Real Estate Vocabulary ch.1-20

  1. Abandonment
    The relinquishment of all rights and title to a property with no intention of reclaiming ownership
  2. Abstract
    A disclosure statement to initial condo purchasers.
  3. Abstract Of Title
    A condensed history or digest of the title to a parcel of land consisting of a summary of every recorded instrument, together with a statement of all liens, charges,or encumbrances affecting title to that land.
  4. Abutting Owner
    An owner whose land touches a highway or other public place.
  5. Accredited Property Manager
    One awarded such a designation by Institute of Real Estate Management (IREM).
  6. Acceleration Clause
    A clause in a mortgage or agreement of sale stating that upon default of a payment due, immediate and full payment of the balance of the obligation becomes due and payable.
  7. Access Right
    The right of a property owner to have ingress and egress to and from his property.
  8. Accession
    Acquisition of property by its joining or union with another property.
  9. Accretion
    Gradual additions to land, by deposits of sand or soil, by bordering waters through natural causes.
  10. Acknowldegement
    A formal declaration made before a notary public or other authorized person, by a person who has executed an instrument, that such execution is his free act and deed.
  11. Acre
    A measure of land equal to 4840 square yards, or 43,560 square feet.
  12. Accrued Depreciation
    In appraisal, any loss of utility that causes the actual value of a property to be less than the reproduction cost new.
  13. Actual Authority
    The authority that a principal intentionally gives his agent.
  14. Adjoinint Owner
    One whose property is contiguous to another; to be next to.
  15. Administrator
    A person appointed by the court to administer the estate of a deceased person who died intestate, or left no will; a personal representative.
  16. Administrator's Deed
    A deed given by an administrator.
  17. Ad Valorem
    Tax according to valuation.
  18. Adverse Possession
    The means of acquiring title land against the real owner, where possession has been actual, open, hostile, exclusive, continuous, and under claim of right for the statutory period of 20 years.
  19. Affidavit
    A statement reduced to writing and sworn before a notary public or some other authorized officer.
  20. Affirm
    To confirm or ratify.
  21. Agency
    The legal relationship resulting from an agreement that the agent is authorized by a principal to perform certain acts on behalf of the principal in dealing with a third party.
  22. Agreement of Sale
    A written agreement in which the buyer agrees to buy certain realty and the seller agrees to sell upon terms and conditions set forth therein.  Title remains with the seller until terms and conditions are fulfilled; buyer has equitable title; there are two closings.
  23. Air RIghts
    The rights vested by a grant of an estate in real property to all or any portion of the space above the property.
  24. Alienation
    The transferring of real property from one person to another; to transfer.
  25. Allegation
    The assertion or declaration of a party setting out what he expects to prove.
  26. Alluvion
    That increase of soil on a shore or bank or a river as the result of accretion.
  27. American Land Title Association (ALTA)
    An extended coverage title insurance policy usually protecting the mortgagee against loss due to errors in the public records.
  28. American Society of Appraisers (ASA)
    A professional organization of appraisers.
  29. Americans with Disabilities Act
    An act protecting the rights of persons with physical or mental disabilities from discrimination in employment, public services, and public accommodations; also requires certain buildings to meet strict design standards;  employers must make accommodations in hiring and training.
  30. Amortization
    The gradual paying off of a debt on an installment basis.
  31. Anchor Tenant
    A major tenant in a shopping center that serves as a magnet to attract customers to the center.
  32. Annexation
    The act of attaching, adding, joining, or uniting one thing to another.
  33. Annual Percentage Rate (APR)
    The effective annual cost of credit calculated on the bases of procedures specified by Regulation Z (Truth-in-Lending).
  34. Annuity
    A sum of money that constitutes one of a series of periodic payments.
  35. Anti-Trust Laws
    Federal and state laws prohibiting conduct that interferes with business competition, such as price fixing, group boycotts and tying agreements.
  36. Appraisal
    An estimate of value of real estate; the report stating and supporting the estimated value of realty.
  37. Appraisal by Capitalization
    Determine the value of property by dividing net annual income by the capitalization rate.  Used on income producing properties.
  38. Appraisal by Cost Approach
    Estimating the value of a piece of property by adding to the estimated land value the estimate of the replacement cost or reproduction cost of the building less depreciation. Also called summation or reproduction cost approach.
  39. Appraisal by Market Comparison
    An appraisal of property through the examination and comparison of actual sales of comparable properties.  Also called a "Comparable".
  40. Appraisal Institute
    A professional organization of appraisers.
  41. Appreciation
    An increased value of property due to economic or related causes which may prove to be either temporary or permanent.
  42. Appurtenance
    That which has been added to a property, which becomes an inherent part of the property, and will pass with it when conveyed; includes improvements.
  43. As-Is
    A phrase indicating the property is sold in its present conditions with no warranties.
  44. Assemblage
    Putting together two or more lots to form a large parcel.  To be  distinguished from plottage, which is the resulting value.
  45. Assessment
    A charge against real estate made by a unit of government or a condo association to cover the proportionate cost of improvement.
