TERM DEFINITION

Acceleration Clause A provision in a mortgage that gives the lender the right to demand payment of the entire principal
balance if a monthly payment is missed. The clause in a mortgage or deed of trust that can be enforced to
make the entire debt due immediately if the borrower defaults on an installment payment or other
covenant.

Abandonment Surrender of property rights with no intention of reclaiming them mere nonuse is not necessarily
abandonment.
Abstract A summary; an abridgement. Before the use of photo static copying, public records were kept by
abstracts of recorded documents
Abstract Of Title The condensed history of a title to a particular parcel of real estate, consisting of a summary of the
original grant and all subsequent conveyances and encumbrances affecting the property and certification
by the abstractor that the history is complete and accurate.

Acceptance An offeree’s consent to enter into a contract and be bound by the terms of the offer.
Accession Acquiring title to additions or improvements to real property as a result of the annexation of fixtures or
the accretion of alluvial deposits along the banks of streams.
Account Relationship under a particular name, usually evidenced by a deposit against which withdrawals can be
made. Among them are demand, time, custodial, joint, trustee, corporate, special, and regular accounts.

Accretion The increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake or
sea.
Accrued Interest Interest that has accumulated between the most recent payment and the sale of a bond or other fixed
income security. Accrued interest is calculated by multiplying the rate by the number of days that have
elapsed since last payment.

Accrued Items On a closing statement, items of expense that are incurred but not yet payable, such as interest on a
mortgage loan or taxes on real property.
Acknowledgment A formal declaration made before a duly authorized officer, usually a notary public, by a person who has
signed a document
Acquired Lands Lands owned by the United States, obtained by purchase, donation, or condemnation.
Acquisition Real property acquired by purchase, condemnation, donation, new construction, exchange, or assignment/
reassignment by GSA.
Acre A measure of land equal to 43,560 square feet, 4,840 square yards, 4,047 square meters, 160 square rods
or 0.4047 hectares. The (English) acre is a unit of area equal to 43,560 square feet, or 10 square chains,
or 160 square poles. It derives from a plowing area that is 4 poles wide and a furlong (40 poles) long. A
square mile is 640 acres. The Scottish acre is 1.27 English acres. The Irish acre is 1.6 English acres.

Activation (AF) Starting up an Air Force function at an Air Force installation or facility.
Actual Eviction The legal process that results in the tenants being physically removed from the leased premises.
Actual Notice Express information or fact; that is which known; direct knowledge
Ad Quod Damnum A writ causing an evaluation of damages that might result from someone's actions. Example: you wish to
dam a creek on your land to power a mill. The pond may damage another's land.
Ad Valorem Tax A tax levied according to value, generally used to refer to real estate tax. Also called the general tax.
Additional Principal Payment A payment by a borrower of more than the scheduled principal amount due in order to reduce the
remaining balance on the loan.
Adjustable-Rate Mortgage A loan characterized by fluctuating interest rate, usually one tied to a bank or savings and loan
(ARM) association cost-of-funds index. A mortgage that permits the lender to adjust the mortgage's interest rate
periodically on the basis of changes in a specified index. Interest rates may move up or down, as market
conditions change.

Adjusted Basis The original cost of a property plus the value of any capital expenditures for improvements to the
property minus any depreciation taken. See Basis
Adjustment Date The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
Adjustment Period The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).
Administrator Or A person appointed by the court to settle the estate of someone who died interstate.
Administratrix
Admit See Copyhold.
Adverse Possession Gaining title to another's land by exercising the rights of ownership of that land unchallenged for a
period of time, typically on the order of five to ten years, and meeting other requirements (as set by each
state). See Seizin.

Affidavit Of Title A written statement, made under oath by a seller or grantor of real property and acknowledged by a
notary public, in which the grantor (1) identifies himself or herself and indicates marital status (2)
certifies that since the examination of the title on the date of the contracts no defects have occurred in the
title and (3) certifies that he or she is in possession of the property. (if applicable)

Affordability Analysis A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into
consideration your income, liabilities, and available funds, along with the type of mortgage you plan to
use, the area where you want to purchase a home, and the closing costs that you might expect to pay.

Air Rights The right to use the open space above a property, usually allowing the surface to be used for another
purpose.
Alien To transfer (lands, title) to another.
Alienation A transfer of title or property to another.
Alienation Clause The clause in a mortgage or deed of trust that states that the balance of the secured debt becomes
immediately due and payable at the lender's option if the property is sold by the barrower. In effect this
clause prevents the borrower from assigning the debt without the lender's approval.

Aliquot The description of fractional section ownership used in the U.S. public land states. A parcel is generally
identified by its section, township, and range. The aliquot specifies its precise location within the section,
for example, the northwest quarter of the southeast quarter.

Allodial See Alodium

Allodial System A system of land ownership in which the land is held free and clear of rent or service due to the
government; commonly contrasted to the feudal system. Land is held under the allodial system in the
United States.

Alodium Land owned independently, without rent or other obligation to another. See Freehold Estate. The allodial
(also 'allodial') system is opposed to the feudal system.
Ambient Air Quality Standards established on a state or federal level that define the limits for airborne concentrations of
Standards designated criteria pollutants (nitrogen dioxide, sulfur dioxide, carbon monoxide, ozone, lead), to protect
public health with an adequate margin of safety (primary standards) and public welfare, including plant
and animal life, visibility, and materials (secondary standards).

Amenity A feature of real property that enhances its attractiveness and increases the occupant’s or user’s
satisfaction although the feature is not essential to the property’s use. Natural amenities include a
pleasant or desirable location near water, scenic views of the surrounding area, etc. Human-made
amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.
American Land Title A title insurance policy that protects the interest in a collaterals property of a mortgage lender who
Association (ALTA) Policy originates a new real estate loan.

Amortization The gradual repayment of a mortgage loan by installments.

Amortization Schedule A schedule showing each payment of a loan to be amortized and breaking down the payment into the
amount applied to principal and the amount applied to interest. A timetable for payment of a mortgage
loan. An amortization schedule shows the amount of each payment applied to interest and principal and
shows the remaining balance after each payment is made.

Amortization Term The amount of time required to amortize the mortgage loan. The amortization term is expressed as a
number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.

Amortize To repay a mortgage with regular payments that cover both principal and interest.
Amortized Loan A loan in which the principal as well as the interest payable in monthly or other periodic installments
over the term of the loan.
Annexation A procedure by which a municipality, such as a city, town, or village, incorporates land within the
corporate limits of the municipality; procedures vary depending on state law.
Annual Mortgagor Statement A report sent to the mortgagor (the borrower) each year. The report shows how much was paid in taxes
and interest during the year, as well as the remaining mortgage loan balance at the end of the year.

Annual Percentage Rate The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and
(APR) loan origination fee (points). The relationship of the total finance charges associated with a loan. This
must be disclosed to borrowers by lenders under the Truth-in-Lending act. The yearly interest
percentage as expressed by the actual rate of interest paid. For example: 6% add on interest would be
much more than 6% simple interest.

Annuity An amount paid yearly or at other regular intervals, often on a guaranteed dollar basis.
Anticipation The appraisal principal that holds that value can increase or decrease based on the expectation of some
future benefit or detriment produced by the property
Antitrust Laws Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private
conspiracies and combinations formed to minimize competition. Most violations of antitrust laws in the
real estate business involve either price-fixing (brokers conspiring to set fixed compensation rates) or
allocation of customers or markets (brokers agreeing to limit their areas of trade or dealing to certain
areas or properties.

Application A form used to apply for a mortgage loan and to record pertinent information concerning a prospective
mortgagor and the proposed security. Lenders use the information on the loan application to evaluate
whether or not they can give the loan, and if so, the amount of money they can lend.

Appraisal An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested
persons of suitable qualifications. An estimate of the quantity, quality or value of something. The
process through which conclusions of property value are obtained; also refers to the report that sets forth
the process of estimation and conclusion of value. A written analysis of the estimated value of a
property prepared by a qualified appraiser. Contrast with home inspection.

Appraised Value An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and
analysis of the property.
Appraiser A person qualified by education, training, and experience to estimate the value of real property and
personal property.
Appreciation An increase in the value of a property due to changes in market conditions or other causes. The opposite
of depreciation. An increase in the worth or value of a property due to economic or related causes,
which may prove to be either temporary or permanently opposite of depreciation.
Appurtenance Easement An easement that is annexed to the ownership of one parcel and allows the owner the use of neighbor's
land.
Appurtenances Easements, rights of way, or agreements attached to land.
Armory A structure that houses one or more units of a Reserve Component and is used for training and
administering those units. It includes adjacent or supporting structures and improvements that are used
for unit training.

Arpent Unit of length and area used in France, Louisiana, and Canada. As a unit of length, approximately 191.8
feet (180 old French 'pied', or foot). The (square) arpent is a unit of area, approximately .845 acres, or
36,802 square feet.

Artifact Any product of human cultural activity; more specifically, any tools, weapons, artworks, etc, found in
archeological contexts.
Asbestos A carcinogenic substance formerly used widely as an insulation material by the construction industry
and often found in older buildings.
Assemblage The combining of two or more adjoining lots into one larger tract to increase their total value.
Assessed Value The valuation placed on property by a public tax assessor for purposes of taxation. Value placed upon
property for property tax purposes.
Assessment The imposition of a tax, charge or levy, usually according to established rates. The process of placing a
value on property for the strict purpose of taxation. May also refer to a levy against property for a special
purpose, such as a sewer assessment.

Assessment Rolls The public record of taxable property.

Assessor A public official who establishes the value of a property for taxation purposes.
Asset Anything of monetary value that is owned by a person. Assets include real property, personal property,
and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on). More

Assignment The transfer of a mortgage from one person to another. The transfer in writing of interest in a bond,
mortgage, lease or other instrument.
Assigns Anyone acting on behalf of or in place of the nominal owner. The owner may have transferred his rights
to someone else or appointed an attorney to act on his behalf.
Assumable Mortgage A mortgage that can be taken over ("assumed") by the buyer when a home is sold.
Assumption The transfer of the seller’s existing mortgage to the buyer. See assumable mortgage.
Assumption Clause A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage
from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of
the property.

Assumption Fee
Assumption Of Mortgage
At Will
Attachment
Attainment Area
Attorney-In-Fact
Attorney's Opinion Of Title
The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an
existing mortgage.
Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable
for the terms and conditions of the mortgage, including payments.
Terminable by the lord of the manor at any time.
The act of taking a person's property into legal custody by writ or other judicial order to hold it available
for application to that person's debt to a creditor.
An area that meets the National Ambient Air Quality Standards for a criteria pollutant under the Clean
Air Act or meets state air quality standards.
One who holds a power of attorney from another to execute documents on behalf of the grantor of the
power.
An abstract of title that an attorney has examined and has certified to be, in his or her opinion, an
accurate statement of the facts concerning the property ownership.
Automated Underwriting Computer systems that permit lenders to expededite the loan approval process and reduce lending cost.

Automatic Extension A clause in a listing agreement that states that the agreement will continue automatically for a certain
period of time after its expiration date. In many states, use of this clause is discouraged or prohibit
Auxiliary Installation (AF) An installation with an aircraft operating area that provides operational activities in support of a primary
installation and depends upon a primary installation for administrative and logistical support.

Avulsion The sudden tearing away of land, as by earthquake, flood, volcanic action or the sudden change in the
course of stream.
Balance The appraisal principal that holds that value can increase or decrease based on the expectation of some
future benefit or detriment produced by the property
Balance Sheet A financial statement that shows assets, liabilities, and net worth as of a specific date.
Balloon (1) A final payment of a balloon note. (2) A landlocked parcel of land.
Balloon Mortgage A mortgage that has level monthly payments that will amortize it over a stated term but that provides for
a lump sum payment to be due at the end of an earlier specified term. The principal and interest on the
loan are amortized over a longer period than the actual term of the mortgage.

Balloon Note A note calling for periodic payments which are insufficient to fully amortize the face amount of the note
prior to maturity, so that a principal sum known as a "balloon" is due at maturity.
Balloon Payment A final payment of a mortgage loan that is considerably larger than the required periodic payments
because the loan amount was not fully amortized. The final lump sum payment that is made at the
maturity date of a balloon mortgage.

Balls Slang for numeric .00, as in 4

Bank Edge of a stream.
Bankrupt A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts
after the surrender of all assets to a court-appointed trustee.
Bankruptcy A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the
debts by transferring his or her assets to a trustee.
Bargain Mutual agreement among two or more people to exchange or purchase goods.
Bargain And Sale Deed A deed that carries with it no warranties against liens or other encumbrances but that does not imply that
the grantor has the right to convey title. The grantor may add warranties to the deed at his or her
discretion.

Base Line The mail imaginary line running east and west and crossing a principal meridian at a definite point, used
by surveyors for reference in locating and describing land under the rectangular (government) survey
system of legal description.

Basis The financial interest that the Internal Revenue Service attributes to an owner of an investment property
for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property
was acquired by purchase, the owner's basis is the cost of the property plus the value of any capital
expenditures for improvements to the property, minus any depreciation allowable or actually taken. This
new basis is called the adjusted basis.

Before-Tax Income Income before taxes are deducted.

Bench Mark A permanent reference mark or point established for use by surveyors in measuring differences in
elevation. A survey mark made on a monument having a known location and elevation, serving as a
reference point for surveying.

Beneficiary (1) The person for whom a trust operates or in whose behalf the income from a trust estate is drawn. (2)
A lender in a deed of trust loan transaction. The person designated to receive the income from a trust,
estate, or a deed of trust.

Bequest A gift of personal property made in a will. See also Devise. To transfer personal property through a will.
Betterment An improvement that increases property value as distinguished from repairs or replacements that simply
maintain value.
Bilateral Contract See Contract
Bill of Sale A written document that transfers title to personal property.
Binder An agreement that may accompany an earnest money deposit for the purchase of real property as
evidence of the purchaser's good faith and intent to complete the transaction. A preliminary agreement,
secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

Biweekly Payment Mortgage A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly
payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly
payment that would be required if the loan were a standard 30-year fixed-rate mortgage, and they are
usually drafted from the borrower’s bank account. The result for the borrower is a substantial savings in
interest.

Blanket Insurance Policy A single policy that covers more than one piece of property (or more than one person).

Blanket Loan A mortgage covering more than one parcel of real estate, providing for each parcel's partial release from
the mortgage lien upon repayment of a definite portion of the debt.
Blanket Mortgage The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units
within the project.
Blockbusting The illegal practice of inducing homeowners to sell their properties by making representations regarding
the entry or prospective entry of persons of a particular race or nationality into the neighbors.

Blue-Sky Laws Common name for those state and federal laws that regulate the registration and sale of investment
securities.
Bona Fide In good faith, without fraud.
Bond An interest-bearing certificate of debt with a maturity date. An obligation of a government or business
corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.

Book Value The value of a property as a capital asset (cost plus additions to value, less depreciation).
Boot Money or property given to make up any differences in value or equity between two properties in an
exchange.
Bottom Land along a river.
BRAC Base closure and realignment, related to or actions of the Defense Base Closure and Realignment
Commission in accordance with the Defense Base Closure and Realignment Act of 1990 (Public Law
100-510).

Branch Small stream.

Branch Office A secondary place of business apart from the principal or main office from which real estate business is
conducted. A branch office usually must be run by a licensed real estate broker working on behalf of the
broker.

Breach A violation of any legal obligation.

Breach Of Contract Violation of any terms or conditions in a contract with out legal excuse; for example, failure to make
payment when its due.
Bridge Loan A form of interim loan, generally made between a short term loan and a permanent (long term) loan,
when the borrower needs to have more time before taking the long term financing. A form of second
trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that
allows the proceeds to be used for closing on a new house before the present home is sold. Also known
as "swing loan."
Broker One who acts as an intermediary on behalf of others for a fee or commission. A person who, for a
commission or a fee, brings parties together and assists in negotiating contracts between them.
Brokerage The bringing together of parties interested in making a real estate transaction
Brook Small stream.
Budget A detailed plan of income and expenses expected over a certain period of time. A budget can provide
guidelines for managing future investments and expenses.
Budget Category A category of income or expense data that you can use in a budget. You can also define your own budget
categories and add them to some or all of the budgets you create. "Rent" is an example of an expense
category. "Salary" is a typical income category.

Buffer Zone A strip of land, usually used as a park or designated for a similar use, separating land and dedicated to
another use.
Building (AF) A physical plant and its improvements, including installed, permanently attached building equipment
that helps personnel use the building and its systems.
Building Code An ordinance that specifies minimum standards of construction for buildings to protect public safety and
health. Local regulations that control design, construction, and materials used in construction. Building
codes are based on safety and health standards.

Building Construction, A building suitable and appropriate to serve a specific purpose for a maximum period of time (minimum
Permanent 25 years) and with a minimum of maintenance.

