-Lending Act
An estimate or opinion of value supported by factual information as of a certain date
- Appraisal Report
A written report stating an appraiser’s estimate of a subject property’s value
An increase in value
Those rights, privileges and improvements that belong to and pass with the transfer of real property but are not necessarily a part of the actual property
- Arm’s Length Transaction
A transaction, such as a sale of property, in which all parties involved are acting in their own self-interest and are under no undue influence or pressure from the other parties
- Asbestos Hazard Emergency Response Act (AHERA)
A law passed by Congress in 1986 which amends the Toxic Substances Control Act (TSCA). It requires all public schools to be inspected for the presence of asbestos and to remedy the problem if it is likely to be hazardous to people’s health.
- Assessment Roll or Tax Roll
A list of all taxable property showing the assessed value of each parcel; establishes the tax base
- Asset Manager
An executive who oversees the firm’s real estate resources setting goals and strategies with ownership interests. Also called a portfolio manager.
The person to whom a claim, benefit or right in property is made
The transfer of a claim, benefit or right in property from one person to another
- Assignment of Rents
An agreement between a property owner and the holder of a trust deed or mortgage by which the holder receives, as security, the right to collect rents from tenants of the property in the event of default by the borrower
The person transferring a claim, benefit or right in property to another
- Assistant Manager (Hotel)
The manager who relieves the general manager of selected duties and interfaces with department heads.
- Assumption Clause
A buyer takes over the existing loan and agrees to be liable for the repayment of the loan
- Attorney Fees
If the buyer seller or broker brings an action to enforce his or her rights under this agreement including an action to recover commissions the prevailing party shall be entitled to receive from the defaulting party a reasonable attorney fee to be determined by the court or arbitrator.
- Attorney in Fact
A competent and disinterested person who is authorized by another person to act in his or her place in legal mattersAvulsionThe sudden washing or tearing away of land by the action of water
- Back-End Ratio
The ratio of all fixed debt including housing expenses to gross income.
- Back- of-the -House
Operations of the hotel business that are preparatory in nature and take place behind the scenes out of the view of guests.
- Balance Sheet
A report showing the assets of a business the liabilities and the net worth.
- Balloon Payment
Under an installment loan, a final payment that is substantially larger than any other payment and repays the debt in full
- Balloon Payment Clause
This note provides that the holder of this note shall give written notice to Trustor (borrower) of prescribed information at least 90 and not more than 150 days before any balloon payment is due.
- Balloon Payment Disclosure
All parties agree that they have not received or relied upon any statements or representations made to them by the broker regarding availability of funds or rate of interest at which funds might be available when buyer is obligated to refinance or pay off the remaining balance of any loan which is part of this agreement.
- Band of Investment
A method of determining the capitalization rate in which the return demanded by investment money in various positions is calculated and combined.
- Banquet Director
The person in charge of all physical aspects of a banquet.
- Base Line
A survey line running east and west, used as a reference when mapping land
- Bed & Breakfast Inn
A lodging accommodation generally converted from a large house or hotel with personal service to offer a pleasant get-away experience.
- Bell Captain
The second-ranking job in the service department in charge of the bellhops.
A service assistant in a hotel to usher guests to their rooms, carry baggage and offer other personal services.
The lender under a deed of trust
- Beneficiary Statement
A statement of the unpaid balance of a loan and the condition of the debt, as it relates to a deed of trust
A gift of personal property by will; see legacy
- Bilateral Contract
A contract in which each party to the contract promises to perform some act or duty in exchange for the promise of the other party
- Bill of Sale
A written agreement used to transfer ownership in personal property
- Blanket Loan
A loan secured by several properties
- Block Busting
Causing panic selling by telling people that values in a neighborhood will decline because of a specific event, such as the purchase of homes by minorities
- Bonds Or Assessments
If there is a bond or assessment on the subject property with an outstanding balance, and is a lien upon this property, it shall be paid by seller (assumed by b. if the bond or assessment is to be assumed the obligation shall (not) be credited to buyer at closing. This agreement is conditioned upon all parties verifying and approving in writing the amount of any bond or assessment within ten (10) days of receipt of the preliminary title report. The disapproving party may terminate this escrow in which case all unused deposits shall be returned to Buyer.
- Book Depreciation
An accounting concept which refers to an allowance taken to provide for recovery of invested capital
A person who keeps financial records on properties being managed.
- Book Sale
A sale of real property to the state, in name only, when a taxpayer is delinquent in paying property tax
- Book Value
The initial cost of the property plus capital improvements minus the total accrued depreciation
Money or any ‘non-like’ property put into a sale by an investor to balance the equities in a l03l tax deferred exchange; cash or mortgage relief in an exchange
- Breach of Contract
failure to perform on part or all of the terms and conditions of a contract
Listing broker, selling broker, cooperating brokers, and all sales persons.
- Broker Buying As Principal
Seller acknowledges that buyer is a licensed real estate broker (salesperson) acting as a principal for his or her own account.
The occupation of a broker; the business of selling real estate through a broker who negotiates the sale for a commission
- Broker Representing Both Parties
By placing their initials here: buyer and seller agree that the broker in this transaction represents all parties with the consent and knowledge of all parties.
- Building Engineer
A position that inspects the structured components and the permanent systems of a building to ensure safety and compliance with all government regulations.
- Bulk Transfer Law
The law concerning transfer in bulk (not a sale in the ordinary course of the seller’s business)
- Bundle of Rights
An ownership concept describing all the legal rights that attach to the ownership of real property
- Business Cycle
The constant fluctuation of levels of income employment and the amount of goods and services produced in a given fiscal year.
- Business Opportunity
Any type of business that is for lease or sale
- Buyer’s approval of Disclosure Statement
If Transfer Disclosure Statement is delivered to buyer after the execution of this offer, buyer is allowed to terminate this agreement by written notice delivered to seller or his agent within three (3) days from receipt of the Transfer Disclosure Statement. All deposits to be returned less expenses incurred to date of termination.
- Buyer’s Market
A stage in the real estate market in which the ready willing and able buyer is in the minority and is in control of the market. A time of oversupply and decreased demand. Prices decline during this stage of the cycle.
Rules and regulations that govern the activities of a homeowner’s association.
California Land Title Association
- Calendar Year
Starts on January l and continues through December 3l of the same year
- California Land Title Association
A trade organization of the state’s title companies
- Cancellation Instructions
The buyer had agreed to purchase, the seller agreed to sell, that certain property commonly known as . However buyer and seller mutually agree to cancel the subject escrow and escrow holder is hereby authorized to disburse the deposit you now hold in the sum of $-as follows:$-to- $ to and any charges for title or escrow services $-to. It is also agreed that buyer and seller will hold the broker and escrow holder harmless and free of any liability in connection with the release of funds as directed by the buyer and seller and for the cancellation of the escrow as directed by the principals.