  46. Assignee
    The person to whom an agreement or contract is transferred.
  47. Assignor
    A party who assigns or transfers an agreement or contract to another.
  48. Assignment
    The method or manner by which a right or contract is transferred from one person to another.
  49. Assumption of Mortgage
    Taking of title to property by assuming liability for payment of an existing note secured by a mortgage.
  50. Attachment
    The act of taking realty by judicial order and placing it within the custody of the court.
  51. Attestation
    The act of witnessing in writing another's execution of an instrument; to affirm to be true or genuine.
  52. Attorney-In-Fact
    One who is authorized to perform certain acts for another under a power of attorney.
  53. Avulsion
    The sudden removal of land of one owner depositing on the land of another when a stream changes its channel.
  54. Balloon Payment
    The final installment payment on a note that is greater than the preceding installment payments and pays the note in full.
  55. Bankruptcy
    A condition of financial insolvency in which a person's liabilities exceed his assets, and he is unable to pay his debts.
  56. Bargain and Sale Deed
    A deed used to convey title to real property, which usually does not include warranties; if any, they are generally an assertion by the grantor that he has possession of the property.
  57. Baseline and Meridian
    Imaginary lines used by surveyors in locating and describing land under the rectangular survey method.  The north-south line is the meridian; the east-west line is the base line.  Used mostly in mid-western states.
  58. Basis
    The original cost of property plus value of any improvements put in by the seller, minus the depreciation taken by him.
  59. Before and After Method
    An appraisal method used in condemnation cases where there has been a partial taking of the property.
  60. Benchmark
    A natural or unnatural permanent reference mark or point established for use in measuring differences in elevation.
  61. Beneficiary
    A person who receives and benefits from the gifts or acts of another; one who receives the proceeds from a will, insurance policy, or trust; the lender in a deed of trust.
  62. Bequeath
    The giving of personal property by will.
  63. Biannual
    Something that occurs twice each year; semi-annual.
  64. Biennial
    Happening once every two years.
  65. Bilateral Contract
    A contract in which both parties have reciprocal obligations towards each other.
  66. Bill of Sale
    A written instrument that passes title of personal property from seller to buyer.
  67. Binder
    An agreement to cover a down payment for the purchase of real estate as evidence of good faith on the part of the purchaser; shows the receipt of a deposit and outlines the basic terms of the transaction.
  68. Blanket Mortgage
    One mortgage covering two or more specific parcels of realty.
  69. Blockbusting
    The discriminatory practice of encouraging members of one race or creed to move into a neighborhood, and then exploiting the situation by persuading residents to sell their houses at deflated prices because of the alleged social deterioration of the neighborhood.
  70. Block Interest
    Interest computed on the original face amount and which remains the same as the principal declines.
  71. Bona Fide
    Acting in good faith; without fraud; genuine; real.
  72. Boot
    The payment to satisfy the difference in equities in an exchange, which may be in cash, personal property, note, financing, or anything of agreed upon value.
  73. Breach of Contract
    Violation of any of the terms or conditions of a contract; default; non-performance.
  74. Broker
    A licensed person who negotiates the purchase and sale of real estate of another.
  75. Budget Mortgage
    A mortgage with payment that covers principal and interest, plus taxes, fire insurance, lease rent, etc.
  76. Building Codes
    Rules established by local governments to regulate construction standards.
  77. Building Owners and Managers Association (BOMA)
    A professional organization made up of property owners and managers.  Part of Building Owners and Managers Institute (BOMI).
  78. Building Restrictions
    Limitations on the use of property or the size and locations of improvements established by legislation or by covenants in deeds.
  79. Bulk Sales Transfer
    Any transfer of a major part of the materials, inventory or supplies of an enterprise not in the ordinary course of the seller's business.
  80. Bundle of Rights
    Ownership concept in real estate that embraces the rights of possession  use, enjoyment, and disposition.
  81. Bureau of Conveyances
    The Hawaii state office which houses all legal documents relative to title to both land court and regular system property recorded since 1848; located in Honolulu.
  82. Buy-Down
    The one-time, nonrefundable prepayment of a portion of the interest of a loan to subsidize reduced monthly payments.
  83. Capitaliztion
    The act of converting future income into current equivalent value.
  84. Capitalization Rate
    The relationship or ratio between the net income from a real estate investment and the value of the investment, usually expressed as a percentage; the rate of interest which is considered a reasonable return on the investment, plus the recapture rate which computes a return on the investment.
  85. Caveat Emptor
    Let the buyer beware; the buyer must examine the goods or property and buy at his own risk.
  86. CC&R's
    Stands for covenants, conditions and restrictions.
  87. Certificate of No Defense
    Issued by a title company, it assures good title as required by a buyer.
  88. Certified Property Manager
    A designation awarded to those who have taken required courses in property management.
  89. Chain of Title
    A sequential history of the conveyances, encumbrances, and records of ownership to a piece of property through the years from the original grant to present; the succession of owners as revealed through the public records.
  90. Chattel
    Personal property that is tangible and movable; personalty.
  91. Chattel Mortgage
    A personal property mortgage.