Building Construction, Semi- A building suitable and appropriate to serve a specific purpose for a limited period of time (less than 25
Permanent years and more than 5 years) with a moderate to high degree of maintenance

Building Construction, A building suitable and appropriate to fill a need for a short period of time (5 years or less) without
Temporary regard to degree of maintenance, the designs and details of which provide minimum facilities with
maximum initial economies

Building Permit Written governmental permission for the construction, alteration or demolition of an improvement,
showing compliance with building codes and zoning ordinances.
Bulk Transfer See Uniform Commercial Code
Bundle Of Legal Rights The concept of land ownership that includes ownership in all legal rights to the land-for example,
possession, control within the law and enjoyment.
Burn See shoot
Buy Down A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the
form of discount points are given to the lender by the builder or seller to by down or lower the effective
interest rate paid by the buyer, this reducing the monthly payments for a set time.

Buydown Account An account in which funds are held so that they can be applied as part of the monthly mortgage payment
as each payment comes due during the period that an interest rate buydown plan is in effect.
Buydown Mortgage A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to
reduce a borrower’s monthly payments during the first few years of a mortgage. A permanent buydown
reduces the interest rate over the entire life of a mortgage.

Buyer-Agency Agreement A principal-agent relationship in which the broker is the agent for the buyer, with fiduciary
responsibilities to the buyer. The broker represents the buyer under the law of agency.

Buyer's Agent A residential real estate broker or salesperson who represents the prospective purchaser in a transaction.
The buyer's agent owes the buyer/principal the common-law or statutory agency duties.
Buyer's Broker A residential real estate broker who represents prospective buyers exclusively, as they buyer's agent, the
broker owes the buyer/principal the common-law statutory agency duties.
Cadastral Map Land ownership map. Generally used for tax purposes.
Cadastral Record A public record, survey, or map of the value, extent, and ownership of land as a basis for taxation.
Such records for Army-controlled lands are maintained exclusively by the Corps of Engineers
Call Any feature, landmark, or measurement called out in a survey. For example, "two white oaks next to the
creek" is a call.
Call Option A provision in the mortgage that gives the mortgagee (the lender) the right to call the mortgage due and
payable at the end of a specified period for whatever reason.
Cap A provision of an adjustable-rate mortgage (ARM) that limits how much the interest rate or mortgage
payments may increase or decrease. See lifetime payment cap, lifetime rate cap, periodic payment cap,
and periodic rate cap.

Capital (1) Money used to create income, either as an investment in a business or an income property. (2) The
money or property comprising the wealth owned or used by a person or business enterprise. (3) The
accumulated wealth of a person or business. (4) The net worth of a business represented by the amount
by which its assets exceed liabilities.

Capital Gain Profit earned from the sale of an asset.

Capital Improvement
Capitalization
Any structure or component erected as a permanent improvement to real property that adds to its value
and useful life.
A mathematical process for estimating the value of a property using a proper rate of return on the
investment and the annual net operating income expected to be produced by the property. The formula is
expressed Income (over) rate = value

Capitalization Rate The rate of return a property will produce on the owner's investment
Cash Flow In investment property, the actual cash the investor will receive after deduction of operating expenses
and debt service (loan payment) from his gross income. The net spendable income from and investment,
determined by deducting all operating and fixed expenses from the gross income. When expenses exceed
income, a negative cash flow results.

Cash Rent In an agricultural lease, the amount of money given as rent to the land owner at the outset of the lease, as
opposed to sharecropping.
Cash-Out Refinance A refinance transaction in which the amount of money received from the new loan exceeds the total of
the money needed to repay the existing first mortgage, closing costs, points, and the amount required to
satisfy any outstanding subordinate mortgage liens. In other words, a refinance transaction in which the
borrower receives additional cash that can be used for any purpose.

Category (AF)
Category Code (AF)
Caveat Emptor
Certificate Of Deposit (CD)
A collective title or main heading for real property facilities with similar functions. Categories simplify
referencing and reporting.
The six-digit code identifying the function of the real property facility.
A Latin phrase meaning "let the buyer beware"
A specific sum of money deposited into a savings institution for a specified time period, and bearing a
higher rate of interest than a passbook account if left to maturity. Does not have withdrawal privileges as
does a passbook account. Also called a time certificate of deposit. (T.C.D.) A document written by a
bank or other financial institution that is evidence of a deposit, with the issuer's promise to return the
deposit plus earnings at a specified interest rate within a specified time period. See adjustable rate
mortgage (ARM).

Certificate of Deposit Index An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM)
plans. It represents the weekly average of secondary market interest rates on six-month negotiable
certificates of deposit. See adjustable-rate mortgage.

Certificate of Eligibility A document issued by the federal government certifying a veteran's eligibility for a Department of
Veterans Affairs (VA) mortgage.
Certificate of Reasonable A document issued by the Department of Veterans Affairs (VA) that establishes the maximum value and
Value (CRV) loan amount for a VA mortgage.

Certificate Of Reasonable A form indicating the appraised value of a property being financed with a VA loan
Value (CRV)
Certificate Of Sale The document generally given to the purchaser at a tax foreclosure sale. A certificate of sale does not
convey title; normally it is an instrument certifying that the holder received title to the property after the
redemption period passed and that the holder paid the property taxes for that interim period.

Certificate of Title A statement provided by an abstract company, title company, or attorney stating that the title to real
estate is legally held by the current owner. A statement of opinion on the status of the title to a parcel or
real property based on an examination of specified public records.

Certified Check A personal check drawn by an individual which is certified (guaranteed) to be good. The bank holds the
funds to pay the certified check and will not pay any other checks drawn on the account if such payment
would impede payment of the certified check. The bank also will not honor a stop payment of a certified
check.

Cession Ceding or yielding by a state of its legislative jurisdiction over government-controlled real property to
the federal government
Chain Unit of length usually understood to be Gunter's chain, but possibly variant by locale. Chains equal to 2
poles (one half the standard length) are found in Virginia. The name comes from the heavy metal chain
of 100 links that was used by surveyors to measure property bounds.

Chain Carrier An assistant to the surveyor, the chain carriers moved the surveying chain from one location to another
under the direction of the surveyor. This was a position of some responsibility, and the chain carriers
took an oath as "sworn chain carriers" that they would do their job properly.

Chain Of Title The history of all of the documents that transfer title to a parcel of real property, starting with the earliest
existing document and ending with the most recent.
Change The appraisal principal that holds that no physical or economic condition remains constant.
Change Frequency The frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage
(ARM).
Chattel A tangible, movable article of personal property, as opposed to real property. Another name for personal
property.
Civil Rights Act Of 1866 An act that prohibits racial discrimination in the sale and rental of housing.
Claim See Entry.
Clear Title A title that is free of liens or legal questions as to ownership of the property.
Clearance - Deep Clearance A range clearance that is usually required only at “point” locations (for example, where deep
underground utilities or the foundations of a large building are to be placed). The area is cleared by use
of mine detectors in 5-foot layers to the necessary depth.

Clearance - Moderate-Depth A range clearance, following surface and shallow clearance, to a depth of 5 feet, using a detector system
Clearance more sensitive than the service mine detector. All items located are dug up and disposed of properly.
Moderate depth clearance is required when an area is to undergo development

Clearance - Shallow A range clearance operation where the area is systematically swept with standard service mine
Clearance detectors. Ferrous cased duds on the surface and down to a depth of 20-24 inches should be located,
removed, and disposed of properly. The use of shallow-cleared areas is restricted to activities causing
only shallow surface disturbance, such as agriculture.

Clearance - Surface A range clearance operation where the surface area is searched visually and dud and other munitions
Clearance contamination are removed and disposed of properly. Surface-cleared ranges are restricted to activities
that require no ground breaking and limited access.

Close In BRAC, all missions of the base will cease or be relocated. All personnel (military, civilian, and
contractor) will either be eliminated or relocated. The entire base will be excessed and the property
disposed of.
Close, Except In BRAC, the vast majority of the missions will cease or be relocated. Over 95 percent of the military,
civilian, and contractor personnel will either be eliminated or relocated. All but a small portion of a base
will be excessed and the property disposed of. The small portion retained will often be facilities in an
enclave for use by the Reserve Component. Generally, Active Component management of the base will
cease. Outlying, unmanned ranges or training areas retained for Reserve Component use do not count
against the “small portion retained".

Closing A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and
paying closing costs. Also called "settlement." At this meeting, ownership of the property is transferred
from the seller to the buyer.

Closing Cost Item A fee or amount that a home buyer must pay at closing for a single service, tax, or product. Closing costs
are made up of individual closing cost items such as origination fees and attorney's fees. Many closing
cost items are included as numbered items on the HUD-1 statement.

Closing Costs Expenses incidental to a sale of real estate, such as loan fees, title fees, appraisal fees, etc. Expenses
(over and above the price of the property) incurred by buyers and sellers in transferring ownership of a
property. Closing costs normally include an origination fee, an attorney's fee, taxes, an amount placed in
escrow, and charges for obtaining title insurance and a survey. Closing costs percentage will vary
according to the area of the country; lenders or Realtors® often provide estimates of closing costs to
prospective homebuyers.

Closing Statement The statement which lists the financial settlement between the buyer and the seller, and also the costs
each must pay. A separate statement for buyer and seller is sometimes prepared. See HUD-1 statement.

Cloud On Title Any document, claim, unreleased lien or encumbrance that may impair the title to real property or make
the title doubtful; usually revealed by a title search and removed by either quitclaim deed or suit to quiet
title. Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds
on title cannot be removed except by a quitclaim deed, release, or court action.

Code Of Ethics A written system of standards for ethical conduct.

Codicil A supplement or an addition to a will, executed with the same formalities as a will, that normally does no
revoke the entire will.
Coinsurance A sharing of insurance risk between the insurer and the insured. Coinsurance depends on the relationship
between the amount of the policy and a specified percentage of the actual value of the property insured
at the time of the loss.

Coinsurance Clause A clause in insurance policies covering real property that requires the policy-holder to maintain fire
insurance coverage generally equal to at least 80% of the property's actual replacement cost. A provision
in a hazard insurance policy that states the amount of coverage that must be maintained -- as a
percentage of the total value of the property -- for the insured to collect the full amount of a loss.

Collateral Property put up by someone getting a loan. If they fail to repay the loan, the property goes to the person
granting the loan. An asset (such as a car or a home) that guarantees the repayment of a loan. The
borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.

Collateral Equipment (AF) For accounting purposes, equipment attached to a building or utility that helps the facility operate. Bases
identify these items in the base equipment management office (BEMO) property account and the
equipment authorization inventory data (EAID)

Collateral Security Most commonly used to mean some security in addition to the personal obligation of the borrower.
Collection The efforts used to bring a delinquent mortgage current and to file the necessary notices to proceed with
foreclosure when necessary.
Color Of Title A deed appearing to convey title but in fact not conveying title, either because the grantor did not have
title to convey or because the conveyance was flawed in some way.
Colpa Old Irish measure of land equal to that which can support a horse or cow for a year. Approximately an
Irish acre of good land.
Co-Maker A person who signs a promissory note along with the borrower. A co-maker's signature guarantees that
the loan will be repaid, because the borrower and the co-maker are equally responsible for the
repayment. See endorser.

Commingling The illegal act by a real estate broker of placing client or customer funds with personal funds. By law
brokers are required to maintain a separate trust of escrow account for the other parties' funds held
temporarily by the broker.

Commission The fee charged by a broker or agent for negotiating a real estate or loan transaction. A commission is
generally a percentage of the price of the property or loan. Payment to a broker for services rendered,
such as in the sale or purchase of real property; usually a percentage of the selling price of the property.

Commitment Letter
Common Area Assessments
A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer. Also
known as a "loan commitment."
Levies against individual unit owners in a condominium or planned unit development (PUD) project for
additional capital to defray homeowners' association costs and expenses and to repair, replace, maintain,
improve, or operate the common areas of the project.

Common Areas Those portions of a building, land, and amenities owned (or managed) by a planned unit development
(PUD) or condominium project's homeowners' association (or a cooperative project's cooperative
corporation) that are used by all of the unit owners, who share in the common expenses of their operation
and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities,
as well as common corridors of buildings, parking areas, means of ingress and egress, etc.

Common Elements Parts of a property that are necessary or convenient to the existence, maintenance and safety of a
condominium or are normally in common use by all of the condominium residents. Each condominium
owner has an undivided ownership interest in the common elements.

Common Law The body of law based on custom usage and court decisions. An unwritten body of law based on general
custom in England and used to an extent in the United States.
Community Land Trust An alternative financing option that enables low- and moderate-income home buyers to purchase
Mortgage Option housing that has been improved by a nonprofit Community Land Trust and to lease the land on which
the property stands.

Community Property
A system of property ownership based on the theory that each spouse has an equal interest in the
property acquired by the efforts of either spouse during marriage. A holdover of Spanish law found
predominantly in western states; the system was unknown and infer English common law. In some
western and southwestern states, a form of ownership under which property acquired during a marriage
is presumed to be owned jointly unless acquired as separate property of either spouse.

Community Seconds®
An alternative financing option for low- and moderate-income households under which an investor
purchases a first mortgage that has a subsidized second mortgage behind it. The second mortgage may be
issued by a state, county, or local housing agency, foundation, or nonprofit organization. Payment on the
second mortgage is often deferred and carries a very low interest rate (or no interest rate at all). Part of
the debt may be forgiven incrementally for each year the buyer remains in the home.

Comparables An abbreviation for "comparable properties"; used for comparative purposes in the appraisal process.
Comparables are properties like the property under consideration; they have reasonably the same size,
location, and amenities and have recently been sold. Comparables help the appraiser determine the
approximate fair market value of the subject property. Properties used in an appraisal report that are
substantially equivalent to the subject property.

Competition The appraisal principle that states that excess profits generate completion.
Competitive Market Analysis A comparison of the prices of recently sold homes that are similar to a listing seller's home in terms of
(CMA) location, style and amenities.
Compound Interest Interest paid on the accumulated interest as well as the principal. Interest paid on the original principal
balance and on the accrued and unpaid interest.
Comprehensive A federal law administered by the environmental protection agency that establishes a process for
Environmental Response, identifying parties responsible for creating hazardous waste sites, forcing liable parties to clean up toxic
sites, bringing legal action against responsible parties and funding the abatement of toxic sites--See
Compensation and Liability
Superfund.
Act (CERCLA)

Comprehensive Plan See Master Plan

Computerized Loan An electronic network for handling loan applications through remote computer terminals linked to
Origination (CLO) System various lenders' computers.

Condemn The taking of privately owned land for public use by eminent domain. In the U.S. just compensation
must be provided for any lands thus taken.
Condemnation Acquisition of real estate through conversion to public use under the right of eminent domain, The
acquisition of real estate not being offered for sale that is necessary for government operations by its
superior (“eminent”) authority over the land (“domain”). Condemnation results in passage of title and
land to the government with or without the consent of the landowner, but with just compensation paid to
the landowner. The purchase price is determined during the condemnation proceedings. The
determination that a building is not fit for use or is dangerous and must be destroyed; the taking of
private property for a public purpose through an exercise of the right of eminent domain.

Condemnation (AF) A judicial proceeding that the Government implements so it can exercise its right of eminent domain
over real property.
Condition (AF) The physical ability of a facility to house an organization or function. See Conditional line.
Conditional line An agreed line between neighbors that has not been surveyed, or which has been surveyed but not
granted.
Conditional-Use Permit Written governmental permission allowing a use inconsistent with zoning but necessary for the common
good, such as locating an emergency medical facility in a predominantly residential area.
Condominium The absolute ownership of a unit in a multiunit building based on legal description of the airspace the
unit actually occupies, plus an undivided interest in the ownership of the common elements, which are
owned jointly with the other condominiums unit owners. A real estate project in which each unit owner
has title to a unit in a building, an undivided interest in the common areas of the project, and sometimes
the exclusive use of certain limited common areas.

Condominium Conversion Changing the ownership of an existing building (usually a rental project) to the condominium form of
ownership.

Condominium Hotel A condominium project that has rental or registration desks, short-term occupancy, food and telephone
services, and daily cleaning services and that is operated as a commercial hotel even though the units are
individually owned.

Confession of Judgment Permits judgment to be entered against a debtor without the creditor's having to institute legal
Clause proceedings.

Conformity The appraisal principle that holds that greater the similarity among properties in an area, the better they
will hold their value.
Consent A grant of permission over lessor interest lands.
Consideration Compensation or an equivalent (such as money, material, or services) that is given for something
acquired or promised. This may be the appraised fair market value of the real property; or may include
protection of the real property against loss by fire, water, or other causes; or any mutually agreeable
arrangement that does not conflict with governing statutory limitations. Where the government has a
lessor interest, normally the government will consent to the granting of an easement by the owner of the
underlying fee, subject to whatever conditions are required to protect the government’s interest;
consideration is not required. The money (or other property) used to purchase land.

Construction (AF) Erecting, installing, or assembling a new facility. Adding to, altering, expanding, converting, or
replacing an existing facility. Moving a facility from one installation to another. Construction includes:
Equipment that personnel install on the facility. Site preparation, excavation, filling, landscaping, or
other improvements that personnel make to the land.