Legitimate legal status to enter into a contract (not mentally incompetent nor under-age) one of the legal essentials of a valid contract.
- Cap Rate
A term sometimes used when referring to capitalization rate
- Capital Improvements
Any permanent improvement made to real estate for the purpose of increasing the useful life of the property or increasing the property’s value
The process of calculating the present worth of a property on the basis of its capacity to continue to produce an income stream
- Capitalization Rate
The desired rate of return on an income producing property expressed as a decimal or percentage indicating the relationship between the value and the income.
- Cash Flow Statement
A report showing cash flow after distribution for various categories of expense.
Covenants conditions and restrictions placed on certain types of real property which limit the activities of owners.
The Comprehensive Environmental Response Compensation and Liability Act; a law passed by Congress in 1980. Establishes two trust funds to help finance the cleanup of properties that have been impacted by the release of hazardous wastes and substances. Commonly known as superfund.
- Certified Apartment Maintenance Technician (CAMT)
A designation offered by the National Apartment Association (NAA).
- Certified Apartment Manager (CAM)
A designation offered by the National Apartment Association (NAA).
- Certified Apartment Property Supervisor (CAPS)
A designation offered by the National Apartment Association (NAA).
- Certified International Property Specialist (CIPS)
A property management designation offered by FLABCI-USA.
- Certified Leasing Specialist (CLS)
A designation offered by the International Council of Shopping Centers (ICSC).
- Certified Manager of Community Associations (CMCA)
A designation offered by the Community Associations Institute (CAI).
- Certified Marketing Director (CMD)
A designation offered by the International Council of Shopping Centers (ICSC).
- Certified Property Manager (CPM)
The most advanced property management designation offered by the Institute of Real Estate Management IREM).
- Certified Shopping Center Manager (CSM)
A designation offered by the International Council of Shopping Centers (ICSC).
- Chain of Title
A chronological history of property’s ownership
- Chattel Real
An item of personal property which is connected to real estate; for example, a lease
- Classified Ad
A small ad designed to give basic information.
- Clean Water Act
A law passed by Congress in 1972 to prohibit the discharge of pollutants into our natural waters.
A position in a hotel devoted to the detailed attention to one or more specific functions such as reservations or floor activities.
The person who employs an agent to perform a service for a fee
- Closing Costs
On or before – or within- days of acceptance all parties shall deposit with Escrow Holder all funds and instruments necessary to complete the sale. Escrow fee to be paid by _ Documentary Transfer Tax if any to be paid by
A change in a will before the maker’s death
Something of value given as security for a debt
- Commercial Property
A property where commerce is conducted such as an office building or retail shopping center.
To deposit client funds in the broker’s personal account
A commission is to be paid to the broker at the close of escrow as directed by the terms of the commission agreement.
- Commission Split
- The previously agreed upon division of money between a broker and sales-associate when the brokerage has been paid a commission from a sale made by the associate
- Common Interest Developments (CIDs)
Real property developments that include common interests and shared common areas.
A term used by real estate agents and appraisers to mean comparable properties
- Community Apartment Project
One type of CID in which the owner has an undivided interest in the land with the exclusive right to occupy a particular unit.
- Community Center
A retail center anchored by a small department store and supported by up to 50 smaller stores. At least 5,000 households are usually needed to support a community center.
A method of determining the capitalization rate by looking to the operational capitalization rate of similar properties in the area.
- Compliance Clause
A clause in a lease designating which party is responsible for complying with various laws.
An employee in a large hotel who makes special arrangements for guests such as procuring theater tickets.
- Concurrent Recording
The closing of this escrow is contingent upon the concurrent closing of escrow no- . Neither escrow may close without the simultaneous closing of the other escrow.
A common name for eminent domain, or the right of the government to take private property from an owner for the public good, paying fair market value
A limiting restriction in the ownership of real property the violation of which could cause the owner to lose title or have his or her estate modified in some way
- Condition Precedent
A condition which requires something to occur before a transaction becomes absolute and enforceable; for example, a sale that is contingent on the buyer obtaining financing
- Condition Subsequent
A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor; for example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence
A structure for either residential industrial or commercial use whereby the owner owns the interior airspace of the unit plus an undivided interest in the common areas.
Something of value-such as money, a promise, property or personal services
- Constructive Notice
Recordation of deed or possession of property
- Contingency (waived/satisfied)
Escrow holder is instructed that when the condition concerning has been (satisfied/waived) escrow holder is to proceed with the completion of this escrow. If the contingency is waived all parties should consent in writing.
- Contract of Sale
A contract for the sale of real property where the seller gives up possession but retains title until the total of the purchase price is paid off
- Contract Rent
The amount of rental income due from the tenant as agreed in the lease agreemen
- Contractual Intent
Intention to be bound by an agreement, thus preventing jokes and jests from becoming valid contracts
- Convention Hotel
A large hotel designed to accommodate thousands of guests for attendance at conferences.
The appropriation of property belonging to another
To transfer ownership or title
The transfer of title to land from one person to another by use of a written instrument
Copies of all documents must be given to buyer and seller at the time of signing.
- Corner Lot
A lot found at the intersection of two streets
- Corrections and Deletions
Any corrections and deletions must be approved by all principals.
- Court Confirmation
This escrow is subject to court confirmation. A certified copy of the court order confirming the transfer is to be recorded concurrently with or prior to the recording of other documents of the sale.
Represents expenses in money, labor, material or sacrifices in acquiring or producing something
- Cost Basis
Usually the price paid for a property
The rejection of an original offer that becomes a new offer
A promise or assurance set forth in a written agreement allowing or disallowing certain activities on the part of the owner.
- Cul-De-Sac Lot
A lot found on a dead-end street
A prospective buyer of real estate
- Damage or Destruction Clause
A clause in a lease detailing how the partial or total destruction of the property would be handled between the parties to the lease.
- Default Clause
A clause in a lease setting forth the lessor’s remedies in the event of a default by the lessee.
The study of statistics relating to populations especially in the areas of demand for certain types of real estate.
- Date of Acceptance
Means the date the seller accepts the offer or the buyer accepts the counter offer.
- Date of Closing
Date title is transferred to buyer.
- Decimal Point
The period that sets apart a whole number from a fractional part of that number
- Declaration of Homestead
The recorded document that protects a homeowner from foreclosure by certain judgment creditors
- Deed of Trust – Priority clause
This Deed of Trust is given to secure a portion of the purchase price of the subject property and is junior to a Deed of Trust in the amount of $_in favor of recording concurrently. OR This Deed of Trust is junior to that certain Deed of Trust for $_ in favor of _which recorded on as Instrument#_ Official Records of _County.
