Professional real estate services that are rendered one transaction at a time instead of the conventional full-service, commission-based brokerage relationship.
Real Estate Terms Starting with
Terms and definitions.
An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.
When a person voluntarily gives up the right or interest in a property. Occurs when a person shows the intention to give up the right or interest, or by physically “abandoning” the property.
Abatement is a reduction or decrease in the amount (either purchase or rent) due to the discovery of a flaw or negative impact which will effect the value or price.
A Purchaser is ready, willing and able to complete a transaction when she has funds and has signed the documents required to transfer title to a property. If the Vendor is not ready, willing and able to complete the transaction on the date set for completion, the Purchaser may tender upon the Vendor and sue […]
When a property was is occupied by tenants and the owner of the property does not live on the property.
The number of properties that can be bought or sold for a particular market, shown as a percentage. Can be sorted into various categories such as type of property or square footage.
Abstract Of Judgment
The summary of a court judgment that creates a lien against a property when filed with the county recorder.
Abstract Of Title
Within the local land registry office documents are registered and indicate such things as ownership of a property. The Abstract of Title is a condensed version of these documents.
Abstract Or Title Search
The process of reviewing all recorded transactions in the public record to determine whether any title defects exist that could interfere with the clear transfer of ownership of the property.
Abstraction (Extraction) Method
The abstraction extraction method is a technique used in real estate appraisal to estimate the value of a property’s land by analyzing the value of similar properties with structures or improvements. By comparing these properties, the appraiser calculates the value of the structures and deducts this amount from the total property value to isolate the […]
Adjoin or share a common boundary, or share even a small portion of a boundary.
Accelerated Cost Recovery System
A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.
Depreciation is the reduction of the value of a property or chattel as a result of the passing of time (i.e. a new car may be worth $20,000.00, $18,000.00 after one year, $16,000.00 after two years etc.). Usually used for tax purposes, the depreciation in the value of a property may be used as a […]
A clause in a mortgage or loan. If the borrower fails to live up to her obligations under the mortgage, the lender has the legal right to demand that the full principal of the mortgage may become due and payable immediately upon the failure. A provision that gives a lender the right to collect the […]
A positive response to an offer or a counter-offer that creates a binding agreement between the parties. Acceptance may be conditional upon the occurrence of certain events. The seller’s written approval of a buyer’s offer.
The right to enter a property. Access may be restricted to certain times, to certain persons and to certain purposes (i.e. access for the purpose of inspection). Any means by which a person can enter property.
The ease with which one can reach a certain place, person or thing. A property may be inaccessible because it is located far back along a winding, mountainous road that is often blocked in winter. A property may also be said to have good accessibility to highways, shopping, schools etc. The degree to which a […]
A structure on a property that serves a specific purpose, complementing the home or main building. A garage or storage shed.
Accredited Assessment Evaluator (AAE)
A professional designation. A property evaluator who has achieved the requirements of the International Association of Assessing Officers.
Accredited Land Consultant (ALC)
A professional designation. A person who has met the requirements of the Realtors Land Institute to aid in the marketing of real property.
Accredited Residential Manager (ARM)
designation for a person trained to manage residential properties. A person who has earned the designation by fulfilling the requirements of the Institute of Real Estate Management (IREM), which is an affiliate of the National Association of Realtors.
In real estate, accretion is the gradual, natural increase in the size of a property due to the addition of soil, sand, or other materials along the property’s boundary, typically along the shoreline of a river, lake, or ocean. Accretion can occur as a result of natural processes such as erosion, sedimentation, or the action […]
An adjective describing something that has come into existence but has not yet been claimed by or distributed to its rightful owner.
From a tax standpoint, the amount of value of a property or chattel which has already accumulated (but has not been claimed) as a result of the decrease in the value of that property due to the passage of time and the use of the property or chattel.
Interest which has already been earned but has not yet been paid.
A statement by a person to the effect that they are aware of a certain fact. May also be a sworn document to the same effect, which further states that the person signing the document did so voluntarily.
A written declaration affirming that a person acted voluntarily.
The process of taking title to or ownership of something.
The cost to the purchaser of obtaining title to anything, including real property. Acquisition cost includes the cost of the transaction of obtaining title, including legal fees and expenses, interest charges on mortgages, land transfer tax, etc.
Acquisition, Development & Construction (ADC) Loan
A loan that finances the three major phases of a land development project: (i) acquisition, (ii) development and (iii) construction.
An imperial measure for land. Equals 43,560 square feet; 4,047 square meters; or 0.047 hectares. A measurement of land equal to 43,560 square feet. The (English) acre is a unit of area equal to 43560 square feet, or 10 square chains, or 160 square poles. A square mile is 640 acres. The Scottish acre is […]
The volume of material needed to cover an acre of land one foot deep.
Act Of God
When used in insurance policies, an event caused by natural forces such as rain, lightning, floods or earthquakes which results in damage to property or chattels.
Action To Quiet Title
A legal proceeding begun for the purpose of settling competing claims to property and establishing clear legal title in one party.
Active Solar System
A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use.
As opposed to effective age. The objective age in years of a building measured simply by the passage of time since it was constructed. Effective age is a subjective measurement of the condition of a building, influenced mostly by the maintenance and upkeep carried out on the building over the years. The number of years […]
With reference to an agent or representative. The limits of the power the agent or representative has to bind her principal to an agreement or to a statement.
Actual Cash Value
An insurance term, the value of a building calculated by subtracting the decrease in value caused by age and wear and tear from the cost of replacing the building entirely.
An award of the court to compensate an injured party for losses incurred as a result of the actions or omissions of another party.
Wrongful removal of a tenant from possession of a premises, usually by a landlord, contrary to the terms of the lease.
As opposed to constructive possession. When the owner of a property occupies the property on a day-to-day basis. Constructive possession is when the owner takes actions to establish and maintain his ownership of a property without actually occupying it himself (i.e. leasing it to tenants, removing squatters, hiring a security firm).
Latin meaning “according to value.” Taxes that are said to be ad valorem are assessed according to the value of the property.
Ad Valorem Tax
Tax based on assessed property value.
The interest a borrower pays on the principal for the duration of the loan.
An addition to a document that forms part of it. Similar to a Schedule to an Agreement of Purchase and Sale. May be used to add specific and detailed information material to the contract or upon which contractual terms are based. An addition or change to a contract.
Additional Principal Payment
A one-time or lump-sum payment made by a borrower in addition to the regular payments on a loan or mortgage which reduces the principal owing on the debt. Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.
Adequate Public Facilities Ordinance
An ordinance by the local level of government controlling development by requiring that infrastructure works (roads, sewers, hydro lines) be completed prior to or concurrent with the building of dwellings or commercial buildings in a new development.
An inexact term used to described any property which is situated near or abutting a certain piece of property. Note, an abutting property will always be adjacent but an adjacent property may not be abutting.
Adjustable Rate Mortgage (ARM)
Also known as a Variable Rate Mortgage, a loan secured against land which has an interest rate that changes according to some outside index — such as the federal prime rate or the interest rate paid on government bonds — over the term of the mortgage. The change in interest rate will result in a […]
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