Real Estate Vocabulary ch.1-20

The relinquishment of all rights and title to a property with no intention of reclaiming ownership

A disclosure statement to initial condo purchasers.

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.

An owner whose land touches a highway or other public place.

One awarded such a designation by Institute of Real Estate Management (IREM).

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.

The right of a property owner to have ingress and egress to and from his property.

Acquisition of property by its joining or union with another property.

Gradual additions to land, by deposits of sand or soil, by bordering waters through natural causes.

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.

A measure of land equal to 4840 square yards, or 43,560 square feet.

In appraisal, any loss of utility that causes the actual value of a property to be less than the reproduction cost new.

The authority that a principal intentionally gives his agent.

One whose property is contiguous to another; to be next to.

A person appointed by the court to administer the estate of a deceased person who died intestate, or left no will; a personal representative.

A deed given by an administrator.

Tax according to valuation.

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.

A statement reduced to writing and sworn before a notary public or some other authorized officer.

To confirm or ratify.

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.

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.

The rights vested by a grant of an estate in real property to all or any portion of the space above the property.

The transferring of real property from one person to another; to transfer.

The assertion or declaration of a party setting out what he expects to prove.

That increase of soil on a shore or bank or a river as the result of accretion.

An extended coverage title insurance policy usually protecting the mortgagee against loss due to errors in the public records.

A professional organization of appraisers.

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.

The gradual paying off of a debt on an installment basis.

A major tenant in a shopping center that serves as a magnet to attract customers to the center.

The act of attaching, adding, joining, or uniting one thing to another.

The effective annual cost of credit calculated on the bases of procedures specified by Regulation Z (Truth-in-Lending).

A sum of money that constitutes one of a series of periodic payments.

Federal and state laws prohibiting conduct that interferes with business competition, such as price fixing, group boycotts and tying agreements.

An estimate of value of real estate; the report stating and supporting the estimated value of realty.

Determine the value of property by dividing net annual income by the capitalization rate.  Used on income producing properties.

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.

An appraisal of property through the examination and comparison of actual sales of comparable properties.  Also called a "Comparable".

A professional organization of appraisers.

An increased value of property due to economic or related causes which may prove to be either temporary or permanent.

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.

A phrase indicating the property is sold in its present conditions with no warranties.

Putting together two or more lots to form a large parcel.  To be  distinguished from plottage, which is the resulting value.

A charge against real estate made by a unit of government or a condo association to cover the proportionate cost of improvement.

The person to whom an agreement or contract is transferred.

A party who assigns or transfers an agreement or contract to another.

The method or manner by which a right or contract is transferred from one person to another.

Taking of title to property by assuming liability for payment of an existing note secured by a mortgage.

The act of taking realty by judicial order and placing it within the custody of the court.

The act of witnessing in writing another's execution of an instrument; to affirm to be true or genuine.

One who is authorized to perform certain acts for another under a power of attorney.

The sudden removal of land of one owner depositing on the land of another when a stream changes its channel.

The final installment payment on a note that is greater than the preceding installment payments and pays the note in full.

A condition of financial insolvency in which a person's liabilities exceed his assets, and he is unable to pay his debts.

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.

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.

The original cost of property plus value of any improvements put in by the seller, minus the depreciation taken by him.

An appraisal method used in condemnation cases where there has been a partial taking of the property.

A natural or unnatural permanent reference mark or point established for use in measuring differences in elevation.

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.

The giving of personal property by will.

Something that occurs twice each year; semi-annual.

Happening once every two years.

A contract in which both parties have reciprocal obligations towards each other.

A written instrument that passes title of personal property from seller to buyer.

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.

One mortgage covering two or more specific parcels of realty.

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.

Interest computed on the original face amount and which remains the same as the principal declines.

Acting in good faith; without fraud; genuine; real.

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.

Violation of any of the terms or conditions of a contract; default; non-performance.

A licensed person who negotiates the purchase and sale of real estate of another.

A mortgage with payment that covers principal and interest, plus taxes, fire insurance, lease rent, etc.

Rules established by local governments to regulate construction standards.

A professional organization made up of property owners and managers.  Part of Building Owners and Managers Institute (BOMI).

Limitations on the use of property or the size and locations of improvements established by legislation or by covenants in deeds.

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.

Ownership concept in real estate that embraces the rights of possession  use, enjoyment, and disposition.

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.

The one-time, nonrefundable prepayment of a portion of the interest of a loan to subsidize reduced monthly payments.

The act of converting future income into current equivalent value.

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.

Let the buyer beware; the buyer must examine the goods or property and buy at his own risk.

Stands for covenants, conditions and restrictions.

Issued by a title company, it assures good title as required by a buyer.