- Deed of Trust Securing Installment Note Interest Included
A Deed of Trust to record executed by buyer securing an installment note for $_in favor of payable at _with interest from at the rate of _percent per annum principal and interest payable $_ or more on the day of each month beginning and continuing until at which time all principal and interest has been paid in full. At close of escrow escrow holder is instructed to list the interest rate accrual date first payment date and maturity date on the reverse of the executed note according to the instructions of the parties.
Failure to pay a debt or on a contract
- Default Clause
A clause in a lease setting forth the lessor’s remedies in the event of a default by the lessee.
- Deferred Maintenance
Negligent care of a building
- Deficiency Judgment
A judgment against a borrower for the balance of a debt owed when the security for the loan is not sufficient enough to pay the debt
- Definite and Certain
Precise acts to be performed are to be clearly stated
A conveyance of an estate in real property to someone for a certain length of time, as in a lease; to let
The study of statistics relating to populations especially in the areas of demand for certain types of real estate.
- Deposit Increase in Cash
Initial deposit to be increased to $- within days from acceptance of this agreement.
Escrow holder should note the form in which the deposit is received: Cash personal check certified check cashier’s check.
- Deposit Receipt
Also known as a sales contract; the primary document used to present an offer on real property
Loss in value from any cause
A rare stage in the business cycle following a recession characterized by extremely high unemployment and very little purchasing power.
A process where financial institutions that formerly had been restrained in their lending activities by the law are allowed to compete freely for profits in the marketplace
A gift of real property by will
Violating someone’s right to fair housing opportunity on the basis of who they are such as characteristics of race color sex religion familial status marital status disability or national origin.
The process of depositors removing funds from savings
- Display Ad
A large expansive ad that may use graphics and pictures to tell a more complete story.
A number to be divided by another number
A number by which another number is divided
- Doctrine of Correlative User
Owner may use only a reasonable amount of the total underground water supply for his or her beneficial use
- Dominant Tenement
The property that benefits from an easement
- Door Attendant
An employee in a large hotel who assists guests through entrances and exits and keeps foot traffic moving.
- Double Net Lease
An arrangement whereby the tenant pays the rent utilities property taxes special assessments and insurance premiums.
- Downtown Hotel
An older hotel with a downtown location.
- Dual Agent
An agent who represents both parties in a transaction
- Due on Sale Disclosure
If there is a due on sale clause in any existing loan the lender may demand full payment of the entire loan as a result of this transfer. All parties agree that they are not relying on any representation by the other party or the broker about the enforceability of such a clause in existing notes or deeds of trust to be executed as a result of this sale. All parties have been advised by the broker to seek legal advise.
The use of force to get agreement in accepting a contract
The right to use another’s land for a specified purpose, sometimes known as a right-of-way
- Easement in Gross
An easement that is not appurtenant to any one parcel; for example, public utilities
- Economic Life
The estimated period over which an improved property may be profitably used to yield a return
- Economic Rent
What a leased property would be expected to rent for under current market conditions if the property were vacant and available for rent
- Economic Rent Increase
An increase in rent prompted by a shrinking supply of comparable rental units in an area and the ability of tenants to afford the increase.
Related to real estate a study of the factors that cause people to prosper and create a viable demand for real property.
- Effective Age
The years or age shown by the condition and utility of a structure, rather than its actual or chronological age
- Effective Gross Income
Also known as adjusted gross income the income actually collected after deducting for collection losses.
- Elevator Operator
Nearly obsolete an employee in a large period hotel who adds authenticity and keeps traffic moving.
- Emancipated Minor
Someone who is legally set free from parental control/ supervision
Annual crops produced for sale
- Eminent Domain
The right of the government to take private property from an owner, for the public good, paying fair market value
The placement of permanent improvements on adjacent property owned by another
- Environmental Impact Report (EIR)
A study of how a development will affect the ecology of its surroundings
- Environmental Protection Agency (EPA)
A federal agency estab-lished in 1970 to ensure the enforcement of the National Envi-ronmental. Policy Act (NEPA).
- Equal Credit Opportunity Act
A federal law that requires lenders to assure that credit is available with fairness, impartiality and without discrimination
- Equitable Title
The interest held by the trustor or vendee
The value remaining in a property after payment of all liens
- Equity of Redemption
Also known as the right of redemption; the right of a debtor, before a foreclosure sale, to reclaim property that had been given up due to mortgage default
The gradual wearing away of land by natural processes
- Escalation Clause
A clause in a lease that allows for rent increases based on the occurrence of a certain event.
The deposit of funds or documents with a neutral third party who is instructed to carry out the provisions of an agreement
- Escrow Holder
An independent third party legally bound to carry out the written provisions of an escrow agreement; a neutral, bonded third party who is a dual agent for the principals; sometimes called an escrow agent
- Escrow Instructions
Written directions, signed by a buyer and seller, detailing the procedures necessary to close a transaction and directing the escrow agent how to proceed
A legal interest in land; defines the nature, degree, extent and duration of a person’s ownership in land
- Estate at Sufferance
A tenancy created when one is in wrongful possession of real estate even though the original possession may have been legal
- Estate at Will
The tenancy may be ended by the unilateral decision of either party; no agreed upon termination date, however, and either party must give 30 days notice before ending the tenancy
- Estate for Years
A leasehold estate with a definite end date; must be renegotiated; commonly used for commercial leases
- Estate from Period to Period
A leasehold estate that is automatically renewed for the same term; a conveyance for an indefinite period of time; does not need to be renegotiated upon each renewal; commonly a month to month rental
- Estate in Fee
The most complete form of ownership of real property; a freehold estate that can be passed by descent or by will after the owner’s death; also known as estate of inheritance or fee simple estate
- Estate of Inheritance
See estate in fee
A legal doctrine which prevents a person from denying something to be true or a fact which is contrary to previous statements made by that same person
A set of principles or values by which an individual guides his or her own behavior and judges that of others
The legal process of removing a tenant from the premises for some breach of the lease
- Exchange Reserving Right to
The buyer and seller agree to complete a ‘like kind’ tax deferred exchange under Section 1031 of the Internal Revenue Code and acknowledge that escrow holder has made no representations as to the sufficiency or effect of this exchange as it relates to Federal and State or Tax law.
- Exchange Tax consequences
Escrow holder has recommended that buyer and seller obtain legal counsel as to the tax consequences and other effects of this transaction. Escrow holder shall be held harmless from any loss which buyer and seller may sustain in the event this transaction is audited and disallowed by the Internal Revenue Service as a tax deferred exchange.
- Exchange: Agree To Cooperate
Buyer and seller agree to cooperate with each other in completing all documents required to effect their respective exchange. All parties agree that neither party is to be at any additional expense or liability in connection with the other party’s tax deferred exchange.
To perform or complete; to sign
- Executed Contract
A contract in which the obligations have been performed on both sides of the contract and nothing is left to be completed
Completion of an act or process, such as an escrow
- Executive Manager
An executive who oversees the entire operation of a property management firm.