Construction Loan Short term financing of real estate construction. Generally followed by long term financing called a "take
out" loan, issued upon completion of improvements. A short-term, interim loan for financing the cost of
construction. The lender makes payments to the builder at periodic intervals as the work progresses.

Constructive Eviction Actions of a landlord that so materially disturb or impair tenant's enjoyment of the leased premises that
the tenant is effectively forced to move out and terminate the lease without liability for any further rent.

Constructive Notice Notice given to the world by recorded documents. All people are charged with knowledge of such
documents, whether or not they have actually examined them. Possession of property is also considered
constructive notice to the person in possession has an interest in the property.

Consumer Lending Loans made for personal property, such as automobiles, appliances, etc.
Contaminated Area An area where there are known or suspected unexploded munitions, regardless of type.
Contamination The presence of conventional unexploded ordnance. Also, the presence of biological, radioactive, toxic-
chemical, or hazardous substances (as defined in CERCLA) at levels that may present a public hazard or
exceed applicable regulatory standards.

Contingency A provision in a contact that required a certain act to be done or a certain event to occur before the
contract becomes binding. A condition that must be met before a contract is legally binding. For
example, home purchasers often include a contingency that specifies that the contract is not binding until
the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

Contingent Beneficiary One who, under the terms of a will or trust, may or may not share in the estate upon the happening of an
uncertain event. Example: A leaves property to B when B reaches 30, stipulating that if B dies before 30,
property goes to C. C is the contingent beneficiary.

Contract A legally enforceable promise or set of promises that must be preformed and for which, if a breach of the
promise occurs, the law provides a remedy. A contract may be either unilateral, by which only one party
is bound to act, or bilateral, by which all parties to the instrument are legally bound to act as prescribed.
An agreement between two or more persons or entities which creates or modifies a legal relationship.
Generally based upon offer and acceptance. An oral or written agreement to do or not to do a certain
thing.

Contribution The appraisal principle that states that the value of any component of a property is what it gives to the
value of the whole or what its absence detracts from that value.
Conventional Loan A loan that requires no insurance or guarantee
Conventional Mortgage A mortgage or deed of trust not obtained under a government insured program, (such as F.H.A. or V.
A.). A mortgage that is not insured or guaranteed by the federal government. Contrast with government
mortgage.

Conversion A permanent change in the functional use of all or part of a building.

Convertibility Clause A provision in some adjustable-rate mortgages (ARMs) that allows the borrower to change the ARM to a
fixed-rate mortgage at specified timeframes after loan origination.
Convertible ARM An adjustable-rate mortgage (ARM) that can be converted to a fixed-rate mortgage under specified
conditions.
Conveyance A term used to refer to any document that transfers title to real property. The term is also used in
describing the act of transferring.
Cooperating Broker See listing broker
Cooperative A residential multiunit building whose title is held by a trust or a corporation that is owned by and
operated for the benefit of persons living within the building, who are the beneficial owners of the trust
or stockholders of the corporation, each possessing a proprietary lease. A type of multiple ownership in
which the residents of a multiunit housing complex own shares in the cooperative corporation that owns
the property, giving each resident the right to occupy a specific apartment or unit.

Cooperative Corporation
Cooperative Mortgages
Cooperative Project
A business trust entity that holds title to a cooperative project and grants occupancy rights to particular
apartments or units to shareholders through proprietary leases or similar arrangements.
Mortgages related to a cooperative project. This usually refers to the multifamily mortgage covering the
entire project but occasionally describes the share loans on the individual units.
A residential or mixed-use building wherein a corporation or trust holds title to the property and sells
shares of stock representing the value of a single apartment unit to individuals who, in turn, receive a
proprietary lease as evidence of title.

Co-Ownership Title ownership held by two or more persons.

Copyhold A tenancy at will that was recorded in a manorial court ownership roll. The lord of the manor maintained
the list. Copyholds were not, strictly speaking, inheritable, but were customarily so. The land reverted to
the landowner who would then "admit" the heir to the lands of the decedent.

Corner The beginning or end point of any survey line. The term corner does not imply the property was in any
way square.
Corporate Relocation Arrangements under which an employer moves an employee to another area as part of the employer's
normal course of business or under which it transfers a substantial part or all of its operations and
employees to another area because it is relocating its headquarters or expanding its office capacity.

Corporation An entity or organization, created by operation of law, whose rights of doing business are essentially the
same as those of an individual. The entity has continuous existence until it is dissolved according to legal
procedures.

Correction Lines Provisions in the rectangular survey (government survey) system made to compensate for the curvature
of the earth's surface. Every fourth township line (at 24-mile intervals) is used as a correction line on
which the intervals between the north and south range lines are re-measured and corrected to a full six
miles.

Cost Approach The process of estimating the value of a property by adding the estimated land value the appraiser's
estimate of the reproduction or replacement cost of the building, less depreciation.
Cost Of Funds Index (COFI) An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM)
plans. It represents the weighted-average cost of savings, borrowings, and advances of the 11th District
members of the Federal Home Loan Bank of San Francisco. See adjustable-rate mortgage (ARM).

Cost Recovery An Internal Revenue Service for depreciation

Council On Environmental Established by the National Environmental Policy Act (NEPA), the CEQ consists of three members
Quality (CEQ) appointed by the President CEQ regulations (40 CFR Parts 1500-1508, as of July 1, 1986) describe the
process for implementing NEPA, including preparation of Environmental Assessments and
Environmental Impact Statements, and timing and extent of public participation.
Counteroffer A new offer made in response to an offer received. It has the effect of rejecting the original offer, which
can not be accepted thereafter unless revived by the offeror.
Covenant A clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in
foreclosure.
Covenant Of Quiet The covenant implied by law by which a landlord guarantees that a tenant may take possession of leased
Enjoyment premises and that the landlord will not interfere in the tenant's possession or use of the property.

credit An agreement in which a borrower receives something of value in exchange for a promise to repay the
lender at a later date.
Credit On a closing statement, an amount entered in a person's favor-either an amount the party has paid or an
amount for which the party must reimburse.
Credit History A record of an individual's open and fully repaid debts. A credit history helps a lender to determine
whether a potential borrower has a history of repaying debts in a timely manner.
Credit Life Insurance A type of insurance often bought by mortgagors because it will pay off the mortgage debt if the
mortgagor dies while the policy is in force.
Credit Report A report of an individual's credit history prepared by a credit bureau and used by a lender in determining
a loan applicant's creditworthiness.
Credit Report A report on the past ability of a loan applicant to pay installment payments. Several national and local
companies make such reports.
Credit Reporting Agency (or An organization that prepares reports that are used by lenders to determine a potential borrower's credit
bureau) history. The agency obtains data for these reports from a credit repository as well as from other sources.

Credit Repository An organization that gathers, records, updates, and stores financial and public records information about
the payment records of individuals who are being considered for credit.
Creditor A person to whom money is owed.
Creek Small stream.
Cultural History The archeological sequence of cultural activity through time, within a defined geographic space or
relating to a particular group.
Cultural Resource Prehistoric or historic district sites, buildings, objects, or any other physical evidence of human activity
considered important to a culture, subculture, or community for a scientific, traditional, religious, or
other reason.

Cumulative Effects In NEPA, impacts on the environment that result from the incremental impact of the action when added
to other past, present, and reasonably foreseeable future actions regardless of what agency (federal or
nonfederal) or person undertakes such other actions.

Current Assets An accounting term meaning cash or those things which can be readily converted to cash, such as short
term accounts receivable.
Current Liabilities Short term debts
Curtesy A life estate, usually a fractional interest, given by some states to the surviving husband in real estate
owned by his deceased wife. Most states have abolished this curtsey.
Customary Estate See Copyhold
Datum A horizontal plane from which heights and depths are measured.
Debit On a closing statement, an amount charged; that is, an amount that they debited party must pay.
Debt An amount owed to another. See installment loan and revolving liability.
Decedent One who has died.
Declaration Of Taking The document filed by the US Attorney with a court of competent jurisdiction to obtain specified rights,
title, or interest in property. Upon filing of the Declaration of Taking and making a deposit of money
(appraised value of the property) with the court, title vests in the federal government.
Dedication The voluntary transfer of private property by its owner to the public for some public use, such as for
streets or schools.
Deed The legal document conveying title to a property. A document giving the holder the title to property.
More generally, any document sealing an agreement, contract, etc. The most common types of deeds
Bargain and Sale, Quitclaim, and Warranty. A written instrument that, when executed and delivered,
conveys title to or an interest in real estate.

Deed In Lieu Of Foreclosure A deed given by the mortgagor to the mortgagee when the mortgagor is in default under the term of the
mortgage. This is a way for the mortgagor to avoid foreclosure.

Deed In Trust An instrument that grants trustee under a land trust full power to sell, mortgage and subdivide a parcel of
real estate. The beneficiary controls the trustee's use of these powers under the provisions of the trust
agreement. A transfer of property to someone to be held in trust for another. See trust. More
specifically, however, deeds of trust are used in a number of states instead of a mortgage to secure a
loan. The deed of trust names the trustees in whom title is placed as security against failure to meet the
terms of the loan.

Deed Of Restrictions Clause in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of
limitations and conditions-for example, they may limit the density of buildings, dictate the types of
structure from being used in specific purposes or even from being used at all.

Deed of Trust The document used in some states instead of a mortgage; title is conveyed to a trustee.
Deed Of Trust Lien See Trust Deed Lien
Deed Poll A deed not indented, that is, a deed made by one party only. See indenture.
Deed-in-Lieu A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a
"voluntary conveyance."
Default Failure to make mortgage payments on a timely basis or to comply with other requirements of a
mortgage. The nonperformance of a duty, whether arising under a contract or other wise; failure to
meet an obligation when due.

Defeasance Clause
Defensible Fee Estate
A clause used in leases and mortgages that cancels a specific right upon the occurrences of a certain
condition, such as cancellation of a mortgage upon repayment of a mortgage loan.
An estate in which the holder has a fee simple title that may be divested upon the occurrence or
nonoccurrence of a specified event. There are two categories of defeasible fee estates: fee simple on
condition precedent (fee simple determinable) and fee simple on condition subsequent.

Deficiency Judgment A personal judgment levied against the borrower when a foreclosure sale does not produce sufficient
funds to pay the mortgage debt in full.
Delinquency Failure to make mortgage payments when mortgage payments are due.
Demand The amount of goods people are willing and able to buy at a given price; often coupled with supply.
Demise Generally a synonym for 'lease', both noun and verb.
Density Zoning Zoning ordinances that restricted the maximum average number of houses per acre that may be built
within a particular area, generally a subdivision
Department of Veterans An agency of the federal government that guarantees residential mortgages made to eligible veterans of
Affairs (VA) the military services. The guarantee protects the lender against loss and thus encourages lenders to make
mortgages to veterans.

Deposit A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an
advance of funds in the processing of a loan. See earnest money deposit.
Depreciation (1) In appraisal, a loss of value in property due to physical deterioration, functional obsolescence and
external obsolescence. (2) In real estate investment, and expense deduction for tax purposes taken over
the period of ownership of income property. A decline in the value of property; the opposite of
appreciation.

Descent Acquisition of and estate by inheritance in which an heir succeeds to the property by operation of law.
Designate Agent A license authorized by a broker to act as the agent for specific principal in a particular transaction.
Designation (AF) An installation’s official name, which appears in a special order.
Detached Installation (AF) A non self-supporting installation used for administrative, operational, or training missions not in
support of any particular primary, auxiliary, or off base installation.

Detached Leased Installation A non self-supporting installation with a leasehold interest in the entire installation, used for
(AF) administrative, operational, or training missions not in support of any particular primary, auxiliary, or
offbase installation.

Determination of Availability A written report stipulating that a certain kind or type of real estate that is not currently being utilized,
but is not excess to the needs of the controlling command or agency, is available for temporary use.

Developed Descriptive term applied to land, a lot, a parcel, or an area that has been built upon, or where public
services have been installed prior to residential or commercial construction.
Developer One who attempts to put land to its most profitable use through the construction of improvements.
Devise A gift of real property made in a will.
Discount Points See point.
Disposal Any authorized method of permanently divesting the accountable agency from control and responsibility
for real property or an interest therein
District Engineer A field representative of the Chief of Engineers, Department of the Army, authorized to take certain
actions involving real property under the jurisdiction of the Secretary of the Army.
Diversion A temporary change in the functional use of all or part of a building, involving no major structural
changes or modifications.
Dominant Estate The land that is served or benefited by the existence of an easement on some other land.
Dominant Tenement A property that includes in its ownership the appurtenant right to use an easement over another person's
property for a specific purpose.
Donation Acquisition of real estate through free gift to the government.
Double Nickel Slang for .55, as in 6
Dower The rights of a widow in the property of her husband at his death.
Dower The legal right or interest, recognized in some states, that a wife acquires in the property her husband
held or acquired during their marriage. During the husband's lifetime the right is only a possibility of an
interest; upon his death it an become an interest of land. A wife's interest in her husband's property,
inheritable at his death. English probate law set this at 1/3. "Her thirds" was a phrase used for this. In the
U.S. it was common for a woman to formally relinquish her dower claim on land sold by the husband.
This further guaranteed that the property was clear of all obligations. In some areas the lack of a dower
relinquishment at the time of sale was proof that the man was single or widowed. See also jointure.

Down Payment The part of the purchase price of a property that the buyer pays in cash and does not finance with a
mortgage. Cash portion paid by a buyer from his own funds as opposed to that portion of the purchase
price which is financed.

Drain Small dry stream or gully.

Dual Agency Representing both parties to a transaction. This is unethical unless both parties agree to it and it is illegal
in many states.
Due-On -Sale Clause A provision in the mortgage that estates that the entire balance of the note is immediately due and
payable if the mortgagor transfers (sells) the property.
Due-On-Sale Provision A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the
property that serves as security for the mortgage.
Due-On-Transfer Provision This terminology is usually used for second mortgages. See due-on-sale provision.
Duress Unlawful constraint or action exercised upon a person whereby the person is forced to perform an act
against his or her will. A contract entered into under duress is void able.
Early Withdrawal Penalty A charge assessed against holders of fixed interest rate accounts.

Earnest Money Money deposited by a buyer under the terms of a contract, to be forfeited if the buyers defaults but
applied to the purchase price if the sale is closed.
Earnest Money Deposit A deposit made by the potential home buyer to show that he or she is serious about buying the house.
Easement An agreement that grants use of real property for specified purposes for a specific term or in perpetuity.
The purposes and conditions upon which the Army may grant easements affecting its property generally
are limited by law. These limitations, plus the fact that the grantor is not excluded from such use of the
real property involved as will not interfere with the grantee’s use, normally distinguishes an easement
from a lease. Use of a portion of property for some stated purpose without remuneration. Easements are
not estates in that they do not convey ownership, but rather the use of the property in so far as needed for
the stated purpose. An example is the easement a city may have to dig up part of your land to repair the
water main. A right of way giving persons other than the owner access to or over a property.

Easement Appurtenant The right of an owner of real estate to use part of another’s land.
Easement By Condemnation An easement created by the government or government agency that has exercised its right under eminent
domain.

Easement By Necessity An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example, a
right of ingress and egress over a grantor's land.
Easement By Prescription An easement acquired by continuous, open and hostile use of the property for the period of time
prescribed by state law.

Easement In Gross The right of a person, whether or not an owner of real estate, to use part of another person’s land. An
easement that is not created for the benefit of the any land owned by the owner of the easement but that
attaches personally to the easement owner. For example; a right granted by Eleanor Franks to Joe Fish to
use a portion of her property for the rest of his life would be an easement in gross.

Economic Life The number of years during which an improvement will add value to the land.
EDM Electronic Distance Measurement device, the instrument used by modern surveyors that replaces the use
of measurement chains. It determines distance by measuring the time it takes for light to reflect off a
prism on top of a rod.

Effective Age
Effective Gross Income
An appraiser’s estimate of the physical condition of a building. The actual age of a building may be
shorter or longer than its effective age.
Normal annual income including overtime that is regular or guaranteed. The income may be from more
than one source. Salary is generally the principal source, but other income may qualify if it is significant
and stable.

Emblements Growing crops, such as grapes and corn, that are produced annually through labor and industry; also
called fructus industrials.
Eminent Domain The right of a government or municipal quasi-public body to acquire property for public use through a
court action called condemnation, in which the court decides that the use is public use and determines
the compensation to be paid to the owner. The right of a government to take private property for public
use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

Employee Someone who works as a direct employee of an employer and has an employee status. The employer is
obligated to withhold income taxes and social security taxes from the compensation of employees. Also
see independent contractor.
Employer-Assisted Housing A special housing initiative that offers several different ways for employers to work with local lenders to
develop plans to assist their employees in purchasing homes.

Employment Contract A document evidencing formal employment between and employer and employee or between principal
and agent. In the real estate business this generally takes the form of a listing agreement or management
agreement.

