A document recorded to terminate a homestead

A legal document that allows a condominium to he built or sold under relevant state law. See Condominium declaration.

A recorded document that protects a homeowner from foreclosure by certain judgment creditors.

Decree by a court ordering the sale of mortgaged property to pay an obligation found to be due and owing to the lender out of the proceeds..

An offer of land for some public made by its owner and accepted for such use by or on behalf of the public by authorized officials.

A written instrument which when properly executed (signed) and delivered (accepted) conveys title to real property from one party, the grantor to another party, the grantee.

Part of the public records found in the county clerk's or recorder's office in which copies of deeds transferring real property in that jurisdiction are recorded. These books are also known as libers.

A deed to real property from a defaulting borrower and accepted by the lender to avoid the necessity of having the lender go through formal foreclosure proceedings.

An instrument that grants a trustee under a land trust full power to sell, mortgage and subdivide a parcel of real estate where the beneficiary controls the trustee's use of these powers under the trust agreement provisions.

An agreement where money is held by a third party to be delivered to a seller of real estate upon the receipt of the deed to the property sold..

A legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it.

A deed of trust is a special kind of deed that is recorded in public records, where it tells everyone that there is a lien on your property. It is used in place of a mortgage.

A deed of trust involves three parties. You as the debtor/mortgagor, the lender as the beneficiary, and a neutral third party as the trustee, who you can think of as someone who holds temporary (but not full) title until the lien is paid.

The deed of trust is canceled when the debt is paid. Until then, the trustee has the power to foreclose if the debt is not paid, without going through the court system, making it easier and quicker than foreclosing on a mortgage.

The limitations in the deed to a property that dictate specific ways that a property must or must not be used.

The failure to fulfill a duty or promise or to discharge an obligation or the failure or omission to perform an act.

A court order resulting from the failure of a defendant to answer a complaint in a lawsuit.

A clause in a mortgage that gives the mortgagor the right to redeem his or her property upon the payment of the mortgagor's obligations to the mortgagee.

A title which would be impaired if an outstanding claim proved to be valid.

The imperfections that cast a reasonable doubt on the marketability of a title.

A transfer of authority by one party to another

A financial obligation which is in default, such as an overdue loan.

The number of loans with delinquent payments divided by the number of loans held in a portfolio.

A note which is payable on the demand of the lender or holder.

The transfer of interest or conveyance of an estate primarily by lease.

The property that is subject to a lease..

The necessary destruction and removal of an existing structure from a site in order to prepare it for new construction. Example: A block of old houses in the city is to be converted into a new shopping mall. This conversion will require demolition of the houses, site preparation, and construction of the mall.

The money commonly used with sales contracts and leases that is paid in good faith to assure performance of a contract. If the party who put up the deposit fails to perform, the deposit is forfeited, unless conditions in the contract allow a refund. Brokers are to put deposits in a separate checking account pending completion of the contract See Earnest money. Example: Whitman presented a $1,000 check as an earnest money deposit on a home she would buy provided she could get a 10% rate, 30-year loan for 80% of the price. The broker deposited the check in an Escrow account, and refunded it when Whitman could not arrange said loan.

An arrangement whereby an individual or organization may place cash under the safekeeping of a financial institution which may invest the cash and pay the depositor a specified amount of interest and that the depositor can reclaim the full value of the account according to the agreed-upon procedures governing it.

In taxation, real estate that is subject to deductions for depreciation which includes income producing property as well as property used in a trade or business. Example: Abel buys an apartment complex for $1 million. Of the purchase price, $100,000 is the value of the land, the remaining $900,000 is the value of depreciable real estate. Abel uses the straight-line depreciation method and a 27 ½ -year remaining depreciable life.

In appraisal, a loss of value due to any cause which can occur due to physical deterioration, functional obsolescence or economic obsolescence.

1. In appraising, the methods used to measure decreases in the value of an improvement which generally are the annuity, the sinking fund and the straight-line methods. 2. In accounting, the methods by which capital impairment is computed are the declining balance and variations thereon such as weighted rate and accelerated.

The periodic amount or percentage at which the usefulness of a property is used up and especially referring to the percentage at which amounts are computed to be set aside as an accrual for future depreciation.

In real estate, the part of the deed, mortgage, trust deed, etc., that is used to locate the boundaries of real property.

The party selected to represent a principal/client in a designated agency office. Designated agency has been legislatively created in many states, allowing the management of a brokerage to establish an office policy, whereby the managing broker appoints, or designates, a licensee associated with that brokerage to act as the exclusive agent of a principal/client, buyer or seller. No other licensee in the brokerage has an agency relationship to represent that principal/client.

