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AZ Real Estate

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Question	Answer
Abandonment of Homestead	A document recorded to terminate a homestead exemption
A.P.R.	Annual Percentage Rate. The calculations of all financing charges pertaining to a loan, expressed in an annual rate.
A.L.T.A	American Land Title Associates. A national associate of title companies.
1099 S	Reports proceeds from a real estate transaction to the IRS
Abatement	To reduce in amount, such as the removal or the encapsulation of asbestos
Ability to Repay Rule	A residential lender is to verify that the borrower has a reasonable ability to repay the loan.
Abstract of Title	A summary of all documents that appear on a public record affecting a parcel of real property
Abutting Land	Parcels of land having common boundaries.
Acceleration	The Lender's right to call the entire loan all due and payable if certain conditions are violated.
Acceptance	An agreement binding one of the terms of an offer
Accretion	The gradual build up of land by wind or water.
Accrued Depreciation	For tax purposes, the cumulative amount of depreciation up to a certain time.
Acknowledgement	Signing a legal document before a Notary Public or other authorized person.
Acre	43,560 square feet, if it were in the shape of a square, it would measure approximately 208.71 feet on each side.
Acre foot	Once acre of land with water one foot deep. 325,850 gallons of water.
Active Management Areas	Areas in Arizona with heavy reliance on ground water: Phoenix, Prescott, Pinal, Pima, Santa Cruz
Actual Age	The chronological age of a structure.
Actual Delivery	The Grantor physically hands the Deed to the Grantee
Actual Eviction	Direct actions of a landlord to remove a tenant from the premises through the legal process.
Actual Notice	Facts that are known to be true, actual knowledge
Ad Valorem	According to the value. Arizona property taxes are based on ad valorem.
Adequate Water Supply	Subdivisions in Arizona located outside an Active Management Area are not required to have a 100 year water supply.
Adjusted Basis	Purchase price plus the value of any capital improvements or the original cost minus deductions such as depreciation.
Adjusted Gross Income	The total potential gross income minus vacancy and credit loss. Also called Effective Gross Income
Adjusted Purchase	Original purchase price plus capital improvements
Administrator	An individual appointed by the court to handle the estate of a party who dies without a will.
Adult	A person who is in his/her majority - usually 18 years old.
Adverse Possession	Acquiring title to real property due to continuous, open, and hostile use for a prescribed length of time.
Affidavit of Value	A sworn document that identifies the Grantor, Grantee and states the value paid for real property. Signed by both parties and notarized.
Agency	A legal relationship in which the Principal (owner) appoints an agent to act in his behalf.
Agency by Ratification	Unauthorized actions of an agent that are later approved by the Principal.
Agency Coupled with an Interest	An agency (listing) in which an agent has an interest (usually financial) in the subject property.
Agent	One who is authorized to act for a Principal.
Agent by Necessity	An act of law or circumstances requiring a limited agent to act beyond his authority. (Principal's consent not necessary.)
Aggrieved	To cause grief or to injure one's legal rights.
Agreement for Sale	A document giving equitable title to a buyer (vendee) of real property. Also called "Contract for Deed". Parties are usually called Vendor and Vendee.
Agreement to Sell	Another name for a purchase contract.
Air Rights	The right to use the air space above a property.
Alienation Clause	A clause in a loan document calling for the entire balance due and payable when the property is sold.
All-Inclusive Deed of Trust	A wraparound loan arrangement whereby a Deed of Trust is used in place of a mortgage.
Allodial System	The right of individuals to private ownership of real property.
Alluvium	Sand, clay, ect., deposited by flowing water.
Amendatory Clause	Also known as the F.H.A Escape Clause.
Amenities	Those desirable features (extras) of a property that may benefit the owner.
Americans With Disabilities Act (ADA)	Federal law designed to eliminate discrimination against individuals with disabilities by requiring equal access to accommodations.
Amortization	A schedule of payments that will eventually extinguish the entire obligation.
Anchor Tenant	A Triple-A tenant that gives exposure and stability to a shopping center.
Annexation	The method of attaching a personal property to real property so that it becomes a fixture.
Annuity	A series of payments made at specified intervals.
Anticipation	The present value of property s determined by the future benefits to be obtained from that property.
Appraisal	An opinion of the value of a property given for a specified date in time.
Appraisal Methods	Market Data Approach, Cost Approach, Income Approach.
Appreciation	The increase in property value due to external or internal causes.
Appurtenant	That which belongs to the property rights, privileges, and improvement.
Arbitrage	To charge a higher interest rate to the buyer that is currently being charged on the loan.
Arbitration	The settling of a dispute between two parties by a neutral party.
Arm's Length Transaction	A business transaction in which all parties have equal bargaining opportunity.
Arrears	(Paid) after its usage, such as Arizona Property Taxes and interest on real estate loans.
Asbestos	A fire resistant mineral used in building and household products that has been found to cause lung cancer.
Assemblage	The process of combining two or more smaller parcels of land into one large tract.
Assessed Value	The value placed on real or personal property for tax purposes.
Assessment	A tax charged to the owner of real property for benefits received. Tax is usually based on a pro rata share.
Asset	All valuable items held by a person which may be used to liquidate a dept.
Assignee	One to who interest in property is transferred.
Assignment	The transferring of interest from one party to another in a purchase contract or lease.
Assignment of Lease	The transferor of all or part of the tenant's rights to another party.
Assignment of Rents	The right of a lender to collect rents from the borrower's tenants in case of loan default.
Assignor	One who transfers a specified interest in property.
Assumption of Mortgage	The Grantee taking title to real property and assuming liability for an existing obligation. The original mortgagor still remains liable.
Assured Water Supply	Subdivisions in Arizona located in an Active Management Area need to provide a 100 year water supply.
Attachment	The taking of property into custody, pending the outcome of a legal action.
Attorney-In-Fact	One who has written authorization to act for another under a power of attorney.
Authorization to Sell	Another term for a listing agreement.
Automatic Stay	In bankruptcy an automatic injunction that halts actions by creditors.
Avulsion	The loss of land due to sudden and violent acts of nature.
Axial Theory	Theory of land use development along major highways.
Back End Ratio	A ratio that indicates what portion of an individuals income is used to pay all long term debt.
Balloon Payment	A lump sum paid to liquidate of debt or paid anytime during a loan period.
Band of Investment	An appraisal method used for income property that establishes a capitalization rate by using mortgage interest rates available, rate of return required, and the debt and equity in said property.
Bankruptcy	A financial situation when a person's liabilities exceed his ability to pay. (assets)
Bare-Naked Title	Title held by a trustee in a Deed of Trust document. The trustee does not have any of the bundle of rights provided in ownership.
Bargain and Sale Deed	A conveying Deed that has three covenants but no warranties. Frequently used in an operation of law transaction.
Base Line (Principal)	In the Government Rectangular Survey System, the reference line that runs east and west and crosses the principal meridian.
Basis	The actual price paid for the property.
Basis Point	1/100 of one percent.
Bearing Wall	A wall in a building that supports a ceiling load.
Bench Mark	A mark on a permanent object that has a known location and elevation.