Enabling Acts State legislation that confers zoning powers on municipal governments
Encapsulation A method of controlling environmental contamination by sealing off dangerous substances.
Enclave In BRAC, a section of a military installation that remains intact from that part which is closed or
realigned and which will continue with its current role and functions subject to specific modifications.
Encroachment A building or some portion of it- a wall or fence for instance-that extends beyond the land of the owner
and illegally intrudes on some land of an adjoining owner or a street or alley. An unauthorized invasion
of a fixture, building, or other improvement onto another person’s property. An improvement that
intrudes illegally on another’s property.

Encumbrance A burden on a property, generally one that affects the ability to transfer title, or one which affects the
condition of the property. Examples are liens, mortgages, taxes, easements, water rights, etc. Anything
that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or
restrictions.

Endangered Species A species that is threatened with extinction throughout all or a significant portion of its range.
Endorse Transfer ownership of an asset by signing the back of a negotiable instrument. One can endorse a check
to receive payment or endorse a stock or bond certificate to transfer ownership.
Endorser A person who signs ownership interest over to another party. Contrast with co-maker.
Enfeoff To invest with an estate held in fee.
Enfeoffment Giving ownership in fee. A deed or legal document giving ownership in fee.
Engineer's Chain A 100 foot chain containing 100 links of one foot apiece.
Entail To create a fee tail, or to create one from fee simple.
Entry Filing of the intention to get a land grant or patent. This was the first step of a multi-step process of
getting land, the other steps generally being Survey, and Grant.
Environmental Impact A document required of federal agencies by NEPA for major projects or legislative proposals
Statement (EIS) significantly affecting the environment. A tool for decision making, the EIS describes the positive and
negative effects of the undertaking and lists alternative actions.

Equal Credit Opportunity Act A federal law that requires lenders and other creditors to make credit equally available without
(ECOA) discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of
income from public assistance programs. The federal law that prohibits discrimination in the extension
of credit because of race, color, religion, national origin, sex, age or marital status.

Equalization The raising or lowering of assessed values for tax purposes in a particular county or taxing district to
make them equal to assessments in other counties or districts.
Equalization Factor A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the
property that is in line with statewide tax assessments. The ad valoewm tax would be based on this
adjusted value.

Equipment Authorization An item of non-replaceable equipment that the Air Force authorizes.
Inventory Data (EAID) (AF)

Equipment-In-Place A special category of personal property consisting of capital equipment (non-consumable personal
property that possesses a capital nature and is classified as nonexpendable) and other nonexpendable
supplies of a movable nature that are not affixed as an integral part of the facility and may be removed
without destroying or reducing the usefulness of the facility (e.g., portable generators, gas cylinders).
Equitable Lien See Statutory lien
Equitable Right Of The right of a defaulted property owner to recover the property prior to its sale by paying the appropriate
Redemption fees and charges.

Equitable Title The interest held by a vendee under a contract for the deed or an installment contract; the equitable right
to obtain absolute ownership to property when legal title is held in another's name.
Equity The interest or value that an owner has in property over the above and indebtness. A homeowner's
financial interest in a property. Equity is the difference between the fair market value of the property and
the amount still owed on its mortgage.

Equity Line Of Credit A combination of a line of credit and equity loan. A maximum loan amount is established based on
credit and equity. A mortgage is recorded against the potential borrower's property for said maximum
loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the
mortgage.

Equity Loan A loan based upon the equity in a property. The credit of the borrower is not a major factor.
Erosion The gradual wearing away of land by water, wind and generally weather conditions; the diminishing of
property by the elements.
Escheat Land ownership reverting to the Crown, government, or estate owner because of a lack of heirs. The
reversion of property to the state or county, as provided by state law, in cases where a descendant dies
intestate without heirs capable of inheriting, or when the property is abandoned.

Escrow Delivery of a deed by a grantor to a third party for delivery to the grantee upon the happening of a
contingent event. Modernly, in some states, all instruments necessary to the sale (including funds) are
delivered to a third (neutral) party, with instructions as to their use. An item of value, money, or
documents deposited with a third party to be delivered upon the fulfillment of a condition. For example,
the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they
become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon
the closing of a sale of real estate.

Escrow Account The trust account established by a broker under the provisions of the license law for the purpose of
holding funds on behalf of the brokers principal or some other person until the consummation or
termination of transaction. The account in which a mortgage servicer holds the borrower’s escrow
payments prior to paying property expenses.

Escrow Analysis The periodic examination of escrow accounts to determine if current monthly deposits will provide
sufficient funds to pay taxes, insurance, and other bills when due.
Escrow Collections Funds collected by the servicer and set aside in an escrow account to pay the borrower’s property taxes,
mortgage insurance, and hazard insurance.
Escrow Disbursements The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other
property expenses as they become due.
Escrow Or Impound Account Account held by a lender for payments of taxes, insurance, or other periodic debts against real property.
The mortgagor or trustor pays a portion of, for example, the yearly taxes, with each monthly payment.
The lender pays the tax bill from the accumulated funds.

Escrow Payment The portion of a mortgagor’s monthly payment that is held by the servicer to pay for taxes, hazard
insurance, mortgage insurance, lease payments, and other items as they become due. Known as
"impounds" or "reserves" in some states.

Esse In esse (Latin). In existence. See also Posse.

Estate A property right held by someone. There can be many estates held on a single piece of property, for
example, relating to specific uses of the property. Mineral rights, water rights, and so on are examples.
Estates can be subordinate (lower in rank) to other estates. The ownership interest of an individual in
real property. The sum total of all the real property and personal property owned by an individual at time
of death.
Estate (Tenancy) At The tenancy of a lessee who lawfully comes into possession of a landlord's real estate but who continues
Sufferance to occupy the premises improperly after his or her lease right have expired.

Estate (Tenancy) At Will An estate that gives the lessee the right to possession until the estate is terminated by either party; the
term of this is indefinite.
Estate (Tenancy) For Years An interest for a certain, exact period of time in property leased for a specific consideration.

Estate (Tenancy) From An interest in leased property that continues from period to period-week to week, month to month or
Period To Period year to year.

Estate In Land The degree, quantity, nature and extent of interest a person has in real property.
Estate Taxes Federal taxes on a decedent's real and personal property.
Estoppel Method of creating an agency relationship in which someone states incorrectly that another person relies
on that representation.
Estoppel Certificate A document in which a borrower certifies the amount owed on a mortgage loan and rate of interest.
Ethics The system of moral principles and rules that becomes standards for professional conduct.
Eviction A legal process to oust a person from possession of real estate. The lawful expulsion of an occupant
from real property.
Evidence Of Title Proof of ownership of property; commonly a certificate of title, an abstract of title with lawyer's opinion,
title insurance or a Torrens registration certificate.
Examination Of Title The report on the title of a property from the public records or an abstract of the title.
Excess Real Estate Any real property that is no longer required by a controlling command or agency to perform its assigned
mission.
Excessing (Noun) The process of determining that real estate is not needed by the Army.
Excessing (Verb) Reporting excess property to the disposal agency for disposal.
Exchange Acquisition of real estate through transfer of equally valued property. A transaction in which all or part
of the consideration is the transfer of like-kind property (such as real estate for real estate)
Exclusive Listing A written contract that gives a licensed real estate agent the exclusive right to sell a property for a
specified time, but reserving the owner’s right to sell the property alone without the payment of a
commission.

Exclusive-Agency Listing A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a
designated period of time to see the property, on the owner's stated term, for commission. The owner
reserves the right to sell with out paying anyone a commission is he or she sells to a prospect who has
not been introduced or claimed by the broker.

Exclusive-Right-To-Sell A losing contract under which the owner appoints a real estate broker as his or her exclusive agent for a
Listing designated period of time, to sell the property on the owner's stated terms, and agrees to pay the broker
commission when the property is sold, whether by the broker, the owner or another broker.

Executed Contract A contract in which all parties have fulfilled their promises and this performed the contract.
Execution The signing and delivery of an instrument. Also, a legal or directing an official to enforce a judgment
against the property of a debtor.
Executor/Executrix The person named in a will to carry out the terms of the will. See administrator. A person named in a
will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix"
is the feminine form.

Executory Contract A contract under which something remains to be done by one or more of the parties.
Express Agreement An oral or written contract in which the parties states the contract in which the parties state the contract's
terms and express their intentions in words.
External Depreciation Reduction in property's value caused by outside factors ( those that are off the property)
Facilitator See Non-agent
Facilities Any interest in land and structure or complex of structures together with any supporting road and utility
improvements necessary to support the functions of an activity or mission
Facility (AF) A building, structure, or other aspect, including: Utility systems, Pavements. And Land.
Fair Credit Reporting Act A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit
reporting agencies and establishes procedures for correcting mistakes on one's credit record.

Fair Housing Act The federal law that prohibits discrimination in housing based on of race, color, religion, national origin,
sex, age or marital status.
Fair Market Value The highest price estimated in terms of money that a property will bring if exposed for sale in the open
market allowing a reasonable time to find a purchaser who buys with knowledge of all the uses to which
it is adapted and for which it is capable of being used. It is often referred to as the price at which a
willing seller would sell and a willing buyer would buy, neither being under abnormal pressure. The
highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing
but not compelled to sell, would accept.

Family Housing All federally owned structures, including trailers, that may be used for lodging of an individual on a
permanent basis.
Fannie 97® A financing option for a fixed-rate mortgage that offers home buyers a 3 percent down payment loan
with a term between 15 and 30 years. The mortgage features a loan-to-value (LTV) percentage of 97
percent, and is designed to expand homeownership opportunities for people with modest incomes.
Borrowers must take a pre-purchase home-buyer education session to qualify for a Fannie 97 mortgage.

Fannie Mae A New York Stock Exchange company and the largest non-bank financial services company in the
world. It operates pursuant to a federal charter and is the nation's largest source of financing for home
mortgages. A quasi-government agency established to purchase any kind of mortgage loans in the
secondary mortgage market from the primary lenders.

Fannie Mae Properties Fannie Mae owns, manages, and has available for sale, single-family detached homes, two- to four-unit
properties, condominiums, and townhouses in a variety of neighborhoods. The number, type, and sales
price may vary substantially. The homes vary in age and may require repairs. Fannie Mae homes are sold
through local real estate brokers whose contact information is provided in the Fannie Mae Properties for
Sale search results on homepath.com.

Fannie Mae's Community An income-based community lending model, under which mortgage insurers and Fannie Mae offer
Home Buyer's ProgramSM flexible underwriting guidelines to increase a low- or moderate-income family's buying power and to
decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model
are required to attend pre-purchase home-buyer education sessions.

Federal Deposit Insurance Federal agency established in 1933 that guarantees (within limits) funds on deposit in member banks and
Corporation (FDIC) thrift institutions and performs other functions such as making loans to or buying assets from member
institutions to facilitate mergers or prevent failures. In 1989, Congress passed savings and loan
association bailout legislation that reorganized FDIC into two insurance units: the Bank Insurance Fund
(BIF) continues the traditional FDIC functions with respect to banking institutions; the Savings
Association Insurance Fund (SAIF) insures thrift institution deposits, replacing the Federal Savings and
Loan Insurance Corporation (FSLIC), which ceased to exist.

Federal Housing An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the
Administration (FHA) insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction
and underwriting but does not lend money or plan or construct housing. An agency of the federal
government that provides credit assistance to farmers and other individuals who live in rural areas
Federal National Mortgage See Fannie Mae
Association (FNMA)

Federal Property Act
Federal Reserve System
Fee
Fee Owned
Fee Simple
Fee Simple Defeasible
Fee Simple Estate
The law that controls management and disposal of most federally controlled real estate.
The country's central banking system, which is responsible for the nation's monetary policy by regulating
and supply of money and interest rates.
Heritable land held in return for service to a lord.
Real property for which all rights, title, and interest rather than a partial interest are provided.
Ownership of land that can be inherited by any heirs. To hold in fee means to possess. The greatest
possible interest a person can have in real estate.
See Defeasible Fee Estate
An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive
interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium
project, the unit owner is the exclusive owner only of the air space within his or her portion of the
building (the unit) and is an owner in common with respect to the land and other common portions of the
property.

Fee Tail Ownership of land restricted to a specified class of heirs, generally direct descendants.
Feoff See Fee
Feoffee One who benefits from a fief.
Feoffment Transfer of inheritable real property.
Feud See Fee.
Feudal System A system of ownership usually associated with pre-colonial England, in which the king or other
sovereigns the source to all rights. The right to possess real property was granted by the sovereigns to an
individual as a life estate only. Upon the death of the individual, title passes back to the sovereigns, not
to the decedents heirs. The system of land holding in exchange for service, ultimately to the king. This
is opposed to the allodial system.

FHA Coinsured Mortgage A mortgage (under FHA Section 244) for which the Federal Housing Administration (FHA) and the
originating lender share the risk of loss in the event of the mortgagor's default.

FHA Loan A loan insured by the federal housing administration and made by an approved lender in accordance
with the FHA's regulations.
FHA Mortgage A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government
mortgage.
Fiduciary One in whom trust and confidence is placed; a reference to a broker employed under the terms of a
listing contract or buyer agency agreement.
Fiduciary Relationship A relationship of trust and confidence, as between trustee and beneficiary, attorney and client or
principal and agent.
Fief See Fee.
Fieri Facias A common law written to enforce collection of a debt. Typically executed by the sheriff, the property of
the debtor is sold to satisfy the claim.
Financial Institutions This act restructured the savings and loan association regulatory systems; enacting response to the
Reform, Recovery And savings and loan crisis of the 1980's
Enforcement Act (FIRREA)

Financing Statement See Uniform Commercial Code

Finder's Fee A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower.

Firm Commitment A lender’s agreement to make a loan to a specific borrower on a specific property.
First Mortgage A mortgage having priority over all other voluntary liens against certain property. A mortgage that is the
primary lien against a property.
First Station See Point of Beginning
Fiscal Policy The government's policy in regard to taxation and spending programs. The balance between these two
areas determines the amount of money the government will withdrawal from or feed into the economy,
which can counter economic peaks and slumps.

Fixed Installment The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal
and interest.
Fixed Rate Mortgage A mortgage having a rate of interest which remains the same for the life of the mortgage. A mortgage in
which the interest rate does not change during the entire term of the loan.
Fixture Personal property that is so related to real property that a real property interest arises in it (e.g., installed
furnace). Does not include building materials. An item of personal property that has been converted to
real property by being permanently affixed to the reality. Personal property that becomes real property
when attached in a permanent manner to real estate.

Flood Insurance Insurance that compensates for physical property damage resulting from flooding. It is required for
properties located in federally designated flood areas.
Ford Shallow part of a stream or river where one could cross.
Foreclosure A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of
a default in payment of the mortgage note or default of other terms in the mortgage document. The
foreclosure procedure brings the rights of all parties to a conclusion and passes the title in the mortgaged
property to either the holder of the mortgage or a third party who may purchase the realty at the
foreclosure sale, free of all encumbrances affecting the property subsequent to the mortgage. The legal
process by which a borrower in default under a mortgage is deprived of his or her interest in the
mortgaged property. This usually involves a forced sale of the property at public auction with the
proceeds of the sale being applied to the mortgage debt.

Forfeiture The loss of money, property, rights, or privileges due to a breach of legal obligation.
Fork Meeting point of two streams. "In the fork of" means between two branches.
Fractional Section A parcel of land less then 160 acres, usually found at the edge of a rectangular survey.
Fraud Deception intended to cause a person to give up property or lawful right.
Freddie Mac A corporation established to purchase primarily conventional mortgages loans in the secondary
mortgages market.
Freehold See fee simple
Freehold Estate An estate in land in which ownership is for an indeterminate length of time, in contrast to a lease estate.

Front Footage The measurement of parcel of land by the number of feet of street or road frontage.
Fully Amortized ARM An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining
balance, at the interest accrual rate, over the amortization term.
Functional Obsolescence A loss of value to an improvement to real estate arising from functional problems, often caused by age or
poor design.
Furlong Unit of length equal to 40 poles (220 yards). Its name derives from "furrow long", the length of a furrow.
See Gunter's chain.
Future Interest A person's present right to an interest in real property that will not result in possession or enjoyment until
sometime future, such as a reversion or right to reentry.
Gap A defect in the chain of the title of a particular parcel of real estate; a missing document or conveyance
that raises doubt as to the present ownership of the land.
General Agent One whom is authorized by an principal to represent the principal in a specific range matters.
General Lien The right of a creditor to have all of the debtor's property-both real and personal-sold to satisfy a debt.

General Partnership See Partnership

General PP&E Have an estimated useful life of two years or more; are not intended for sale in the ordinary course of
operations; are acquired or constructed with the intention of being used or being available for use by the
entity; and have an initial acquisition cost, book value or, when applicable, an estimated fair market
value that equals, or exceeds, the DoD capitalization threshold.