A residential dwelling unit which is surrounded by freestanding walls and is sited on a separate lot. See Duplex, Row house, Townhouse.

A worsening of the condition of a property.

An appraisal method used to value raw land wherein an appraiser locates comparable improved property with a known value and then deducts the cost of the improvements to arrive at the value of the raw land. The appraiser or investor estimates the gross sales of the developed lots and then deducts the costs of development and expenses. The remainder indicates the present value of the land after allowing for the time involved..

The costs that are readily identified in the construction of real estate namely labor, materials, and contractor's overhead and profit. Also known as Hard Costs. See Indirect costs. Example: Direct costs for an apartment building were S2 million: indirect costs, such as architects fees, interest during construction, and builder's overhead and profit allowance, totaled S500,000.

A loan secured by real estate which is to be repaid by periodic, usually equal, amounts that include part of the principal plus interest due on the unpaid balance..

To reject or to withdraw a consent once given or to deny the intention of being bound by an previous or earlier transaction.

1. A statement whereby responsibility is rejected. Example: Abel, a certified public accountant, is asked to write up the financial statements of Baker without testing (auditing) the validity of the statements. Abel's report provides a disclaimer in which he states that he did not examine the financial statements and does not accept responsibility for their accuracy. 2. Renunciation of ownership of property. Example: Because they were no longer profitable, I claimed apartments that had become dilapidated.

A statement required by law in which the sellers of specific types of real property or under certain circumstances must reveal specified information to potential buyers.

The legal right of a landlord to obtains a court order to seize a tenant’s personal property to satisfy payment of back rent. Example: Abel is 6 months in arrears on rent. Landlord Baker obtains a court order to seize Abel’s furniture to satisfy the rent due. Baker is exercising his right of distraint.

The act of causing pressure or stress on a person by assuming possession of a tenant's chattels, personal property, by a landlord in order to satisfy in whole or in part a claim for rent in arrears. Also know as distrain.

One who receives part of the property of a person who died intestate.

The division and transfer of the property of a decedent.

A city area with a land use different from that of adjacent areas like commercial, industrial or residential areas.

A tax that applies on all transfers of real property located in a county. A notice of payment is entered on face of the deed or on a separate paper filed with the deed.

The written legal real estate instruments such as mortgages, contracts, deeds, options, wills and bills of sale.

A place where a person has his true, fixed, permanent home and principal establishment and the place where he has the intention of returning whenever he is absent. See Primary residence.

An initial partial payment of the total selling price.

A value estimate prepared without the benefit of an interior inspection and which may not conform to USPAP Standard 1. See Self-contained appraisal report, a Summary appraisal report or a Restricted appraisal report. Limited appraisal. Example: Because of a contentious divorce, an appraiser hired by one of the parties was not allowed to enter the property, so a drive-by appraisal was performed.

An agent representing both the buyer and seller in a transaction. Dual agents should always get written consent of both parties. If a licensed real estate agent licensee lists a property which their buyer client wishes to buy, the licensee will be the agent for both the buyer and the seller. This is called Dual Agency. If this situation were to occur, the buyer would be informed and asked to sign a Dual Agency Consent Agreement. This Agreement provides that the agent will not disclose either client’s personal, financial or confidential information.

The illegal or unethical practice of providing two different contracts for the same transaction. Example: Abel wants to purchase a home from a builder for $144.000 but has no cash for the downpayment. The builder suggests that they prepare a fictitious contract for $160,000 and try to borrow 90% of $ 160,000. The bank's attorney discusses the dual contract and explains that they could be guilty of attempted fraud.

The standard of conduct required of an ordinary, prudent and reasonable person. Example: While Professor Dirby was on sabbatical, the broker who managed his house was required to take due care of the property. The broker had to be certain that the tenant who occupied the property observed the lease.

1.The making of every reasonable effort to perform one's contractual obligations. Example: A prospective homebuyer signed a sales contract contingent on the sale of her present residence. She is expected to use due diligence in marketing her present house. 2. The making of every reasonable effort to provide accurate, complete information. A study that often precedes the purchase of property, which considers the physical, financial, legal and social characteristics of the property and expected investment performance; the underwriting of a loan or inverstment.

A legal principle that notice must be given to all affected parties along with an opportunity to be heard when any governmental powers are exercised.

An acceleration clause granting the lender the right to demand full payment of the loan upon a sale of the property.

This usually means two dwelling units one above the other under one roof. See Double..

A place where people live such as apartments, hotels, mobile homes, nursing homes and single-family houses.