The voluntary surrender or relinquishment of possession of real property with the intention of terminating one's possession or interest, but without vesting this interest in any other person

A reduction or decrease in amount, degree, intensity or worth

An estimate of the rate at which a particular classification of space, such as new office space, new housing, new condominium units and the like, will be sold or occupied each year

A concise, summarized history of the title to a specific parcel of real property, together with a statement of all liens and encumbrances affecting the property. The abstract of title does not guarantee or assure the validity of the title of the property. It merely discloses those items about the property which are of public record, and thus does not reveal such things as encroachments, forgeries, and the like.

A method of calculating the depreciation of certain property (that property which is used in a trade or business, or which is held for the production of income) at a faster rate than would be achieved from using the straight line method of depreciation

A clause in a promissory note, agreement of sale, or mortgage which gives the lender the right to call all sums due and payable in advance of the fixed payment date upon the occurrence of a specified event, such as a sale, default, assignment or further encumbrance of the property

The expression of the intention of the person receiving an offer (offeree, usually the seller) to be bound by the terms of the offer

A general or specific right of ingress and egress to a particular property

The gradual and imperceptible addition to land by alluvial deposits of soil through natural causes, such as shoreline movement caused by streams or rivers

That which has accumulated over a period of time such as accrued depreciation, accrued interest or accrued expenses

A formal declaration made before a duly authorized officer, usually a Notary Public, by a person who has signed a document.

A measure of land equaling 43,560 square feet; 4,840 square yards; 160 square rods

Latin for according to valuation usually referring to a type of tax or assessment

A contract which is very one-sided and favors the party who drafted the document

The acquiring of title to real property owned by someone else, by means of open, notorious and continuous possession for the statutory period of time (20 years in Hawaii)

A sworn statement reduced to writing and made under oath before a Notary Public or other official authorized by law to administer an oath

A relationship created when one person, the principal delegates to another, the agent the right to act on the principal's behalf in business transactions and to exercise some degree of discretion while so acting. An agency gives rise to a fiduciary relationship and imposes on the agent, as the fiduciary of the principal, certain duties, obligations and high standards of good faith and loyalty.

One who is authorized to represent and to act on behalf of another person (called the principal). A real estate broker is the agent of his client, be it the seller or buyer, to whom he owes a fiduciary obligation. A salesman is the agent of his broker and does not have a direct personal contractual relationship with either the seller or buyer.

An agreement between the seller (vendor) and buyer (vendee) for the purchase of real property

A clause in a promissory note or mortgage which provides that the balance of the secured debt becomes immediately due and payable at the option of the mortgagee upon the alienation of the property by the mortgagor

Features, both tangible and intangible, which enhance and add to the desirability of real estate

The gradual repayment of a debt by means of systematic payments of principal and interest over a set period, where at the end of the period there is a zero balance

Major department or chain stores which are strategically located at shopping centers so as to give maximum exposure to smaller satellite stores

The relationship of the total finance charge to the total amount to be finance as required under the Federal Truth-in-Lending Law

The process of estimating, fixing, or setting the market value of real property. An appraisal may take the form of a lengthy report, a completed form, a simple letter, or even an oral report.

An increase in the worth or value of property due to economic or related causes, which may prove to be either temporary or permanent

Belonging to; adjunct; appended or annexed

The non-judicial submission of a controversy to selected third parties for their determination in the manner provided by agreement or by law

The value of real property as established by the state government for purposes of computing real property taxes

A specific levy for a definite purpose, such as adding curbs or sewers in a neighborhood. Individual condominium owners are subject to special assessments benefiting the project as a whole and not funded through regular maintenance charges.

The transfer of the right, title and interest in the property of one person, the assignor, to another, the assignee. In real estate, there are assignments of mortgages, contracts, agreements of sale, leases, and options, among others.