  92. Cite
    To quote as authority or an example; to call to attention or enumerate.
  93. Closing
    The time when a transaction is consummated, or the actual signing over the documents and delivery of the deed; the time after signing when the documents are recorded.
  94. Closing Statement
    A statement of settlement made by a broker or an escrow company that reflects the financial position of the buyer or seller in that particulae real estate transaction.
  95. Cloud on Title
    Any conditions revealed by a title search which may affect or impair the owner's title to property because of their apparent or probably validity.
  96. Commingling
    Mixing a client's money with personal funds.
  97. Commission
    An agent's compensation for performance of the duties of his agency; in real estate practice, a percentage of the selling price of the property, or percentage of rentals, etc.
  98. Commitment
    A pledge or promise; an agreement.
  99. Common Element
    Under condominium ownership, the land and all parts of the building normally used by all of the owners for their mutual convenience or safety.
  100. Common Expense
    In a condominium, the expenses of operation; all sums designated as such by the declaration or by-laws.
  101. Common Interest
    The percentage of undivided interest in the common elements of a building appertaining to each apartment in a condominium.
  102. Common Law
    Laws that have evolved from general usage and legally established through court decision.
  103. Common Profit
    The balance of all income, rent, profits and revenues from the common elements remaining after the deduction of the common expenses in a condominium.
  104. Community Property
    Property accumulated and owned in common through joint efforts of husband and wife during their marriage.  Hawaii is not a community property state.
  105. Compound Interest
    Interest paid both on the original principal and on the interest accrued  from the time it fell due.
  106. Condemnation
    The process by which property of a private  owner is taken for public use, with just compensation to the owner, under the right of eminent domain.
  107. Condemnee
    One whose property is condemned.
  108. Conditional Fee
    A fee estate based upon a condition.
  109. Condition Precedent
    Where a condition needs to happen prior to the transfer of property.
  110. Condition Subsequent
    A condition where if something happens or doesn't happen title will not transfer.
  111. Condominium Ownership
    The individual outright ownership of a single unit in a multi-unit property together with an interest in the common elements of that property.
  112. Consideration
    Valuable consideration, a promise or an act of legal value bargained for and received in return for a promise; good consideration, love and affection.
  113. Constructive Eviction
    Breach of the covenant warranting quiet enjoyment in a lease; when a landlord performs an act depriving the tenant of quiet enjoyment of the premises thereby causing the tenant to move.
  114. Constructive Notice
    Notice given by the public records; legal presumption of notice given by the public records; also called legal notice.
  115. Consummate
    To bring to completion, perfection or fulfillment.
  116. Contigious
    In close proximity; adjoining.
  117. Contingent
    Dependent upon an uncertain future event.
  118. Continuation
    An update of a title search, covering the period from the preliminary title report to the time of the recording of the documents.
  119. Contract
    A legal agreement between competent parties for a consideration to perform or refrain from performing certain acts.
  120. Conventional Mortgage
    A mortgage that is not FHA or VA guaranteed.
  121. Conversion
    Transforming an apartment building into a condo.
  122. Conveyance
    The transfer of the title of land from one to another; an instrument that carries from one person to another an interest in land.
  123. Conveyance Tax
    Tax paid by seller upon transfer of deed.
  124. Cooperating Broker
    A broker who joins with another broker in the sale of real property; usually, one who represents the buyer of property listed with another broker; the selling broker.
  125. Cooperative Ownership
    Ownership that usually takes the form of shares of stock in a corporation owning the entire building and proprietary lease giving the stockholder/tenant the right to occupy a unit for which he pays a proportionate share of the maintenance and operating expenses.
  126. Corporation
    A vehicle used to carry on business with its owners having liability only to the extent of their stock ownership; considered to be  an individual or separate entity.
  127. Corporeal
    That which pertains to a right or rights of a visible and tangible nature.
  128. Correction Deed
    A deed used to correct a prior erroneous deed; a deed of confirmation; a reformation deed.
  129. Counter Offer
    An offer in response to the original offer, can be from a seller back to a buyer, or a buyer in response to the seller's response.
  130. Courtesy to Broker
    The practice of sharing commissions with cooperating broker; also, where a selling owner states he will give a commission to the buyer's broker.
  131. Covenant
    An agreement written into deeds and other instruments which promises or guarantees that something shall or shall not be done; an agreement stipulating certain uses or non-uses of property.
  132. Credit
    The acknowledgement of payment in a closing statement; the opposite of charge or debit.
  133. CRV
    Certificate of Reasonable Value.
  134. Cul-De-Sac
    A passageway or street with only one outlet; a blind alley; a turn-around.
  135. Curtesy
    The right that a husband may have in his wife's estate at her death.
  136. Customer Trust Fund
    A reserve account with escrow, generally holding two months advance payment for taxes and insurance; Impound account.
  137. Damages
    The indemnity recoverable by an injured party to compensate him for the loss suffered through an act of default of another.
  138. Debenture
    A not ore bond given as evidence of a debt; an unsecured note; that is, there is no collateral security.