- Executor / Executrix
A person named in a will to handle the affairs of a deceased person
- Executory Contract
A contract in which obligation to perform exists on one or both sides of the contract
- Existing Loans
within three (3) days of acceptance of this offer seller shall provide buyer with all notes and Deeds of Trust to be assumed or taken subject to and within five (5) days after receiving them buyer shall give approval or disapproval of the terms of the documents in writing. Seller shall submit a Statement of Condition on the above loan within three (3) days after buyer’s acceptance. All loans in the transaction will be current at close of escrow as per seller warranty.
Land grants recorded by the Mexican government in California
- Express Contract
The parties declare the terms and put their intentions in words, either oral or written
- Extended Policy
An extended title insurance policy
- Express Warranty
An obligation to a tenant created by a promise made by the lessor or lessor’s agent that caused the tenant to enter into the lease.
- Facilities Management Administrator (FMA)
A property management designation offered by the Building Owners and Managers Institute (BOMI) with emphasis on the management of a commercial facility.
- Fair Housing Laws
Laws originating in the United States Constitution ensuring all persons the fair opportunity for housing of their choice in the United States.
- Fair Labor Standards Act
A law enacted during the depression regulating certain aspects of labor that the lodging industry feels is in need of revision.
- Fair Market Value
The price the property would bring if freely offered on the open market with both a willing buyer and a willing seller
- Fax Transmission
A signed copy of any document sent to the other party or his or her agent by facsimile transmission followed by faxed acknowledgment of receipt is considered delivery of the signed document.
The Federal Deposit Insurance Corporation a federal agency which insures depositors in banks and savings and loan associations to protect their deposits in case of bank failure.
See estate in fee or fee simple absolute
Buyer and seller shall be charged equally for fees and expenses of this escrow one-half (1/2) each unless noted elsewhere in escrow instructions.
- Fee Simple
The largest most complete ownership recognized by law also known as a fee simple absolute or fee.
- Fee Simple Absolute
The largest, most complete ownership recognized by law; an estate in fee with no restrictions on its use
- Fee Simple Defeasible
Also known as fee simple qualified
- Fee Simple Estate
See estate in fee
- Fee Simple Qualified
An estate in which the holder has a fee simple title, subject to return to the grantor if a specified condition occurs
The Federal Housing Administration established in 1934 to insure certain types of home loans protecting the lender and allowing a small down payment from the borrower.
A relationship that implies a position of trust or confidence
Rights in the land that become heritable.
- Financial Analysis
A study of the property’s income producing performance and potential.
- Financial Intermediary
- An organization that obtains funds through deposits and then lends those funds to earn a return-such as savings banks, commercial banks, credit unions and mutual savings banks
- Financing Statement
A written notice filed with the county recorder by a creditor who has extended credit for the purchase of personal property; establishes the creditor’s interests in the personal property which is security for the debt
- First Right of Refusal
This escrow is contingent upon the sale and close of escrow on buyer’s property at .Meanwhile it is agreed that seller shall continue to show subject property to other prospective buyers. In the event that seller should receive a bonafide offer from another buyer, the seller shall immediately notify the buyer in this escrow in writing. At the time buyer shall have hours to remove the contingency or withdraw from this transaction in favor of another buyer.
- Fiscal Year
Starts on July l and runs through June 30 of the following year; used for real property tax purposes
Personal property that has become affixed to real estate
- Fixtures and Equipment
Seller guarantees that fixtures and equipment shall be in working condition at the time of buyer’s possession.
- Flag Lot
Looks like a flag on a pole, which represents the access to the site; usually located to the rear of another lot fronting a main street
- Flood Hazard Zone
Subject property is located in an area which has special flood hazards and that flood insurance must be purchased by the buyer in order to obtain any loan secured by the property if a federally regulated financial institution is involved. Buyer is aware of this condition.
Refraining from action by a creditor against the debt owed by a borrower after the debt has become due
A legal procedure by which mortgaged property in which there has been default on the part of the borrower is sold to satisfy the debt
- Foreclosure Sale
A sale where property is sold to satisfy a debt
An act meant to deceive in order to get someone to part with something of value
- Freehold Estate
An estate in real property which continues for an indefinite period of time
- Front Footage
The width of a property along a street
- Fully Amortized Note
A note that is fully repaid at maturity by periodic reduction of the principal
- Gift Deed
Used to make a gift of property to a grantee, usually a close friend or relative
- Good Consideration
Gifts such as real property based solely on love and affection
An intangible, salable asset arising from the reputation of a business; the expectation of continued public patronage
- Grace Period
An agreed-upon time after the payment of a debt is past due, during which a party can perform without being considered in default
- Graduated Lease
A lease calling for periodic increases in the rental payments; sometimes called a stair-step lease
- Graduated Payment Adjustable Mortgage (GPAM)
A loan in which the monthly payment graduates by a certain percentage each year for a specific number of years, then levels off for the remaining term of the loan
- Grant Deed
A type of deed in which the grantor warrants that he or she has not previously conveyed the property being granted, has not encumbered the property except as disclosed, and will convey to the grantee any title to the property acquired later
- GRANT DEED FROM SPOUSES TO CREATE SEPARATE ESTATE
This deed is executed by the husband or wife of the grantee for the sole purpose of giving up any community property interest he or she may have in the subject property. It is his or her intention to vest the subject property in _ as his or her sole and separate property.
The person receiving the property, or the one to whom it is being conveyed
The person conveying, or transferring, the property
- Gross Lease
Landlord pays for most of the operating expenses, including property taxes, maintenance and repairs
- Gross Rent
Income (figured annually) received from rental units before any expenses are deducted
- Guarantee of Title
An assurance of clear title
- Hard Money Loan
The evidence of a debt that is given in exchange for cash
The party to whom a promissory note is made payable
- Holder in Due Course
A person who has obtained a negotiable instrument (promissory note, check) in the ordinary course of business before it is due, in good faith and for value, without knowledge that it has been previously dishonored
- Holographic Will
Written in the maker’s own handwriting, dated and signed by the maker
- Home Equity Loan
A cash loan made against the equity in the borrower’s home
- Homeowner’s Exemption
A $7,000 tax exemption available to all owner-occupied dwellings
An employee in a hotel who cleans and stocks the guest rooms.
This escrow is contingent upon written notification to escrow holder of buyer’s approval of property inspection. Any professional inspector shall be selected and paid for by Buyer.
- Implied Contract
Agreement is shown by acts and conduct rather than words
Escrow holder is instructed to charge buyer and credit seller with the amount shown on Beneficiary Statement as being impounded for future payment of taxes fire insurance premiums or any other items shown.
Any buildings or structures on a lot
- Industrial Property
A property where products are manufactured or assembled. The conducting of industry.