A designation awarded to those who have taken required courses in property management.

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.

Personal property that is tangible and movable; personalty.

A personal property mortgage.

To quote as authority or an example; to call to attention or enumerate.

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.

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.

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.

Mixing a client's money with personal funds.

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.

A pledge or promise; an agreement.

Under condominium ownership, the land and all parts of the building normally used by all of the owners for their mutual convenience or safety.

In a condominium, the expenses of operation; all sums designated as such by the declaration or by-laws.

The percentage of undivided interest in the common elements of a building appertaining to each apartment in a condominium.

Laws that have evolved from general usage and legally established through court decision.

The balance of all income, rent, profits and revenues from the common elements remaining after the deduction of the common expenses in a condominium.

Property accumulated and owned in common through joint efforts of husband and wife during their marriage.  Hawaii is not a community property state.

Interest paid both on the original principal and on the interest accrued  from the time it fell due.

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.

One whose property is condemned.

A fee estate based upon a condition.

Where a condition needs to happen prior to the transfer of property.

A condition where if something happens or doesn't happen title will not transfer.

The individual outright ownership of a single unit in a multi-unit property together with an interest in the common elements of that property.

Valuable consideration, a promise or an act of legal value bargained for and received in return for a promise; good consideration, love and affection.

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.

Notice given by the public records; legal presumption of notice given by the public records; also called legal notice.

To bring to completion, perfection or fulfillment.

In close proximity; adjoining.

Dependent upon an uncertain future event.

An update of a title search, covering the period from the preliminary title report to the time of the recording of the documents.

A legal agreement between competent parties for a consideration to perform or refrain from performing certain acts.

A mortgage that is not FHA or VA guaranteed.

Transforming an apartment building into a condo.

The transfer of the title of land from one to another; an instrument that carries from one person to another an interest in land.

Tax paid by seller upon transfer of deed.

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.

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.

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.

That which pertains to a right or rights of a visible and tangible nature.

A deed used to correct a prior erroneous deed; a deed of confirmation; a reformation deed.

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.

The practice of sharing commissions with cooperating broker; also, where a selling owner states he will give a commission to the buyer's broker.

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.

The acknowledgement of payment in a closing statement; the opposite of charge or debit.

Certificate of Reasonable Value.

A passageway or street with only one outlet; a blind alley; a turn-around.

The right that a husband may have in his wife's estate at her death.

A reserve account with escrow, generally holding two months advance payment for taxes and insurance; Impound account.

The indemnity recoverable by an injured party to compensate him for the loss suffered through an act of default of another.

A not ore bond given as evidence of a debt; an unsecured note; that is, there is no collateral security.

A charge on a closing statement; opposite of a credit.

The amount needed for payment of principal and interested on a amortized debt.

To make known openly and in definite terms; that which, along with by-laws, defines the rules by which a condominium will exist.

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.

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.

Similar to a mortgage but title is transferred to a trustee pending payment of the debt.

Failure to meet an obligation or promise when due.

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.

A fee estate subject to being divested or voided (see Conditional Fee).

A judgment for the balance of a debt; issued when the net proceeds from a foreclosure sale are less than the indebtedness sued upon.

The act or intent of transferring an instrument from one person to another in such a way that it cannot be recalled.

A conveyance of an estate to another for life, for years, or at will; to lease; "the demised premises".

Money given by one to another as evidence of his good faith; evidence or security for performance of a contract.

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.

Loss of value brought about by physical deterioration or functional or economic obsolescence.

Tables that provide uniform measurement of additional value to lots because of added depth of the lot.

Any title other than the original title.

Ownership transferred by means of inheritance.

Loss in value brought about by wear and tear.

A gift of realty by will.

One who receives a gift of real estate by will.

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.

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.

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.

The right of a landlord to seize and hold possessions of a tenant, for rent in arrears, pursuant to a court order.

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.

A person who a gift is made.

A person who makes a gift.

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.

The completed dower; the right a wife may have in her husband's property upon his death.

The right a wife may have in her husband's property during his life.

A relationship which one owes fiduciary duties to both buyer and seller in a real estate transaction.

A mortgage clause permitting acceleration of the loan if the mortgagor attempts to transfer title or interest to the secured property.

Unlawful constraint or action against a person forcing him to perform some act against his will.

Initial payment made by a purchaser of real estate as evidence of good faith.

A right, privilege or interest which one party has in the land of another.

An easement that is attached to and runs with the land, it cannot exist apart from the particular land to which it is attached.

An easement which encumbers the land, and is usually given to a quasi-public corporation, such as the electric or phone company.

A method of acquiring a right to a portion of property by lapse of time in the manner of adverse possession.

The period of time over which a property may be profitably used.

