| Real
Estate Glossary |
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| Charts
and Graphs |
| A
Section of Land |
| Long
Measure |
| Short
Measure |
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| Alphabetical
Index |
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
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A
Abstract of Title
A condensed history or summary of all
transactions affecting a particular tract of land.
Access
The right to enter and leave a tract of
land from a public way. "Oftentimes the right to
enter and leave over the lands of another"
Accretion
The slow build up of lands by natural forces such as wind, wave or water.
Acknowledgement
The act by which a party executing a legal document goes before an authorized
officer or notary public and declares the same to be his voluntary act and deed.
Acre
A tract of land 208.71 feet square and containing 43,560 square feet of land.
Administrator
A person appointed by a probate court to settle the affairs of an individual
dying without a will. The term is administratrix if such a person is a woman.
Adverse Possession
A claim made against the lands of another by virtue of open and notorious possession
of said lands by the claimant.
Affidavit
A sworn statement in writing.
Agent
A person or company that has the power to act on behalf of another or to transact
business for another, e.g., a title agent under contract with Old Republic Title
to issue policies of title insurance.
Air Rights
The right to ownership of everything above the physical surface of the land.
ALTA
American Land Title Association, a national association of title insurance companies,
abstracters and attorneys specializing in real property law which speaks for
the title insurance and abstracting industry, with headquarters in Washington,
D.C.
Appurtenance
Anything so annexed to land or used with it that it will pass with the conveyance
of the land.
ARM
Adjustable Rate Mortgage.
(See Variable Rate Mortgage)
Assessment
The imposition of a tax, charge or levy, usually according to established rates.
Assessor
A public official who evaluates property for the purpose of taxation.
Assignee
One to whom a transfer of interest is made. For example, the assignee of a mortgage
or contract.
Assignor
One who makes an assignment. For example, the assignor of a mortgage or contract.
Assumable Mortgage
A mortgage, which by its terms, allows a new owner to takeover its obligations.
Assumed Mortgage
A loan in which the buyer assumes the obligations of an already existing mortgage
on a property.
Attachment
Legal seizure of property to force payment of a debt.
Attorney in Fact
One who holds a power of attorney from another allowing him to execute legal
documents such as deeds, mortgages, etc. on behalf of the grantor of the power. |
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B
Bankrupt
A person, who, through a court proceeding, is relieved from the payment of all
his debts after surrender of all his assets to a court appointed trustee.
Bureau of Land Management
The branch of government in charge of surveying and managing public lands. |
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C
CC&R's
Covenants, Conditions and Restrictions.
(See Conditions and Restrictions below)
Chain
A term of land measurement being 66 feet in length.
Chain of Title
A term applied to the past series of transactions and documents affecting the
title to a particular parcel of land.
Clear Title
One which is not encumbered or burdened with defects.
Closing
Also known as "escrow" or "settlement." The process of executing
legally binding documents such as deeds and mortgages most commonly associated
with the purchase of real estate and the borrowing of money to assist in the
purchase.
Clouded Title
An encumbered title.
Commitment to Insure
A report issued by a title insurance company, or its agent, committing the title
insurance company to issue the form of policy designated in the commitment upon
compliance with and satisfaction of requirements set forth in the commitment.
Company Loan
Loan by employer to facilitate relocation of employee. Usually short term.
Condemnation
Taking private property for public use through court proceedings.
Condition or Conditions
A proviso in a deed or a will that upon the happening or failure to happen of
a certain event, the title of the purchaser or devisee will be limited, enlarged,
changed or terminated.
Conditions and Restrictions
A common term used to designate the uses to which land may not be put and providing
penalties for failure to comply. "Commonly used by land subdividers on newly
platted areas."
Condominium
A system of individual fee ownership of units in a multi-unit structure, combined
with joint ownership of common areas of the structure and land.
Consolidated Mortgage
Occurs in refinancing. Remaining balance from original mortgage is incorporated
into new mortgage.
Contract for Deed
An agreement to sell and purchase under which title is withheld from the purchaser
until such time as the required payments to the seller have been completed.
Convey
The act of deeding or transferring title to another.
Conveyance-An instrument by which title to property is transferred; a deed.
Cooperative
A residential multi-unit building owned by and operated for the benefit of persons
living within.
Covenant
An agreement written into deeds and other instruments promising performance or
non-performance of certain acts, or stipulating certain uses or non-uses of the
property. Cul De Sac-The terminus of a street or alley. "Usually laid out
by modern engineers to provide a circular turn around for vehicles. In French
'the bottom of the sack." |
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D
Deed
A written document by which the ownership of land is transferred from one person
to another.
Deed of Trust
(See Mortgage below)
Delivery
The final and absolute transfer of a deed from seller to buyer in such a manner
that it cannot be recalled by the seller. A necessary requisite to the transfer
of title.