General Services Space in buildings that the GSA owns and leases and assigns to an Air Force organization or other
Administration (GSA) Space Federal Government agency. This space includes related land use.
(AF)

General Warranty Deed A deed which the grantor fully warrants good clear title to the premises. Used in most real estate deed
transfers, a general warranty deed offers the greatest protection of any deed.
Ginney A wooden dowel 6
Ginnie Mae A government agency that plays an important role in the secondary mortgage market. It sells mortgage-
backed securities that are backed by pools of FHA and VA loans.
Glass The EDM prism.
Gore A thin triangular piece of land, the boundaries of which are defined by surveys of adjacent properties.
Loosely, an overlap or gap between properties. See also strip.
Government Check The 24-mile-square parcels composed of 16 townships in the rectangular (government) survey system of
legal description.
Government Lot Fractional sections in the rectangular (government) survey system that are less than one quarter-section
in area
Government Mortgage A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional
mortage.

Government National
Mortgage Association
(GNMA)
A government-owned corporation within the U.S. Department of Housing and Urban Development
(HUD). Created by Congress on September 1, 1968, GNMA assumed responsibility for the special
assistance loan program formerly administered by Fannie Mae. Popularly known as Ginnie Mae. See
Ginny Mae.

Government Survey System See Rectangular (government) Survey System

Graduated-Payment A loan in which the monthly principal and interest payments increase by a certain number of percentage
Mortgage (GPM) each year for a certain number of years and then level off for the remaining loan term.

Grant Transfer of title from the government to the first titleholder of a piece of property. This term is generally
used by states and the federal government. See also Patent.
Grantee A person who receives a conveyance of real property from a grantor. The person to whom an interest in
real property is conveyed. The person receiving a grant, or buying property.
Granting Clause Words on a deed of conveyance that state the grantor's intention to convey the property at the present
time. This clause is generally worded as "convey and warrant," "grant," "grant, bargain and sell" or the
like.

Grantor The person issuing the grant, or selling property. The person transferring the title to or an interest in real
property to a grantee. The person conveying an interest in real property.
Gross Income Multiplier
Gross Lease
A figure used as a multiplier of the gross annual income of a property to produce an estimate of the
property's value.
A lease of property according to which a landlord pays all property charges regularly incurred through
ownership, such as repairs, taxes, insurance and operating expenses. Most residential leases are gross
leases.

Gross Rent Multiplier (GRM) The figure used as a multiplier of the gross monthly income of a property to produce an estimate of the
property's value.

Ground Lease A lease of land only, on which the tenant usually owns a building or is required to build as specified in
the lease. Such leases are usually long-term net leases; the tenant's rights and obligations continue until
the lease expires or is terminated through default.

Ground Rent The amount of money that is paid for the use of land when title to a property is held as a leasehold estate
rather than as a fee simple estate.
Group Home A single-family residential structure designed or adapted for occupancy by unrelated developmentally
disabled persons. The structure provides long-term housing and support services that are residential in
nature.

Growing-Equity Mortgage A loan in which the monthly payments increase annually, with the increased amount being used to
(GEM) directly reduce the principal balance outstanding and thus shorten the overall term of the loan.

Guarantee Mortgage A mortgage that is guaranteed by a third party.

Guaranteed Loan Also known as a government mortgage.
Guaranty Agreement to pay the debt or perform the obligation of another in the event the debt is not paid or
obligation not performed. Differs from a surety agreement in that there must be a failure to pay or
perform before the guaranty can be in effect.

Gun See EDM

Gunter's Chain Unit of length equal to 66 feet, or 4 poles. This unit was apparently defined as one tenth of a furlong, a
common unit of length in the old days. The mile was redefined from the old Roman value of 5000 feet to
5280 feet in order to be an even multiple of furlongs. A mile is 80 chains.

Gut A narrow passage between hills. A stream in such a passage. A drain.

Habendum Clause That part of a deed beginning with the words "to have and to hold," following the granting clause and
defining the extent of ownership the grantor is conveying.
Hazard Insurance Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc.,
depending upon the terms of the policy. Insurance coverage that compensates for physical damage to a
property from fire, wind, vandalism, or other hazards.

Hazard Ranking System A system that provides a uniform method of scoring or ranking of the potential risk of a facility site
where a hazardous substance has been present. EPA developed the HRS to prioritize its cleanup efforts.
5 or higher for inclusion on the National Priorities List (NPL). Facilities listed on the NPL receive the
highest priority for cleanup.

Hazardous Substance A substance or mixture of substances that poses a substantial present or potential risk to human health or
the environment; any substance designated by EPA to be reported if a designated quantity of the
substance is spilled in the waters of the United States or otherwise released into the environment

Hazardous Waste A waste or combination of wastes that, because of its quantity, concentration, or physical, chemical, or
infectious characteristics, may either cause or significantly contribute to an increase in mortality or an
increase in serious irreversible illness, or may pose a substantial present or potential hazard to human
health or the environment when improperly treated, stored, transported, disposed of, or otherwise
managed. Regulated under the Resource Conservation and Recovery Act.

Hazardous Waste An area that may store a hazardous substance for up to 90 days
Accumulation Area
Hazardous Waste Storage An area that may store a hazardous substance for up to one year.
Area
Head The source of a stream.
Headright A Virginia system of land patents, prevalent in the 1600's in which immigrants, including minor
children, were entitled to 50 acres of land apiece. It was customary for the person paying passage to
claim the headright, though the right appears to belong to the immigrant. Headrights could be sold or
assigned to others. A headright system was also used in other states including South Carolina and
Georgia.

Headwaters The smallest streams that create to small a larger stream.

Hectare Metric unit of area equal to 10,000 square meters, or 2.471 acres, or 107,639 square feet.
Heir One who might inherit or succeed to an interest in land under the state law of descent when the owner
dies without leaving a valid will.
Hereditament Anything that can be inherited. A corporeal hereditament is tangible real or personal property that can be
inherited. An incorporeal hereditament includes intangible appurtenances, rents, and the like.
Heritage Assets Heritage Assets are PP&E that are unique for one or more of the following reasons: historical or natural
significance; cultural, educational or artistic (e.g., aesthetic) importance; or significant architectural
characteristics. Heritage Assets are generally expected to be preserved indefinitely.

Hide Old English unit of area usually equal to 120 acres.

Highest and Best Use The possible use of a property that would produce the greatest net income and thereby develop the
highest value.
Hold Harmless Agreement Provides an indemnification whereby a private party agrees to be financially liable for damages resulting
from injuries to persons or damages to property arising from governmental activities or other causes.

Holding Agency The federal agency with accountability for property.

Holdover Tenancy A tenancy whereby a lessee retains possession of leased property after the lease has expired and the
landlord, by continuing to accept rent, agrees to the tenant's continued occupancy as defended by state
law.

Holographic Will A will that is written, dated and signed in the testator's handwriting.
Home Equity Conversion A special type of mortgage that enables older home owners to convert the equity they have in their
Mortgage (HECM) homes into cash, using a variety of payment options to address their specific financial needs. Unlike
traditional home equity loans, a borrower does not qualify on the basis of income but on the value of his
or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the
property. Sometimes called a reverse mortgage.

Home Equity Line Of Credit A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple
advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified
percentage of the borrower's equity in a property.

Home Equity Loan A loan (sometimes called a line of credit) under which a property owner uses his or her residence as
collateral and can then draw funds up to a prearranged amount against the property.
Home Inspection A thorough inspection that evaluates the structural and mechanical condition of a property. A
satisfactory home inspection is often included as a contingency by the purchaser. Contrast with
appraisal.

HomeKeeperSM Fannie Mae's adjustable-rate conventional reverse mortgage, which allows older homeowners to borrow
against the value of their homes and receive the proceeds according to the payment option they select.
The amount available is based on the number of borrowers and their ages and the adjusted property
value. Anyone 62 years or older who either owns his or her own home free and clear or has very low
mortgage debt is eligible.
Homeowners' Association A nonprofit association that manages the common areas of a planned unit development (PUD) or
condominium project. In a condominium project, it has no ownership interest in the common elements.
In a PUD project, it holds title to the common elements.

Homeowner's Insurance An insurance policy that combines personal liability insurance and hazard insurance coverage for a
dwelling and its contents.
Homeowner's Insurance A standardized package insurance policy that covers a residential real estate owner against financial loss
Policy from fire, theft, public liability and other common risk.

Homeowner's Warranty A type of insurance that covers repairs to specified parts of a house for a specific period of time. It is
(HOW) provided by the builder or property seller as a condition of the sale.

Homestead Land that is owned and occupied as the family home. In many states a portion of the area or value of this
land is protected or exempt from judgments or debts.
HomeStyle® Mortgage Loan A mortgage that enables eligible borrowers to obtain financing to remodel, repair, and upgrade their
existing homes or homes that they are purchasing. See also HomeStyle Standard Mortgage, HomeStyle
Remodeler, HomeStyle Community Mortgage and HomeStyle Consumer Energy Loan.

Host A unit or activity of one military department or agency that has management control of facilities and that
provides services and/or facilities to a unit or activity of another military department or agency.
Hours Degrees
Housing Expense Ratio The percentage of gross monthly income that goes toward paying housing expenses.
Hub and Tack A 2" by 2" stake that is set in the ground and that contains a nail ("tack") that precisely marks the point
being set.
HUD Median Income Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the
Department of Housing and Urban Development (HUD).
HUD-1 Statement A document that provides an itemized listing of the funds that are payable at closing. Items that appear
on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each
item on the statement is represented by a separate number within a standardized numbering system. The
totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment
at closing. The blank form for the statement is published by the Department of Housing and Urban
Development (HUD). The HUD-1 statement is also known as the "closing statement" or "settlement
sheet."

Hypothecate To pledge property as security for an obligation or loan without giving up possession of it.
Implied Agreement A contract under which the agreement of the parties is demonstrated by their acts and conduct.
Importation Right See Headright.
Improve To make land more valuable by clearing and planting. Land that was not improved by the owner might
revert to the government.
Improvement (1) Any structure, usually privately owned, erected on a site to enhance the value of the property-for
example, building a fence or a driveway. (2) A publicly owned structure added to or benefiting land,
such as a curb, sidewalk, street or sewer. (3) In addition to land amounting to more than repair or
replacement and costing labor or capital (e.g., buildings, pavements, roads, fences, pipelines,
landscaping, and other structures more or less permanently attached to the land).

Income Approach The process of estimating the value of an income-producing property through capitalization of the
annual net income expected to be produced by the property during its remaining useful life.
Income Property Real estate developed or improved to produce income.
Incorporeal Right A nonpossessory right in real estate; for example, and easement or a right of way.
Indenture A written agreement. (Originally, the document was written in duplicate, and the two copies placed side
by side and 'indented', or cut, with a wavy line so they fit together perfectly.) See also Deed Poll.
Independent Contractor Someone who is retained to perform a certain act but who is subject to the control and direction of
another only as to the end result and not as to the way in which the act is preformed. Unlike an
employee, an independent contractor pays for all expenses and social security and income taxes and
receives no employee benefits. Most real estate salespeople are independent contractors.

Index A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index is
generally a published number or percentage, such as the average interest rate or yield on Treasury bills.
A margin is added to the index to determine the interest rate that will be charged on the ARM. This
interest rate is subject to any caps that are associated with the mortgage.

Index Method The appraisal method of estimating building costs by multiplying the original cost for current
construction cost.
In-file credit report An objective account, normally computer-generated, of credit and legal information obtained from a
credit repository.
Inflation An increase in the amount of money or credit available in relation to the amount of goods or services
available, which causes an increase in the general price level of goods and services. Over time, inflation
reduces the purchasing power of a dollar, making it worth less.

Infrastructure
Ingrants
Inheritance Taxes
Initial Interest Rate
Installation (AF)
The basic installations and facilities on which the continuance and growth of a locale depend (roads,
schools, power plants, transportation, and communication systems).
Property acquired for use by lease, license, or permit.
State-imposed taxes on a decedent's real and personal property.
The original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate
mortgage (ARM). Sometimes known as "start rate" or "teaser."
Real property in which the Air Force has an interest or jurisdiction. Installations also include: Real
property that the Air Force controls by agreement with foreign governments or through other rights.
Portions of installations that the Air Force does not own but acquires by lease, permit, or other written
agreement. The Joint Chiefs of Staff assign such installations their installation indicator code.

Installation Restoration A program established by the Department of Defense to meet requirements of CERCLA and SARA that
Program (IRP) identifies, assesses, and cleans up or controls contamination from past hazardous waste disposal
practices and hazardous material spills.

Installation, Active A facility in use by active organizations.

Installation, Inactive An installation not in use by Active Army or Reserve Component organizations other than care taking
detachments.
Installed Building Equipment Items of equipment and furnishings, including materials for installation thereof, which are required to
make the facility usable and are attached as a permanent part of the structure (e.g., air-conditioning
system, elevators, fixed fire protection system).

Installment The regular periodic payment that a borrower agrees to make to a lender.
Installment Contract. A contract for the sale of real estate whereby the purchase price is paid in periodic installments by the
purchaser, who is in possession of the property even though title is retained by the seller until a future
date, which may be not until final payment. Also called a contract for deed or articles of agreement for
warranty deed.

Installment Loan Borrowed money that is repaid in equal payments, known as installments. A furniture loan is often paid
for as an installment loan.
Installment Note A note calling for payment of both principal and interest in specified amounts, or specified minimum
amounts, at specific intervals.
Installment Sale A transaction in which the sale price is paid in two or more installments over two or more years. If the
sale meets certain requirements, a taxpayer can postpone reporting such income until future years by
paying tax each year only on the proceeds received that year.

Instrument Legal document.

Insurable Title A property title that a title insurance company agrees to insure against defects and disputes.
Insurance A contract that provides compensation for specific losses in exchange for a periodic payment. An
individual contract is known as an insurance policy, and the periodic payment is known as an insurance
premium.

Insurance Binder A document that states that insurance is temporarily in effect. Because the coverage will expire by a
specified date, a permanent policy must be obtained before the expiration date.
Insured Mortgage A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage
insurance (MI). If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss
incurred or the insured amount.

Interest The fee charged for borrowing money. A charge made by a lender for the use of money.
Interest Accrual Rate The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to
calculate the monthly payments, although it is not used for an adjustable-rate mortgage (ARM) with
payment change limitations.

Interest Rate The rate of interest in effect for the monthly payment due.
Interest Rate Buydown Plan An arrangement wherein the property seller (or any other party) deposits money to an account so that it
can be released each month to reduce the mortgagor's monthly payments during the early years of a
mortgage. During the specified period, the mortgagor's effective interest rate is "bought down" below the
actual interest rate.

Interest Rate Ceiling For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.

Interest Rate Floor
Interim Financing
Interstate Land Sales Full
Disclosure Act
Intestate
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.
A short-term loan usually made during the construction phase of a building project (in this case often
referred to as a construction loan)
A federal law that regulates the sale of certain real estate in interstate commerce.
The condition of a property owner who dies without leaving a valid will. Title to the property will pass
to the decedent's heirs as provided in the law of descent. Having no will. If someone dies intestate, the
court appoints an administrator to settle the estate.

Intrinsic Value An appraisal term referring to value created by a person's personal preferences for a particular type of
property.
Investiture See Livery Of Seizin.
Investment Money directed towards the purchase, improvement and development of an asset in expectation of
income or profits.
Investment Property A property that is not occupied by the owner.
Involuntary Lien A lien placed on property without the consent of the property owner.
IRA (Individual Retirement A retirement account that allows individuals to make tax-deferred contributions to a personal retirement
Account) fund. Individuals can place IRA funds in bank accounts or in other forms of investment such as stocks,
bonds, or mutual funds.

Joint Tenancy Ownership of real estate between two or more parties who have been named in one conveyance as joint
tenant's. Upon the death of a joint tenant, the decedent's interest passes to the surviving joint tenant or
tenant's by the right of survivorship. A form of co-ownership that gives each tenant equal interest and
equal rights in the property, including the right of survivorship.

Joint Venture The joining of two or more people to conduct a specific business enterprise. A joint venture is similar to
a partnership in that is must be created by agreement to share in losses and profits. It is unlike a
partnership in that the venture is for one specific project only, rather than for a continuing business
relationship.

Jointure Property given to a prospective wife, to be enjoyed by her at her husband's death. Differs from dower in
the way in which her future is protected.
Judgment The formal decision of a court upon the respective rights and claims of the parties to an action or suit.
After judgment has been entered and recorded with the county recorder, it usually becomes a general lien
on the property of the defendant. A decision made by a court of law. In judgments that require the
repayment of a debt, the court may place a lien against the debtor's real property as collateral for the
judgment's creditor.

Judgment Lien A lien on the property of a debtor resulting from the decree of a court.
Judicial Foreclosure A type of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted
entirely under the auspices of a court.
Judicial Precedent In law, the requirements established by prior court decisions.
Jumbo Loan A loan that exceeds Fannie Mae’s mortgage amount limits. Also called a nonconforming loan.
Junior Lien An obligation, such as a second mortgage, that is subordinate in the right or lien priority to an existing
lien on the same reality.
Labor The labor is a unit of area used in Mexico and Texas. In Texas it equals 177.14 acres (or 1 million square
varas).
Laches An equitable doctrine used by courts to bar a legal claim or prevent the assertion of a right because of
undue delay or failure to assert the claim or right.
Land The earth's surface, extending downward to the center of the earth and upward infinitely into space,
including things permanently attached by nature, such as trees and water.
Land Contract See installment contract
Landmark A survey mark made on a 'permanent' feature of the land such as a tree, pile of stones, etc.
Late Charge The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the
due date.
Latent Defect A hidden structural defect that could not be discovered by ordinary inspection and that threatens the
property's soundness or the safety of its inhabitants. Some states impose on sellers and licensees a duty
to inspect for and disclose latent defects.

