Define the following terms: APPRAISAL

1. Abandonment - is surrendering a claim to a lease agreement by a tenant or assignee.

2. Abstract of Title - is a written record that details a property's complete legal history from its first
record of ownership to present day. An abstract of title details every title transfer and previous
owner as well as any liens or other legal actions taken against the property.

3. Accretion - in real estate, the increase of the actual land on a stream, lake, or sea by the action of
water which deposits soil upon the shoreline. Accretion is Mother Nature's little gift to a landowner.

4. Acceptance - in a real estate transaction is the exact point in time when a buyer and seller reach an
agreement on the purchase of a property.

5. Acknowledgement - is a legal term that refers to a declaration that affirms a person acted on their
own free will. In the real estate lending industry, acknowledgement is often required for a deed and
other papers.

6. Acquisition - is the process of gaining ownership or control of real property (real estate) or an
interest in real property.

7. Acquisition Cost - refers to the all-in cost to purchase an asset. These costs include shipping, sales
taxes, and customs fees, as well as the costs of site preparation, installation, and testing. When
acquiring property, acquisition costs can include surveying, closing fees, and paying off liens.

8. Agent - is a licensed professional who arranges real estate transactions, putting buyers and sellers
together and acting as their representative in negotiations. Real estate agents usually are entirely
compensated by a commission percentage of the property’s purchase price—so their income
depends on their ability to close a deal.

9. Agency - business that arranges the selling, renting, or management of homes, land, and buildings
for their owners

10. Air rights - are an essential concept to understand regarding real estate valuation. They refer to the
ownership of space above a parcel of land or building. These air rights can be sold, leased, or
transferred in other ways, allowing people to use space that would not have been possible
otherwise.

11. Alienation - refers to the process of a property owner voluntarily giving or selling the title of their
property to another party. When property is considered alienable, that means the property is able
to be sold or transferred to another party without restriction.
12. Alluvium - The resulting increase to land by the gradual addition of matter (as by the deposit of
sand or mud) that then belongs to the owner of the land to which it is added.

13. Amenity - refers to a feature of a property that makes it more valuable to potential buyers or
tenants. The term can be used to refer to features of both residential and commercial properties.
They can be featured by homeowners in real estate listings of single-family homes to attract
potential buyers or renters of a single.

14. Appreciation - is the increase in value of a property over time. This can be due to market conditions,
inflation, or improvements made to the property. Rental income from a rental property is another
potential benefit of real estate investment.

15. Appurtenance - is a real property, which is defined as being immovable or fixed to the land. In this
case, appurtenances relate to the land. Appurtenants grant the ownership of certain items to a
person who owns the property in legal transactions, such as the sale or transfer of a property.

16. Arm’s Length Transaction - is a business deal that involves parties who act independently of one
another. Both parties involved in an arm's length sale usually have no relationship with each other.
These types of deals in real estate help ensure that properties are priced at their fair market value.

17. Asset - a term that means land and any improvements made upon it that are permanent. These
improvements can be natural (water and trees) or man-made (buildings, homes, and fences).

18. Assignment - involves transferring a real estate contract from an original party (also known as the
real estate wholesaler or assignor) to a new party (also known as the assignee). It is also referred to
as an “Assignment of Real Estate Purchase and Sale” agreement.

19. Attorney in fact - is an agent authorized to act on behalf of another person, but not necessarily
authorized to practice law, e.g., a person authorized to act by a power of attorney.

20. Attachment - is where a creditor's lawyer asks the court for permission to put a lien or attach to
your land or home. Sometimes the court will grant them without the creditor getting a judgment,
but only in certain circumstances (e.g., for a mechanic's lien).

21. Avulsion - It is the deposit of known (identifiable) portion of land detached from the property of
another which is attached to the property of another because of the effect of the current of a river,
creek, or torrent.

22. Breach - occurs when a party fails to abide by its contractual obligations. In real estate, a breach of
contract can be a serious issue, potentially resulting in the termination of a transaction.
23. Bundle of Rights - is a term for the set of legal privileges that is generally afforded to a real estate
buyer with the transfer of the title.