The act of acquiring title to property which has an existing mortgage on it and agreeing to be personally liable for the terms and conditions of the mortgage, including payments

The legal process of seizing the real or personal property of a defendant in a lawsuit, by levy or judicial order, and holding it in the custody of the courts as security for satisfaction of the judgment which the plaintiff may recover in any action upon a contract, express or implied

One who is authorized by another to act in his place under a power of attorney

The act of a tenant formally agreeing to become the tenant of a successor landlord; as in attorning to a mortgagee who has foreclosed on the leased premises

The final payment of a note or obligation, which is substantially larger than the previous installment payments, and which repays the debt in full; the remaining balance which is due at the maturity of a note or obligation

A deed which recites a consideration and conveys all of the grantor's interest in the property to the grantee

An imaginary set of lines used by surveyors to locate and describe land under the Rectangular Survey Method of property description used in most mainland states

The financial interest which IRS attributes to the owner of an asset for purposes of determining annual depreciation and gain or loss on sale of the asset

A mark affixed to a permanent reference or monument, such as an iron post or a brass marker (usually embedded in a cement sidewalk), used to establish elevations and altitudes over a surveyed area

A person who receives the benefits from the gifts or acts of another, such as one who is designated to receive the proceeds from a will, insurance policy or trust

A contract in which each party promises to perform an act in exchange for the other party's promise to perform

A written agreement by which one person sells, assigns or transfers his right to, or interest in, personal property to another

A mortgage which is secured by several structures or a number of lots. A blanket mortgage is often used to finance proposed subdivisions or development projects, especially cooperatives.

State securities laws designed to protect the public from fraudulent practices in the promotion and sale of securities, e.g., through limited partnerships, syndications, bonds

Money or other property given to make up any difference in value or equity between two exchanged properties

The perimeters or limits of a parcel of land as fixed by legal description which is usually a metes and bounds description

Violation of any of the terms or conditions of a contract without legal excuse; default, non-performance, such as failure to make payment when due

One who acts as an intermediary between parties to a transaction. A real estate broker is a properly licensed person who, for a valuable consideration, serves as an agent to others to facilitate the sale or lease of real property.

That aspect of the real estate business which is concerned with bringing together the parties and completing a real estate transaction. Brokerage involves exchanges, rentals, trade-ins and management of property, as well as sales.

A mortgage with payments set up to cover more than interest and principal reductions

A strip of land separating one parcel from another

A written permission granted by the County Building Department and required prior to beginning the construction of a new building or other improvement (including fences, fence walls, retaining walls and swimming pools)

A method of determining the value of an improvement normally used in appraising income property

Any transfer in bulk, and not in the ordinary course of the seller's business, of a major part of the materials, inventory or supplies of an enterprise

An ownership concept describing all those legal rights which attach to the ownership of real property, including the right to sell, lease, encumber, use, enjoy, exclude, will, etc.

The percentage selected for use in the income approach to valuation of improved property. The cap rate is designed to reflect the recapture of the original investment over the economic life of the improvement, to give the investor an acceptable rate of return (yield) on the original investment, and to provide for the return on borrowed capital.

The taxable profit derived from the sale of a capital asset

Any structure which is erected as a permanent improvement to real property; any improvement which is made to extend the useful life of a property, or to add to the value of the property

A mathematical process for converting net income into an indication of value, commonly used in the income approach to appraisal

A certificate issued by the Veterans Administration setting forth a property's current market value estimate, based upon a VA approved appraisal

A check which the bank guarantees to be good, and against which a stop payment is ineffective

A professional property manager who has qualified for membership in and is a member of the Institute of Real Estate Management, and is designated a CPM

The recorded history of matters which affect the title to a specific parcel of real property, such as ownership, encumbrances and liens, usually beginning with the original recorded source of the title

Personal property which is tangible and moveable

Title to property that is free from liens, defects or other encumbrances, except those which the buyer has agreed to accept, such as mortgage to be assumed, the ground lease of record, and the like; established title; title without clouds.

An account set up by a broker to keep client's monies segregated from the broker's general funds

The final stage of consummating a real estate transaction when the seller delivers title to the buyer, in exchange for the purchase price

Expenses of the sale which must be paid in addition to the purchase price (in the case of the buyer's expenses), or be deducted from the proceeds of the sale (in the case of the seller's expenses)

A detailed cash accounting of a real estate transaction prepared by an escrow officer or other person designated to process the mechanics of the sale, showing all cash that was received, all charges and credits which were made, and all cash that was paid out in the transaction; also called a settlement statement

Any document, claim, unreleased lien or encumbrance which many impair or injure the title to property or make the title doubtful because of its apparent or possible validity

The grouping of housing units on less than normal size homesites, with the remaining land being devoted to common areas

A written system of standards of ethical conduct. The Code of Ethics of the National Association of Realtors, first written in 1913, establishes the high standards of conduct for members of the Realtor community.