Beneficiary	The lender under a Deed of Trust security
Beneficiary Deed	A deed that is used to transfer real property to one's heirs without going through the probate process.
Bequest	Leaving personal property to an heir through a Will.
Bilateral Contract	A contract binding two or more parties.
Bill of Sale	A document used to transfer personal property
Blanket Mortgage	A security that covers more than one parcel of land.
Blind Ad	A real estate as that does not indicate that a brokerage firm is involved.
Block Busting	An illegal action usually concerning fair housing that creates panic selling for monetary gain.
Blue Sky Law	State laws regulating the sale of investment securities
Boiler Plate	The standard pre-printed language that exists in a contract.
Bona Fide Buyer	A Buyer who is acting in good faith for valuable consideration.
Book Value	The value of an asst carried on the books of business.
Boot	Anything of value given to make up the difference in equities between two properties exchanged.
Breach of Contract	Failure to perform a contractual obligation.
Bring Down Fee	Updating the title report from the original report to the recording of the loan documents.
Broker	A third party who, for a fee, acts as an intermediary in a business transactions.
Brown V Board of Education	Court Case that over turned Plessy v Ferguson
Budget Payment	Monthly payment including principal interest taxes and insurance.
Buffer Zone	An area of land that separates one type of zoning from another.
Building Codes	Special construction standards enforced through a permit.
Bulk Transfer	The sale of a business which involves transfer of inventory.
Bundle of Rights	Legal rights of real property ownership: possession usage, transfer, encumber, exclusion.
Buyer Broker	A licensee who represents the buyer only in a fiduciary manner.
Caisson	A tract of land purchased or leased that serves as the building foundation for air rights.
CAN-SPAM Act	Federal law regulating commercial emails, providing the recipient an opt-out provision.
Capital	Income or sources of income.
Capital Gain	The taxable gain received from the sale of a capital asset.
Capital Improvements	Any permanent improvements to real property.
Capital Loss	The loss realized from the sale of capital asset.
Capitalization	A method used to estimate the value of property by dividing the net annual income by a capitalization rate.
Capitalization Approach	Also known as the Income Approach in appraising.
Capitalization Rate (Overall)	An overall rate of return which includes a return on investment of land, improvements and recapture.
Case Law	Laws based on an aggregate of previous court decisions.
Cash on Cash Return	Cash flow divided by the amount of capital invested.
CC&R's	Covenants, Conditions and Restrictions.
Cease and Desist Order	A governmental order directing the parties violating the law to refrain from further activity.
Ceiling Value	An appraisal concept in which the current listings in a neighborhood set the highest value.
Certificate of Eligibility	A certificate from the Veteran's Administration that establishes the Veteran's eligibility for a V.A. guaranteed loan.
Certificate of Occupancy	A document issued by the building inspector showing that a structure is ready for occupancy.
Certificate of Purchase	A document given to the winner at a tax lien sale.
Certificate of Reasonable value	A V.A. appraisal that states the maximum V.A. guarantee on a certain property.
Certificate of Sale	The lien document given to the high bidder at a mortgage foreclosure sale.
Certificate of Title	A document issued by a Title examiner stating the condition of title to a given parcel of property.
Cession Deed	A deed that conveys private property for public usage.
Chain of Title	A history of constructive notice as it pertains to a certain parcel of real estate.
Chapter 11	A recognition under the bankruptcy code usually pertaining to corporations the debtor remains in possession.
Chapter 13	A recognition of a wage earner's assets - under the bankruptcy code - a trustee is appointed.
Chapter 7	Complete liquidation of a person's assets to pay liabilities. A trustee is appointed.
Chattel	Personal property - also called personalty
Chattel Mortgage	A security device used for personal property.
Chattel Real	Another name for a lease.
Check Lines	In the Government Rectangular Survey System, a twenty-four mile square parcel containing 16 townships.
Civil Law	The body of law that protects a party's private rights.
Civil Rights Act of 1866	Prohibits discrimination based on race.
Client	The party the Broker represents or the party who hired the Broker and agrees to pay a fee upon performance.
Close of Escrow (C.O.E.)	The day on which all terms and conditions of the contract and escrow have been met and the title is transferred. Close of Escrow usually occurs when all necessary documents are recorded.
Cloud on Title	A claim on title that hinders it from being marketable.
CLUE Report	A history of insurance claims on a specific property.
CO-Maker	A person who signs a promissory note with another.
Codicil	An Amendment to a formal Will.
Collateral	Property used as security for a loan.
Collusion	A secret agreement between two or more people for an illegal purpose against another.
Color of Title	Title that appears to be valid but due to a hidden fact is actually void.
Commercial Banks	Institutions primarily involved in short term loans and demand deposits.
Commingling	The mixing of trust funds with the Broker's personal funds.
Commission	The fees paid a Broker resulting from a transaction.
Common Area Maintenance	Fees charged to tenants for the upkeep of the common grounds.
Common Law	A system of law that is based on custom and usage as opposed to statutes.
Community Facility District	A method of financing infrastructure and improvements in a development. Bonds will be sold and repaid through increased property taxes.
Community Property	Property acquired by the efforts of a husband and wife during their marriage, belonging to them equally.
Compaction	To compress additional soil to those uneven areas of a lot.
Comparable	An appraisal method that compares similar properties to establish market value.
Compensatory Damages	Damages recovered in payments for actual losses.
Competent Party	An individual who is legally capable of entering into a binding agreement.
Compound Interest	Interest paid on interest
Concentric Theory	Theory of land use developing around a central business district.
Concurrent Tenancy	Two or more parties own undivided interest in the same property.
Condemnation Suit	The legal process of taking private property for public use.
Condominium	Individual ownership of realty limited to cubage, plus an undivided interest in the common ground.
Conformity	A principal which states that value in a given area can best be obtained when all structures are in some way uniform.
Consideration	That which is given in exchange for the transfer of property or service. One of the legal requirements for validity of a contract deed, lease or option. Example: The purchase price would be the consideration for the property.
Construction Loan	A short term loan based on draws during the construction process.
Constructive Eviction	When the inaction of the Lessor makes the use of the property unsuitable, the Lessee moves out. the tenant moves out through no fault of his own.
Constructive Notice	A term used when a document is recorded or printed in a public document.
Consumer Financial Protection Bureau	A regulatory agency charged with overseeing financial services offered to consumers.
Contingency	Future conditions that must be met for a contract to be binding.
Contingent Remainder	A life estate that passes to the life tenants' heirs, pending the death of the person on whom the estate is based.
Contour Map	A map showing the physical features of land using lines to indicate elevations.
Contract	An agreement based on a promise "consideration" to do or refrain from doing something.
Contract for Deed	A real estate transaction where the seller remains legal title to the property until final payment is made.
Contract of Adhesion	Terms of a contract are set by one party. The other party is instructed to "take it or leave it".
Contract Rate	The rate of interest stated in the contract.
Contract Rent	Rental amount due as specified in the lease.
Contract Requirements	Every valid and enforceable real estate contract must have the following requirements: Competent parties, in writing, legal description, mutual assent, legal consideration, legal purpose, signatures, and communication.
Contribution	Any improvement to property is only worth its market value, not the cost of the improvement.