A written legal document setting forth the rights and liabilities of the parties involved
The charge for the use of money
- Interior Lot
One that is surrounded by other lots, with a frontage on the street; the most common type lot, which may or may not be desirable-depending on other factors
The process of transfer capital from those who invest funds to those who wish to borrow
Dying without leaving a will
The final legal decision of a judge in a court of law regarding the legal rights of parties to disputes
- Judicial Foreclosure
Foreclosure by court action
- Junior Trust Deed
Any trust deed that is recorded after a first trust deed, whose priority is less than that first trust deed
- Key Lot
So named because it resembles a key fitting into a lock; one that is surrounded by the backyards of other lots, therefore is the least desirable because of the lack of privacy
- Land Contract
A contract for the sale of real property where the seller gives up possession, but retains the title until the purchase price is paid in full; also known as a contract of sale or agreement of sale
- Land Projects
Subdivisions located in sparsely populated areas of California, made up of 50 parcels or more
Lessor; property owner
- Late Charge
Regarding the note created by this escrow; in the event that any installment payment is not received by the holder within days of its due date a late charge of _may be charged by the holder.
- Lawful Object
The purpose object and operation of the contract is legal one of the essentials of a valid contract.
- Leasehold or Lease
An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time
- Leasing Agent
An agent who secures qualified tenants for leases on residential commercial or industrial property.
A gift of personal property by will
- Legal Title
Title that is complete and perfect regarding right of ownership; may be held by a trustee under a deed of trust
- Less-Than-Freehold Estate
A leasehold estate, considered to exist for a definite period of time or successive periods of time until termination
Landlord; property owner
- Liability Indemnity Clause
A clause in a lease holding landlords harmless from the actions of their tenants.
Permission to use a property, which may be revoked at any time
A claim on the property of another for the payment of a debt
- Life Estate
An estate that is limited in duration to the life of its owner or the life of some other chosen person
- Linear Foot
A measurement meaning one foot or 12 inches in length as contrasted to a square foot or a cubic foot
- Liquidated Damages
Sets in advance a specified amount of money as a penalty in the event of a breach of contract
- Lis Pendens
A recorded notice that indicates pending litigation affecting title on a property, preventing a conveyance or any other transfer of ownership until the lawsuit is settled and the lis pendens removed
A contract by which a principal employs an agent to do certain things for the principal
Land bordering a lake, ocean or sea-as opposed to land bordering a stream or river (running water)
In earlier times a regional supervisor of a large piece of land.
- Love and Affection
Consideration used in a gift deed
The borrower who executes a promissory note and becomes primarily liable for payment to the lender
- Maintenance Clause
A clause in a lease designating which party is responsible for maintenance of the property beyond normal wear-and-tear.
- Maintenance Supervisor
A position responsible for maintenance of buildings in his or her charge. This person hires workers and supervises all maintenance activities.
- Management Plan
A plan for future management based on financial reports and projection accepted by ownership.
- Manufactured Housing
- A housing unit primarily constructed in a factory and moved to a permanent site; another name for a mobile home
- Market Analysis
A study which gives an understanding of the economic factors operating in the local marketplace related to the subject property.
- Market Rent
Based on a survey what the competition is receiving in rent for similar space with similar amenities.
- Market Survey
A report generated by software comparing the subject property in various categories of performance to compet-ing properties in the area.
- Marketable Title
Good or clear saleable title reasonably free from risk of litigation over possible defects
An oversized shopping center that attracts shoppers from hundreds of miles around. Also called a super-mall.
Using threat of violence to get agreement in accepting a contract
A survey line running north and south, used as a reference when mapping land
- Metes and Bounds
A method of land description in which the dimensions of the property are measured by distance and direction
- Middle Managers
Property managers who are involved in hands-on activities that implement the decisions of owners and upper management.
- MIMO Form
The move in move out form detailing inventory and initial condition of rental space and inventory and condition upon move-out.
Someone under l8 years of age
An innocent or negligent misstatement of a material fact causing someone loss or harm
An error or misunderstanding
- Mobile Home
A manufactured unit constructed on a chassis and wheels, designed for permanent or semi-attachment to land
A fixed landmark used in a metes and bounds land description
A temporary prohibition against building in certain areas to control the rate of development.
A legal document used as security for a debt
- Mortgage Loan Disclosure Statement
A statement that informs the buyer of all charges and expenses related to a particular loan
The lender under a mortgage
The borrower under a mortgage
A hybrid of motor-hotel a housing accommodation in outlying areas for middle-class America. Located along major highways it gives easy access to lodging to those traveling by automobile.
- Motor Camps
Chains of campgrounds designed to accommodate motorists and recreational vehicle drivers.
- Multi-Family Units
Residential structures intended to house more than one family unit such as duplexes or apartment buildings.
- Mutual Consent
Agreement to the provisions of a contract by the parties involved; a mutual willingness to enter into a contract
- Naked Legal Title
Title lacking the rights and privileges commonly associated with ownership
- National Apartment Leasing Professional (NALP)
A designation offered by the National Apartment Association (NAA).
- National Environmental Policy Act (NEPA)
A law passed by Congress in 1970 that requires an environmental impact statement to be prepared and released prior to any federal action that would affect the environment. This is also required by some state and local governments for private improvements.
- Negotiable Instrument
Any written instrument that may be transferred by endorsement or delivery
- Neighborhood Center
A retail center supported by a thousand or so households usually anchored by a grocery store and supported by a dozen or so other compatible stores.
- Net Income
Sometimes known as net operating income; the remaining income after operating expenses have been subtracted from the gross income of a property
- Net Lease
A lease where the tenant pays such costs as taxes, insurance and repairs, as well as a set amount for rent; a triple net lease is one where the tenant pays all expenses of operating the property as well as a set amount of rent
- Net Operating Income
Also called net annual income the amount of income left from an income -producing property after all expenses have been deducted.
- Neutral Depository
An escrow business conducted by someone who is a licensed escrow holder
- No Brokers Involved
Buyer and seller acknowledge that these escrow instructions are the only contract between them and that there are no real estate brokers involved in this transaction. No deposit receipt has been written and no commissions are to be paid.
- No Tax Advice
Buyer and seller acknowledge that they have not received or relied upon any statements or representations by the agent regarding the effect of this transaction upon their tax liability.
- Notice of Default
A notice to a defaulting party that there has been a nonpayment of a debt
- Notice of Trustee’s Sale
Notice given, and published, that a trustee’s sale will be held to sell a property to satisfy a debt
The substitution by agreement of a new obligation for an existing one
A presentation or proposal for acceptance to form a contract
The party receiving an offer
The party making an offer
- On-Site Manager
A property manager who lives on-site handles day-to-day activities and interacts with tenants on a regular basis.
- Open End Loan
A loan where the borrower is given a limit up to which may be borrowed, with each advance secured by the same trust deed
- Operating Budget
A basic tool of the property manager to help in planning.