24. Caveat - is a legal notice made to the Registrar of Titles. It records a person's interest in a property
that is not otherwise reflected in the title of the land. In other words, the 'caveator' lodges a claim
against the property of another to be included in the decisions made for that property.

25. Caveat Emptor - is a Latin phrase that translates to “let the buyer beware.” The phrase provides
notice to a buyer that the property being purchased may have unforeseen defects, and it puts the
responsibility on the buyer to perform due diligence before closing the sale.

26. Certificate of Title - is an official state or municipal-issued document that identifies the owner(s) of
personal or real property.

27. Chattel - is tangible moveable personal property that is not real property. The primary difference
between chattel and real estate is that chattel is movable while real estate is fixed permanently to
one specific location. 1. Chattel can also be understood in comparison to intangible property that
cannot be moved.

28. Chattel Mortgage - is a loan to purchase movable personal property, such as a manufactured home
or construction equipment. The property, or chattel, secures the loan, and the lender holds an
ownership interest. Chattel loans are commonly referred to as security agreements.

29. Client - “a person who has entered into a service agreement with an. industry member, whether or
not that service agreement is in. writing” A client can be a seller, buyer, landlord, or tenant who
engages a real estate professional to assist them with their real estate needs.

30. Commission - are a form of variable-pay remuneration for services rendered or products sold.
Commissions are a common way to motivate and reward salespeople.

31. Deed - is any legal instrument in writing which passes, affirms or confirms an interest, right, or
property and that is signed, attested, delivered, and in some jurisdictions, sealed.

32. Deed of Trust - refers to a type of legal instrument which is used to create a security interest in real
property and real estate.

33. Descent - means the succession to the estate property by inheritance, or by any act of law. These
are the rules of inheritance established by law for cases in which there is no will naming the
persons to receive the property of a person who has died.

34. Devise - is a legal term that traditionally has referred to a gift of real estate made by a will.
35. Easement - is defined as the grant of a nonpossessory property interest that grants the easement
holder permission to use another person's land.

36. Eminent Domain - also called “condemnation” – is the power of local, state or federal government
agencies to take private property for “public use” so long as the government pays “just
compensation.”

37. Emptio Spei - is the sale of the hope itself that the thing will come into existence, where it is agreed
that the buyer will pay the price even if the thing does not eventually exist.

38. Encumbrance - is a claim against a property by a party that is not the owner. An encumbrance can
impact the transferability of the property and restrict its free use until the encumbrance is lifted.

39. Encroachment - is defined as one property owner violating their neighbor's rights by building or
extending some feature and crossing onto their neighbor's property lines. Sometimes the
encroachment is intentional.

40. Escheat - is a legal term that refers to what happens to property (real estate or otherwise) when a
property owner dies without any inheritors. The concept of escheat allows property such as real
estate or bank accounts, even renter's security deposits, to revert to the ownership of the
government.

41. Escrow - is often used in real estate transactions whereby property, cash, and the title are held in
escrow until predetermined conditions are met.

42. Eviction - is the civil process by which a landlord can legally remove a tenant from their rental
property. An eviction may occur when the tenant stops paying rent, when the terms of the rental
agreement are breached, or in other situations permitted by law.

43. Fee simple - is a legal term used in real estate that means full and irrevocable ownership of land,
and any buildings on that land. Fee simple is the highest form of ownership, it means the land is
owned outright, without any limitations or restrictions other than local zoning ordinances. The term
fee simple applies only to real estate, which includes land, immovable property and any property
directly attached, such as a building, road, pond, or machinery.

44. Fiduciary - involving trust, especially with regard to the relationship between a trustee and a
beneficiary.

45. Fixture - is any object permanently attached to a property by way of bolts, screws, nails, glue,
cement, or other means. Items like chandeliers, ceiling fans and window treatments are generally
seen as fixtures and will stay with the house in a real estate transaction.
46. Foreclosure - is the legal process by which a lender attempts to recover the amount owed on a
defaulted loan by taking ownership of the mortgaged property and selling it.

47. Forfeiture - The seller cancels your rights under the contract because you are not meeting your end
of the agreement, such as making your monthly payments.