Device
The disposition of land by will. "A term used for land alone and never for
personal property."
Due on Sale Clause
Provision in a Mortgage or Deed of Trust which requires loan to be paid in full
if property is sold or transferred. |
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E
Earnest Money
Advance payment of part of the purchase price to bind a contract for property.
Easement
An interest in land owned by another that entitles its holder to a specific limited
use, such as laying a sewer, putting up electric power lines, or crossing the
property.
Egress
The right to leave a tract of land. "Often used interchangeably with access."
(See Access above)
Eminent Domain
The power of the state to take private property for public use upon payment of
just compensation.
Encroachment
A fixture, such as a house, wall or fence, which intrudes upon another's property.
Encumber
To burden a parcel of land with a lien or charge such as a mortgage.
Encumbrance
A lien, liability or charge upon a parcel of land.
Escheat
A reversion of property to the state in those cases where an individual dies
without heirs or devisees and without a will.
Escrow
A procedure whereby a disinterested third party handles legal documents and funds
on behalf of a seller and buyer.
Estate
A person's possessions.
Examination of Title
The interpretation of the record title to real property based on the title search
or abstract.
Exception
In legal descriptions that portion of lands to be deleted or excluded. "The
term is often used in a different sense to mean an objection to title or encumbrance
on title."
Executor
A person appointed by the probate court to carry out the terms of a will. "The
term is executrix if such a person be a woman."
Extended Mortgage
One in which due date of mortgage
is extended for longer period.
Often at higher interest rate than original mortgage. |
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F
Fee Simple Estate
The greatest interest in a parcel of land that it is possible to own. Sometimes
designated simply as Fee.
FHA Guarantee
An insurance contract in which HUD through FHA insures that the named lender
will recover a specific percentage of the loan amount from the insurer (FHA)
in the event the loan goes bad.
Financing Statement
A document prepared for filing with the Register of Deeds or Secretary of State
indicating that personal property or fixtures is encumbered with a debt.
Fixtures
Any item of property so attached to real property that it becomes a part of the
real property.
Forfeiture of Title
Provision in a Deed creating a condition which will cause title to be passed
to another in the event certain circumstances occur. |
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G
Graduated Payment Mortgage
A loan in which monthly payments are relatively small in the beginning years
and gradually increase in dollar amount over the life of the mortgage.
Grantee
A person who acquires an interest in land by deed, grant, or other written instrument.
Grantor
A person, who, by a written instrument, transfers to another an interest in land.
Guardian
One appointed by the court to administer the affairs of an individual not capable
of administering his own affairs. |
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H
Harbor Line
An arbitrary line set by authorities on navigable rivers, beyond which wharves
and other structures may not be built, also designated as line of navigation.
Heir-One who might inherit or succeed to an interest in land under the rules
of law applicable where an individual dies without leaving a will.
Hiatus
A gap or space unintentionally left between, when attempting to describe adjacent
parcels of land.
Home Repair Loan
Used for repairs and additions to existing structures without affecting existing
mortgage. Typically 10 years or less in length.
HUD 1
A form settlement (closing) statement required by HUD where federally related
mortgages are being made on residential properties. It is a balance sheet showing
the source of funds and the distribution of funds in connection with the purchase
and/or mortgaging of residential property. |
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I
Improvements
Those additions to raw lands tending to increase value such as buildings, streets,
sewer, etc.
Inchoate Dower
The imperfected interest which the law gives a wife in the lands of her husband. "This
is an interest which upon the death of the husband may ripen into possession
and use."
Inchoate Curtesy
The imperfected interest which the law gives a husband in the lands of his wife. "This
is an interest which upon the death of the wife may ripen into possession and
use."
Indemnify
To make payment for a loss.
Ingress
The right to enter a tract of land. "Often used interchangeably with access."
(See Access above)
Insurance
A contract of indemnity against specified perils.
Insurance Loan-When cash value of life insurance policy is borrowed by insured.
Interim Financing
Temporary or short term loans. Often used with new construction. Usually replaced
with a permanent, long term mortgage. Intestate-Designates the estate or condition
of failing to leave a will at death. "To die intestate." |
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J
Joint Tenancy
Where two or more persons hold real estate jointly for life, the survivors to
take the interest of the one who dies.
Judgment
A decree of a court. "in practice this is the lien or charge upon the lands
of a debtor resulting from the Court's award of money to a creditor."
(See Judgment Lien below)
Judgment Docket
The record book of a County Clerk where a judgment is entered in order that it
may become a lien upon the property of the debtor.
Judgment Lien
The charge upon the lands of a debtor resulting from the decree of a court properly
entered in the judgment docket. |
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| K |
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L
Land Contract
(See Contract for Deed above)
Landmark
Any conspicuous object that helps establish land boundaries.