  139. Debit
    A charge on a closing statement; opposite of a credit.
  140. Debt Service
    The amount needed for payment of principal and interested on a amortized debt.
  141. Declaration
    To make known openly and in definite terms; that which, along with by-laws, defines the rules by which a condominium will exist.
  142. Dedication
    An appropriation of land by its owner for some public use, and acceptance for such use by authorized public officials on behalf of the public.  In certain cases five years  of uninterrupted public use will be considered an acceptance.
  143. Deed
    An instrument in writing, duly executed and delivered by the grantor that conveys to the grantee some right or interest in or to real estate.
  144. Deed of Trust
    Similar to a mortgage but title is transferred to a trustee pending payment of the debt.
  145. Default
    Failure to meet an obligation or promise when due.
  146. Defeasance Clause
    The clause in a mortgage that gives the mortgagor the right to redeem his property upon the payment of his obligation to the mortgagee, and declares the instrument null and void upon payment of debt when due; also found in leases.
  147. Defeasible Fee
    A fee estate subject to being divested or voided (see Conditional Fee).
  148. Deficiency Judgment
    A judgment for the balance of a debt; issued when the net proceeds from a foreclosure sale are less than the indebtedness sued upon.
  149. Delivery
    The act or intent of transferring an instrument from one person to another in such a way that it cannot be recalled.
  150. Demise
    A conveyance of an estate to another for life, for years, or at will; to lease; "the demised premises".
  151. Deposit
    Money given by one to another as evidence of his good faith; evidence or security for performance of a contract.
  152. Deposit Receipt
    Section B of Purchase Contract used by Hawaii Association of Realtors when accepting earnest money to bind an offer for property; also includes terms of the contract.
  153. Depreciation
    Loss of value brought about by physical deterioration or functional or economic obsolescence.
  154. Depth Table
    Tables that provide uniform measurement of additional value to lots because of added depth of the lot.
  155. Derivative Title
    Any title other than the original title.
  156. Descent
    Ownership transferred by means of inheritance.
  157. Deterioration
    Loss in value brought about by wear and tear.
  158. Devise
    A gift of realty by will.
  159. Devisee
    One who receives a gift of real estate by will.
  160. Direct Sales Comparison Approach
    A means of estimating value by comparing recent sales of comparable properties to the subject property after making appropriate adjustments for any differences.  Also called market data approach.
  161. Discount Points
    A fee based on a percentage of a loan, charged by a lender, as a service charge, or as an amount needed to produce the same yield on a VA loan that the lender would receive in the conventional mortgage market; each point charged represents 1 percent of the loan amount and increases the interest rate by 1/8 of one percent.
  162. Disposses Proceedings
    A legal process by a laandlord to remove a tenant and regain possession of real property due to some breach of lease agreement by the tenant.
  163. Distraint
    The right of a landlord to seize and hold possessions of a tenant, for rent in arrears, pursuant to a court order.
  164. Dominant Estate
    An estate attached to an benefiting from the servient estate, e.g., an easement runs over the servient estate and serves the dominant estate; also called dominant tenement.
  165. Donee
    A person who a gift is made.
  166. Donor
    A person who makes a gift.
  167. Dower
    The one-third interest a wife may have in the property of her husband acquired prior to July 1, 1977; a life estate in 1/3 of the land the husband owns during the continuance of the marriage relationship and an absolute interest in 1/3 personal property.
  168. Dower Consummate
    The completed dower; the right a wife may have in her husband's property upon his death.
  169. Dower Inchoate
    The right a wife may have in her husband's property during his life.
  170. Dual Agency
    A relationship which one owes fiduciary duties to both buyer and seller in a real estate transaction.
  171. Due on Sale
    A mortgage clause permitting acceleration of the loan if the mortgagor attempts to transfer title or interest to the secured property.
  172. Duress
    Unlawful constraint or action against a person forcing him to perform some act against his will.
  173. Earnest Money
    Initial payment made by a purchaser of real estate as evidence of good faith.
  174. Easement
    A right, privilege or interest which one party has in the land of another.
  175. Easement Appurtenant
    An easement that is attached to and runs with the land, it cannot exist apart from the particular land to which it is attached.
  176. Easement in Gross
    An easement which encumbers the land, and is usually given to a quasi-public corporation, such as the electric or phone company.
  177. Easement by Prescription
    A method of acquiring a right to a portion of property by lapse of time in the manner of adverse possession.
  178. Economic Life
    The period of time over which a property may be profitably used.
  179. Economic Obsolescence
    See Obsolescence, referred to as External Obsolescence.
  180. Ejectment
    A form of action to regain possession of real property, with damages for the unlawful retention; generally used where there is no landlord/tenant relationship.
  181. Emblements
    Trees or crops that are cultivated annually; the right of a tenant to harvest the annual crop even after his tenancy has ended.
  182. Eminent Domain
    The right of a government to take private property for public use upon the payment of just compensation.
  183. Encroachment
    A building or fixture that intrudes partly or wholly upon the property of another.
  184. Encumbrance
    A claim, lien, charge or liability attached to and binding upon real property that affects or limits the title or use thereof, e.g., mortgage, lien, easement.