Conventional Life Estate	A life estate created for the life of some stated natural person.
Conventional Loan	Real estate loans that are not insured by any government agency.
Conversion	In real estate law, the unlawful use and misappropriate of another's personal property.
Conveyance	Transfer of title to real property. Such transfer is usually evidenced by a deed.
Cooperating Broker	A broker who works with and through the listing Broker.
Cooperative	Ownership of stock in a corporation which gives the holder the right to occupy a certain unit - a long term proprietary lease.
Corporate Resolution	The written authorization of the Board of Directors for the corporation to act in a certain manner.
Corporation	A legal person created by law which is owned by stockholders who act as one.
Corporeal	Real land such as land and fixtures.
Correction Deed	A deed that corrects an error on a previously recorded Deed.
Correctional Lines	In the Government Rectangular Survey System, the lines that compensates for the curvature of the earth.
Correlation	The final step in a appraisal that weighs (usually by percentage) the comparables used to arrive at a final estimate of value. Also called Reconciliation.
Cost Approach	An appraisal process that estimates the value of property by using replacement or reproduction costs minus depreciation plus the value of the land.
Counteroffer	A new offer made in response to an original offer.
Covenant	A promise made between two or more parties, usually pertaining to contracts and deeds.
Covenant Against Encumbrances	The Grantor promises that he has revealed all items that burden the property.
Covenant Not to Compete	The seller of a business agrees not to open a like business for a specific period of time.
Covenant of Quiet Enjoyment	A promise that the Grantee has the highest claim to ownership.
Covenant of Seizin	The Grantor promises that he has possession of the property and has the right to convey it.
Covenants in a Deed	Promises in a deed made by the grantor for the protection of the grantee, usually found in Bargain and Sale and Warranty Deeds.
Curtesy	A husband's right or interest in his wife's property upon her death.
Customer	Usually referred to as the Buyer or Prospect.
Debt Relief	Forgiveness of an obligation, usually results in a taxable event.
Debt Service	The payments made to satisfy a mortgage loan, including principal and interest.
Decedent	Party who died
Dedication	The voluntary transferring of private property for public usage.
Deed	The legal written document used to transfer ownership of real property.
Deed In Lieu of Foreclosure	An out of court settlement whereby a Lender accepts the Deed from the Borrower - friendly foreclosure.
Deed of Reconveyance	An instrument issued by the trustee when the debt secured by a deed of Trust is paid in full.
Deed of Trust	Security for a debt using a neutral third party (Trustee) who holds legal title.
Deed Restrictions	Limits placed on public record by the Grantor that affect property usage by future owners.
Default	Failure to comply with a contractual agreement.
Defeasance Clause	Clause stating that when a condition is met, the Lender's claim has been nullified and requiring the lender to issue a satisfaction piece.
Defeasible Fee	A fee simple estate subject to certain limitations imposed by the Grantor.
Deferred Maintenance	Loss of value due to lack of maintenance.
Deficiency Judgment	The legal right of Lender through court action to collect from a borrower the remaining debt still owed after a foreclosure.
Delivery of Deed	The final transferring of a Deed from Grantor to Grantee. A prerequisite for valid conveyance.
Demise	The conveying of an interest in property by means of a lease. A giving up of some interest but not all rights in ownership.
Depreciation (Appraisal)	The loss of value due to any and all causes. Functional, economic, physical social obsolescence.
Depreciation (Curable)	A defect in real property that is economically feasible to correct.
Depreciation (Incurable)	A defect in real property that would not be economically feasible to correct.
Depreciation (Tax)	For income tax purpose, a deduction taken for an investment.
Descent	Distribution of property to heirs when one dies intestate.
Designated Broker	The Broker who is responsible for day to day operation of the business.
Devise	The conveyance of real property through a will.
Devisee	The one who receives real property through a Will.
Devisor	The person who transfers real property through a Will.
Direct Endorsement Lenders	HUD approved lenders that approve FHA loans by themselves.
Directional Growth	The direction in which a residential community appears to be developing.
Disclaimer Deed	A document signed by a party to disavow any interest in a particular property.
Discount Points	A loan charge in addition to interest that increases the Lender's yield.
Discrimination	Failure to give equal treatment - this concept is usually referring to a protected class of people.
Distraint Clause	Landlord's right to seize a Lessee's personal property for past due rent. (commercial property only). Unlawful in residential rental properties.
Docketed Judgment	A recorded judgment
Doctrine of Relation Back	Document stating that the death of the Grantor does not terminate a valid escrow.
Dodd-Frank Act	A federal law that places regulations on financial institutions.
Dollar Rate	Tax rate charged per $100 of assessed value
Dominant Estate	The parcel of land that benefits from the easement against the servient estate.
Dower	A wife's right in her husband's property upon his death.
Down Zoning	A change from a higher to a lower zoning classification, such as commercial to residential.
Draws	Monies released under the terms of an open-ended loan
Dual Agency	A transaction that involves two principals. When a broker represents both buyer and seller.
Due Diligence	The use of good faith and a degree of care required to perform one's obligations.
Due on Sale Clause	The Lender's right to call the entire loan balanced due upon resale of property.
Duress	The use of force in obtaining an agreement.
Earnest Money	Advance money given by a Buyer to show good faith in a purchase agreement
Easement	The right one has to use the land of another for a specific purpose.
Easement Appurtenant	An easement that is attached to and transfers with title to real property.
Easement by Necessity	An easement created by law, usually to have ingress and egress to land-locked property.
Easement by Prescription	The legal process of acquiring an easement due to adverse use that is open, constant and notorious for a period of time.
Easement in Gross	A personal right given to an individual or business to use the land of another. This privilege is irrevocable.
Eaves	The edge of a roof that projects beyond a building.
Economic Depreciation	Loss of value due to exterior forces beyond the property owner's control, which is always incurable.
Income Approach	An appraisal process that estimates the value of income property by converting annual net income into value.
Economic Life	In appraisal, the number of years a property will contribute value to the land.
Economic Rent	The amount of rent a property could or would bring in an open market at a given time.
Effective Age	The age of property based on its appearance.
Elevation	The view of the property as seen from the street.
Embellishment	To improve the item described by adding fictitious details. Overstating one's opinion.
Emblements	The pre agreed right that the Seller or Lessee has to return to the land to harvest crops.
Eminent Domain	The right of the government to permanently take private property for public use with just compensation.
Enabling Legislation	Legislative authority extended to municipal governments to enact zoning laws.
Encroachment	Illegal intrusion upon another's real property - usually physical in nature.
Encumbrance	Any lien, liability, or restriction upon ownership of real estate that will lessen its value.
EPA	Environmental Protection Agency - A federal agency that sets standards on environmental issues.
Equal Dignities Rule	A law that sates if a contract must be in writing, then the agent's authority to act for a principal must also in writing. If a Purchase Contract needs to be in writing to be enforceable, then any changes or alterations must also be in writing.
Equitable Interest	The buyer's interest in property at the signing of a purchase contract. Vendee's interest in an agreement for Sale.
Equitable Period of Redemption	The Mortgagor's chance to redeem the property prior to sheriff's sale by paying the entire debt.
Equitable Title	The Vendee's right to ownership of real property. (Vendor Still retains legal title).