Lease
A grant of the use of lands for a term of years in consideration of the payment
of a monthly or annual rental.
Lender's Policy
See Mortgagee's Policy below.
Lessee
One who takes lands upon a lease.
Lessor
One who grants lands under a lease.
Lien
A hold, a claim or a charge allowed a creditor upon the lands of a debtor. "Some
examples are mortgage liens, judgment liens, mechanic's liens."
Life Estate
A grant or reservation of the right of use, occupancy and ownership for the life
of an individual.
Link
A term of land measurement being 1/100th of a chain or 66/100ths of a foot.
Lis Pendens
A notice recorded in the official records of a county to indicate that a suit
is pending affecting the lands where the notice is recorded.
Loss Payable Clause
Provision added to a Fire and Casualty Policy which says any loss will be paid
to two or more parties as their interest may appear. Usually the owner and the
mortgage lender.
Lot
A measured parcel of land having fixed boundaries. |
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M
Majority
The age at which a person is entitled to handle his own affairs.
Marketable Title
A good title about which there is no
fair or reasonable doubt.
Mechanic's Lien
A lien allowed by statute to contractors, laborers and material-men on buildings,
or other structures upon which work has been performed or materials supplied.
Metes and Bounds
A description of land by courses and distances.
Minor
One who because of insufficient age or status is legally incapable of making
contracts.
Monument of Survey
Visible marks or indications left on natural or other objects indicating the
lines and boundaries of a survey. May be posts, pillars, stones, cairns, and
other such objects, but may also be fixed natural objects, blazed trees, roads
and even a water course.
Mortgage
An instrument used to encumber land as security for a debt.
Mortgage-Backed Security
A security evidencing either the ownership of an interest in a mortgage loan
or pools of mortgage loans, or a separate obligation secured by a mortgage loan
or pool of mortgage loans.
Mortgage Banker
A specialized lending institution that lends money solely with respect to real
estate and secures its loans with mortgages on the real estate.
Mortgage Broker
A person or company that buys and sells mortgages for another on commission or
who arranges for and negotiates mortgage contracts.
Mortgage Revenue Bonds
issued by communities as a means of providing lower cost mortgage funds to certain
qualified borrowers.
Mortgagee
A designation for the mortgage lender on lands.
Mortgagee's Policy
A form of title insurance policy which insures the Validity, enforceability and
priority. This form does not provide protection for the owner.
Mortgagor
A designation for the mortgage borrower on lands. |
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N
Negative Amortization
An actual increase in the principal amount of a real estate loan because of the
addition of matured but unpaid interest to the loan balance. Usually the result
of monthly payments which are temporarily set at a lower than needed level.
Notary
One authorized to take acknowledgments.
(See acknowledgments) |
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O
Owner's Policy
A policy of title insurance which insures a named owner against loss by reason
of defects, liens and encumbrances or lack of marketability of the title. The
company also agrees to defend covered claims made against the title.
Ownership
The right to possess and use property to the exclusion of others. |
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P
Patent
A document or grant by which the Federal or State government originally transferred
title to public lands to an individual. The first in the series of transfers
by which title comes down to present owners.
Plat or Plot
A map representing a piece of land subdivided into lots with streets shown thereon.
P.M.I.-Private Mortgage Insurance. An insurance contract which insures that the
named lender will recover a specific percentage of the loan amount from the insurer
in the event the loan goes bad. Many lenders require this on higher percentage
loans.
Points
A one-time special fee or extra charge paid to a lender in order to secure a
loan, Expressed as a percentage of face amount of mortgage.
Policy
A written contract of title insurance.
Policyowner
One who owns a title insurance policy.
Power of Attorney
An instrument authorizing another to act on one's behalf as his agent or attorney.
Power of Sale
A clause inserted in a will, mortgage, deed or trust or trust agreement authorizing
the sale or transfer of land in accordance with the terms of the clause.
Pro-rate
To allocate between seller and buyer their proportionate share of an obligation
paid or due. "For example, a pro-rate of real property taxes or fire insurance
premiums." |
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Q
Quiet Title
An action in a proper Court to remove record defects or possible claims of other
parties named in the action. |
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R
Range
A part of the government survey, being a strip of land 6 miles in width, and
numbered east or west of the principal meridian.
Real Property
Land and that which is affixed to it.
Realtor
A federally registered collective membership mark which identifies a real estate
professional who is a member of the National Association of Realtors and subscribes
to its strict Code of Ethics.
Realty
A brief term for real property.
Redeem
Literally "to buy back." The act of buying back lands after a mortgage
foreclosure, tax foreclosure, or other execution sale.