48. Fraud - is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal
right. Fraud can violate civil law or criminal law, or it may cause no loss of money, property, or legal
right but still be an element of another civil or criminal wrong.

49. Freehold Estate - are estates of indefinite duration that can exist for a lifetime or forever. Some
types of freehold estates are classified as "estates of inheritance," where the estate continues
beyond the life of the holder and descends to their living heirs upon death as specified by the will
or by law.

50. General Warranty Deed - provide guarantees that the grantor has the right to sell the property and
that the grantee will be receiving a title that is free of debt, claims, or other legal encumbrances.

51. Habendum Clause - refers to the transfer of ownership of a property and any accompanying
restrictions. Because the clause begins with the phrase, "To have and to hold," the habendum
clause is sometimes called the "to have and to hold clause."

52. Hold Over clause - also known as the holdover rent clause, is one of the most significant terms to
negotiate in a real estate agreement. This provision is critical for both landlord and tenants because
it prohibits the former from re-letting the space while increasing the amount of rent a tenant pays.

53. Homestead - typically refers to a permanent free-standing house, a condo, or a manufactured

home that the owner occupies as their principal residence.

54. Impound - is an account maintained by mortgage companies to collect payments for property taxes,
private mortgage insurance, and other obligations.

55. Improvements - adding value or enhancing the utility of land by erecting or affixing things on it with
the intention to adapt it to new or further uses.

56. Inheritance - refers to the assets that an individual bequeaths to their loved ones after they pass
away. An inheritance may contain cash, investments such as stocks or bonds, and other assets such
as jewelry, automobiles, art, antiques, and real estate.

57. Injunction - is an equitable remedy in the form of a special court order that compels a party to do or
refrain from specific acts.
58. Intestate - is the condition of the estate of a person who dies without having in force a valid will or
other binding declaration.

59. Joint Tenancy - is a type of joint ownership of property in the field of property law, where each
owner has an undivided interest in the property. This type of ownership creates a right of
survivorship, which means that when one owner dies, the other owners absorb the deceased
owner's interest.

60. Judgment Lien - is a court ruling giving a creditor the right to take possession of a debtor's property
if the debtor does not fulfill their obligations.

61. Junior Mortgage - refers to a second mortgage that is granted in conjunction with the approval of
an effective primary or prior mortgage.

62. Laches - An equitable doctrine used by the courts to bar a legal claim or prevent the assertion of a
right because of undue delay, negligence, or failure to assert the claim or right.

63. Land - a lot or land is a parcel of property owned or meant to be owned by someone. It comes in
various sizes and shapes and has defined boundaries or borders that are documented on land titles.

64. Land developer - a person or a company that buys land and builds houses, offices, shops, or
factories on it, or buys existing buildings and makes them more modern.

65. Lease Contract - a contract outlining the terms under which one party agrees to rent an asset in this
case, property—owned by another party. It guarantees the lessee, also known as the tenant, use of
the property and guarantees the lessor (the property owner or landlord) regular payments for a
specified period in exchange.

66. Leasehold - is an asset being leased, such as a building or unit in a building. A renter makes a
contract with the owner or landlord to use the property in question, in exchange for a series of
payments over the duration of the lease.

67. Lessee - is a person who rents land or property and must follow restrictions and guidelines set by a
lease agreement.

68. Lessor - is a participant of the lease who takes possession of the property and provides it as a
leasing subject to the lessee for temporary possession.

69. Lien - a right to keep possession of property belonging to another person until a debt owed by that
person is discharged.
70. Life Estate - is property owned by an individual during their lifetime and prevents beneficiaries from
selling the property before death.

71. Listing - a list or catalog. Enumeration of a set of items in the form of a list

72. Litigation - the process of taking legal action.

73. Lis Pendens - is an official, public notice that a property has a pending lawsuit or claim attached to
it. Lis pendens can only be filed if a claim is related specifically to the property; however, most laws
specify that the property owner must assume any litigation associated with it.

74. Master Plan - is a document and policy guide designed to help communities create a vision of what
they want to look like in the future.

