A thing that is deceptive; deceiving by false appearances or an illusion and not real.

An agency relationship that is concluded from the actions of the parties by which a third party might reasonably conclude that an agency relationship has been formed.

A contract that one would conclude exists as a result of the acts and/or conduct of the parties involved.

Implied Warranty:  One that is not written but exists under the law.  See also STATUTE OF FRAUDS.

     EXAMPLE:  Under the law in several states there is an implied warranty of       habitability for apartments leased to tenants.  This means that the tenant has the right to a dwelling that is fit for living, i.e., there are no BUILDING CODE VIOLATIONS.

A trust type account established by lenders for the accumulation of borrowers funds to meet periodic payment of taxes, FHA mortgage insurance premiums, and/or future insurance policy premiums, required to protect their security and are usually collected with the note payment. See PITI.

An out-of-place building which does not conform to the best use of the site.

Land that has had some improvements required to serve a useful purpose and has been partially or completely developed.

The difference between the income-producing ability of a property and the amount required to pay a return on the investment in the property..

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

The publicly owned additions such as curbs, sidewalks, street lighting system and sewers, constructed so as to permit the development of privately owned land for utilization as opposed to improvements on land which are usually privately owned.

In a mortgage that names an insufficient interest rate, The law will require that the rate be seen higher and the principal be seen less. Example: Abel sells property to Baker. Baker gives Abel a portion of the price in cash and Abel takes a note for the remainder. Since the gain on the sale is taxable at capital gains rates and the interest paid on the note is taxed as ordinary income, it is in Abel's favor to set a higher price in exchange for charging a low rate of interest on the note. If this is done, the Internal Revenue Service will consider a portion of the principal paid on the note as imputed interest and tax that portion as ordinary income.

A legal concept that holds that information communicated to an agent is communicated to the principal because in the client agent relationship, nothing is held back because it was the duty to report the information to the principal

A loan payment term that includes both principal and interest - a level-payment plan or an amortized loan.

An ordinance that requires a builder of new housing to set aside a designated number of units for low and moderate income people.

A property in which the the purpose of its existence is to produce income which may come from several sources such as commercial rents or business profits attributable to real estate other than rents, etc. is generated by means of commercial rentals or in which the returns attributable to the real estate can be so segregated as to permit direct estimation.

The non-possessory rights in real estate arising out of ownership such as rents or out of a right-of-way.

The increase of value of land most frequently used to refer to that which accompanies population growth and increasing wealth in the community

A person who estimates the value of property and who has no personal interest in the property nor connected to it by any lender.

A lease in which the rental payment varies in accordance with variations in an agreed-upon established index of prices or costs

An appraisal method of estimating building costs by multiplying the original cost of the property by a percentage factor to determine current cost of construction.

An injection well is defined by the Tennessee Department of Environment and Conservation as:

(26) “Injection well” means a structure or other device which is used for the emplacement of fluids into a subsurface stratum including, but not limited to:

(a) a well used for the emplacement of fluids;

(b) a subsurface fluid distribution system;

(c) an improved sinkhole; or

(d) infiltration cell and any other structures or devices designed, constructed or used to emplace fluids into the subsurface, except as provided in rule 1200-4-6-.03(3).

Rule 1220-4-6-.02

Basically, this is a well with a pump on one end that forces fluids down into the earth. It is usually used for equalizing pressure to combat sinkholes, to improve drainage, etc. They are not common in all areas of the state. However, if they are on someone’s property and they break, they are very expensive to repair.

The generally older and more urbanized area of a large city surrounding the central business district which often refers to densely populated blighted areas characterized by low-income residents and a high proportion of minority racial and ethnic groups. Examples: Many inner city neighborhoods have been rehabilitated by URBAN RENEWAL projects. Violence is a problem in some inner city schools. The mayor promises a construction program to rehabilitate the inner city

A party not responsible for cleanup of contaminated property. Under SARA. anyone who is in the chain of title becomes responsible for such cleanup, even those with no responsibility for the pollution. One exception is a purchaser who knew nothing about the contamination and had a Phase I investigation done prior to the purchase. Example: Discarded electrical parts containing hazardous PCBs and lead were found on land, requiring a cleanup of the environmentally contaminated property. All current and prior owners and users were potentially responsible parties. Irene, however, bought the land after a qualified inspector had determined that it was free of hazards, so she is an innocent purchaser, not responsible for cleanup.