Equity	"Dollar value" interest remaining after liens are deducted from current property value.
Equity Build-up	The increase of equity due to the reduction of the loan amount.
Erosion	The gradual wearing away of land by acts of wind or water.
Escalator Clause	A contract clause that allows the interest to increase upon loan assumption.
Escape Clause	The Buyer is not obligated to buy if the FHA appraisal is less than the contract price.
Escheat	The right of the state to take property of the deceased who dies without a Will and has no heirs after a statutory period of time.
Escrow	Depositing documents with a neutral third party until the terms of an agreement are met.
Escrow Agent	A third party that acts on instructions of the Buyer and Seller. When all terms and conditions are met, the agent will close the transaction.
Escrow Delivery	The act of delivering the Deed to a third party with instructions to deliver said Deep to the Grantee after all conditions are met.
Estate	A right or interest one has in all property real and personal .
Estate in Land	A right or interest one has in real property.
Estoppel	A legal doctrine which prohibits a person from going back on previous facts or acts of conduct.
Estoppel Certificate	A document used to verify the terms and balances of existing leases or loans.
Evidence of Title	The method used to show one's proof of ownership.
Excess Rent	Contract rent that exceeds the economic rent.
Exchanging	A transaction where like properties are traded, usually for tax benefits.
Exclusive Agency Listing	Appointing one Broker in a listing agreement with the owner reserving the right to sell the property without paying a commission.
Exclusive Right to Sell	Appointing one Broker in a listing agreement, who will be paid regardless of who sells the property, including the owner.
Exculpatory Clause	A clause in a document that relieves the Landlord of any blame or guilt as relating to the actions of the Tenants. An Escape clause.
Executed Contract	A contract in which all terms and conditions have been met.
Executor	A person appointed in a Will to carry out its provisions.
Executory Contract	A contract in which all terms and conditions have not yet been met.
Expressed Contract	A contract in which the terms are specifically stated either orally or in writing.
Extended Coverage Policy	A title insurance policy that normally covers items in the public record plus questions of survey and unrecorded mechanics liens.
F.D.I.C.	Federal Deposit Insurance Corporation. Insures Deposits for the depositor up to a certain dollar amount.
F.H.A. - Conditional Commitment	An F.H.A. appraisal based on a future loan commitment. The property has qualified but a buyer has not yet qualified.
F.H.A. - Firm Commitment	A final statement the F.H.A. will insure a specified loan.
F.H.A. - Title I	F.H.A. insures home improvement loans.
F.H.A. - Title II	F.H.A. insures home "203B" loans.
F.H.A. - Title III	Originally established F.N.M.A. (Federal National Mortgage Association)
F.H.L.M.C.	Federal Home Loan Mortgage Corporation (Freddie Mac), active in the secondary mortgage market.
F.N.M.A.	Federal National Mortgage Association (Fannie Mae), purchases paper from primary lenders.
Facade	The front of a building; the part seen from the street.
Familial Status	A protected class under the Federal Fair Housing Law - A family is one or more persons under the age of 18 years, living with a parent or guardian.
Federal Fair Housing Act	Law enacted by Congress that prohibits discrimination by race, color, religion, national origin, sex, familial status, and handicap. the law relates primarily to the sale or lease of residential real estate.
Federal Fair Housing Act 1968	Prohibits discrimination based on race, religion, color, creed, national origin and sex.
Federal Fair Housing Act 1988	Prohibits discrimination based on handicap and familial status - these items were added to the 1968 act.
Federal Housing Administration (F.H.A.)	FHA - Insures lenders against loss by requiring the borrower to pay a mortgage insurance premium.
Federal Reserve System	Regulatory agency for Federally chartered commercial banks.
Fee Simple	The highest form of ownership under the allodial system.
Fee Simple Conditional	If previously agreed conditions are violate, the Grantor must take action to terminate the Grantee's interest in property (Not automatic termination).
Fee Simple Determinable	A fee interest in real estate that may be automatically terminated if certain circumstances are violated.
Fee Tail	A freehold estate that may terminate when and if the Grantor's specified heirs die. "Unlawful in most states"
FEMA	A federal agency that coordinates disaster relief, also designates flood areas and creates flood maps.
Feudal System	All rights of land ownership remain with the king.
FICO Score	Fair Isaac Company - calculates credit scores
Fiduciary	The trust and confidence an agent owes a principal in an agency relationship
Financing Statement	A document recorded to protect a creditor's interest in personal property.
FIRPTA	Foreign Investment Real Property Tax Act
First Right of Refusal	A party has the first opportunity to meet an offer to either buy or lease a property.
Fissure	A long narrow crack in the earths surface.
Fixture	Personal property that is not affixed an is considered real property.
Flexible Payments	A loan payment plan in which the payments increase over a set number of years.
Flood Plain	An area of low-lying ground adjacent to a stream that is subject to flooding.
Flood Way	A channel for diverting flood water.
Floor Value	An appraisal concept which states that the sales price of comparable properties set the lowest market price.
Forcible Detainer	A legal action that a landlord can take if the existing occupant refuses to leave.
Foreclosure	An action by which property used as security is sold to pay the debt.
Forfeiture	The losing of equity one has in a property due to nonperformance of an obligation - such as in an Agreement for Sale. The process by which a Vendor retakes the property from the Vendee due to default by the Vendee.
Formal Will	A written Will that is written, signed and witnessed.
Foundation	The supporting portion of a structure on which all else rests.
Fractional Sections	Irregular sections due to the curvature of the Earth. There are 11 fractional and 25 full sections in a township.
Fraud	Intentional deception that, when relied upon, causes financial loss or personal injury.
Freehold	An estate held in fee simple or for life - no pre-determined time for termination.
Friable	When asbestos particles become air-born.
Front End Ratio	A ratio that indicates that portion of an individuals income is used to make mortgage payments.
Frozen Asset	An asset that cannot be easily converted into cash without taking a loss.
FTC	Federal Trade Commission - regulates the "CAN-SPAM ACT"
Functional Depreciation	Physical features within the property lines that are obsolete and longer desirable. May be curable or incurable.
Funding Fee	A fee paid to the V.A. to guarantee a V.A. loan.
G.N.M.A.	Government National Mortgage Association (Ginnie Mae) active in the secondary mortgage market.
Gable Roof	A pitched roof with two sloping sides.
Garnishment	A court directive to the party who is holding the assets of another to freeze said assets.
General Agent	An Agent having the power to perform any and all acts on behalf of a Principal as expressed in a legal document.
General Lien	A lien that encumbers both real and personal property.
General Partnership	Each partner is responsible and liable for the total profit or loss of the operation regardless of the initial investment.
General Warranty Deed	A conveying deed in which the grantor state that he or she will forever guarantee the title of real property.