See Obsolescence, referred to as External Obsolescence.

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.

Trees or crops that are cultivated annually; the right of a tenant to harvest the annual crop even after his tenancy has ended.

The right of a government to take private property for public use upon the payment of just compensation.

A building or fixture that intrudes partly or wholly upon the property of another.

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.

The placing of one's signature on a document, to make it negotiable or transferable.

Title to a purchaser under a contract of sale, or agreement of sale.

An act preventing discrimination in lending procedures.

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.

The right of an owner to reclaim property before it is sold through foreclosure proceedings by payment of the debt, interest and cost.

The gradual wearing-away of land, due to natural causes of wind and water.

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.

The reverting of property to the state when heirs capable of inheriting are lacking; or the property is abandoned.

The deposit of instruments and funds with instructions to a third neutral party to carry out the provisions of an agreement or contract.

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.

The degree, quantity, nature, and extent of interest a person has in real property.

A lease; an interest in land by virtue of a contract for the possession for a definite and limited period of time.

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.

See Certificate of No Defense.

Latin for "and others".

Latin for "and wife".

A legal proceeding by a landlord to recover possession of leased premises from a tenant due to some breach of lease contract.

A method of conveying real property by trading with another property.

A person who operates an exchange program in timesharing projects.

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.

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.

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.

A contract not yet fully performed; e.g., DROA

Clearly stated duties of an agent set forth by his principal.

Loss in value due to factors outside of the property (such as near airport).

A Federal agency which buys mortgages in the secondary money market from commercial banks and federally insured savings and loan associations; "Freddie Mac".

An agency of the Federal Government that insures certain real estate loans.

An agency formerly of the Federal Government that buys and sells mortgages in the secondary money market; "Fannie Mae".

An estate granted absolutely buy only so long as a specified event occurs or does not occur.

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.

An estate that is inheritable by particular lineal heirs.  Upon lack of such heirs the estate reverts back to the grantor or his heirs.

A person in a position of great trust and confidence, as the relationship between principal and broker.

A fee paid to a person for the services of putting together the two parties in a real estate transaction.

Federal Investment in Real Property Tax Act.  An amount withheld from the sale of Hawaii property when the seller is a foreigner.

Financial Institutions Reform, Recovery and Endorsement Act.  An act requiring appraisers be certified or licensed.

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.

A year, used for tax, corporate, and accounting purposes, beginning on a date other than Jan. 1.

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.

Procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms.

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.

The intentional and successful employment of deception in order to cheat or deceive another person and to thereby gain some dishonest advantage.

An estate in real property for an indefinite and uncertain time, such as a fee simple or a life estate.

Property measurement by the front foot on its street line or waterfront line with each front foot extending the depth of the lot.

See Obsolescence

Any loan filling the deficiency created when the permanent financing and the equity are unable to cover the total cost of a project.

A lien that attaches to all property owned by the debtor.

See Veterans Administration

Requires Escrow to clear all funds and checks before closing.

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".

A lease that provides for periodic increases of rent at regular intervals.

One where monthly payments start low and increase later.  An FHA245 is one of these.

See Nonconforming use.

A transfer of real property.

The purchaser; the person who whom an interest in realty is conveyed.

The seller; the person who conveys an interest in realty by deed.

Books found in Bureau of Conveyance showing respective grantor to grantee; or grantee to grantor by year, alphabetically.

A division of Hawaiian lands that occurred in 1848 during reign of King Kamehameha III.

The professional designation of Graduate, Realtors Institute, earned by completion of prescribed courses of study conducted by state boards of Realtors.

Total income derived from a business or income property before expenses are deducted.

A lease of property in which the lessor meets all property charges incurred through ownership.

A lease for the use of the land, usually providing for improvements to be placed on the land by the user.

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.

The portion of a deed beginning "to have and to hold," which usually follows the granting clause and explains or limits the estate granted.

Hawaii Real Property Tax.  An amount withheld from sale of Hawaii property belonging to a non-resident seller.

One who succeeds to the estate.

Every sort of inheritable property, whether corporeal, incorporeal, real, personal or mixed.

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.

An arrangement whereby escrow holds the final title documents pursuant to an agreement of sale.

A tenant who remains in possession of a property after expiration of lease term

A will written in hand by the person leaving the will and not witnessed.

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

The same or similar kind, as used in appraising; homogeneity tends to stabilize values in an area.

The name once given to the laws pertaining to condominiums in the sate of Hawaii; horizontal layers of ownership, now called Condominium Property Regime.

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

To play  property as security; to mortgage.

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.

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.

All real estate except land, Includes buildings, fixtures, fences, curbs, sewers, etc.

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.

Incomplete; not perfected.