Registered Land
(See Torrens Title below)
Reinsurance
To insure again by transferring to another insurance company all or part of an
assumed liability, thus spreading the loss risk any one company has to carry.
REIT
Real Estate Investment Trust. A product of federal tax legislation formed as
a business trust, under a special state REIT statute or as a corporation for
the purpose of investing in real estate or mortgages on real estate.
REMIC
Real Estate Mortgage Investment Conduit. A product of 1986 federal tax legislation
in which a business entity such as a corporation, partnership or trust in which
substantially all of the assets consist of qualified mortgages and permitted
investments elects to be treated as an REMIC. Qualification avoids treatment
as a corporation for tax purposes.
Right-of-Way
The right which one has to pass across the lands of another. An easement.
Riparian
Rights to use of water and waterways in adjoining lakes or rivers. |
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S
Second Mortgage
A second loan on real estate that already has a mortgage. It is subordinate to
the first mortgage. Usually of shorter term and often at higher interest rate.
Section or Section of Land
A parcel of land comprising one square mile or 640 acres.
Set Back Lines
Those lines which delineate the required distances for the location of structures
in relation to the perimeter of the property.
Sub-surface Right
The right of ownership to things lying beneath the physical surface of the property.
Survey
The process of measuring land to determine its size, location and physical description
and the resulting drawing or map. |
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T
Tenancy in Common
An estate or interest in land held by two or more persons each having equal rights
of possession and enjoyment but without any right of survivorship between the
owners.
Tenant
Any person in possession of real property with the owner's permission.
Testament
Another term for a will. Commonly referred to as "last will and testament."
Testate
The estate or condition of leaving a will at death. "To die testate."
Testator
A man who makes or has made a testament or will.
Testatrix
A woman who makes or has made a testament or will.
Title
The evidence or right which a person has to the ownership and possession of land. "Commonly
considered as a bundle or history of rights."
Title Defect
Any legal right held by others to claim property or to make demands upon the
owner.
Title Insurance
Insurance against loss or damage resulting from defects or failure of title to
a particular parcel of real property.
Title Plant
The total facilities-records, equipment, fixtures, and personnel- required to
function as a title insurance operation. Technically, the organization of official
records affecting real property into a system which allows quick and efficient
recovery of title information.
Title Search
An examination of public records, laws and court decisions to disclose the current
facts regarding ownership of real estate.
Torrens Title
A system whereby, after court proceedings, a certificate is issued setting forth
the extent of the applicant's estate in land subject to the exceptions shown.
Most popular in the early 1900's, the system was adopted in 19 states. It is
presently used only in parts of six states.
Township
A division of territory 6 mites square, containing 36 sections or 36 square miles.
Tract
A particular parcel of land.
Trust
A property right held by one for the benefit or another.
Trustee
A person holding property in trust. |
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| U |
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V
VA Guarantee
An insurance contract in which the Veterans Administration (VA) insures that
the named lender will recover a specific percentage of the loan amount from the
insurer in the event the loan goes bad.
Variable Rate Mortgage
A loan in which the interest rate fluctuates with the cost of funds or some other
index.
Vendee
A purchaser of real property under land contract.
Vendor
A seller of real property under land contract.
Vest
To pass to a person an immediate right or interest. Title may be said to vest
in John Brown.
Vestee
A non-legal term used by title insurers to indicate the owner of real property
in a policy or report. |
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W
Warranty
An agreement and assurance by the grantor of real property for himself and his
heirs, to the effect that he is the owner and will be responsible.
Will
A written document properly witnessed, providing for the distribution of property
owned by the deceased. |
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| X |
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| Y |
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Z
Zoning
The right of a municipality to regulate and determine
the compatible character and use of property. |
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| A
Section of Land |
 |
| Note:
Acreage of farm property usually figured to center
of road. |
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| Long
Measure |
|
| 1
mile |
80
chains |
| |
320
rods |
| |
5280
feet |
| 1
Chain |
4
rods |
| |
66
feet |
| |
100
links |
| 1
Rod |
5-1/2
yards |
| |
16-1/2
feet |
| |
25
links |
| 1
Link |
0.66
feet |
| |
7-7/8
inches |
| |
|
| Square
Measure |
|
| 1
Sq. Mile |
Regular
section |
| |
640
acres |
| 1
Acre* |
10
sq. chains |
| |
160
sq. rods |
| |
43,560
sq. ft. |
| 1
Sq. Rd |
30-1/4
sq. yds. |
| |
272-1/4
sq. ft. |
| 1
Sq. Ft. |
144
sq. ins |
|
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*An
Acre is about 208 -3/4 feet sq.
An Acre is 8 rods wide by 20 rods long, or any area the product of whose length
by its width (in rods) is 160 or in chains is 10. |
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