Gift Deed	A deed conveyed with love and affection as the consideration.
good consideration	love and affection given in exchange for real property
good faith estimate	an estimate of all anticipated closing costs regarding a residential transaction.this estimate is required to be given to all buyers by the lender under respa guidelines
Goodwill	Goodwill the intangible value of a business due to the habit of patronage. Goodwill may be depreciated for accounting purposes.
government lot	the government rectangular Survey System, those are regular sections to the curvature of the Earth or acts of nature.
government rights	taxation, escheat, eminent domain, police power
government rectangular Survey System	a governmental method of surveying land located by using a principal Baseline and principal Meridian
graduated lease	at least that will go up in rent as specified intervals
grandfather clause	a clause that indicates something was once allowed and may still continue despite changes in the law
Grant	the transferring of real property by a deed
grantee	the person who receives an interest in Real Property via a deed
granting clause	the words in a deed that state,I hereby Grant and convey
grantor	the person who conveys an interest in Real Property via a deed
gross lease	Elite where the lessor is responsible for all expenses
gross rent multiplier	I figure use that, when multiplied by the annual gross rent, will estimate the property value
gross scheduled income	the total potential of all income that can be derived from an investment property
ground lease	a lease for land only
groundwater	the classification of all underground water except for underground streams
Guardian	one appointed by the court to handle the Affairs of an incompetent party
H.U.D.	Department of Housing and Urban Development
habendum clause	The degree, quantity or quality of the estate conveyed
handicap	a protected class under the fair housing law; a handicap is considered an impairment that substantially limits life activities
hard money mortgage	a mortgage that is given for direct cash
Hereditament	The right to will to another personal and real property.
High Water Mark	Highest place on shoreline reached by rising water.
Highest and Best Use	land usage at the time of an appraisal which would create the highest net return.
Hold Harmless Clause	A contract clause stating one party agrees to protect another from losses.
Holder in Due Course	The party who is holding a note for value and has the protection of law for its enforcement.
Holdover Tenant	A tenant who remains in possession of the property after lease expiration.
Holographic Will	Hand-written Will that is signed by the maker but does not require witnessing.
Homestead	A legal right of a homeowner to protect a portion of his equity against a forced sale.
Homogeneous	A word used in appraising that describes similar or like properties.
Horizontal Property Regime	Condominium - the owner of the unit only has cubage rights; air rights and sub-surface rights are not included.
Hypothecate	To Pledge property as collateral and still retain possession of the pledged property.
Illusory Contract	A expression of intent to do something, not a binding agreement.
Implied Agency	An agency created by the actions or words of the parties involved.
Impound Account	An amount held by the lender to pay the taxes and insurance.
INA	Irrigation Non Expansive Area
Inchoate	Incomplete (non perfected)- additional steps must be taken to strengthen the claim.
Incompetent Party	One who is not legally qualified to manage his or her own affairs due to age, mental capabilities, or legal action.
Incorporeal	The rights accompanying ownership of property.
Indemnify	An agreement to hold harmless another from damages.
Index Lease	A lease that is based on a certain price index such as the consumer Price Index found in commercial leases.
Index Rate	A rate in a variable rate loan that is tied to a T-Bill, 11th District or U.S. Cost of Funds.
Industrial Fruit	Fruits or crops that are produced on a property for income - personal property.
Infancy	A person who is under the legal age (usually under 18 years)
Ingress	The right to enter a parcel of land
Egress	The right to exit a parcel of land
Installment Sale	A tax method of reporting only the amount of income actually received as it is received.
Intangible	the rights that accompany personal property
Inter-State land Disclosure Act	A federal registration system when 25 or more lots are offered for sale or lease inter-sate.
Interest	Rent paid for the use of money
Interest Only	payment consists of interest only and no repayment of principal.
Interim Financing	A short term loan sometimes called a gap or bridge loan.
Internal Rate of Return	A rate of discount that is calculated on the basis of projected cash flows from the initial investment.
Interpleader	A third party (court) who is called upon to settle a dispute, usually in an escrow situation.
Intestate	A person who dies without a Will
Involuntary Alienation	The transferring of ownership against one's Will
Involuntary Lien	A lien placed on property without the owner's permission or by act of law.
Joint and Several Liability	One Party only or all parties together can be held liable for the debt.
Joint Tenancy	Co-ownership that feature the right of survivor-ship and requires the for unities: Possession, Interest, Time, Title.
Joist	The horizontal supports that hold up a floor or ceiling
Jones V Mayer	A court case that prohibits discrimination by race both in private and governmental properties.
Judgment Lien	An involuntary lien on both real and personal property - a general lien.
Junior Mortgage	Any security agreement having a priority after the first mortgage.
K 1	A form to report income or loss in a business, partnership, or trust.
Laches	The legal time has expired to file a valid claim.
Land Contract	Contract where the Seller finances the Buyer's purchases or realty and retains legal title. Vendee has Equitable Title.
Landlocked	A parcel of land having no ingress or egress without crossing over another's property.
Landlord	One who owns real property but transfers a leasehold interst to another with the reversion right.
Law of Agency	A legal relationship in which one is hired to represent another with trust and confidence. The party hired is referred to as the Agent.
Law of Situs	Real estate is subject to the laws of the state in which it is located.
Lawful Object	A contract requirement stating that a valid contract must be for an item or purpose that is legal in the eyes of the law.
Lease	An agreement giving possession and use of property in return for a specified consideration.
Leasehold	The Lessee's right to use property for a specified period of time.
Legacy	Money or personal property left to another through a Will.
Legal Description (Formal)	A formal description that defines the boundaries of real property. This description is sufficient to locate the property and may be enforced through a court of law.
Legal Description (Informal)	Identifying a parcel of land by a street address or local terminology.
Legal Life Estate	A non-inheritable right provided by law.
Legal Person	A person created by law such as a corporation.
Legal Right	The interest rate the court assigns to those documents that have no specified interest rate.
Legal Title	The lawful claim to ownership
Legatee	One who receives money or personal property through a Will.
Lender's Policy	An extended coverage Title Insurance Policy purchased for the Lender.
Less than Freehold	An estate of possession but not ownership - a lease.
Lessee	The tenant in a lease
Lessor	A landlord in a lease
Level Payment Mortgage	A repayment plan that includes principal and interest. The total of which is the same amount each payment.
Leverage	Using borrowed funds to finance investments with little or no personal cash invested.
License	A personal privilege one has to use the land of another (privilege revocable)
Lien	A money claim against property
Lien Theory State	States in which the Lender of cash does not hold legal title, but only a lien as security against title.
Life Estate	An interest in property that is limited to the life grantee - or the life of some specified person.
Life Tenant	One who possesses a life estate
Like-kind Property	Property held for an investment when qualifying for a real estate tax deferred exchange.
Limited Agent	An agent having the power to perform only in those areas expressed in a legal document
Limited Partnership	Parties who contribute capital to an investment and are responsible for the amount invested.
Liquid Asset	An asset that can easily be converted into cash.
Liquidated Damages	the dollar amount stated in the contract paid to the injured party if a breach occurs. The dollar amount is usually pre-agreed.
Lis Pendens	Lawsuit pending
Listing Agreement	A written agreement between a principal and Broker to sell or lease property for compensation.
Listing Broker	The agent who acts for the owner of property in either leasing or selling.
Littoral Land	A property owners right to use the land abutting a lake or ocean.
Loan to Value Ratio	The amount of loan in relationship to property value.
Long Term Capital Gain	The taxable gain on the sale of a capital asset held for more than the statutory period of time.
