Real Estate Terms and Definitions

• Abandonment
  The voluntary relinquishment of rights of ownership or another form of interest (an easement) by failure to use the property over an extended period of time.
  
  
• Acceptance
  Refers to a legal term denoting acceptance of an offer. A buyer offers to buy and the seller accepts the offer
  
  
• Acre
  A measure of land, equal to 160 sq. rods (43,560 sq.ft.). An acre is approximately 209' x 209'.
  
  
• Addendum
  Something added. A list or other items added to a document, letter, contract, escrow instructions, etc.
  
  
• Agent
  Acts on behalf of another, representing that person's interests and serving as an intermediary.
  
  
• Agreement of Sale
  Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties.
  
  
• Appraisal
  An estimate of the value of property, made by a qualified professional called an "appraiser".
  
  
• Assessed Value
  Value placed on property by the tax assessor.
  
  
• Assessment
  The valuation of property for the purpose of levying a tax, or the amount of the tax levied.
  
  
• Breach
  Violation of an obligation in a contract
  
  
• Broker, Real Estate
  An agent licensed by the state to carry on the business of operating in real estate. He usually receives a commission for his services of bringing together buyers and sellers, owners and tenants, in exchange agreements.
  
  
• Building Code
  A set of stringent laws that control the construction of buildings, design, materials and other similar factors
  
  
• Built-Ins
  Items that are not movable, such a stoves, ovens, microwave ovens, dishwashers.
  
  
• Buyers Market
  A market condition which occurs in real estate where more homes are for sale than there are interested buyers
  
  
• Capital Gains
  A term used for income tax purposes which represents the gain realized from the sale of an asset less the purchase price and deductible expense.
  
  
• Capitalization
  An appraising term used in determining value by considering net operating income and a percentage of reasonable return on investment.
  
  
• Client
  One who employs another's services, as in an attorney, real estate agent, insurance agent, etc.
  
  
• Closing
  In the sale of real estate it is the final moment when all documents are executed and recorded and the sale is complete. Also a general selling term where a sales person is attempting to sell something and the buyer agrees to purchase
  
  
• Closing Costs
  Expenses (such as loan fees, title fees, appraisal fees, etc.), over and above the price of the property, incurred by buyers and sellers in transferring ownership. Also called "settlement costs". Closing costs may be paid by the buyer, the seller or shared by both. In some cases, all or a portion of these costs may be included in the financing amount.
  
  
• Common Area
  That area owned in common by owners of condominiums and planned sight development homes within a subdivision.
  
  
• Conditional Sales Contract
  A contract for the sale of property where the buyer has possession and use, but the seller retains title until the conditions of the contract have been fulfilled. Also known as a land contract.
  
  
• Condominium
  Individual ownership of a dwelling unit and an individual interest in the common areas and facilities which serve the multi- unit project.
  
  
• Contingency
  A condition that must be met before a contract is legally binding.
  
  
• Contract
  An agreement between tow or more parties, written or oral, to do or not to do certain things.
  
  
• Conveyance
  The transfer of the title to land from one to another.
  
  
• Counter Offer
  An offer in response to an offer. 'A' offers to by 'B's' house for $90,000 which is listed for $92,000. 'B' counter offers 'A's' offer by stating that he will sell the house to 'A" for $91,000. The $91,000 is the counter offer.
  
  
• Deed
  The legal document conveying title to a property.
  
  
• Depreciation
  Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason.
  
  
• Disclosure Report
  Residential real property disclosure act. Is an act relating to disclosure by the seller of residential real property. The purpose of this report is to provide prospective buyers with information about material defects in the residential real property.
  
  
• Dual Agency
  Some states permit a real estate licensee to potentially act as a dual agent, that is, represent more than one party to the transaction. A licensee may legally act as a dual agent with the written disclosure and informed consent of a consumer in form required by law.
  
  
• Down Payment
  The part of the purchase price which the buyer pays in cash and does not finance with a loan.
  
  
• Easement Rights
  A right- of- way granted to a person or company authorizing access to or over the owner's land. An electric company obtaining a right- of- way across private property is a common example.
  
  
• Encroachment
  An obstruction, building, or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line.
  
  
• Estate
  T he ownership interest of a person in real property. Is also used to refer to a deceased person's property. And often used to describe a large home with spacious grounds
  
  
• Equity
  The market value of a property minus the amount of any existing loans or liens.
  
  
• Fair Market Value
  That price a property will bring given that both buyer and seller are fully aware of market conditions and comparable properties.
  
  
• Foreclosure
  A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgaged property, and depriving the mortgagor of possession.
  
  
• Fixtures
  Items affixed to buildings or land usually in such a way that they cannot be moved without damage to themselves or the property, such as plumbing, electrical fixtures, trees, etc.
  
  
• Lease
  A contract between the owner of real property, called the lessor, and another person referred to as the lessee, covering all conditions by which the lessee may occupy and use the property.
  
  
• Lease With Option To Purchase
  A lease where the lessee has the option to purchase the leased property. The terms of the purchase option must be set forth in the lease.
  
  
• Legal Description
  The geographical identification of a parcel of land
  
  
• Listing
  A contract between owner and broker to sell the owner's property
  
  
• Notary Public
  One who is authorized by federal or local government to attest authentic signatures and administer oaths.
  
  
• Offer
  A presentation to form a contract or agreement.
  
  
• Purchase Agreement
  An agreement between buyer and seller denoting price and terms of the sale.
  
  
• Real Estate Agent
  A licensed person who works under the direction of a broker selling and renting real estate.
  
  
• Real Estate Broker
  A middle man or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner.
  
  
• Realtor
  A real estate broker holding membership in a real estate board affiliated with the National Association Of Realtors or Canadian Real Estate Association.
  
  
• Seller's Market
  More buyers than sellers.
  
  
• Survey
  A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
  
  
• Tax
  As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.
  
  
• Title
  A legal document evidencing a person's right to ownership of a property
  
  
• Title Insurance
  Insurance to protect the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of property.
  
  
• Waive
  To relinquish, or abandon. To forego a right to enforce or require anything.