- Operating Expenses
Expenditures necessary to the operation of an income -producing building that are subtracted from effective gross income to arrive at net operating income.
A right-given for consideration-to a party (optionee) by a property owner (optionor)
- ‘Or More’ Clause
A clause in a promissory note that allows a borrower to pay it off early with no penalty
- Package Loan
A loan on real property that can be secured by land, structure, fixtures and other personal property
An employee in a hotel who delivers a message or summons a guest.
- Paired Sales Analysis
Matching up two properties that are identical in all respects except for one variable. Determines the value of that variable in the marketplace.
- Parole Evidence
Oral or written negotiations made prior to a dispute about an executed contract
- Partially Amortized Installment Note
A promissory note with a repayment schedule that is not sufficient to amortize the loan over its term
- Partition Action
A court action to divide a property held by co-owners
- Patent Deed
A deed given by the government to a private individual as evidence of title transfer from the government to the private person
- Percentage Lease
A lease where the landlord receives a percentage of the gross sales as part or all of the rental payment
- Period Hotel or Inn
A hotel or inn that conveys the essence of a particular period of time in history.
- Periodic Tenancy
Tenancy from period to period such as a month-to-month tenancy
- Personal Property
Anything movable that is not real property
- Personal Property Included in Price
Upon the close of escrow the following personal property observed on the property when inspected by buyer shall be transferred to buyer by a bill of sale. No warranty is implied about the condition of the personal property.
- Planned Unit Development (PUD)
A development in which each owner owns his or her own housing unit and land and has an undivided interest in common areas with other owners.
- Plat Map
A map of a town or subdivision showing the location and boundaries of individual properties, used in the recorded tract system to describe land
The transfer of property to a lender to be held as security for repayment of a debt; lender takes possession of property
- Plottage or Assemblage
Putting several smaller, less valuable parcels together under one ownership to increase value of total property
- Police Power
The power of the state to pass laws, within lawful limits, that promote the order, safety, health, morals and general welfare of its citizensPorterA baggage handler.
- Portfolio Manager
An executive who oversees the firm’s real estate resources setting goals and strategies with ownership interests. Also called an asset manager.
An inn accommodating travelers in the 1600s.
- Power of Attorney
A written instrument giving a person legal authority to act on behalf of another person
- Power of Sale
A clause in a trust deed or mortgage that gives the holder the right to sell the property in the event of default by the borrower
- Preliminary Title Report
An examination of the public land records to determine the extent to which someone has legal interest in a parcel; a report on the quality of the title that searches for encumbrances and liens or any other items of record that might effect ownership; used as a basis for title insurance
- Prepayment Clause
A clause in a trust deed that allows a lender to collect a certain percentage of a loan as a penalty for an early payoff
- Prepayment Penalty (None)
Buyer has the right to pay this note in full or in part at any time prior to its maturity without penalty.
What is paid for something
Someone who directs or authorizes another to act in his or her place regarding relations with third persons; buyer or seller; the amount of money borrowed; the original amount borrowed
- Private Grant
The granting of private property to other private persons
- Probate Sale
A court-approved sale of the property of a deceased person
- Professional Community Association Manager (PCAM)
An advanced designation offered by the Community Associations Institute (CAI).
- Project Operating Report
A report that breaks income and expenses down into specific categories and matches them to budget objectives.
An anticipated operational income and expense statement projected into the future to aid in planning.
- Promissory Note
A written promise or order to pay, evidence of a debt
The rights or interests which an owner has in something owned
- Property Analysis
An on-site inspection and study of the subject property so that the entire physical plant is thoroughly understood.
- Property Management
The practice of real estate that manages and preserves the real property assets of another person.
- Property Supervisor
A property manager who is responsible for several properties and supervises the on-site managers of those properties.
The division and distribution of expenses and/or income between the buyer and seller of property as of the date of closing or settlement
Rents taxes interest payments on bonds and assessments assumed by buyer homeowners afees and other expenses of the property are to be prorated as of the close of escrow.
A stage in the business cycle when unemployment is low and consumers have a lot of purchasing power.
- Public Accommodation Property
A privately owned property where the public has certain rights such as a hotel or office building.
- Public Dedication
When private property is intended for public use, it may be acquired in this manner
- Public Grant
The transfer of title by the government to a private individual
Exaggerated comments or opinions not made as representations of fact, thus not grounds for misrepresentation
- Purchase Money Loan
A trust deed created as evidence of a debt at the time of the sale of real property
- Quiet Enjoyment
The right of a tenant to be undisturbed.
- Quitclaim Deed
Transfers any interest the grantor may have at the time the deed is signed with no warranties of clear title
A land description used in the U.S. government survey system consisting of a strip of land located every six miles east and west of each principal meridian
The percentage of interest charged on the principal
The approval of a previously authorized act, performed on behalf of a person, which makes the act valid and legally binding
- Real Estate
Originally the king’s land. Today a term that refers to real property.
- Real Estate Agent
Someone licensed by the Department of Real Estate, holding either a broker or salesperson license, who negotiates sales for other people
- Real Estate Broker
Someone holding a broker license and permitted by law to employ those holding a salesperson license, who may negotiate sales for other people
- Real Estate Cycle
A fluctuation of supply and demand in real estate affected by the state of the business cycle and resulting in various levels of activity for building lending purchasing and leasing real estate. The cycle swings between the extremes of a buyer’s market and a seller’s market.
- Real Estate Investment Trust (REIT)
A way investors with a small amount of capital can pool their resources to buy real estate
- Real Estate Law
The law that affects the licensing and conduct of real estate agents
- Real Estate Sales Associate
The same as a real estate salesperson, holding a salesperson license, employed by a broker
- Real Estate Salesperson
Someone holding a salesperson license and employed by a real estate broker, for pay, to perform any of the activities of a real estate broker
- Real Property
Land, anything affixed to the land, anything appurtenant to the land, anything immovable by law
- Real Property Administrator (RPA)
A property management designation offered by the Building Owners and Managers Institute (BOMI).
- Real Property Manager (RPM)
A property management designation offered by the Building Owners and Managers Association (BOMA).
A stage in the business cycle when production has surpassed demand resulting in unemployment and declining prices.
Sometimes called correlation, this is the adjustment process of weighing results of all three appraisal methods to arrive at a final estimate of the subject property’s market value
A stage in the business cycle when consumers once again buy goods at reduced prices increasing demand in relation to supply.
- Reconveyance Deed
Conveys title to property from a trustee back to the borrower (trustor) upon payment in full of the debt secured by the trust deed
- Red Flag
Something that would warn a reasonably observant person of a potential problem, thus requiring further investigation
The use of a property’s location to deny financing
- Regional Center
A large retail shopping center (sometimes called a mall) with half a dozen major department stores along with 100 to 200 general merchandise and specialty shops. Customers are drawn from as far as 50 miles and comprise 50 000 to 150 000 households.