Lot Release	Clause in a Blanket Mortgage to release individual lots.
Lot, Block, Subdivision	A method of identifying land in a subdivision by referring to a certain lot, block and a recoded plat of the subdivision.
Love and Affection	Consideration that is given to support a gift deed.
M.I.P.	Mortgage Insurance Premium - Insurance pertaining to an F.H.A. insured loan.
Majority	A person who is legally competent according to the minimum age law of that state
Margin	In an adjustable rate loan, the amount added to the index to determine the rate.
Market Data Approach	An appraisal process that uses comparables to estimate the value of a specified property.
Market Price	The price a property actually sells for.
Market Value	The price a property should sell for if enough time is allowed and neither Seller nor Buyer is under pressure to act.
Master Plan	A long-range guide for the orderly growth of a given area.
Mechanic's Lien	The legal right of a contractor to place a lien on real property for work or materials rendered.
Megalopolis	A continuous series of ongoing cities all heavily populated.
Megan's Law	A law requiring sex offender registration and notification
Menace	The threat of force in acquiring an agreement
Meridian (Principal)	In the Government Rectangular Survey System, a reference line that runs North and South and crosses the principal baseline.
Metes and Bounds	A legal description of land that uses an identifiable starting point to define the boundaries of real property.
Mill Rate	A property tax rate that is equivalent to one tenth of one unit. Expressed as .oo1 or 1 /100 of a dollar.
Mineral Rights	Sub-surface rights to all underground assets.
Misrepresentation	To represent falsely or to give untrue statements.
Monolithic Slab	A foundation formed by a single pouring of concrete.
Monument	A natural object that is given as part of a survey.
Moral Turpitude	An act of conduct that is bias, vile, or depraved.
Moratorium	A temporary halting of payments due on a debt.
Mortgage	A security document given to insure the payment of a note.
Mortgage Assumption	The Buyer assumes the Seller's mortgage and agrees to pay the debt. Original maker is not necessarily free form liability.
Mortgage Broker	One who is paid a fee to arrange loans between a Lender and a Borrower.
Mortgage Relief	In a tax deferred exchange - the assumption of a mortgage of lesser value that an existing mortgage.
Mortgagee	The Lender under a mortgage-type transaction. The receiver of the security instrument.
Mortgagor	The party who gives and is the maker of the security
Mud Sill	the lowest horizontal member of a frame house that rests on the foundation
Multiple Listing Service	A general pooling of listing information available to those members of the local Board of Realtors.
Multiple Nuclei Theory	Theory of land use development around several central business areas.
Mutual Assent	A meeting of the minds between the two parties in a contract.
Narrative Appraisal Report	A written appraisal sowing in detail the reasoning behind the assigned estimate of value.
Natural Person	A person by birth, not by operation of law.
Navigable Stream	A designated public highway of water. The stream bed is owned by the government.
Negative Leasehold	Contract rent exceeds the economic rent.
Negotiable Instrument	A written document that, when endorsed, can be assigned to another.
Neighborhood	Adjoining areas of land that have common characteristics and similar usage.
Net Lease	Tenant pays rent and other costs pertaining to the property.
Net Listing	An agreement in which a minimum sales price is set by the Seller. The Broker receives his commission from that amount over and above the minimum sales price.
Net Operating Income	The income obtained from property after operating expenses.
Nominee	A person who is acting for a party to be named later.
Non disturbance Clause	A mortgage clause which states that the Lender will not disturb the present tenant's rights even in the even in the event of foreclosure.
Non-conforming Use	The continuance of a certain use even though the area has been zoned for a different purpose; a property use that is not consistent with current zoning.
Non-Homogeneous	No two parcels of real estate are alike or occupy the same geographic location.
Non-Inheritable Estate	An estate which cannot be passed to one's heirs.
Non-Navigable Stream	A stream not designated as a public highway; the stream bed is owned privately.
Notary Public	A public officer who is able to attest and certify legal documents by a signature and seal.
Note	A document that is evidence of debt - an obligation.
Notice of Completion	A legal notice that indicates a completed and a mechanic's lien must be filed within a certain time period.
Novation	The original obligor is relieved of any further loan obligation due to the substitution of a new party.
Nuncupative Will	An oral Will that is witnessed.
Objective Value	The value in the object itself
Obligatory Advances	An open-ended loan has lien priority as per recondition regardless of future draws.
Obsolescence	A loss in property value due to outmoded functional or economic changes.
Offer	A proposal freely made by one party to another
"Or More" Clause	A clause in a note or security devise that indicates no pre-payment penalty. The debt can be paid in full at any time by the debtor.
Open End Loan	A loan in which draws are available up to a set limit.
Open Listing	A listing between the principal and numerous agents simultaneously.
Option	A future right of a party to buy or lease property at a specified price.
Optionee	The party who receives an option
Optionor	The party who gives and option
Orientation	Placing a house on property so that it brings the best advantages to the occupant.
Origination Fee	A fee charged by the Lender for processing a new loan.
Ostensible Authority	Authority arising when a principal has intentionally caused a third party to rely upon the apparent authority even though it has not been given.
Owner's Policy	A Title Insurance purchased for the benefit of the Buyer in a real estate transaction.
P.I.T.I.	Principal, Interest, Taxes, Insurance.
Paper	A lending term referring to a note and a security instrument.
Parol Evidence Rule	A rule stating that oral evidence may not be added to a written agreement.
Partition	The dividing of co-ownership in property so that each holds his or her interest sole and separate. A legal process terminating a co-tenancy.
Partnership	Consists of two or more people conducting business as co-owners.
Patent Deed	The instrument used by a Sovereign Power to transfer real property to an individual.
Percentage Lease	A rental payment which is based on a percentage of the gross sales.
Percolation Test	A soil test which determines drainage and absorption.
Perpetuity	With no end - to go on forever
Personal Property	Items that are tangible and movable, not real property.
Personal Representative	An appointed individual authorized to settle an estate.
Phase I Audit	An evaluation of site to determine environmental problems. Phase I inspects public records and adjacent properties.
Phase II Audit	An environmental survey that requires soil sampling to determine the level of hazardous substances.
Physical Depreciation	A loss of value due to the physical deterioration of the property.
Plat Map	A recorded map that shows the smaller parcels in a subdivision by book and page number.
Plate	A horizontal piece that supports the trusses or rafters of a roof.
Plessy V Ferguson	A court case that established the doctrine of 'Separate but Equal"
Plottage	The process of combining two or more parcels of land so that together they have a greater total value.
Point of Beginning	The starting point at one corner of the surveyed land in a Metes and Bounds description.
Police Power	The right of the government to enact laws for the protection, health, and welfare of the general public.
Positive Leasehold	Economic rent exceeds the contract rent.
Power of Attorney	A written document that authorizes one party to act for another.
Preliminary Title Report	A document provided in escrow which shows all claims affecting title.
Prepayment Penalty	Am additional charge for paying off a debt before its time.
Primary Lenders	Those lenders that originate loans, thereby creating "paper"
Principal	The party represented in an agency relationship.
Principal Balance	The original loan amount. The current remaining unpaid debt on the loan.