  185. Endorsement
    The placing of one's signature on a document, to make it negotiable or transferable.
  186. Equitable Title
    Title to a purchaser under a contract of sale, or agreement of sale.
  187. Equal Credit Opportunity Act
    An act preventing discrimination in lending procedures.
  188. Equity
    The interest of value that an owner has in real estate over and above the debts against it, e.g., you buy a house for $80,000 with $20,000 cash plus a $60,000 mortgage.  The house later appreciates to $100,000 so your equity is now at least $40,000.  A branch  of remedial justice, through which relief is afforded to parties in courts of equity.
  189. Equity of Redemption
    The right of an owner to reclaim property before it is sold through foreclosure proceedings by payment of the debt, interest and cost.
  190. Erosion
    The gradual wearing-away of land, due to natural causes of wind and water.
  191. Escalation Clause
    A clause in a contract permitting an adjustment of certain payments up or down to cover certain contingencies; mostly found in agreements of sale, mortgages and leases.
  192. Escheat
    The reverting of property to the state when heirs capable of inheriting are lacking; or the property is abandoned.
  193. Escrow
    The deposit of instruments and funds with instructions to a third neutral party to carry out the provisions of an agreement or contract.
  194. Escrow Holder
    The one who receives a deed or other item from a grantor to be delivered to the grantee upon the performance of a condition or the occurrence of a contingency.
  195. Estate
    The degree, quantity, nature, and extent of interest a person has in real property.
  196. Estate for Years
    A lease; an interest in land by virtue of a contract for the possession for a definite and limited period of time.
  197. Estoppel
    A doctrine that bars one from asserting rights that are inconsistent with a previous  position or representation e.g. the seller of an apartment building may ask the tenants to sign lease estoppel agreements stating the amount of rent and security deposits.
  198. Estoppel Certificate
    See Certificate of No Defense.
  199. Et Al
    Latin for "and others".
  200. Et Ux
    Latin for "and wife".
  201. Evicition
    A legal proceeding by a landlord to recover possession of leased premises from a tenant due to some breach of lease contract.
  202. Exchange
    A method of conveying real property by trading with another property.
  203. Exchange Agent
    A person who operates an exchange program in timesharing projects.
  204. Exclusive Agency
    A written instrument giving one agent the right to sell property for a specified time, but reserving the right of the owner to sell the property himself without payment of a commission.
  205. Exclusive Right To Sell
    A written agreement between owner and agent giving agent the right to collect a commission if the property is sold by anyone during the term of his agreement.
  206. Execute
    To complete, to perform, to make, to do, to follow out; to execute a deed, to make a deed, including especially signing; to execute a contract, to perform the contract, to follow to the end, to complete.
  207. Executed Contract
    A contract not yet fully performed; e.g., DROA
  208. Express Authority
    Clearly stated duties of an agent set forth by his principal.
  209. External Obsolescence
    Loss in value due to factors outside of the property (such as near airport).
  210. Federal Home Loan Mortgage Corporation (FHLMC)
    A Federal agency which buys mortgages in the secondary money market from commercial banks and federally insured savings and loan associations; "Freddie Mac".
  211. Federal Housing Administration (FHA)
    An agency of the Federal Government that insures certain real estate loans.
  212. Federal National Mortgages Association (FNMA)
    An agency formerly of the Federal Government that buys and sells mortgages in the secondary money market; "Fannie Mae".
  213. Fee Conditional
    An estate granted absolutely buy only so long as a specified event occurs or does not occur.
  214. Fee Simple
    An estate in real property, by which the owner has the greatest power over the title which it is possible to have, being an absolute estate; an estate of inheritance belonging to the owner, that he may dispose of, trade, or will as he chooses.
  215. Fee Tail
    An estate that is inheritable by particular lineal heirs.  Upon lack of such heirs the estate reverts back to the grantor or his heirs.
  216. Fiduciary
    A person in a position of great trust and confidence, as the relationship between principal and broker.
  217. Finder's Fee
    A fee paid to a person for the services of putting together the two parties in a real estate transaction.
  218. FIRPTA
    Federal Investment in Real Property Tax Act.  An amount withheld from the sale of Hawaii property when the seller is a foreigner.
  219. FIRREA
    Financial Institutions Reform, Recovery and Endorsement Act.  An act requiring appraisers be certified or licensed.
  220. First Refusal, Right of
    A right, usually given by an owner to a lessee, which gives the lessee the first chance to buy the property if the owner decides to sell.  The owner must have a legitimate offer that the lessee can then match or refuse.
  221. Fiscal Year
    A year, used for tax, corporate, and accounting purposes, beginning on a date other than Jan. 1.
  222. Fixture
    An article of personal property which has been installed in or attached to land or a building thereon, in such a manner, that it is now considered to be part of the real estate.
  223. Foreclosure
    Procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms.
  224. Forfeiture
    Loss of money or anything of value, due to failure to perform; a right expressly given in an installment contract whereby the seller terminates the contract for non-payment, and retains all of the payments previously made by the buyer.