- Regional Manager
A property manager who works for a large property management company and oversees the work of property supervisors or on-site managers.
- Registered Property Manager (RPM)
A property management designation offered by the International Real Estate Institute (IREI).
Bring current and restore
- Release Clause
A provision found in many blanket loans enabling the borrower to obtain partial release from the loan of specific parcels
Occurs when land that has been covered by water is exposed by receding water
Consideration paid for the use of a property
- Rent Back by Seller
Buyer and seller agree that seller shall hold possession of subject property for days after close of escrow.
- Rent Control
A local ordinance prohibiting rent increases on certain types of property.
- Replacement Cost
The cost of replacing improvements with modern materials and techniques
- Reproduction Cost
The current cost of building a replica of the subject structure, using similar quality materials
- Request for Notice
A notice that is sent, upon request, to any parties interested in a trust deed, informing them of a default
Legal action taken to repeal a contract either by mutual consent of the parties or by one party when the other party has breached a contract
- Residential Rental Property
Property from which 80 percent or more of the gross rental income is from dwelling units
A limitation on the use of a property by the owner. May be private (as in a deed or declaration of restrictions) or public (as in zoning).
- Retaliatory Eviction
An act whereby a landlord evicts a tenant in response to some complaint made by the tenant
- Reverse Annuity Mortgage
A loan that enables elderly homeowners to borrow against the equity in their homes by receiving monthly payments from a lender, that are needed to help meet living costs
- Reversionary Right
The lessor (landlord) grants the right of possession to the lessee (tenant), but retains the right to retake possession after the lease’s term has expired
The cancelling of an offer to contract by the person making the original offer
Recall and make void
Revenue per available room a statistic followed in the lodging industry.
- Riparian Rights
The rights of a landowner whose land is next to a natural watercourse to reasonable use of whatever water flows past the property
- Risk Manager
A property manager who evaluates complex issue s-sometimes global issues-to protect the value of real estate assets.
- Rollover Mortgage
A loan that allows the rewriting of a new loan at the termination of a prior loan
The Resolution Trust Corporation established by the Federal Government in 1989 to help failed savings and loans liquidate real property assets.
- Sales Tax
Collected as a percentage of the retail sales of a product, by a retailer, and forwarded to the State Board of Equalization
- Sandwich Lease
A lease agreement created when a tenant sublets the property to another person, thus creating a sublessor-sublessee relationship. The person in the ‘sandwich’ is a lessee to the owner and a lessor to the sub-lessee
- Scheduled Gross Income
All of the income a property is scheduled to produce.
- Second Trust Deed
The evidence of a debt that is recorded after a first trust deed; a junior trust deed
An area of land, as used in the government survey method of land description; a land area of one square mile or 640 acres; 1/36 of a township
Evidence of obligations to pay money
- Security Agreement
The device commonly used to secure a loan on personal property
- Seller’s Market
A stage in the real estate market in which demand is greater than supply-more buyers than sellers-and prices rise.
- Seller’s Permit
Allows a retailer to buy the product at wholesale prices without paying sales tax. The retailer must then collect the proper sales tax from customers and pay it to the State Board of Equalization
In medieval times a status that was insufficient to allow a person to own land.
- Servient Tenement
The property that is burdened by an easement
Ownership of real property by one person or entity
A single family residence. A house that is intended to be occupied by one family.
- Shared Appreciation Mortgage (SAM)
Lender and borrower agree to share a certain percentage of the appreciation in market value of the property
- Sheriff’s Deed
A deed given to a buyer when property is sold through court action in order to satisfy a judgment for money or foreclosure of a mortgage
- Single Net Lease
An arrangement whereby the tenant pays the rent plus utilities property taxes and any special assessments on the property.
The position, situation or location of a piece of land in a neighborhood
Tall steel-framed structures that originally housed mostly office buildings.
- Soldier’s and Sailor’s Relief Act
A federal law designed to protect persons in the military service from loss of property when their ability to make the payment has been affected by their entering military service
- Special Studies Zone Act
Buyer is aware that the subject property is located in a Special Studies Zone designated under the Priolo Special Studies Act and that construction or improvement of any structure may require the submission of a geological report by the buyer prepared by a registered geologist. Seller or broker have not made any representation about the cost of report or the geological characteristics of the property.
- Special Purpose Properties
Properties that are designed to meet unique purposes within a community such as-but not limited to-mini-storage facilities and mobile home parks.
- Specific Performance
An action brought in a court to compel a party to carry out the terms of a contract
- Standard Operating Procedures (SOP)
Standard procedures that are followed for efficiency whenever specified regularly occurring events take place.
- Standard Policy
A policy of title insurance covering only matters of record
- Statute of Frauds
A state law which requires that certain contracts must be in writing and contain certain essential elements in order to be enforceable
- Statute of Limitations
The period of time limited by statute within which certain court actions may be brought by one party against another
Regarding laws created by the enactment of legislation as opposed to law created by court decisions
Illegal practice of only showing clients property in certain areas
- Step-up Lease
Sometimes called a graduated lease usually a long-term lease with an escalation clause allowing for a rent increase based upon the occurrence of a certain event.
- Stock Cooperative
A development in which a corporation is formed for the purpose of holding title to improved real property.
- Straight Note
A promissory note in which payments of interest only are made periodically during the term of the note, with the principal payment due in one lump sum upon maturity; may also be a note with no payments on either principal or interest until the entire sum is due
- Strip Center
A small retail center located in the suburbs containing half-a-dozen to a dozen stores of various kinds.
An agent of a person who is already acting as an agent for a principal
- Subdivided Lands Act
A state law protecting purchasers of property in new subdivisions from fraud, misrepresentation or deceit in the marketing of subdivided property; concerned with financial aspects of a development
The division of land into five or more lots for the purpose of sale, lease or financing
- Subdivision Map Act
Outlines rules for filing subdivision maps to create subdivisions; concerned with physical aspects of a development‘
- Subject-To’ Clause
A buyer takes over the existing loan payments, but assumes no personal liability for the loan
Transfers less than the entire leasehold, with the original lessee being primarily liable for the rental agreement
The process by which the original tenant gives up use or possession of all or part of the property but receives payment from the sub-lessee and remains fully responsible for the entire lease payment to the landlord.
- Subordination Clause
A clause in which the holder of a trust deed permits a subsequent loan to take priority
- Suburban Hotel
A lodging accommodation within driving distance of the downtown area of a large city designed to attract business clientele.
The area within driving distance of a city’s downtown.
The legal transfer of a person’s interest in real and personal property under the laws of descent
A method of determining the capitalization rate in which various risk factors are weighted and combined.
An oversized shopping center that attracts shoppers from hundreds of miles around. Also called a mega-center.