Something of value given or pledged as security for a debt or obligation. The collateral for a real estate mortgage loan is the mortgaged property itself, which has been hypothecated.

A condition which has the appearance of good title, but which in fact is not valid title, as where title is founded on some written document which on its face appears valid and effective, but which is actually invalid

A classification of real estate which includes income producing property such as office buildings, gasoline stations, restaurants, shopping centers, hotels and motels, parking lots and stores, and other similar uses

To mingle or mix; for example, to deposit client funds in the broker's personal or general account. A licensee found guilty of commingling can have the license suspended or revoked by the Real Estate Commission.

The compensation paid to a real estate broker (usually by the seller) for services rendered in connection with the sale or exchange of real property

A pledge or promise to do a certain act, such as the promise of a lending institution to loan a certain amount of money at a fixed rate of interest to a qualified buyer, provided the loan is obtained on or before a certain date

Land or improvements designated for the use and benefit of all residents, property owners and tenants

Parts of the property which are necessary or convenient to the existence, maintenance and safety of the condominium, or are normally in common use by all of the condominium residents

That body of law which is based on usage, general acceptance, and custom, as manifested in decrees and judgments of the courts; judge-made law, as opposed to codified or statutory law

A wall separating two living units

A system of property ownership based on the theory that each spouse has an equal interest in property acquired by the efforts of either spouse during marriage

Recently sold properties which are similar to a particular property being evaluated, and which are used to indicate a reasonable fair market value for the subject property

Interest which is computed upon the principal sum plus accrued interest

Discounts given by landlords to prospective tenants to induce them to sign a lease

Either a judicial or administrative proceeding to exercise the power of eminent domain, i.e., the power of the government to take private property for public use

An estate in real property consisting of an individual interest in an apartment or commercial unit, and an undivided common interest in the common areas such as the land, parking areas, elevators, stairways, and the like

An act or forbearance, or the promise thereof, which is offered by one party to induce another to enter into a contract; that which is given in exchange for something from another

Acts done by a landlord which so materially disturb or impair the tenant's enjoyment of the leased premises that a tenant is effectively forced to move out and terminate the lease without liability for any further rent

Notice of certain facts which are implied by law to a person because he could have discovered the fact by reasonable diligence or by inquiry into public records

A provision placed in contract which requires the completion of a certain act or the happening of a particular event before a contract is binding

A legal agreement between competent parties who agree to perform or refrain from performing certain acts for a consideration. In real estate, there are many different types of contracts, including listings, contracts of sale, options, mortgages, assignments, leases, deeds, escrow agreements, and loan commitments, among others.

The transfer of title to real property by means of a written instrument such as a deed or an assignment of lease

A broker who joins with another broker in the sale of real property

Cooperative ownership of an apartment unit means that the apartment owner has purchased shares in a corporation which holds title to the entire apartment building

A form of concurrent property ownership in which two or more persons own an undivided interest in the same property

A new offer made as a reply to an offer received from another; this has the effect of rejecting the original offer, which cannot thereafter be accepted unless revived by the offeror's repeating it

The practice of sharing commissions with cooperating brokers

A written agreement or promise of two or more parties by which either pledges to perform or not to perform specified acts on a property, or which specifies certain uses or non-uses of the property

Covenants are promises contained in contracts, the breach of which would entitle a person to damages. Conditions, on the other hand, are contingencies, qualifications or occurrences upon which an estate or property right would be gained or lost.