Prior Appropriation	Water rights that are based on a government permit system. The rights to use the water in a river or stream adjacent to the land.
Private Mortgage Insurance	A form of insurance required on conventional loans that exceed a loan value - ration of 80%
Pro Rata Share	Per front foot or a specific portion allocated to a property owner - usually used in an assessment calculation.
Probate	A court action to prove the validity of a will, or settle an estate.
Procuring Cause	The actions of a Broker that bring about the desired results.
Progression	Lesser value properties will be increased by locating near more expensive properties.
Promissory Note	A written promise by a person to pay a debt under terms specified in the note.
Property Tax	Tax levied by the local governments to meet the needs of the community - Real estate taxes are primary liens and are usually based on Ad Valorem.
Proration	To divide or assess proportionately between Buyer and Seller the obligations that have been paid or due. The close of escrow is the buyers day.
Public Report	A report required before a subdivision can be offered for sale or lease - Discloses all facts about the property for the buyer's protection.
Puffing the Goods	Over exaggeration of one's opinion
Punitive Damages	Damages extending far beyond the actual loss.
Pur Autre Vie	A life estate that is based on a life of another.
Purchase Money Mortgage	A mortgage given by a buyer as part of the consideration for the price - one usually carried by the seller in a credit transaction.
Qualified Mortgage	A home loan that meets certain standards set forth by the federal government. The loan is presumed to have the met the "ability to repay rule" the Dodd-Frank Act.
Quantity Survey Method	An appraisal method which takes into account all the component parts along with the installation costs.
Quarter Section	One fourth of a township that contains 160 acres
Quiet Title Suit	A court action to remove a cloud on title and create marketable title.
Quit Claim Deed	A Deed which releases any or all interest one may have in real property.
R.E.I.T.	Real Estate Investment Trust - A corporation with a minimum of 100 investors and 95% of the profit passes to the shareholder.
R.E.S.P.A.	Real Estate Settlement Procedures Act - Requires disclosures of closing costs to buyers and sellers. Required within 72 hours of a loan application - Required on residential loans, on, three or four-plex.
Radon Gas	A colorless, odorless gas from decaying minerals in high concentrations that is known to cause lung cancer.
Rafters	Sloping boards that extend from the top of the exterior wall to the ridge board.
Range Lines	survey lines that are six miles apart and run parallel to the principal meridian.
Rate of Return	The percentage earned on an investment.
Realtor	A term used to identify members of the National Associate of Realtors
Recapture	The amount of depreciation taken for tax purposes is now taxable.
Recording	Entering a document in the Recorder's office at the prescribed county.
Recovery Fund	A state fund that monetarily reimburses the aggrieved public due to dishonest acts of the licensee.
Redemption Period	The statutory period of time the borrower has to redeem in a mortgage foreclosure, usually six moths after the sheriff sale.
Redlining	An illegal practice that restricts loans by geographical area.
Reduction Certificate	A document issued by lender for buyer's benefit stating the existing loan balance.
Regression	An appraisal principle which sates that the worth of an expensive property is lessened by the presence of less expensive properties.
Regulation Z	Truth in Lending Laws apply to residential financing - Full disclosure of all financing charges. Interest rates are expressed in A.P.R.
Reinstatement Period	The period of time the trustor has to make all delinquent payments prior to the trustee foreclosure sale in a Deed of Trust.
Release Clause	A clause in a blanket security instrument that allows for individual release of secured lots form the lien.
Reliction	The gaining of land due to the subsidence of water of non-navigable stream
Relief Map	A map indicating by lines, shading, or color, different elevations of land.
Remainder (Vested)	One who is entitled to an estate upon termination of a life estate.
Remainder Estate	A future interest in real estate after a life estate.
Rent	Consideration given for the use of property
Replacement Cost	The cost of replacing a property using today's materials.
Reproduction Cost	The cost of rebuilding an exact replica
Reservations	Rights retained by the grantor when property is conveyed. Frequently called Deed Restrictions.
Residual Value	The Value that remains after a property's economic life.
Reversionary Estate	An estate returned to the original grantor. Usually at the end of a life estate or lease.
Ridge board	A large horizontal beam placed at the peak of a roof to which rafters are attached.
Right of Way	The right one has to cross the land of another.
Rights of Survivorship	An incident whereby the surviving joint tenant automatically receives the interest and rights of the deceased joint tenant.
Riparian Rights	The property owner's right to enjoy or use the water abutting his land.
Rod	A unit of measurement that consists of 16.5 feet.
Run With The Land	A right that remains with the land even upon transfer such as an easement appurtenant.
S Corporation	A regular corporation that has elected to be treated as a partnership for tax purposes - restrictions do apply
Sale and Leaseback	The selling of property to an investor while at the same time leasing it back for specified period.
Salvage Value	The estimated economic value of an asset at the end of its economic life.
Sandwich Lease	A lease in which a lessee rents the property to another party, putting himself in the middle position.
Satisfaction of Judgment	A document which, when recorded, releases the judgement lien.
Satisfaction of Mortgage	A document stating that the mortgage debt has been paid in full.
Schedule "A"	Description page of a preliminary title report and the type of insurance being issued.
Schedule "B"	The portion of a title insurance policy that lists the exceptions to coverage by the policy.
Scheduled Gross Income	The maximum potential income a property can generate before any deductions or expenses.
Seasoned Loan	A loan repayment record that is consistent.
Secondary Market	Agencies which purchase mortgages from primary lenders thereby creating funds for additional mortgages.
Section	In the Government Rectangular Survey System a parcel of land one mile square containing 640 acres.
Security Agreement	Under the U.C.C. , a document used to secure personal property.
Servient Estate	The land against which an easement has been granted for the benefit of the dominant estate.
Setback	The distance a structure must be from a given point such as a street or an easement.
Settlement Sheet	A full disclosure of all charges and disbursements in a real estate transaction.
Sheathing	The inner covering of boards on the roof or outside walls of frame house.
Sheriff's Deed	Deed given by the Sheriff at the completion of a mortgage foreclosure sale.
Sherman Antitrust Act	Prohibits certain business activities that are anti-competitive such as price fixing.
Short Term Capital Gain	The gain on the sale of a capital asset usually held for 12 months or less.
Sill	The lowest horizontal board in a window or door frame.
Simple interest	Interest paid only on the unpaid principal balance.
Sinking Fund	A fund made up of sums of money set aside to pay a debt or meet depreciation expenses.
Situs	Land has an economic value due to its location.
Soft Money Mortgage	A mortgage given to finance a specified property. Usually a carryback between the seller and buyer that reflects an extension of credit.
Sole and Separate	Owned by one person - Severalty
Special Service Properties	Properties such as churches and theaters having a single purpose and little demand.
Special Warranty Deed	A conveying deed in which the grantor guarantees the title of real property for only as long as he has owned it.
Specific Lien	A lien which encumbers only a certain parcel of property.
Specific Performance Suit	A court action that forces a party to comply with the contract as promised.
Square Foot Method	Estimate the value of a building using the exterior measurements.
Statue of Frauds	A law that states all real estate contracts must be in writing to be enforceable (except a lease for one year or less).
Statute of Limitations	A time limit during which a legal action must take place.
