A sum of money or other consideration tendered by a prospective purchaser as evidence of good faith in conjunction with an offer to purchase rights in real property.

A right, privilege or interest limited to a specific use or control purpose which one party has in the land of another party and which runs with the land and is not a personal right of an individual.

An easement which is annexed to the ownership of one parcel of land that allows one party the use of his or her neighbor's land and which runs with the land when is the title is transferred to another party.

An easement created by the government or a governmental agency upon exercising its right under eminent domain..

An easement granted by a court to give the right of ingress and egress over a grantor's land as being necessary to permit the full enjoyment of a parcel of real estate..

An easement acquired by open, notorious, hostile and continuous use of a property for the period of time as prescribed by law.

A personal easement which does not run with the land and therefore is not transferred through the conveyance of the title.

A loss in value due to factors outside the property lines of the subject property that adversely affect the usability and value of the subject property or its actual or potential income. Also known as Social obsolencence and Environmental obsolencence.

The reasonable rental expectancy the property could command if it were available for rent at the time of its valuation.

In appraisal, a technique used to estimate the present value of mortgaged income property where the appraiser determines and discounts to a present value the annual cash flow to the equity owner and the expected resale proceeds. Those amounts are added together to derive the equity value, then added to the mortgage balance to offer a property value estimate. The late L. W. Ellwood provided capitalization rate tables that accelerate the process. Example: An equity owner expects to receive $10,000 of annual cash flow for 10 years. then $100,000 upon resale. A $500,000 mortgage is currently on the property. Using 12% as the appropriate equity yield rate.

The crops growing on a property which require annual care and are usually considered to be a possession of the tenant..

The right of the government to acquire property for necessary public use with just compensation the right of which is found in the 5th Amendment to the Constitution..

A state statute that provides a legal base for zoning codes or other local governmental action.

An unlawful intrusion onto adjacent property of another by improvements to real property such as a patio built across a property line which reduces the value of the property intruded upon..

The voluntarily or involuntarily placing of a lien or a charge on or a limiting of the use of land or property.

Anything which affects or limits the fee simple title to or value of property such as a mortgage or an easement.

A person who envisions, organizes, manages and assumes responsibility for a business.

A lien granted by the court as a result of legal action taken rather than as a result of statute. See Statutory lien.

A legal document that encumbers property but is not technically a mortgage because of the existent some legal error. Example: Although there was an error in the property's description that was attached to the documents, the parties in the transaction to be a mortgage loan, and the judge enforced equitable mortgage as if it were a mortgage loan on the property.

The right of a property owner in default to recover his or her property prior to its sale by paying the appropriate fees and charges.

An interest in land that may not be fee simple ownership but one that a court will take notice of the rights of the interest holder.

The interest or value which an owner has in real property over and above any liens against it.

The increase of owner’s equity in property due to mortgage principal reduction and value appreciation.

Capital invested to gain a residual ownership interest in property.

The amount of the value or total combined worth of a property minus any debts outstanding against it. The amount of the interest may be established through: (a) cash originally put into the property called a down payment, (b) the amortization of any debt against the property or (c) any appreciation in the value of the property.

A contractual provision that parmit one or more of the parties to cancel all or part of the contract if certain events or situations do or do not materialize. Example: Mary agrees to buy Joe's house for $100,000: the sales contract includes an escape clause that allows Mary to cancel the contract if she cannot obtain approval for a mortgage loan of $80,000 within 60 days.

An intestate condition where property reverts back to the state when no heirs are capable of inheriting the property or the heirs are unknown..

An arrangement for the deposit of instruments and/or the handling of funds with instructions with a neutral third party to carry out the provisions of the agreement or contract when the specified conditions have been met.

See Trust account.

The neutral third party who is holding something of value such as funds from a grantee or a deed from a grantor in trust for another or others until all of the conditions of the contract have been met..

An escrow contract is entered into between a buyer, seller and escrow holder setting forth rights and responsibilities of each when earnest money is deposited into an escrow account.

A document seting forth the duties, requirements and obligations of all parties including the escrow agent for a transaction being closed by escrow..

In real estate, the degree, quantity, nature and duration of interest, share, right, equity of which riches or fortune may consist and which a person holds in real property.

An estate arising when the tenant wrongfully holds over after the expiration of the term. The landlord has the choice of evicting the tenant as a trespasser or accepting the tenant for a similar term and under the conditions of the tenant's previous holding. Also known as a Tenancy at sufferance..