Law Of Agency See Agency

League (legua) Unit of area used in the southwest U.S., equal to 25 labors, or 4428 acres (Texas), or 4439 acres
(California). Also, a unit of length
Lease A written or oral contract between landlord (lessor) and a tenant (lessee) that transfers the right to
exclusive possession and use of the landlord's real property to the lessee for a specified period of time
and for a stated consideration (rent). By state law leases for longer than a certain period of time
(generally one year) must be in writing to be enforceable. A written agreement between the property
owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a
specified period of time and rent.

Lease And Release A practice in early Virginia that is equivalent to a sale. It was accomplished by a two step process of
leasing the property in question to the buyer, then releasing the buyer of the lease obligation.
Lease Option A lease under which the tenant has the right to purchase the property either during the lease term or at its
end.
Lease Purchase The purchase of real property, the consummation of which is preceded by a lease, usually long term.
Typically done for tax or financing purposes.
Lease Term For non-operating leases, the lease term is the fixed non-cancelable term of the lease plus all periods.
Leasehold Estate A tenant's right to occupy real estate during the term of a lease, generally considered to be a personal
property interest. A way of holding title to a property wherein the mortgagor does not actually own the
property but rather has a recorded long-term lease on it.
Lease-Purchase Mortgage An alternative financing option that allows low- and moderate-income home buyers to lease a home
Loan from a nonprofit organization with an option to buy. Each month's rent payment consists of principal,
interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that is
earmarked for deposit to a savings account in which money for a down payment will accumulate.

Legacy A disposition of money or personal property by will

Legal Description A description of a specific parcel of real estate complete enough for an independent surveyor to locate
and identify. A property description, recognized by law, that is sufficient to locate and identify the
property without oral testimony.

Legally Competent Parties People who are recognized by the law as being able to contract with others; those of legal age and sound
mind.

Legislative Jurisdiction The authority to exercise state police power over an area. It refers to the regulation and control of
community affairs, especially with respect to maintenance of order, law, health, safety, and other matters
affecting general welfare. Legislative jurisdiction exists over an area when the governing body has
authority to act with its full executive power and judicial power to create and enforce laws. Types of
legislative jurisdiction are exclusive (all power in federal government), concurrent (powers exercised by
both federal and state governments), partial (power as delineated by the state’s cession), and
proprietorial interest only (federal property interest, unaccompanied by executive or judicial powers).
Army policy is to acquire only a proprietorial interest in land and not to acquire any special legislative
jurisdiction.

Legs Tripod
Lessee See lease
Lessor See lease
Leverage The use of borrowed money to finance an investment.
Levy To assess; to seize or collect. To levy a tax is to asses a property and set the rate of taxation. To levy and
execution is to officially seize the property of a person in order to satisfy an obligation.
Liabilities A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other
amounts that are owed to others.
Liability Insurance Insurance coverage that offers protection against claims alleging that a property owner's negligence or
inappropriate action resulted in bodily injury or property damage to another party.
License (1) A privilege or right granted to a person by state to operate as a real estate broker or salesperson. (2)
The revocable permission for a temporary use of land-a personal right that can not be sold.
Lien A right given by law to certain creditors to have their debts paid out of property of a defaulting debtor,
usually by means of a court sale. A legal claim against a property that must be paid off when the
property is sold.

Lien Theory Some states interpret a mortgage as being purely a lien on real property. The mortgagee this has no right
of possession but must foreclose the lien and sell the property if the mortgagor defaults.
Life Cycle Costing In property management, comparing one type of equipment with another based on both purchase cost
and operating cost over its expected useful lifetime.
Life Estate An interest in real or personal property that is limited in duration to the lifetime of its owner or some
other designated person or persons.
Life Tenant A person in possession of a lifetime estate.
Lifetime Payment Cap For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease
over the life of the mortgage. See cap.
Lifetime Rate Cap For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or
decrease over the life of the loan. See cap, interest rate ceiling and interest rate floor.
Limited Partnership See Partnership
Line Of Credit An agreement by a commercial bank or other financial institution to extend credit up to a certain amount
for a certain time to a specified borrower. See home equity line of credit.
Line Tree Any tree that is on a property line, specifically one that is also a corner to another property.
Link Unit of length equal to 1/100 chain (7.92 inches).
Liquid Asset A cash asset or an asset that is easily converted into cash.
Liquidated Damages An amount predetermined by the parties to a contract as the total compensation to an injured party
should the other party breach the contract.
Liquidity The ability to sell an asset and convert it into cash, at a price close to its true value, in a short period of
time.
Lis Pendens A recorded legal document giving constructive notice that an action affecting a particular property has
been filed in either a state or a federal court.
Listing Agreement A contract between an owner (as principal) and a real estate broker (as agent) by which the broker is
employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the
owner agrees to pay a commission.

Listing Broker The broker in a multiple-listing situation from whose office a listing agreement is initiated, as opposed to
the cooperating broker, from whose office negotiations leading up to a sale initiated. The listing broker
and the cooperating broker may be the same person.

Littoral Rights (1) A landowner's claim to use water in large navigable lakes and oceans adjacent to his or her property.
(2) The ownership rights to land bordering these bodies of water up to the high water mark.
Livery Delivery Of Ownership
Livery Of Seizin An open and 'notorious' public ceremony conferring ownership of a freehold estate.
Loan A sum of borrowed money (principal) that is generally repaid with interest.
Loan Commitment See commitment letter.
Loan Origination The process by which a mortgage lender brings into existence a mortgage secured by real property.
Loan Origination Fee A fee charged to the borrower by the lender for making a mortgage loan. The fee is usually computed as
a percentage of the loan amount.
Loan To Value Ratio The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property.
Usually, the higher the percentage, the greater the interest charged. Maximum percentages for banks,
savings and loans, or government insured loans, is set by statute.

Loan-To-Value (LTV) The relationship between the principal balance of the mortgage and the appraised value (or sales price if
percentage it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has a LTV
percentage of 80 percent.

Lock-In A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing
within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.

Lock-In Period The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in
Loss Payable Clause A clause in an insurance policy, listing the priority of claims in the event of destruction of the property
insured. Generally, a mortgagee, or beneficiary under a deed of trust, is the party appearing in the clause,
being paid to the amount owing under the mortgage or deed of trust before the owner is paid.

Lot-And-Block (Recorded A method of describing real property that identifies a parcel of land by reference to lot and block
Plat) System numbers within a subdivision, as specified on a recorded subdivision plat.

Lower Toward the mouth of a stream. Further down along its course. Opposite of upper.
Management Agreement A contract between the owner of income property and management firm or individual property manager
that outlines the scope of the manager's authority.
Margin For an adjustable-rate mortgage (ARM), the amount that is added to the index to establish the interest
rate on each adjustment date, subject to any limitations on the interest rate change.
Market A place where goods can be bought and sold and a price established.
Market Value The most probable price property would bring in an arm's-length transaction under normal conditions on
the open market.
Marketable Title Good or clear title, reasonably free from the risk of litigation over possible defects.
Master Association A homeowners' association in a large condominium or planned unit development (PUD) project that is
made up of representatives from associations covering specific areas within the project. In effect, it is a
"second-level" association that handles matters affecting the entire development, while the "first-level"
associations handle matters affecting their particular portions of the project.

Master Plan A comprehensive plan to guide the long-term physical development of a particular area.
Maturity The date on which the principal balance of a loan, bond, or other financial instrument becomes due and
payable.
Maximum Financing A mortgage amount that is within 5 percent of the highest loan-to-value (LTV) percentage allowed for a
specific product. Thus, maximum financing on a fixed-rate mortgage would be 90 percent or higher,
because 95 percent is the maximum allowable LTV percentage for that product.

Meander "with the meanders of the stream" means the survey line follows the twists and turns of the stream.
Mechanic's Lien A statutory lien created in favor of contractor's laborers and materialmen who have preformed work or
furnished materials in the erection or repair of a building.
Merestone A stone that marks a boundary. See monument.
Merged Credit Report A credit report that contains information from three credit repositories. When the report is created, the
information is compared for duplicate entries. Any duplicates are combined to provide a summary of a
your credit.

Meridian One of a set of imaginary lines running north and south and crossing a base line at a definite point, used
in the rectangular (government) survey system of property description.
Messuage A dwelling house with its adjacent buildings and lands appropriated to the use of the household.
Metes-And-Bounds A legal description of a parcel of land that begins at a well-marked point and follows the boundaries,
Description using directions and distances around the tract, back to the place of beginning.

Mill One-tenth of one cent. Some states use a mill rate to compute real estate taxes; for example, a rate of 52
mills would be $0.052 tax for each dollar of assessed valuation of a property.
Minor Someone who has not reached the age of majority and therefore does not have legal capacity to transfer
title to real property.
Mitigation A method or action to avoid, minimize, rectify, reduce, or compensate for program or project impacts.

Mobilization Augmentation of military forces by federalization of National Guard units, activation of Reserve units,
order to active duty of individual reservists, or increased Selective Service induction to meet force levels
approved by the Secretary of Defense.

Modification The act of changing any of the terms of the mortgage.

Moiety One half. One of two equal parts. A share or portion.
Monetary Policy Governmental regulation of the amount of money in circulation through such institutions as the Federal
Reserve Board.
Money Market Account A savings account that provides bank depositors with many of the advantages of a money market fund.
Certain regulatory restrictions apply to the withdrawal of funds from a money market account.
Money Market Fund A mutual fund that allows individuals to participate in managed investments in short-term debt
securities, such as certificates of deposit and Treasury bills.
Monthly Fixed Installment That portion of the total monthly payment that is applied toward principal and interest. When a mortgage
negatively amortizes, the monthly fixed installment does not include any amount for principal reduction.
Monthly Payment Mortgage A mortgage that requires payments to reduce the debt once a month.

Month-To-Month Tenancy A periodic tenancy under which the tenant rents for one month at a time. In the absence of a rental
agreement (oral or written) a tenancy is generally considered to be month to month

Monument A permanently placed survey marker such as a stone shaft sunk into the ground. A fixed natural or
artificial object used to establish real estate boundaries for a metes-and-bounds description.
More Or Less This term is frequently used in deeds to qualify acreage, e.g. "50 acres, being the same more or less".
Even accurate surveys have some error in the calculation of area and this phrase recognizes that fact.
Morgen Unit of area equal to about .6309 acres. It was used in Germany, Holland and South Africa, and was
derived from the German word Morgen ("morning"). It represented the amount of land that could be
plowed in a morning.

Mortgage A conditional transfer or pledge of real estate as security for the payment or debt. Also, the document
creating a mortgage lien. A legal document that pledges a property to the lender as security for payment
of a debt.

Mortgage Banker Mortgage loan companies that originate, service and sell loans to investors. A company that originates
mortgages exclusively for resale in the secondary mortgage market.
Mortgage Broker An agent of a lender who brings the lender and the borrower together. The broker receives a fee for this
service. An individual or company that brings borrowers and lenders together for the purpose of loan
origination. Mortgage brokers typically require a fee or a commission for their services.

Mortgage Insurance
A contract that insures the lender against loss caused by a mortgagor's default on a government mortgage
or conventional mortgage. Mortgage insurance can be issued by a private company or by a government
agency such as the Federal Housing Administration (FHA). Depending on the type of mortgage
insurance, the insurance may cover a percentage of or virtually all of the mortgage loan. See private
mortgage insurance.

Mortgage Insurance The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the
Premium (MIP) Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.

Mortgage Lien A lien or charge on the property of a mortgagor that secures the underlying debt obligations.
Mortgage Life Insurance A type of term life insurance often bought by mortgagors. The amount of coverage decreases as the
principal balance declines. In the event that the borrower dies while the policy is in force, the debt is
automatically satisfied by insurance proceeds.

Mortgagee A lender in a mortgage loan transaction. The lender in a mortgage agreement.

Mortgagor
Mouth
Multidwelling Units
Multifamily Properties
Multiperil Policies
Multiple-Listing Clause
Multiple-Listing Service
(MLS)
A borrower in a mortgage loan transaction. The borrower in a mortgage agreement.
The place where a stream enters another, larger stream.
Properties that provide separate housing units for more than one family, although they secure only a
single mortgage.
Fannie Mae provides financing for multifamily (buildings with five or more units) rental properties
through a nationwide network of mortgage lenders.
Insurance policies that offer protection from a range of potential perils, such as those of fire, hazard,
public liability and casualty.
A provision in an exclusive listing for the authority and obligation on the part of the listing broker to
distribute the listing to other brokers in the multiple-listing organization.
A marketing organization composed of member brokers who agree to share their listing agreements with
one another in the hope of procuring ready, willing and able buyers for their properties more quickly
than they could on their own. Most multiple-listing services accept the exclusive-right-to-sell or
exclusive agency listings from their member brokers.

Narrows Narrow part of a stream.

National Defense PP&E (ND ND PP&E are the PP&E components of weapons systems and support PP&E used by Military
PP&E) Departments in the performance of military missions and vessels held in a preservation status by the
Maritime Administration’s National Defense Reserve Fleet.

National Pollutant Discharge A provision of the Clean Water Act that prohibits discharge of pollutants into waters of the United States
Elimination System (NPDES) unless a permit is issued by EPA or an authorized state.

National Priorities List (NPL) A list of sites where releases of hazardous materials might have occurred and might pose an
unreasonable risk to the health and safety of individuals, property, or the environment.

Native Americans
Negative Amortization
Used in the collective sense to refer to individuals, bands, or tribes that trace their ancestry to indigenous
populations of North America prior to Euro-American contacts.
A gradual increase in mortgage debt that occurs when the monthly payment is not large enough to cover
the entire principal and interest due. The amount of the shortfall is added to the remaining balance to
create "negative" amortization.

Negotiable Instrument
Net Cash Flow
A written promise or order to pay a specific sum of money that may be transferred by endorsement or
delivery. The transferee then has the original payee's rights to payment.
The income that remains for an investment property after the monthly operating income is reduced by
the monthly housing expense, which includes principal, interest, taxes, and insurance (PITI) for the
mortgage, homeowners' association dues, leasehold payments, and subordinate financing payments.

Net Income The difference between adjusted gross income and operating expenses. May or may not include
depreciation.
Net Lease A lease requiring the tenant to pay not only rent but also the cost of incurred in maintaining the property,
including taxes, insurance, utilities and repairs.
Net Listing A listing based on the net price the seller will receive if the property is sold. Under a net listing the
broker can offer the property for sale to the highest price obtainable to increase the commission. This
type of listing is illegal in many states.

Net Operating Income (NOI) The income projected for an income-producing property after deducting losses for vacancy and
collection and operating expenses.

Net Worth The difference between total assets and liabilities of an individual, corporation, etc. term investments if
they withdraw their money before maturity. Such a penalty would be assessed, for instance, if someone
who has a six month certificate of deposit withdrew the money after four months. The value of all of a
person's assets, including cash, minus all liabilities.

No Cash-Out Refinance
A refinance transaction in which the new mortgage amount is limited to the sum of the remaining
balance of the existing first mortgage, closing costs (including prepaid items), points, the amount
required to satisfy any mortgage liens that are more than one year old (if the borrower chooses to satisfy
them), and other funds for the borrower's use (as long as the amount does not exceed 1 percent of the
principal amount of the new mortgage).

Non-Agent An intermediary between a buyer and seller, or landlord and tenant, who assist both parties with a
transaction with out representing either. Also known as facilitator, transaction broker, transaction
coordinator and contract broker.

Nonarmory Land, improvements, and structures, other than an armory, that are required for the logistical support,
training, and administration of the ARNG.
Nonconforming Use A use of property that is permitted to continue after a zoning ordinance prohibiting it has been
established for the area.
Nonexcess Property Property required for an agency mission but proposed for sale to obtain proceeds in an amount sufficient
to fund acquisition or replacement land or facilities.
Nonhomogeneity A lack of uniformity; dissimilarity. Because no two parcels of land are alike, real estate is said to be
nonhomogeneous.
Nonliquid Asset
Nonusable Condition
Not Being Put To Optimum
Use
An asset that cannot easily be converted into cash.
Used to describe a facility as unserviceable, because it has deteriorated to the extent that it needs
extensive restoration or it is a danger to the health and safety of personnel or to equipment
Under GSA regulations, the term “not being put to optimum use” refers to an entire property or portion
thereof, with or without improvements, which (1) even though utilized for current program purposes of
the accountable executive agency is of such nature or value, or is in such a location that it could be
utilized for a different significantly higher and better purpose, or (2) the costs of occupying are
substantially higher than would be applicable for other suitable properties that could be made available
to the accountable executive agency through transfer, purchase, or lease with total net savings to the
government after consideration of property values as well as costs of moving, occupancy, efficiency of
operations, environmental effects, regional planning, and employee morale. Real property not being put
to optimum use is to be declared excess.