Officially known as the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) passed by Congress in 1980. Establishes two trust funds to help finance the cleanup of properties that have been impacted by the release of hazardous wastes and substances.
- Superintendent of Service
The person in a hotel who supervises all front office service personnel.
- Supply and Demand
A basic economic principle in which the greater the supply of an item the lower its value. When an item is scarce in relation to demand the value is high. Applies to real estate and all commodities.
The giving up of a lease, voluntarily
Temporarily make ineffective
- Swing Loan
A short-term loan used to enable the purchaser of a new property to buy that property on the strength of the equity from the property the purchaser is now selling
A group of individuals formed for the accomplishment of some business purpose such as a corporation or limited partnership.
- Systems Maintenance Administrator (SMA)
A property management designation offered by the Building Owners and Managers Institute (BOMI) with emphasis on supervision of systems and personnel.Systems
- Maintenance Technician (SMT)
A property management designation offered by the Building Owners and Managers Institute (BOMI) with emphasis on the technical maintenance of various systems such as heating and air conditioning.
- T-Intersection Lot
A lot that is fronted head-on by a street; noise and glare from headlights may be detractors from this type of lot
- Tax Deed
A deed given to a successful bidder at a tax auction
- Terminating the Agreement
Buyer and seller are relieved of their obligations and all deposits shall be returned to buyer less expenses incurred by or on account of buyer to date of termination.
- TenantA renterTender
An offer by one of the parties to a contract to carry out his or her part of the contract
A person who has made a will
- Three-Day Notice to Pay or Quit
The initial notice given to a tenant to begin the eviction process.
- Three I’s Formula
An application of sound human relations principles when handling the impending removal of a tenant from the property. (# 1) Interaction (#2) Incentives (#3) Intimidation.
- Third Party
A person who may be affected by the terms of an agreement but who is not a party to the agreement
- Tight Money
An economic situation in which the supply of money is limited, and the demand for money is high, as evidenced by high interest rates
Duration of loan
- Timely Manner
An act must be performed within certain time limits described in a contract
A specialized type of resort property whereby owners purchase the right to occupy the space for a certain period of time during the year.
Evidence of land ownership
- Title Insurance
An insurance policy that protects the named insured against loss or damage due to defect in the property’s title
- Title Plant
The storage facility of a title company in which it has accumulated complete title records of properties in its area
A negligent or intentional wrongful act arising from breach of duty created by law and not contract
- Tourist House
A lodging accommodation offered in a private home enjoyed by guests on bus or auto tours seeking to economize.
A land description used in the U.S. government survey system consisting of a six-by-six mile area containing 36 sections, each one mile square
- Toxic Substances Control Act (TSCA)
A law passed by Congress in 1976 which allows the EPA to determine which substances are hazardous to the health of human beings or to the environment.
- Trade Association
A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, formed to help solve industry problems, promote progress and enhance service Trade Fixture
- Trade Fixture
An article of personal property affixed to leased property by the tenant as a necessary part of business; may be removed by tenant as personal property upon termination of the lease
- Transfer Tax not to show on Deed at Recordation
Title Insurance Company shall be instructed by escrow holder to file grant deed as a separate declaration and not make it a part of the public record.
- Treaty of Guadalupe Hidalgo
Ended the war with Mexico in l848, and California became a possession of the United States
- Triple Net Lease
An arrangement whereby the tenant pays the rent utilities property taxes special assessments and insurance premiums; and takes responsibility for repairs and maintenance.
- Trust Deed
A document where title to property is transferred to a third party trustee as security for a debt owed by the trustor (borrower) to the beneficiary (lender)
- Trust Funds
Money received by real estate brokers or salespersons on behalf of others
Holds naked legal title to property as a neutral third party where there is a deed of trust
- Trustee’s Deed
A deed given to a buyer of real property at a trustee’s sale
- Trustee’s Sale
The forced sale of real property, by a lender, to satisfy a debtTrustorThe borrower under a deed of trust
- Truth in Lending Act (Regulation Z)
A law that requires borrowers to be informed about the cost of borrowing money
- Undivided Interest
That interest a co-owner has in property, which carries with it the right to possession and use of the whole property, along with the co-owners
- Undue Influence
Using unfair advantage to get agreement in accepting a contract
A contract that was valid when made but either cannot be proved or will not be enforced by a court
- Unilateral Contract
An agreement in which one party promises to pay consideration or to do something in return for the performance of an act by another party; the party making the promise is not legally obligated to act unless the other party performs (a promise for an act)
- Unilateral Rescission
Legal action taken to repeal a contract by one party when the other party has breached a contract
- Unlawful Detainer Action
A lawsuit filed with the court against a tenant who remains in unlawful possession of rental property after breaching the terms of a lawful lease
The clustering of people around big city areas for work and living.
- Use Clause
A clause in a lease designating which parties are authorized to use the property and for what purpose.
The act of charging a rate of interest in excess of that permitted by law
- Utility Value
The usefulness of the property
- Vacancy Factor
Loss of income because of a vacant unit
The Veterans Administration providing benefits to qualified veterans including the VA loan guaranteed by the VA and offering low or no down to the borrower.
- Vacancy Factor
Money lost due to vacancies and other collection losses usually expressed as a percentage of scheduled gross income.
An employee in a large hotel who receives parks and retrieves a guest’s automobile.
- Valuable Consideration
Each party to a contract must give up something to make the agreement binding
The power of goods or services to command other goods in exchange for the present worth of future benefits arising from property ownership
- Variable Rate Mortgage (VRM)
A mortgage where the interest rate varies according to an agreed-upon index, thus resulting in a change in the borrower’s monthly payments
An exception granted to existing zoning regulations for special reasons
- Variance Analysis
An analysis of reports provided by software programs offering explanation for variances from the budget.
A person who received a fief from a regional lord.
The buyer under a contract of sale (land contract)
The seller under a contract of sale (land contract)
An agreement which is totally absent of legal effect
An agreement which is valid and enforceable on its face, but may be rejected by one or more of the parties
The process of assembling into one package a number of mortgage loans, prior to selling them to an investor
- Warranty Deed
No longer used in California; a deed used to transfer title to property, guaranteeing that the title is clear and the grantor has the right to transfer it
- Washroom Attendant
An employee in a large hotel who ensures the cleanliness and supplies of restroom facilities.
A written instrument whereby a person makes a disposition of his property to take effect after his death
- Witnessed Will
Will usually prepared by an attorney and signed by the maker and two witnesses
- Wrap-Around Loan
A method of financing where a new loan is placed in a secondary position; the new loan includes both the unpaid principal balance of the first loan and whatever sums are loaned by the lender; sometimes called an All-Inclusive Trust Deed (AITD)
- Writ of Possession
A court order directing the sheriff to remove the tenant and his or her possessions within five days