Intangible; without physical existence

Not capable of being annulled or voided; irrevocable.

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.

To begin; to set in motion or originate.

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.

A contract that provides for payment of a purchase price in installments; an agreement of sale.  Also called installment land contract or installment sale.

An organization acting as an exchange for management ideas, and recognizing achievement in the field.  Has a Code of Ethics for real estate managers.

A written legal document.

During one's life; between living persons; from one living person to another.

A short-term loan obtained to cover financing of the construction of a building.

A person who dies without a will, or with one which is defective in form.

A lien imposed against property without consent of an owner: e.g., taxes, special assessments, federal income tax liens, and so forth.

Incapable of being recalled or revoked; unchangeable.

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.

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.

The final determination of the rights and liabilities of the parties by a court in an action before it.

A subordinate lien

A mortgage that is subordinate to prior existing mortgage on the same realty

Delay or negligence in asserting one's legal rights.

See Agreement of Sale.

A court designated to preside over the registration of land under the Torrens system; the court which is used to verify title.

An instrument conveying government-owned land to individuals.

A device to hold title to land in a trust with the beneficial ownership held by the landowner.

County code which sets forth zoning regulations for the county.

A Hawaii state law outlining the rights, obligations and remedies of a residential landlord and a tenant.

A monument or object used to establish the boundary line of a property.

A hidden structural defect in real estate, known to the seller but not the buyer and not discoverable by mere observation.

The support that the soil of an adjoining owner gives to his neighbor's land.

A contract whereby the lawful owner of the property transfers his rights of use and possession to another for a specified term.

The landlord-owners interest in the demised premises  valued as the rent plus reversionary interest.

An estate or right in real property held under a lease by the lessee.

A gift of personal property, usually money in a will.

A description, recognized by law that will definitely locate and identify property.

One who rents property under a lease contract.

An owner who enters into a lease with a tenant.

A lease; a leasehold estate.

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.

Books that contain public records such as copies of deeds.

A personal privilege to perform such act on the land of another.

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.

A limited title search issued to cover Land Court property in Hawaii.

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.

In a condominium, those common elements reserved for the use of a certain apartment, or certain apartments, to the exclusion of other apartments.

A newer form of ownership besides proprietorship, partnership, corporation, and so forth.Similar to a corporation, but no perpetual existence and single taxation.

A partnership composed of general limited partners whose contribution and liability are limited and specifically defined.

An amount predetermined by the parties to an agreement that will be forfeited as compensation for breach of contract.

A legal document giving constructive notice than an action at law is pending; a notice of pending litigation.

A written employment agreement between a property owner and a broker authorizing the listing broker to sell, lease, or exchange the realty.

A commitment by a lender as to the amount he will loan to a qualified borrower on a particular piece of real estate.

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.

Designates a person who is a member of a professional appraisal organization.

Land which barely pays the cost of working or using.

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.

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.

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.

A lien which exists against real property in favor of persons who have performed work or furnished materials for the improvements of real estate.

The absorption of one estate into another.

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.

A linear measurement of distance equal to 1760 yards, 5280 feet, or 1608 meters.

A persona under the legal age of consent; one under 18 years of age.

A false statement of a material fact made with the intent to induce some action from another party.

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.

An instrument in writing which, when recorded creates a lien upon property pledged as security for the repayment of a debt or obligation.

A corporation or firm that makes, delivers, and services mortgages loans.

A person or firm that acts as an intermediary between borrower and lender.

The party who lends money and accepts a mortgage to secure the payment of the debt.

The party who borrows money and gives a mortgage on the property as security for his obligation to repay the debt.

Passageway for subterranean termites.

An arragement amoung brokers whereby they share their listings.

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".

Those bodies of water that are capable of being used for public transportation.

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.

To transact business; to arrange terms of a contract.

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).

A lease in which the tenant pay res rent for occupancy, plus maintenance and operation expenses, and usually including taxes and insurance.

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.

One bearing no relation to the real value of the contract.  An example is a property deeded for $10.00.

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.

A written instrument acknowledging a debt and promising payment

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.

Notice to a tenant to vacate.

The substituting of a new obligation for an old one (as in a VA Substitution).

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.

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.

Amends the Comprehensive Zoning Code by permitting a second dwelling unit on certain residentially zoned lots, thus providing immediate and less expensive housing alternatives.

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.

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.

A right given for consideration to purchase or lease a property upon specified terms within a specified time.  Purchaser is the optionee.

A legislative enactment of a city or county, such as zoning.

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.

A mortgage commonly used in subdivision developments whereby chattels such as appliances are "packaged" into the mortgage along with the real property.

Creating an atmosphere of fear in persuading owners to sell; a discriminatory act.