  225. Fraud
    The intentional and successful employment of deception in order to cheat or deceive another person and to thereby gain some dishonest advantage.
  226. Freehold
    An estate in real property for an indefinite and uncertain time, such as a fee simple or a life estate.
  227. Front Foot
    Property measurement by the front foot on its street line or waterfront line with each front foot extending the depth of the lot.
  228. Functional obsolescence
    See Obsolescence
  229. Gap Loan
    Any loan filling the deficiency created when the permanent financing and the equity are unable to cover the total cost of a project.
  230. General Lien
    A lien that attaches to all property owned by the debtor.
  231. G.I. Loan
    See Veterans Administration
  232. Good Funds Act
    Requires Escrow to clear all funds and checks before closing.
  233. Government National Mortgage Association
    A Federal agency that provides special assistance for federally-aided housing programs; active in the secondary money market for government subsidized housing programs; "Ginnie Mae".
  234. Graduated Lease
    A lease that provides for periodic increases of rent at regular intervals.
  235. Graduated Mortgage
    One where monthly payments start low and increase later.  An FHA245 is one of these.
  236. Grandfather Clause
    See Nonconforming use.
  237. Grant
    A transfer of real property.
  238. Grantee
    The purchaser; the person who whom an interest in realty is conveyed.
  239. Grantor
    The seller; the person who conveys an interest in realty by deed.
  240. Grantor/Grantee Index
    Books found in Bureau of Conveyance showing respective grantor to grantee; or grantee to grantor by year, alphabetically.
  241. Great Mahele
    A division of Hawaiian lands that occurred in 1848 during reign of King Kamehameha III.
  242. GRI
    The professional designation of Graduate, Realtors Institute, earned by completion of prescribed courses of study conducted by state boards of Realtors.
  243. Gross Income
    Total income derived from a business or income property before expenses are deducted.
  244. Gross Lease
    A lease of property in which the lessor meets all property charges incurred through ownership.
  245. Ground Lease
    A lease for the use of the land, usually providing for improvements to be placed on the land by the user.
  246. Ground Rent
    The net rent paid for a parcel of unimproved land; that portion of the total rental is considered to represent a return upon the land only.
  247. Habendum Clause
    The portion of a deed beginning "to have and to hold," which usually follows the granting clause and explains or limits the estate granted.
  248. HARPTA
    Hawaii Real Property Tax.  An amount withheld from sale of Hawaii property belonging to a non-resident seller.
  249. Heir
    One who succeeds to the estate.
  250. Hereditaments
    Every sort of inheritable property, whether corporeal, incorporeal, real, personal or mixed.
  251. Highest and Best Use
    The use of land, which at the time of an appraisal is most likely to produce the create net return over a given period of time.
  252. Holding Escrow
    An arrangement whereby escrow holds the final title documents pursuant to an agreement of sale.
  253. Holdover Tenant
    A tenant who remains in possession of a property after expiration of lease term
  254. Holographic Will
    A will written in hand by the person leaving the will and not witnessed.
  255. Homestead
    A right given to a householder or head of a family to designate real estate as his homestead and said homestead is exempt  up to a stated amount, from execution by his creditors; a tract of land whose ownership has been established under the provisions of the Homestead Act
  256. Homogeneous
    The same or similar kind, as used in appraising; homogeneity tends to stabilize values in an area.
  257. Horizontal Property Regime
    The name once given to the laws pertaining to condominiums in the sate of Hawaii; horizontal layers of ownership, now called Condominium Property Regime.
  258. Hula Mae
    The Hawaii Housing Authority issued tax-exempt revenue bonds to fund a mortgage loan program, offering first time homebuyers interest rates below conventional rates by way of the Housing and Loan Mortgage Act
  259. Hypothecate
    To play  property as security; to mortgage.
  260. Implied Authority
    The authority an agent is assumed to have because of a course of conduct, or which is inferred from the fact that he has been authorized to perform certain acts.
  261. Impound Account
    A reverse account required by lenders, usually equal to two months taxes and hazard insurance, to cover future payments of taxes, insurance, or cover any increases in these amounts; Also, reserve account; Also, customer trust fund.
  262. Improvements
    All real estate except land, Includes buildings, fixtures, fences, curbs, sewers, etc.
  263. Incapacity
    The lack of legal qualifications making a person incapable of performing some act.  Mentally deficient, minors and the lick lack the capacity to perform certain acts.
  264. Inchoate
    Incomplete; not perfected.
  265. Incorporeal
    Intangible; without physical existence
  266. Indefeasible
    Not capable of being annulled or voided; irrevocable.
  267. Independent Contractor
    One who is retained to perform a certain act, but who is not under the control or direction of the hiring person as to how he performs the act, just the end result.
  268. Initiate
    To begin; to set in motion or originate.
  269. Injucntion
    A write or order issued under the seal of a court to restrain one or more parties from performing an act which is deemed to be inequitable or unjust in regard to the rights of some other party.
  270. Installment Contract
    A contract that provides for payment of a purchase price in installments; an agreement of sale.  Also called installment land contract or installment sale.