Not Utilized Under GSA regulations, the term “not utilized” refers to an entire property or portion thereof, with or
without improvements, not occupied for current program purposes of the accountable executive agency,
or occupied in caretaker status only. Real property not utilized is to be declared excess.

Note A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a
specified period of time. See promissory note.
Note Rate The interest rate stated on a mortgage note.
Notice Of Default A formal written notice to a borrower that a default has occurred and that legal action may be taken.
Novation Substituting a new obligation for an old one or substituting new parties to an existing obligation.
Nuncupative Will An oral will declared by the testor in his or her final illness, made before witnesses and afterward
reduced to writing.
Obsolescence The loss of value due to features that are outmoded or less useful. Obsolescence may be functional or
economic.
Occupancy Permit A permit is issued by the appropriate local governing body to establish that that property is suitable for
habitation by meeting certain safety and health standards.
Offbase Installation (AF) An installation without an aircraft operating area that provides operational, training, administrative, or
logistical support to a primary, auxiliary, or detached installation and depends on that installation for
other support. An installation that is separated only by a road, fence or other segregating construction is
not considered an offbase installation.

Offer And Acceptance Two essential components of a valid contract; a "meeting of the minds".
Offeror/Offered The person who makes the offer is the offeror. The person to whom the offer is made is the offered.
Office Of Thrift Supervision Monitors and regulates the saving and loan industry. OTS was created by FIRREA.
(OTS)
Open Listing A listing contract under which the broker's commission is contingent on the broker's producing a ready,
willing and able buyer before the property is sold by the seller or another broker.
Open-End Loan A mortgage loan that is expandable by increments up to a maximum dollar amount, the full loan being
secured by the same original mortgage.
Option An agreement to keep open for a set period an offer to sell or purchase property.
Option Listing Listing with a provision that gives the listing broker the right to purchase the listed property.
Ordnance and Explosives Bombs and warheads, guided and ballistic missiles; artillery and mortar; rocket ammunition, mines;
(O&E) demolition charges, pyrotechnics, grenades; containerized and uncontainerized explosives and
propellants; military chemical agents; and all similar and related items or components, explosive in
nature or otherwise designed to cause damage to personnel or material. Soils with explosive
constituents are considered O&E if the concentration is sufficient to be reactive and to present an
imminent safety hazard.
Original Principal Balance The total amount of principal owed on a mortgage before any payments are made.

Origination Fee A fee paid to a lender for processing a loan application. The origination fee is stated in the form of
points. One point is 1 percent of the mortgage amount. A fee made by a lender for making a real estate
loan. Usually a percentage of the amount loaned, such as one percent.

Ostensible Agency A form of implied agency relationship created by the actions of the parties involved rather than by
written agreed document.
Out An 'out' was ten chains. When counting out long lines, the chain carriers would put a stake at the end of a
chain, move the chain and put a stake at the end, and so on until they ran "out" of ten stakes.
Outgrant An authorization for use of military real property controlled by the Department of the Army to other
military departments, federal agencies, state and local governmental agencies, and private organizations
or individuals. Types of outgrants include leases, licenses, permits, easements, and consents.

Outgrant (AF) A lease, license, easement, or permit that provides an interest in or a right to use Air Force real property.

Outlease A contract for exclusive possession of military real property for a designated period, usually in
consideration of rent.
Overdraft (1) An overdrawing of money from a bank (2) the amount overdrawn
Owner Financing A property purchase transaction in which the property seller provides all or part of the financing.
Package Loan A real estate loan used to finance the purchase of both real property and personal property, such as in
the purchase of a new home that includes carpeting, window coverings and major appliances.
Parole Evidence Rule A rule of evidence providing that a written agreement is the final expression of the agreement of the
parties, not to be varied or contradicted by prior contemporaneous oral or written negotiations.
Partial Payment A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan.
Participation Mortgage A mortgage loan wherein the lender has a partial equity interest in the property or receives a portion of
the income from the property.
Partition The division of cotenants' interest in real property when the parties do not all voluntarily agree to
terminate the co-ownership; takes place through court procedures.
Partnership An association of two or more individuals who carry on a continuing business for profit as co-owners.
Under the law a partnership is regarded as a group of individuals rather than as a single entity. A general
partnership is a typical form of joint venture in which each general partner shares in the administration,
profits and losses of the operation. A limited partnership is a business arrangement whereby the
operation is administered by one or more general partners and funded, by and large, by limited or silent
partners, who are by law responsible for losses only to the extent of third investments.

Party Wall A wall that is located on or at a boundary line between two adjoining parcels of land and is used or is
intended to be used by the owners of both properties.
Patent Transfer of title from the government to the first titleholder of a piece of property. This term was
generally used by the Crown or its representative. See also grant. A grant or franchise of land from the
United States government.

Payment Cap The limit on the amount the monthly payment can be increased on an adjustable-rate mortgage when the
interest rate is adjusted.
Payment Change Date The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a
graduated-payment adjustable-rate mortgage (GPARM). Generally, the payment change date occurs in
the month immediately after the adjustment date.

Payoff Statement See reduction certificate

PCB-Contaminated Equipment that contains a concentration of polychlorinated biphenyls (PCBs) from 50 to 449 parts per
Equipment million or greater.
Per Diem Daily
Percentage Lease A lease, commonly used for commercial property, whose rental is based on the tenant's gross sales at the
premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain
amount.

Perch See pole .

Percolation Test A test of the soil to determine if it will absorb and drain water adequately to use a septic system for
sewage disposal
Periodic Payment Cap For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease
during any one adjustment period.
Periodic Rate Cap For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or
decrease during any one adjustment period, regardless of how high or low the index might be.
Permit Temporary authorization conferred on one government agency to use property under the jurisdiction of
another government agency. Rental is not usually offered for this privilege. In AR 405-90, the terms
permit and license are considered to be identical and interchangeable. The directive notes that whenever
a permit is used, a license could properly be used and that a real estate permit is generally used to
authorize use of Army real property by another federal agency.

Personal Property Any property not considered real property. Personal property includes all property except land and fixed-
in-place buildings, naval vessels, and records of the federal government. Any property that is not real
property.

Physical Deterioration A reduction in a property's values resulting from a decline in physical condition; can be cause by action
of the elements or by ordinary ware & tare.
PITI See principal, interest, taxes and insurance (PITI) below.
PITI reserves A cash amount that a borrower must have on hand after making a down payment and paying all closing
costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal
the amount that the borrower would have to pay for PITI for a predefined number of months.

Planned Unit Development A planned combination of diverse land uses, such as housing, recreation and shopping, in one contained
(PUD) development or subdivision

Planting And Seating See improve. In Virginia colonial law a patentee was required to cultivate an acre of land and build a
small house on the property, otherwise the patent would revert to the government.
Plat A drawing of a parcel of land.
Plat Map A map of town, section or subdivision indicating the location and boundaries of individual properties.
Plottage The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent
lots into one larger lot.
Point A point of the compass. There are four cardinal points (North, South, East, West), and 28 others
yielding 32 points of 11.25 degrees each. A survey line's direction could be described as a compass
point, as in "NNE" (north northeast). To improve precision, the points would be further subdivided into
halves or quarters as necessary, for example, "NE by North, one quarter point North". In some areas,
"and by" meant one half point, as in "NE and by North". A one-time charge by the lender for originating
a loan. A point is 1 percent of the amount of the mortgage.

Point (1) One percent of the amount of the loan. (2) A commission paid for arranging a loan.
Point Of Beginning (POB) In a metes-and-bounds legal description, the starting point of the survey, situated in one corner of the
parcel; all metes-and-bounds descriptions must follow the boundaries of the parcel back to the point of
beginning. The starting point of the survey
Pole Unit of length and area. Also known as a perch or rod. As a unit of length, equal to 16.5 feet. A mile is
320 poles. As a unit of area, equal to a square with sides one pole long. An acre is 160 square poles. It
was common to see an area referred to as "87 acres, 112 poles", meaning 87 and 112/160 acres.

Police Power The government's right to impose laws, statues and ordinances, including zoning public health, safety
and welfare.
Polychlorinated Biphenyls Any of a family of industrial compounds produced by chlorination of biphenyl. These compounds are
(PCBs) noted chiefly as an environmental pollutant that accumulates in organisms and concentrates in the food
chain with resultant pathogenic and teratogenic effects. They also decompose very slowly.

Portable Building A building designed and constructed to be easily dismantled to facilitate economical movement from one
site to another.
Posse In posse (Latin). In the future or which might exist in the future. See also esse.
Possessory Relating to ownership.
Potable Water Water that is suitable for drinking.
Power Of Attorney A written instrument authorizing a person, the attorney-in-fact, to act as agent for another person to the
extent indicated in the instrument. A legal document that authorizes another person to act on one’s
behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain
periods of time.

Prearranged Refinancing A formal or informal arrangement between a lender and a borrower wherein the lender agrees to offer
Agreement special terms (such as a reduction in the costs) for a future refinancing of a mortgage being originated as
an inducement for the borrower to enter into the original mortgage transaction.

Preforeclosure Sale A procedure in which the investor allows a mortgagor to avoid foreclosure by selling the property for
less than the amount that is owed to the investor.
Prehistoric The period of time before the written record.
Premises A somewhat fluid term meaning land and its appurtenances, or land and its buildings and structures.
Prepaid Items On a closing statement, item that have been paid in advance by the seller, such as insurance premiums
and some real estate taxes, for which he or she must be reimbursed by the buyer.
Prepayment Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a
mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a
foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized.

Prepayment Penalty A charge imposed on a borrower who pays off the loan principal early. This penalty compensates the
lender for interest and other charges that would otherwise be lost. A fee that may be charged to a
borrower who pays off a loan before it is due.

Pre-Qualification The process of determining how much money a prospective home buyer will be eligible to borrow
before he or she applies for a loan.
President's Program To On July 2, 1993, the President announced a major new program to speed the economic recovery of
Revitalize Base Closure communities near closing military installations. The President pledged to give top priority to early use
of each closing installation’s most valuable assets. A principal goal of the initiative is to provide for
Communities
rapid redevelopment and creation of new jobs. In announcing the program, the President outlined the
five parts of his community revitalization plan: jobs-centered property disposal that puts local economic
redevelopment first; fast-track environmental cleanup that removes delays while protecting human health
and the environment; appointment of transition coordinators at installations slated for closure; easy
access to transition and redevelopment help for workers and communities; and larger economic
development planning grants to base closure communities.

Price-Fixing See anti-trust laws

Primary Installation (AF) A lease, license, easement, or permit that provides an interest in or a right to use Air Force facilities for
administrative and operating activities to carry out a given mission. For recording and reporting real
property, this is normally the parent or control installation.

Primary Mortgage Market The mortgage market in which loans are originated and consisting of lenders such as commercial banks,
savings and loans association and mutual saving banks.

Prime Rate The interest rate that banks charge to their preferred customers. Changes in the prime rate influence
changes in other rates, including mortgage interest rates.
Principal (1) A sum loaned or employed as a fund or an investment, as distinguished from its income or profits. (2)
The original amount (as in a loan) of the total due and payable at a certain date. (3) A main party to a
transaction-the person for whom the agent works. The amount borrowed or remaining unpaid. The part
of the monthly payment that reduces the remaining balance of a mortgage.

Principal Balance
Principal Meridian
The outstanding balance of principal on a mortgage. The principal balance does not include interest or
any other charges. See remaining balance.
The main imaginary line running north and south and crossing a base line at definite points, used by
surveyors for reference in locating and describing land under the rectangular (government) survey
system of legal description

Principal, Interest, Taxes, The four components of a monthly mortgage payment. Principal refers to the part of the monthly
and Insurance (PITI) payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing
money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for
property taxes and mortgage and hazard insurance.

Prior Appropriation A concept of water ownership in which the landowner's rights to use available water is based on a
government-administered permit system.
Priority The order of position or time. The priority of liens is generally determined by the chronological order in
which the lien documents are recorded; tax liens, however, have priority even over previously recorded
liens.

Private Mortgage Insurance Insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure
(PMI) and deficiency. Mortgage insurance that is provided by a private mortgage insurance company to protect
lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-
value (LTV) percentage in excess of 80 percent.

Probate The process of proving a decedent's will and settling the estate. The signing of a will was typically
witnessed by neighbors, who would later swear in court that they saw the decedent sign the will prior to
death. This "proved" that the will was actually that of the decedent.

Procuring Cause
Profit & Loss Statement
Programmed Installation
(AF)
The effort that brings about the desired result. Under an open listing the broker who is the procuring
cause of the sale receives the commission.
A statement showing the income and expenses of a business over a stated time, the difference being the
profit or loss for the period.
An installation for which the Air Force does not have real property jurisdiction, control, or accountability
but that an Air Force organization occupies or programs for use. The Joint Chiefs of Staff assign such
installations their programmed installation indicators.

Progression An appraisal principle that states that, between dissimilar properties, the value of the lesser-quality
property is favorably affected by the presence of the better quality property.
Promissory Note A promise in writing, and executed by the maker, to pay a specified amount during a limited time, or on
demand, or at sight, to a named person, or on order, or to bearer. A written promise to repay a specified
amount over a specified period of time.

Property Any kind of thing which has a value and which one can exercise the rights of ownership upon, including
possession, use, and disposal.
Property Manager Someone who manages real estate for another person for compensation. Duties include collecting rents,
maintaining the property and keeping it up all accounting.
Property Reports The mandatory federal and state documents complied by subdividers and developers to provide potential
purchasers with facts about a property prior to their purchase.
Proprietary Lease A lease given by the corporation that owns a cooperative apartment building to the shareholder for the
shareholder's right as a tenant to an individual apartment.
Proration To divide (prorate) property taxes, insurance premiums, rental income, etc., between buyer and seller
proportionately to time of use, or the date of closing.
Protected Class Any group of people designated as such by the Department of Housing (HUD) in consideration of
federal and state civil rights legislation. Currently includes ethnic minorities, women, children, religious
groups, the handicapped and others.

Prove Up See Improve.

Public Auction A meeting in an announced public location to sell property to repay a mortgage that is in default.
Public Benefit Discount A method of disposal of government real property by which state or local government entities may
Conveyance obtain property at less than fair market value. Such conveyances are sponsored by federal agencies for
uses that benefit the public, such as use of property for educational purposes, parks, recreation, wildlife
conservation, or public health.

Public Domain Land or interest in land owned by the United States and administered by the Secretary of the Interior,
through the Bureau of Land Management, without regard to how the United States acquired ownership,
except lands located in the Outer Continental Shelf and lands held for the benefit of Indians, Aleuts, and
Eskimos

PUD (Planned Unit A project or subdivision that includes common property that is owned and maintained by a homeowners'
Development) association for the benefit and use of the individual PUD unit owners.

Pueblo A Spanish grant of less than 1000 acres.

Puffing Exaggerated or superlative comments or opinions.
Punk See railroad.
Pur Autre Vie "For the life of another." A life estate pur autre vie is a life estate that is measured by the life of a person
other than the grantee.
Purchase Acquisition of real estate through buying for a mutually agreed price between a willing buyer and a
willing seller.
Purchase And Sale A written contract signed by the buyer and seller stating the terms and conditions under which a property
Agreement will be sold.

Purchase Money Transaction The acquisition of property through the payment of money or its equivalent.

Purchase-Money Mortgage A note secured by a mortgage or deed of trust given by a buyer, as a borrower, to a seller, as a lender, as
(PMM) part of the purchase price of the real estate.

Pyramiding The process of acquiring additional properties by refinancing properties already owned and investing the
loan proceeds in additional properties.
Qualifying Ratios Calculations that are used in determining whether a borrower can qualify for a mortgage. They consist of
two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a
percent of income ratio.

Quantity-Survey Method The appraisal method of estimating building costs by calculating the cost of all physical components in
the improvements, adding the cost to assemble them and then including the indirect cost associated with
such construction.

Quiet Title A court action to remove a cloud on the title.

Quitclaim Deed A common type of deed in which the seller relinquishes claim to whatever rights were held on the
property, but does not guarantee that that the property is actually free of claims by others. A deed that
transfers without warranty whatever interest or title a grantor may have at the time the conveyance is
made.

Quitrent A rent paid in lieu of required feudal services. See fee and socage. The quitrent can be considered a real
estate tax.
Radon A colorless, naturally occurring, radioactive, inert gaseous element formed by radioactive decay of
radium in soil or rocks. A radioactive gas found in some homes that in sufficient concentrations can
cause health problems.

Railroad Slang for eleven, as in 42

Rancho A Spanish grant of more than 1000 acres.
Range An area that is reserved and normally equipped for practice in weapons delivery and/or shooting at
targets.
Rate Lock A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified
interest rate for a specified period of time. See lock-in.
Rate-Improvement Mortgage A fixed-rate mortgage that includes a provision that gives the borrower a one-time option to reduce the
interest rate (without refinancing) during the early years of the mortgage term.