Covenants which become part of the property and benefit or bind successive owners of the property

An impound account maintained for the purpose of setting up a reserve to pay certain periodic obligations such as real property taxes, insurance premiums, lease rent, and maintenance fees

An IRS designation for a person who regularly buys and sells real property

The amount of money needed to meet the periodic payments of principal and interest when a debt is amortized

A statement of all the covenants, conditions and restrictions (CC&R's) which affect a parcel of land

The application of privately owned land to the public for no consideration, with the intent that the land will be accepted and used for public purposes

A written instrument by which a property owner grantor transfers to a grantee an ownership in real property

A legal document in which title to property is transferred to a third party trustee as security for an obligation owed by the trustor (borrower) to the beneficiary(lender)

Failure to fulfill a duty or promise or failure to perform any obligation or required act. The most common occurrence of default on the part of a buyer or lessee is non-payment of money.

Commissions which are earned but not yet fully paid

A judgment against a borrower, endorser, or guarantor for the balance of the debt issued when the security for a loan is insufficient to satisfy the debt

A term, frequently used in connection with zoning requirements, which means the maximum number of building units per acre or the number of occupants or families per unit of land area (acre, square mile, etc.); usually the ratio of land area to improvement area

Money offered by a prospective buyer as an indication of good faith in entering into a contract to purchase; earnest money; security for the buyer's performance of a contract

A loss in value due to any cause; any condition which adversely affects the value of an improvement

For tax purposes, depreciation is an expense deduction taken for an investment in depreciable property

Tables of percentage designed to provide a uniform system of measuring the additional value to lots which accrues because of added depth, with the extra depth valued according to the added utility which it creates

The acquisition of an estate by inheritance, where an heir succeeds to the property by operation of law. Descent literally means the hereditary succession of an heir to property of an ancestor who dies intestate

The portion of a conveyance document which defines the property being transferred

One who attempts to put land to its most profitable use by the construction of improvements

A transfer of real property under a will

An added loan fee charged by a lender to make the yield on a lower-than-market interest VA or FHA loan competitive with higher interest conventional loans

The act of making a distinction against or in favor of a person on the basis of the group or class to which the person belongs; the failure to treat people equally

The right of a landlord, pursuant to a court order, to seize a tenants belongings for rents in arrears

The state where an individual has his true, fixed, permanent home and principal business establishment and to which place he has the intention of returning whenever he is absent

An escrow set up to handle the concurrent sale of one property and purchase of another property by same party

The legal right or interest a wife acquires in property her husband held or acquired anytime during marriage

Representing both principals (buyer and seller) to a transaction

Proper vigulant activity; suficient attentiveness; or care, of which there are infinet shades.

A form of acceleration clause found in some mortgages, especially savings and loan mortgages, requiring the mortgagor to pay off the mortgage debt when selling the secured property, thus resulting in automatic maturity of the note at the lender's option

A structure that provides housing accommodations for two families by having separate entrances, kitchens, bedrooms, lanais, living rooms and bathrooms; a two-family dwelling

Unlawful constraint or action exercised upon a person whereby he is forced to perform some act against his will. A contract entered into under duress is void.

A property interest which one person has in land owned by another entitling the holder of the interest to limited use or enjoyment of the other's land

The limited right of one person to use another's land (servient estate), which right is not created for the benefit of any land owned by the owner of the easement; that is, there is no dominant estate, as the easement attaches personally to the owner, not to the land.

The right of government, both state and federal, to take private property for a necessary public use, with just compensation paid to the owner

An unauthorized invasion or intrusion of a fixture or other real property wholly or partly upon another's property, thus reducing the size and value of the invaded property

Any claim, lien, charge or liability attached to and binding upon real property which may lessen the value of the property but will not necessarily prevent transfer of title

A form of joint ownership of property between husband and wife with the right of survivorship

A report which includes a detailed description of a proposed development project with emphasis on the existing environment setting, viewed from both a local and regional perspective, and a discussion of the probable impact of the project on the environment during all phases

That interest or value remaining in property after payment of all liens or other charges on the property. A owner's equity is normally the monetary interest over and above the mortgage indebtedness.