  271. Institute of Real Estate Management (IREM)
    An organization acting as an exchange for management ideas, and recognizing achievement in the field.  Has a Code of Ethics for real estate managers.
  272. Instrument
    A written legal document.
  273. Inter Vivos
    During one's life; between living persons; from one living person to another.
  274. Interim Financing
    A short-term loan obtained to cover financing of the construction of a building.
  275. Intestate
    A person who dies without a will, or with one which is defective in form.
  276. Involuntary Lien
    A lien imposed against property without consent of an owner: e.g., taxes, special assessments, federal income tax liens, and so forth.
  277. Irrevocable
    Incapable of being recalled or revoked; unchangeable.
  278. Joint Tenancy
    Ownership by two or more persons with rights of survivorship; all joint tenants own equal interests and have equal rights in the property; each owner is possessed of an undivided part of the whole.
  279. Joint Venture
    A joining of two or more people in a specific business enterprise; similar to a partnership and generally with no intention of continuing relationship beyond the original purpose.
  280. Judgment
    The final determination of the rights and liabilities of the parties by a court in an action before it.
  281. Junior Lien
    A subordinate lien
  282. Junior Mortgage
    A mortgage that is subordinate to prior existing mortgage on the same realty
  283. Laches
    Delay or negligence in asserting one's legal rights.
  284. Land Contract
    See Agreement of Sale.
  285. Land Court
    A court designated to preside over the registration of land under the Torrens system; the court which is used to verify title.
  286. Land Patent
    An instrument conveying government-owned land to individuals.
  287. Land Trust
    A device to hold title to land in a trust with the beneficial ownership held by the landowner.
  288. Land Use Ordinance
    County code which sets forth zoning regulations for the county.
  289. Landlord Tenant Code (LTC)
    A Hawaii state law outlining the rights, obligations and remedies of a residential landlord and a tenant.
  290. Landmark
    A monument or object used to establish the boundary line of a property.
  291. Latent Defect
    A hidden structural defect in real estate, known to the seller but not the buyer and not discoverable by mere observation.
  292. Lateral Support
    The support that the soil of an adjoining owner gives to his neighbor's land.
  293. Lease
    A contract whereby the lawful owner of the property transfers his rights of use and possession to another for a specified term.
  294. Leased Fee
    The landlord-owners interest in the demised premises  valued as the rent plus reversionary interest.
  295. Leasehold
    An estate or right in real property held under a lease by the lessee.
  296. Legacy
    A gift of personal property, usually money in a will.
  297. Legal Description
    A description, recognized by law that will definitely locate and identify property.
  298. Lessee
    One who rents property under a lease contract.
  299. Lessor
    An owner who enters into a lease with a tenant.
  300. Less Than Freehold
    A lease; a leasehold estate.
  301. Leverage
    The use of borrowed funds in financing, with the anticipation that property acquired will increase in return so that the investor will realize a profit, not only on his own investment, but on the borrowed funds as well.
  302. Liber
    Books that contain public records such as copies of deeds.
  303. License
    A personal privilege to perform such act on the land of another.
  304. Lein
    A right, given by law, whereby a creditor may satisfy a debt out of the proceeds of the sale of real estate or personal property belonging to the debtor; an encumbrance, usually naming property as security for payment of a debt or for the discharge of an obligation.
  305. Lien Letter
    A limited title search issued to cover Land Court property in Hawaii.
  306. Life Estate
    An estate or interest in real property held for the duration of the life of a certain person.  Upon the expiration of that life, the estate will automatically be vested in a remainderman or reversioner.
  307. Limited Common Element
    In a condominium, those common elements reserved for the use of a certain apartment, or certain apartments, to the exclusion of other apartments.
  308. Limited Liability Company
    A newer form of ownership besides proprietorship, partnership, corporation, and so forth.Similar to a corporation, but no perpetual existence and single taxation.
  309. Limited Partnership
    A partnership composed of general limited partners whose contribution and liability are limited and specifically defined.
  310. Liquidated Damages
    An amount predetermined by the parties to an agreement that will be forfeited as compensation for breach of contract.
  311. Lis Pendens
    A legal document giving constructive notice than an action at law is pending; a notice of pending litigation.
  312. Listing
    A written employment agreement between a property owner and a broker authorizing the listing broker to sell, lease, or exchange the realty.
  313. Loan Commitment
    A commitment by a lender as to the amount he will loan to a qualified borrower on a particular piece of real estate.
  314. Lock-in
    An agreement between borrower and a lender, whereby the lender agrees to lock in an interest rate, or points for a period of time, when the rate is in a state of flux and might change.
  315. M.A.I.
    Designates a person who is a member of a professional appraisal organization.
  316. Marginal Land
    Land which barely pays the cost of working or using.
  317. Marketable Title
    Title free and clear of objectionable liens or encumbrances; title which is free from reasonable doubts or defects, which can be readily sold or mortgaged.
  318. Market Value
    The highest price a ready, willing and able buyer, not forced to buy, will pay to a ready, willing and able seller, not forced to sell, allowing a reasonable time for exposure in the open market.