75. Mechanics Lien - is a "hold" against your property, filed by an unpaid contractor, subcontractor,
laborer, or material supplier, and is recorded with the county recorder's office. If unpaid, it allows a
foreclosure action, forcing the sale of the property in lieu of compensation.

76. Moratorium - is the suspension of activity or an authorized period of delay or waiting. This can
apply to real estate in a variety of ways.

77. Mortgage - is a type of loan used to purchase or maintain a home, land, or other types of real
estate.

78. Mortgagee - is a lender: specifically, an entity that lends money to a borrower for the purpose of
purchasing real estate. In a mortgage transaction, the lender serves as the mortgagee and the
borrower is known as the mortgagor.

79. Multiple Listing - is a database established by cooperating real estate brokers to provide data about
properties for sale. An MLS allows brokers to see one another's listings of properties for sale with
the goal of connecting homebuyers to sellers.

80. Net Lease - refers to a contractual agreement where a lessee pays a portion or all of the taxes,
insurance fees, and maintenance costs for a property in addition to rent.

81. Net Listing - is a type of listing in which an owner sets a certain amount of money that they want to
receive from the sale of their home. The listing agent receives any amount of money that the
property sells for that exceeds the set amount. A listing agent does not receive a commission for a
net listing.
82. Notice to Quit - the notice given by a landlord (owner) to a tenant to leave the premises (quit)
either by a certain date (usually 30 days) or to pay overdue rent or correct some other default
(having pets, having caused damage, too many roommates, using the property for illegal purposes,
etc.)

83. Open Listing - is a property for sale which may be shown by multiple real estate agents. The agents
compete to find a buyer for the property.

84. Open Mortgage - is a mortgage that permits repayment of the principal amount at any time,
without penalty. In open mortgage repayment terms are more flexible than a closed mortgage,
which do not usually allow for prepayment without penalty.

85. Option - the power or right to choose: freedom of choice

86. Ordinance - a piece of legislation enacted by a municipal authority.

87. Ownership - is the state or fact of legal possession and control over property, which may be any
asset, tangible, or intangible. Ownership can involve multiple rights, collectively referred to as title,
which may be separated and held by different parties.

88. Pacto de Retro Sale - the ownership of the property sold is immediately transferred to the vendee a
retro, subject only to the repurchase by the vendor a retro within the stipulated period.

89. Pacto Commissorium - is a stipulation empowering the creditor to appropriate the thing given as
security for the fulfillment of the obligation in the event the obligor fails to pay, without further
formality, such as foreclosure proceedings, and a public sale.

90. Percentage Lease - is a type of lease where the tenant pays a base rent plus a percentage of any
revenue earned while doing business on the rental premises. It is a term used in commercial real
estate.

91. Personal Property - refers to the items that people own such as furniture, appliances, or electronics.
In short, these items differ from real property because they are movable. Personal property can be
intangible, as in the case of stocks and bonds, or tangible, such as clothes or artwork.

92. Plans and Specification - the final set of architectural, structural, mechanical, electrical, grading,
sewer, water, street and utility plans and specifications for the Project, including all supplemental,
amendments and modifications.
93. Plottage - is the increase in value realized by combining adjacent parcels of land into one larger
parcel. The process of combining the parcels is known as assemblage. Generally, the value of the
whole parcel will be greater than the sum of the individual smaller parcels.

94. Police Power - refers to the authority exhibited by state governments in enforcing safety and
security requirements regarding property ownership and building construction.

95. Power of Attorney - is a legal document that allows someone else to act on your behalf. Powers of
attorney (POA) can be helpful to older people and others who want to choose a trusted person to
act on their behalf when they cannot.

96. Prepayment Clause - states that a penalty will be assessed if the borrower significantly pays down
or pays off the mortgage, usually within the first five years of the loan.

97. Prescription - an instruction written by a medical practitioner that authorizes a patient to be

provided a medicine or treatment.

98. Probate - describes the legal process for reviewing the will and assets of a deceased person, often
called a decedent, and determining how those assets will be distributed.

99. Appraisal - is an assessment of the fair market value of a property, business, antique, or even a
collectible.