The occupation of lands and tenements by a tenant for an indefinite or unspecified period terminable by one or both parties. Also known as a Tenancy at will.

See Tenancy by the entireties

See Tenancy by the entireties.

A leasehold interest in land by virtue of a lease contract for its possession for a definite, specified and limited period of time which may be for one year or less. Notice to terminate is not required..

A leasehold interest in land where the rent is set at a certain amount per period which could be a week, a month or a year and where there is no definite or established termination date. Also called a Periodic tenancy. Notice to terminate is required

A classification of estates by time of enjoyment when possession will be at some future time..

The most complete form of ownership of real property which is a freehold estate that can be passed by descent or by will after the owners death. Also known as Estate of inheritance or Fee simple estate..

The degree, quantity, nature, and extent of interest a person has in real property.

A classification of estates by time of enjoyment when possession is present.

A future interest given by the grantor to a third person to take effect upon the termination of a life estate.

The remnant of a life estate left in the grantor where possession will begin when a lesser estate granted by him or her to another ends.

A classification of estates according to the number of owners and where the number is one and which is owned by a single party.

All freehold estates are estates of inheritance and can descend to heirs except for life estates. See Estate in fee or Fee simple estate.

The federal taxes due or paid on a decedent’s real and personal property.

A legal theory under which a person is stopped or barred from asserting or denying a fact because of the person's previous actions or words..

The study of a property’s potential uses such as feasibility or marketability and which does not determine its present value.

The act of dispossessing or depriving a person of the possession of land as a result of the judgment of a court. See Actual eviction and Constructive eviction.

A notice to a tenant to vacate premises because of nonpayment of rent or other violation of of the covenants of the lease agreement.

The proof of ownership of property such as a certificate of title, an abstract of title with lawyer's opinion, title insurance, or a Torrens registration certificate.

The power to act by virtue of holding of a particular office.

A one sided action or an act done in behalf of one person only.

A matter such as a reservation, an objection or a contradiction that affects title to a particular parcel of real property which is excluded from coverage in a title insurance policy.

The amount of depreciation being applied beyond the normal rate allowed.

The monetary difference between contract rent and economic rent.

A means of trading equities in two or more real properties which are handled in a single escrow and as a single transaction.

A real estate activity bringing two or more parties involving in trading real properties together in real estate transaction

A broker or salesperson who accomplishes the exchange.

General matters affecting title to real property that are not included in the coverage of a title insurance policy..

An illegal zoning law that would serve to prohibit low- and moderate-income housing in a community. Example: Ocean Park adopted a zoning ordinance that required a housing density of not more than four homes per acre. This exclusionary coning would prevent apartments and condominiums from being built and was being challenged by a low-income housing developer

A listing agreement where a seller employs one broker to the exclusion of all others and agrees to pay that broker a fee if a buyer is secured through a broker under the terms of the contract but not pay a fee if a sale is negotiated directly by the owner without the services of any broker..

A general term applied to a listed property which usually refers to an “exclusive right to sell” or “exclusive agency” contract.

A listing agreement where a seller employs a broker and agrees to pay a commission if a buyer is secured under the terms of the contract and if it is sold by anyone including the owner during the term of the agreement and simultaneously also employs and authorizes the broker to act as the sole or exclusive agent for the seller in an agency relationship for the entire transaction process.

A clause often included in leases that clears or relieves the landlord of liability for personal injury to tenants as well as for property damages.

A contract in which all parties have fulfilled their promises and whose terms have been performed and completed. At the closing, all parties signed the contract, made it an executed contract.

The completion of an act or process such as an escrow.

A contract in which something remains to be done (or executed) by one or more of the parties..

The debt contract which is to be assumed by the purchaser in which the seller of real estate is the mortgagor.

The right which a surety has, on payment of the principal debtor’s obligation, to look to the principal debtor for reimbursement.

An agency relationship based on clearly-presented words in a formal written or oral agreement between the parties. See Implied agency.

See Express contract and opposite Implied contract

An oral or written agreement in which the parties have clearly stated their intentions and terms in words. See opposite Implied contract..

The act or process whereby private property is acquired for public use or the rights therein modified by a sovereignty or any entity vested with the necessary legal authority, such as where property is taken under eminent domain.

An additional endorsement to a fire insurance policy which extends the coverage to include losses caused by windstorm, hail, explosion, riot, aircraft, vehicle and smoke damage.