A form of insurance which covers liabilities for errors, mistakes and negligence in the usual listing and selling activities of a real estate office or escrow company

The reversion of property to the state when a decedent dies intestate and there are no heirs capable of inheriting, or when the property is abandoned

The process by which money and/or documents are held by a disinterested third person (a stakeholder ) until the satisfaction of the terms and conditions of the escrow instructions (as prepared by the parties to the escrow)

A legal doctrine by which a person is prevented from asserting rights or facts which are inconsistent with a previous position or representation he had made by his act, conduct or silence

The legal process of removing a tenant from possession of the premises for some breach of the lease contract

A transaction in which all or part of the consideration for the purchase of real property is the transfer of property of a like kind

A written listing agreement giving one agent the right to sell property for a specified time, but reserving to the owner the right to sell the property himself without payment of any commission

A written listing of real property in which the seller agrees to appoint only one broker to sell the property for a specified period of time. The two types of exclusive listings are the exclusive agency and the exclusive right to sell.

The act of making a document legally valid, such as formalizing a contract by signing, or acknowledging and delivering a deed

A person appointed by a testator to carry out the directions and requests in the last will and testament, and to dispose of property according to the provisions of the will

A contract in which one or both of the parties has not yet performed

A carry over clause (referred to as a safety clause) contained in a listing which provides that a broker is still entitled to a commission for a set of period of time after the listing has expired if the property is sold to a former prospect of the broker

An agreement to continue the period of performance beyond the specified period.

The highest monetary price which a property would bring, if offered for sale for a reasonable period of time in a competitive market willing but not compelled to sell, from a buyer, to a seller who is willing but not compelled to buy, both parties being fully informed of all the purposes to which the property is best adapted and is capable of being used

An analysis of a proposed project with emphasis on the attainable income, probable expenses, and most advantageous use and design

The FHA was set up in1934 under the National Housing Act to encourage improvement in housing standards and conditions, to provide an adequate home financing system by insurance of housing mortgages and credit, and to exert a stabilizing influence on the mortgage market.

A federal lien which attaches to real property, either if the federal estate tax is not paid, or if the taxpayer has violated the federal income tax or payroll tax laws

A federal agency created to investigate and eliminate unfair and deceptive trade practices in business

The largest estate one can possess in real property. A fee simple estate is the least limited interest and the most complete and absolute ownership in land: it is of indefinite duration, freely transferable and inheritable. Fee simple title is sometimes referred to as the fee.

A relationship which implies a position of trust or confidence wherein one is usually entrusted to hold or manage property or money for another. Among the obligations a fiduciary owes to the principal are duties of loyalty; obedience; full disclosure; the duty to use skill, care and diligence; and the duty to account for all monies.

An area where the grade has been raised by depositing or dumping dirt, gravel or lava rock

The total of all costs imposed directly or indirectly by the creditor and payable either directly or indirectly by the customer, as defined under the federal Truth-in-Lending Law

A mortgage brokerage fee to cover the expenses incurred in placing the mortgage with a lending institution; a mortgage service charge or origination fee

A formal statement of the financial status and net worth of a person or company, setting forth and classifying assets and liabilities as of a specified date

A fee paid to someone for producing a buyer to purchase or a seller to list property; also called a referral fee

A definite undertaking by a lender to loan a set amount of money at a specified interest rate for a certain term

The right of a person to have the first opportunity either to purchase or lease real property

A business year used for tax, corporate or accounting purposes, as opposed to a calendar year

An article which was once personal property but has been so affixed to the real estate that it has become real property (e.g. stoves, bookcases, plumbing, etc.). If determined to be a fixture, then the article passes with the property even though it is not mentioned in the deed.

A land parcel having the configuration of an extended flag and pole. The pole represents access to the site which is usually located to the rear of another lot fronting a main street.

The ratio of floor area to land area expressed as a percent or decimal, which is determined by dividing the total floor area on a zoning lot by the lot area

A frequent practice in real estate brokerage offices of assigning one sales agent the responsibility for handling all telephone calls and office visitors for a specified period of time

A legal procedure whereby property used as security for debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document

Any form of deceit, trickery, breach of confidence or misrepresentation by which one party attempts to gain some unfair or dishonest advantage over another

Title to real property which is absolute and unencumbered by any liens, mortgages, clouds or other encumbrances

The length of a property abutting a street or body of water; that is, the number of feet that front the street or water

A loss in value of an improvement due to functional inadequacies, often caused by age or poor design

A legal process designed to provide a means for creditors to safeguard for themselves the personal property of a debtor which is in the hands of a third party ( garnishee )

One who is authorized to perform any and all acts associated with the continued operation of a particular job or a certain business

A construction specialist who enters into a formal construction contract with a land owner or master lessee to construct a real estate building or project

A co-owner of a partnership who is empowered to enter into contracts on behalf of the partnership and who is fully liable for all partnership debts

A graduated federal tax paid by a donor upon making a gift

Bona fide. An act is done in good faith if it is in fact done honestly, whether it be done negligently or not.