  319. Material Fact
    A fact is material if it is one which the agent should realize would be likely to affect the judgment of the principal in giving his or her consent to the agent to enter into the particular transaction on the specified terms.
  320. Mechanic's Lien
    A lien which exists against real property in favor of persons who have performed work or furnished materials for the improvements of real estate.
  321. Merger of Title
    The absorption of one estate into another.
  322. Metes and Bounds
    A method of describing or locating real property; metes are measures of length and bounds are boundaries; a description starting with a well-marked point of beginning and following the boundaries of the land until it returns once more to the point of beginning.
  323. Mile
    A linear measurement of distance equal to 1760 yards, 5280 feet, or 1608 meters.
  324. Minor
    A persona under the legal age of consent; one under 18 years of age.
  325. Misrepresentation
    A false statement of a material fact made with the intent to induce some action from another party.
  326. Monument
    A fixed object and point established by surveyors to establish land locations; includes not only artificial objects such as posts and fences  but also natural objects such as trees, mountains and water courses.
  327. Morgage
    An instrument in writing which, when recorded creates a lien upon property pledged as security for the repayment of a debt or obligation.
  328. Mortgage Banker
    A corporation or firm that makes, delivers, and services mortgages loans.
  329. Mortgage Broker
    A person or firm that acts as an intermediary between borrower and lender.
  330. Mortgagee
    The party who lends money and accepts a mortgage to secure the payment of the debt.
  331. Mortgagor
    The party who borrows money and gives a mortgage on the property as security for his obligation to repay the debt.
  332. Mud Tunnel
    Passageway for subterranean termites.
  333. Multiple Listing Service (MLS)
    An arragement amoung brokers whereby they share their listings.
  334. National Association of Realtors (NAR)
    A professional organization of real estate professionals; only brokers who are members of local real estate boards are entitled to use the trademark name "REALTOR", salespeople are called "REALTOR-ASSOCIATES".
  335. Navigable Waters
    Those bodies of water that are capable of being used for public transportation.
  336. Negotiable Instrument
    A written instrument signed by its maker or drawer, containing an unconditional promise to pay a certain sum of money; can be passed freely from one person to another.
  337. Negotiate
    To transact business; to arrange terms of a contract.
  338. Net Income
    With reference to property, the sum derived after a vacancy allowance and expenses have been fully deducted from the gross income; generally described as net income before depreciation, and usually defining the income a property will earn in a normal years' operation (net operating income).
  339. Net Lease
    A lease in which the tenant pay res rent for occupancy, plus maintenance and operation expenses, and usually including taxes and insurance.
  340. Net Listing
    A listing which provides that the agent may retain all sums received over and above a net price to the owner as compensation for his services.
  341. Nominal Consideration
    One bearing no relation to the real value of the contract.  An example is a property deeded for $10.00.
  342. Nonconforming Use
    A use which is contrary to zoning laws, but which is permitted because the use was allowed before the zoning law came into effect; a grandfather clause.
  343. Note
    A written instrument acknowledging a debt and promising payment
  344. Notice of Nonresponsibility
    A notice provided by law designed to relieve a property owner from reprehensibility for the cost of work done on a property or materials furnished therein; usually applicable when a lessee contracts to have work performed.  Not applicable in Hawaii.
  345. Notice to Quit
    Notice to a tenant to vacate.
  346. Novation
    The substituting of a new obligation for an old one (as in a VA Substitution).
  347. Obsolescence
    Functional obsolescence or lack of desirability in terms of layout, style and design as compared with that of a new property serving the same function; economic obsolescence or a loss in value from causes in the neighborhood, but outside from the property itself.
  348. Offer
    A promise by one party to act in a certain manner provided the other party will act in the manner requested.  In a real estate sales contract, the offer to purchase realty according to certain stipulated terms and conditions.
  349. Ohana Zoning
    Amends the Comprehensive Zoning Code by permitting a second dwelling unit on certain residentially zoned lots, thus providing immediate and less expensive housing alternatives.
  350. Open-End Mortgage
    A mortgage containing a clause which permits the mortgagor to borrow additional money up to the original amount of the loan after the loan has been reduced, without rewriting the mortgage.  Not to confuse with open mortgage, which is any mortgage with no payment penalty.
  351. Open Listin
    A listing given to any number of agents without liability to compensate any except the one who first procures a buyer ready, willing and able to meet the terms of the listing.
  352. Option
    A right given for consideration to purchase or lease a property upon specified terms within a specified time.  Purchaser is the optionee.
  353. Ordinance
    A legislative enactment of a city or county, such as zoning.
  354. Over Improvement
    An improvement which is not the highest and best use for the site on which it is placed, usually by reason of excess size or cost.
  355. Package Mortgage
    A mortgage commonly used in subdivision developments whereby chattels such as appliances are "packaged" into the mortgage along with the real property.
  356. Panic Peddling
    Creating an atmosphere of fear in persuading owners to sell; a discriminatory act.
Card Set
Real Estate Vocabulary ch.1-20