A lot in a subdivision that is surrounded on each side by other lots and having frontage on only one side as opposed to a corner lot which has frontage on at least two sides..

A physical scrutinizing of documents or property done to assure correctness of paperwork such as loan papers, compliance with building codes or absence of termites, etc.

A contract for the sale of real estate whereby the purchase price is paid in periodic installments by the purchaser who is in possession of the property even though the seller retains title until a future date which typically is not until final payment. Also known as a Contract for deed or Warranty deed..

A note which provides for a series of two or more payments of principal and interest until the amount borrowed is paid in full and has amortized the loan.

The sale of real property on an extended payment basis often used to spread the tax consequence of a sale over a period of years.

A financial depository such as a commercial bank, life insurance company or savings and loan association or an intermediary (go-between) which pools the money of its depositors and then invests those funds in various ways including loans secured by mortgages and trust deeds.

An ownership interest which an insurer will recognize as a property right, the loss of which will result in true loss of money value to the insured party.

A title that a title insurance company is willing to insure. Example: In some contracts for the sale of real estate the buyer must receive insurable title or he is not obligated to purchase the property..

The value at which an insurer will recognize any loss

The ratio of the insurance premium to the total amount of insurance carried thereby usually expressed in dollars per $100 or per $1,000 sometimes in percent.

A general or relative term denoting the hazard involved in the insuring of property. The premium or cost of insurance is determined by the relative risk or hazard considered to be involved.

A mortgage in which a party other than the borrower, in return for the payment of a premium, assures payment in the event of default by a mortgagor such as FHA-insured mortgages, PMI (private mortgage insurance).

A property such as goodwill that cannot be touched..

The elements of property in an enterprise that are represented in the established organization doing business, goodwill and other rights incident to the enterprise as distinguished from the physical items comprising the plant facilities and working capital..

An asset's worth which is not immediately available in dollars but may be of significant value such as “goodwill” of an established business.

1. The cost in dollars for the use of money for a period of time or “rent” paid for the use of money. 2. The type and extent or having a portion, share or right in the ownership of something. Example: Lenders require payment of interest at a specified rate, to compensate for risk. deferment of benefits, inflation. and administrative burdens. Example: One may hold either a partial or fee simple interest in a property That interest entitles one to specific ownership rights..

A loan in which a fixed amount of principal is repaid in installments along with interest accrued each period on the amount of the then outstanding principal only.

The percentage of a sum of money charged for its use and like rent paid for use of the money. It is expressed as a percentage - usually annually, but can also be monthly or daily - of the sum borrowed.

The risk of loss due to changes in the interest rate. Earnings or the value of a property that may be affected as a result of changes in prevailing interest rates in the money market. When interest rates go up capitalization rates are generally lower rates and property values go down.

A temporary or short-term loan that is also called an interim financing that is secured by a mortgage which is used until permanent financing is available and then paid off from the proceeds of permanent financing. See Construction loan..

(IRS) An agency of the federal government that is responsible for the administering the agency, collecting taxes and auditing federal income tax returns.

The Interpleader Statute is designed to take licensees out of the middle of a transaction where there is dispute over who is entitled to earnest money. The whole idea behind this statute is for licensees to be able to take the amount of earnest money held in escrow and pay that money into the General Sessions court and let the court decide who has a right to the money (i.e. buyer or the seller). By doing so, the licensee avoids personal liability.

NOTE:
The interpleader statute provides that amounts up to twenty five thousand dollars ($25,000) can be pled into a General Sessions Court of the county where the property is located. For amounts of $25,000.00 or more, an interpleader may be filed in the Chancery Court for the county in which the property sits. The rights of the buyer and seller would be determined by the court.

A contiguous urban development larger than a city or metropolitan area.

A contiguous urban development larger than a city or metropolitan area.

An appraisal term pointing to the value created in a person's own mind for a particular type of property.

An action brought by a property owner seeking just compensation for the use or value of land being so diminished due to the public use of adjacent property when the taker has not done so through an eminent domain proceeding.

A property which is in and of itself a business enterprise consisting of tangible and intangible assets that are considered necessary to the property which have been assembled and or developed into a single unit of use that is for lease or rental in whole or in part to others with the anticipation of profit.

A lien imposed against property without consent of an owner which typically are property taxes, special assessments and federal income taxes.

An appraisal formula used to estimate today's value of a series of annual payments of principal and interest of one dollar.