An intangible, salable asset arising from the reputation of a business

A system of land description in which large blocks of land are divided into tracts bounded by imaginary lines conforming to the true meridian

A lease in which the rent payments commence at a fixed, often low rate, but step up or increase at set intervals as the lease term matures

Common expression used to convey the idea that something which was once permissible continues to be permissible despite changes in the controlling law

The person who receives from the grantor a grant of real property

The person transferring title to, or an interest in, real property. A grantor must be competent to convey; thus, for example, an insane person cannot convey title to real property.

The total floor area of a building measured from the exterior of the walls (excluding those unenclosed)

A useful rule of thumb to estimate market value of income producing residential property. The multiplier is derived by using comparable sales divided by the actual or estimated monthly rentals and arriving at an acceptable average.

A lease of property under which the lessee pays a fixed rent, and the lessor pays the taxes, insurance, and other charges regularly incurred through ownership

One who is given the lawful custody and care of another (called a ward)

That part of the deed beginning with the words to have and to hold, following the granting clause and reaffirming the extent of ownership that the grantor is transferring

Being fit to live in. The residential landlord has an obligation to keep the leased premises in a habitable condition.

A person who inherits under a will or a person who succeeds to property by the laws of descent if the decedent dies without a will (intestate)

That use which, at the time of appraising the property, is most likely to produce the greatest net return to the land and/or the building over a given period of time

A clause inserted in a contract whereby one party agrees to indemnify and protect the other party from any injuries or lawsuits arising out of the particular transaction

One who stays on the leased premises after his lease has expired. The landlord normally has the choice of evicting the holdover tenant or permitting him to remain and continue to pay rent.

A non-profit association of homeowners organized pursuant to a declaration of restrictions or protective covenants for a subdivision, a PUD, or a condominium

Rules of conduct adopted by a board of directors of a condominium and designed to promote harmonious living among the owners and occupants

A federal cabinet department officially known as the Department of Housing and Urban Development

To pledge specific real or personal property as security for an obligation, without surrendering possession of it

A legal doctrine imposing on the landlord a duty to make the leased premises acceptable to live in and ready for occupancy and to continue to maintain them in a state of repair throughout the entire term of the lease.

A trust account established to set aside funds for future needs

Real property whose value has been enhanced by the addition of on-site and off-site improvements such as roads, sewers, utilities, buildings, etc.; as distinguished from raw land

Valuable additions made to property, amounting to more than repairs, costing labor and capital and intended to enhance the value of the property. Improvements of land would include grading, sidewalks, sewers, streets, utilities, etc. Improvements on land would include buildings, fences, and the like.

Interest implied by the federal tax law

An approach to the valuation or appraisal of real property as determined by the amount of net income the property will produce over its remaining economic life

Property purchased primarily for the income to be derived plus certain tax benefits, such as accelerated depreciation. Income property can be commercial, industrial or residential

Intangible or non-possessory rights in real property such as easements, licenses, profits and the like

One who is retained to perform a certain act, but who is subject to the control and direction of another only as to the end result and not as how he performs the act. The critical feature, and what distinguishes an independent contractor and an employee or agent, is the right to control.

A legal action which forbids a party defendant from doing some act; it requires a person to whom it is directed to refrain from doing a particular thing

One who purchases real property without notice, actual or constructive, of any superior rights or interests in the real property

A visit to and review of the premises. A prudent purchaser of property always inspects the premises before closing.

Financial institutions such as banks, insurance companies, savings and loans or any lending institution whose loans are regulated by law

The sum paid or accrued in return for the use of money

A short-term loan usually made during the construction phase of a building project; often referred to as the "construction loan"

To die without a valid will