Statutory Law	Laws passed by a legislative body.
Statutory Lien	A lien placed against property by operation of law.
Statutory Period of Redemption	The mortgagor's last chance to redeem the property after the foreclosure sale by paying the entire debt.
Steering	An illegal practice that guides home buyers to a particular area of town.
Stepped-Up Basis	The basis of the property acquired from a decedent will equal the value at the time of death.
Straight Line Depreciation	A method of depreciation in which the asset is written off evenly over is useful life.
Straight Note	A note that calls for payments of interest only followed by a balloon payment of the principal.
Straw Man	One who acts for another for the purpose of concealing the other's identity - or a third party used to create a Joint Tenancy.
Stud	The vertical supports in a wall of a frame house.
Sub-surface Rights	The right to use the land below ground level to the center of the earth.
Subagent	A licensee who represents a designated Broker but does not have the direct contractual obligation to Buyer or Seller.
Subdivision	A large tract that has been divided into smaller parcels for sale. Six or more parcels improved or unimproved any of which are less than thirty-six acres each.
Subject to	A buyer takes over real property but is not liable for the mortgage on the property.
Subjective Value	Value that is created in the minds of people.
Sublease	A re-renting of space held under a lease to a third party.
Subordination Clause	A clause in which the lien holder agrees to be secondary to a future encumbrance.
Subpoena	A written order directing a person to appear in court or produce documents.
Subrogation	The substitution of a claim for monies paid.
Substitution	An appraisal concept that states that the value of one property is set by the cost of buying an equally desirable property.
Summation Approach	Also called the cost approach in appraising
Superfund	Known as C.E.R.C.L.A. - Comprehensive Environmental Response Compensation and Liability Act. Purpose is to focus on cleanup of hazardous substances in given areas as so determined by the E.P.A.
Surety Bond	A private company that promises to perform if the bonded party fails.
Surface Waters	The classification of water that included all natural streams, lakes or ponds.
Survey	Determining the location of land by measuring the determined lines an angles.
Sweat Equity	An increase in value to real property due to the owner's labor.
Syndication	A combination of parties joined together to undertake an investment as an entity.
Tacking	Adding successive time periods of continuous usage.
Take Out Loan	A permanent financing arrangement that pays off a construction loan.
Tangible	Personal property that can be moved.
Tax Deferment	A real estate investment that postpones the paying of taxes.
Tax Rate	The rate applied to the assessed value of property to establish a tax.
Tax Shelter	Using investments to postpone the payment of income tax.
Tenancy	A mode of holding title to real property.
Tenancy at Sufferance	The quality of the tenancy one has if he remains on the property after the lease has expired. Least possible estate in land.
Tenancy at Will	A lease that can be terminated by either party at their will.
Tenancy by Entireties	A method of joint ownership whereby the remaining portion of the property automatically passes to the surviving spouse.
Tenancy for Period to Period	A lease that is automatically renewed for the same like time.
Tenancy for years	Any lease for a specified period of time.
Tenancy in Common	Co-ownership in property. Interests need not be equal and no right of survivorship exists.
Tenancy in Severalty	Owned by one person. Sole and Separate.
Tenant	One who occupies or uses property under a lease.
Tenements	Real property and those rights that remain, and are attached to the land.
Term Loan	A mortgage which must be paid off in a specified period of time. Interest only.
Testate	Having died with a Will.
Tier Line	Survey lines that are six miles apart and run parallel to the principal baseline.
Time is of the Essence	All obligations set forth in the contract must be met on or before the date specified.
Title	The legal proof of real property ownership
Title Insurance	Insurance in a real estate transaction that protects the parties against Title defects.
Title Theory State	A Lender of cash may hold legal Title to property.
Torrens System	A registration system that accurately determines ownership and claims to real property.
Tort	A wrongful act against a party in which civil action can be brought.
Townhouse	Individual ownership of a specific structure plus interest in the common area - ownership includes air and subsurface rights.
Township	A parcel of land that is six miles square and contains 36 sections.
Trade Fixtures	Items used in business that appear to be real property but remain personal property.
Treasurer's Deed	The deed one receives as a result of tax foreclosure sale.
Trust Account	A Broker's bank account used specifically for earnest money or rental deposits.
Trustee	One who holds bare-naked title in a Deed of Trust for the beneficiary until the entire debts is paid.
Trustee's Deed	A Deed given by the Trustee to convey property out of Trust.
Trustor	The party who signs the Trust Deed. The borrower in a Deed of Trust.
Truth-in-Lending	Covered by Reg Z - Borrowers are to be given truthful and complete information as it relates to the cost of credit.
Undivided Interest	Co-ownership whereby each party has the right to use the entire property.
Undue Influence	Taking unfair advantage of one's position in acquiring an agreement.
Unearned Increment	An increase of property value due to external causes such as inflation
Unenforceable Contract	A contract that appears to be valid but neither party can be legally forced to perform
Uniform Commercial Code	A code of law that regulates the security used in personal property transactions.
Unilateral Contract	A contract that is binding only on one party.
Unit-In-Place Method	An estimate of value that computes each unit times the number of units in a given building.
Unities of Joint Tenancy	Time, Title, Interest, Possession
Universal Agent	One authorized to act for another in every and all actions, such as Guardian.
Useful Life	The period of time a property will be useful for its intended purpose
Usury	Changing a higher rate of interest that the law allows.
V.A. Guarantee	V.A. will guarantee to the lender of funds a specific amount in case of default
Valid	A contract that contains all essential legal requirements and is enforceable through a court of law.
Valuable Consideration	Something of monetary value given in exchange for the conveyance of real property.
Value	The amount of consideration an item can command; also the present worth of future benefits.
Value (Elements of)	Demand, Utility, Scarcity, Transferability
Variable Rate Mortgage	Lender may adjust the interest on a loan based upon an index.
Variance	Permission obtained to act in a way that is contrary to current zoning ordinances.
Vendee	The buyer of real property under an agreement for sale.
Vendor	The seller of real property under an agreement for sale.
Void	A contract that never was legal and has no binding effect.
Voidable	A contract that appears to be valid on its face until action is taken to void it.
Warranty forever	The Grantor guarantees forever the title conveyed. The warranty is found in a General Warranty Deed
Warranty Of Further Assurance	The grantor promises to deliver all necessary documents in order to convey clear title. This warranty is found in a General Warranty Deed.
Wild Deed	An unrecorded document that create a gap in the chain of title.
Will	A legal testament by which a person disposes of his or her property at the time of death.
With Recourse	The seller of a negotiable instrument may be held responsible for its future payments.
Without Recourse	The seller of a negotiable instrument may not beheld responsible for its future payments.
Worth	The amount something should sell for in an open and free market.
Wraparound	Creating a new obligation which consists of all underlying debts plus the sellers equity.
Writ of Execution	A decree of the court instructing an officer of the court to carry out the judgement.
Yield	The financial benefits received from an investment.
Zoning	Local laws that regulate the specific use and character of land.
Which of the following is NOT requred for a sales license in AZ	90 day residency

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Real Estate Fundamentals

Tennessee Real Estate Exam Prep

NC Real Estate License

Real Estate Math

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