Ratification Methods of creating an agency relationship in which the principal accepts the conduct of someone who
acted without prior authorization as the principal's agent.
Ready, Willing And Able One who is prepared to buy property on the seller's terms and is ready to take positive steps to
Buyer consummate the transaction.

Real Estate Includes land and interests therein, leaseholds, standing timber, buildings, improvements, and
appurtenances thereto. It also includes buildings, piers, docks, warehouses, basements, utility systems,
rights-of-way, and easements, whether temporary or permanent, and improvements permanently attached
to and ordinarily considered real estate. Sand, gravel, and stone-quarried products in their natural state
are real estate. Land includes minerals in their natural state and standing timber; when severed from the
land, these become personal property. GSA has excepted growing crops from the definition of real
estate when the disposal agency designates such crops for disposal by severance and removal from the
land. Rights and interest include leaseholds, easements, rights-of-way, water rights, air rights, and rights
to lateral and subjacent support. Installed building equipment is considered real estate until severed.
Equipment in place is considered personal property. The terms “real estate” and “real property” are
synonymous and interchangeable.

Real Estate Agent A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
Real Estate Investment See syndicate
Syndicate
Real Estate Investment Trust Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the
(REIT) trust, which it turns invest the money in real property and distributes the profits back to the investors
free of corporate income tax.

Real Estate License Law State law enacted to protect the public from fraud, dishonestly and incocompontence in the purchase or
sale or real estate.
Real Estate Mortgage A tax entity that issues multiple classes of investor interests (securities) backed by a pool of mortgages.
Investment Conduit (REMIC)

Real Estate Recovery Fund A fund established in some states for real estate license revenues to cover claims of aggrieved parties
who have suffered monetary damage through the actions of a real estate licensee.
Real Estate Settlement The federal law that requires certain disclosures to consumers about mortgage loan settlements. The law
Procedures Act (RESPA) also prohibits the payment or receipt of kickbacks and certain kinds of referral fees.

Real Estate Settlement A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
Procedures Act (RESPA)
Real Property Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals,
and the interest, benefits, and inherent rights thereof. The interest, benefits and rights inherent in real
estate ownership. Land. See also chattel. See definition of real estate.

Real Property (AF) All Land, Buildings, Structures, Utility Systems, Improvements and Related property rights. Equipment
that personnel attach to and make part of buildings and structures (such as heating systems). Real
property does not include movable equipment (such as plant equipment).

Real Property Accountable The individual (military or civilian) that the base commander appoints to maintain real property
Officer (AF) accountable records.

Real Property Installed Those items of government-owned or leased accessory equipment, apparatus and fixtures that are
Equipment (RPIE) (AF) essential to the function of the real property and are permanently attached to, integrated into, or on
government-owned or leased property. Excluded is organization or collateral equipment reflected in the
equipment authorization inventory data (EAID), as shown in AFMAN 23-110 (formerly AFM 67-1,
Volume IV). Also excluded are other technical, medical, commissary, aircraft installed, fixed laundry
and dry cleaning, MARS, cryptographic, automatic data processing, rental equipment research and
development, and so on.

Realignment In BRAC, some missions of the base will cease or be relocated, but others will remain. The active
component will still be host of the remaining portion of the base. Only a portion of the base will be
excessed and the property disposed of, with realignment (missions ceasing or relocating) and property
disposal being separate actions.

Realtor A registered trademark term reserved for the sole use of active members of local realtor boards affiliated
with the National Association of Realtors.
Realtor® A real estate broker or an associate who holds active membership in a local real estate board that is
affiliated with the National Association of Realtors.
Reassignment Change of administrative or command jurisdiction over real estate from one command or agency in the
Army to another one within the Army. A reassignment is accomplished by completion of DD Form
1354 (Transfer and Acceptance of Military Real Property) or other appropriate Army forms to transfer
accountability.

Recapture Acquisition of estate by the government’s exercise of its right to have former military land and facilities
returned for use by DoD during a national emergency. The triggering event for recapture is mobilization.

Rescission The cancellation or annulment of a transaction or contract by the operation of a law or by mutual
consent. Borrowers usually have the option to cancel a refinance transaction within three business days
after it has closed.

Reconciliation The final step in the appraisal process, in which the appraiser combines the estimates of value received
from the sales comparison, cost and income approaches to arrive at a final estimate of market value for
the subject property.

Reconveyance Deed A deed used by a trustee under a deed of trust to return the title to the trustor.
Record Of Decision (ROD) A document prepared by the federal government that articulates the reasoning behind a decision. RODs
are essential documents in NEPA and in the CERCLA cleanup process.

Recorder The public official who keeps records of transactions that affect real property in the area. Sometimes
known as a "Registrar of Deeds" or "County Clerk."
Recording The act of entering or recording documents affecting or conveying interest in real estate in the recorder's
office established in each county. Until it is recorded, a deed or mortgage ordinarily is not effective
against subsequent purchasers or mortgages. The noting in the registrar’s office of the details of a
properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an
extension of mortgage, thereby making it a part of the public record.

Rectangular (Government) A system established in 1785 by the federal government, providing for surveying and describing land by
Survey System reference to principal meridians and base lines.

Redemption The right of a defaulted property owner to recover his or her property by curing the default
Redemption Period A period of time established by state law during which a property owner had the right to redeem his or
her real estate from a foreclosure or tax sale by paying the sales price, interest and cost. Many states do
not have mortgage redemption laws.

Redlining The illegal practice of lending institution denying loans or restricting their number for certain areas of a
community.
Reduction Certificate (Payoff The document signed by a lender indicating the amount required to pay a loan balance in full and satisfy
Statement) the debt; used in the settlement process to protect both the seller's and the buyers interest.

Refinance Transaction The process of paying off one loan with the proceeds from a new loan using the same property as
security.
Regression An appraisal principle that states that, between dissimilar properties, the value of the better-quality
property is affected adversely by the presence of the lesser-quality property.
Regulation Z Implements the truth-in-lending act required credit institutions to inform borrowers of the true cost of
obtaining credit.
Rehabilitation Mortgage A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing
property.
Release Deed A document, also known as deed of reconveyance, that transfers all rights given a trustee under a deed of
trust loan back to the grantor after the loan has been fully repaid.
Re-locatable Building A building designed for the purpose of being readily moved, erected, disassembled, stored, and reused (e.
g., trailer-type building but not mobile trailer). Usually considered personal property but in certain
instances is on the real property account.

Remainder Transfer of ownership to someone on the death of another. For example, land may be sold to person A
for use during their lifetime, but then remaindered to person B at the death of A.
Remainder Interest The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a
prior estate, such as when an owner conveys life estate to one party and the remainder to another.

Remaining Balance The amount of principal that has not yet been repaid. See principal balance.
Remaining Term The original amortization term minus the number of payments that have been applied.
Remedial Investigation (RI) An investigation performed to fully define the nature and extent of contamination at a site and evaluate
possible methods of cleaning up the site. During the investigation, groundwater, surface water, soil,
sediment, and biological samples are collected and analyzed to determine the type and concentration of
each contaminant. Samples are collected at different areas and depths to help determine the spread of
contamination.

Removal Action In the event of an immediate threat or potential threat to human health or the environment, a short-term
mitigating or cleanup action may be implemented. The goal of the removal action is to isolate the
contamination hot spots and their source from all biological receptors. Often, removal actions do not
completely clean up a site, and additional remediation steps are required

Rent A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by
prior agreement of the parties.
Rent Loss Insurance
Rent Schedule
Rent With Option To Buy
Repayment Plan
Replacement Cost
Replacement Reserve Fund
Reproduction Cost The construction cost at current prices of an exact duplicate of the subject property.
Reserved Public Lands See withdrawn public lands
Resolution Trust Corporation The organization created by FIRREA to liquidate the assets failed savings and loan association.
Restrictive Covenant
Retrocession
Reverse-Annuity Mortgage
(RAM)
Reversionary Interest
Reversionary Right
Revert
Revolving Liability
Right of Entry
Right Of First Refusal
Right Of Ingress Or Egress
Right Of Survivorship
Right-Of-Way
Riparian Rights
Risk Management
River
Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that
renders the leased premises unavailable for use and as a result of which the tenant is excused from
paying rent.
A statement of proposed rental rates, determined by the owner or the property manager or both, base on
a building's estimated expenses, market supply and demand and the owner's long-range goals for the
property.
See lease-purchase mortgage loan.
An arrangement made to repay delinquent installments or advances. Lenders' formal repayment plans are
called "relief provisions."
The construction cost at current prices of property that is not necessarily an exact duplicate of the subject
property but serves the same purpose or function as the original.
A fund set aside for replacement of common property in a condominium, PUD, or cooperative project --
particularly that which has a short life expectancy, such as carpeting, furniture, etc.
An agreement contained in a deed or lease that restricts the use and occupancy of real property.
The act of giving back to a state all or part of the federal legislative jurisdiction formerly enjoyed by the
government.
A loan under which the homeowner receives monthly payments based on his or her accumulated equity
rather than a lump sum. The loan must be repaid at a prearranged date or upon the death of the owner or
the sale of the property.
The remnant of the estate that the grantor holds after granting a life estate to another person.
The return of the rights of possession and quiet enjoyment to the lessor at the time of expiration of a
lease.
Return of ownership to a former owner (or heirs).
A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line
of credit when purchasing goods and services. The borrower is billed for the amount that is actually
borrowed plus any interest due.
A form of license, typically to perform surveys and exploration work or for construction prior to
acquisition or lease of land. Rental is not usually offered for this privilege.
A provision in an agreement that requires the owner of a property to give another party the first
opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
The right to enter or leave designated premises.
In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant. See joint tenancy
The right given by one landowner to another to pass over the land, construct a roadway or use as a
pathway, without actually transferring ownership.
An owner's right in land that borrowers on or includes a stream, river or lake. These rights includes
access to and use of the water.
Evaluation and selection of appropriate property and other insurance.
Large stream.
Rodman The person holding the rod with the EDM prism. This person is the modern version of a chain carrier or
chain man.
Rood Unit of area usually equal to 1/4 acre.
Room "in the room of" means in the place of, instead of.
Rules And Regulations Real estate licensing authority orders that govern licensee's activities; they usually have the same force
and effect as statutory law.
Run Small stream.
Runoff The noninfiltrating water entering a stream or other conveyance channel shortly after a rainfall event.
Rural Housing Service (RHS) An agency within the Department of Agriculture, which operates principally under the Consolidated
Farm and Rural Development Act of 1921 and Title V of the Housing Act of 1949. This agency provides
financing to farmers and other qualified borrowers buying property in rural areas who are unable to
obtain loans elsewhere. Funds are borrowed from the U.S. Treasury.

Sale And Leaseback A transaction in which an owner sells his or her improved property and , as part of the same transaction,
signs a long-term lease to remain in possession of the premises.
Sale-Leaseback A technique in which a seller deeds property to a buyer for a consideration, and the buyer simultaneously
leases the property back to the seller.
Sales Comparison Approach The process of estimating the value of a property by examining and comparing actual sales of
comparable properties.

Sales Person A person who performs real estate activities wile employed by or associated with a licensed real estate
broker.
Satisfaction Of Mortgage A document acknowledging the payment of a mortgage debt.
Scire Facias A requiring of a party to show why a judgment should not be vacated, executed, or annulled.
Screening An agency’s circulating a notice that real property under its control is no longer needed, thereby
allowing other agencies to indicate their firm requirement for its use and to request its transfer.
Searles Spiral A surveying technique used by railroad surveyors in the late 1800s and early 1900s whereby they
approximate a spiral by use of multiple curved segments.
Second Mortgage A mortgage that has a lien position subordinate to the first mortgage.
Secondary Mortgage Market A market for the purchase and sale of existing mortgages, designed to provide greater liquidity for
mortgages; also called secondary money market. Mortgages are first originated in the primary mortgage
market. The buying and selling of existing mortgages.

Section A portion of township under the rectangular (government) survey system. A townships divided into 36
sections, numbered one thought 36. A section is a square with mile long sides and an area of one square
mile or 640 acres. In the U.S. public land surveying system, an area one mile square. See aliquot.

Secured Loan A loan that is backed by collateral.

Security The property that will be pledged as collateral for a loan.
Security Agreement See Uniform commercial code
Security Deposit A payment by tenant, held by the landlord during the lease term and kept (wholly or partially) on default
or destruction of the premises by the tenant.
Seizin Ownership or 'in fact' possession of a freehold estate. Inferred here is an increasing degree of ownership
with the passage of time, as the possessor makes productive use of the land. Seizin was originally not an
estate, but a way to gain one, as by adverse possession. This is rooted in the Roman concept that
whoever worked the land should be its owner.

Seller Take-Back An agreement in which the owner of a property provides financing, often in combination with an
assumable mortgage. See owner financing.
Separate Property Under community property laws, property owned solely by either spouse before the marriage, acquired
by gift or inheritance after the marriage or purchased with separate funds after the marriage.
Sergeantry Non-military service to a lord in exchange for land.
Serverance Changing and item of real estate to personal property by detaching it from the land; for example, cutting
down a tree
Servicer An organization that collects principal and interest payments from borrowers and manages borrowers’
escrow accounts. The servicer often services mortgages that have been purchased by an investor in the
secondary mortgage market.

Servicing The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
Servient Estate The land on which an easement exists that benefits other land.
Servient Tenement Land on which an easement exists in favor of an adjacent property (called a dominant estate); also called
a servient estate.
Setback The amount of space local zoning regulations require between a lot line and a building line.
Settlement See closing.
Severalty Ownership of real property by one person only, also called sole ownership.
Sharecropping In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or
the profit from its sales, actually sharing the crop.
Shared-Appreciation A mortgage loan in which the lender, in exchange for a loan with a favorable interest rate, participated in
Mortgage (SAM) the profits (if any) the borrower receives when the property is eventually sold.

Shoal Shallows.
Shoot Measure distance with an EDM
Single-Family Properties One- to four-unit properties including detached homes, townhomes, condominiums, and cooperatives.

Situs The personal preference of people for one area over another, not necessarily based on objective facts and
knowledge.
Socage Holding of land by a tenant in return for fixed payment or for non-military service to the lord. This
system was eventually replaced by our system of taxation. See quitrent.
Soil Type A category or detailed mapping unit used for soil surveys based on phases or changes within a series (e.
g.), slope, salinity).
Soke The jurisdiction of a court.
Solid Waste Management Supervised handling of waste materials from their source through recovery processes to disposal

Special Agent One who is authorized by a principal to perform a single act or transaction; a real estate broker is usually
a special agent authorized to find ready, will able buyer for a particular property.
Special Assessment A tax or levy customarily imposed against only those specific parcels of real estate that will benefit from
a proposed public improvement like a street or a sewer.
Special Deposit Account An account that is established for rehabilitation mortgages to hold the funds needed for the rehabilitation
work so they can be disbursed from time to time as particular portions of the work are completed.

Special Warranty Deed A deed in which the grantor warrants, or guarantees, the title only against defects arising during the
period of his or her tenure and ownership of the property and not against defects existing before that
time, generally using the language, "By, through or under the grantor but not otherwise."

Specific Lien A lien affecting or attaching only to a certain, specific parcel of land or piece of property.
Specific Performance A legal action to compel a party to carry out the terms of a contract.
Spike Usually a 60 penny nail used to mark survey points in hard ground.
Spring
Square-Foot Method
Standard Payment
Calculation
State
State Historic Preservation
Officer (SHPO)
Statement
Statue Of Limitation
Statute Of Frauds
Statutory Lien
Statutory Redemption
Steering
Step-Rate Mortgage
Stewardship Land
Stigmatized Property
Straight (Term) Loan
Straight-Line Method
Straw Deed, Strawman Deed Two deeds filed in succession, the first from party A to party B, second from B back to A. This was used
A pool or other source of water that feeds a stream.
The appraisal method of estimating building cost by multiplying the number of square feet in the
improvements being appraised by the cost per square foot for recently constructed similar improvements.
The method used to determine the monthly payment required to repay the remaining balance of a
mortgage in substantially equal installments over the remaining term of the mortgage at the current
interest rate.
The various states, the District of Columbia, the Virgin Islands, and the Commonwealth of Puerto Rico.
The official within each state, authorized by the state at the request of the Secretary of the Interior, to act
as a liaison for purposes of implementing the National Historic Preservation Act.
(1) Summary for customers of the transactions that occurred over the preceding month. A bank statement
lists all deposits and withdrawals, as well as the running account balances. A brokerage statement shows
all stock, bond, commodity futures, or options trades, interest actions, as well as a summary of the worth
of the accounts at month end. A trade supplier provides a summary of open account transactions. (2)
Statement drawn up by businesses to show the status of their assets and liabilities and the results of their
operations as of a certain date.
That law pertaining to the period of time with in which certain instruments, such as deeds, be in writing
to be legally enforceable.
The part of a state law that requires certain instruments, such as deeds, real estate sales contracts and
certain leases, to be in writing to be legally enforceable.
A lien imposed on property by statute-a tax lien, for example- in contrast to an equitable lien, which
arises out of the common law.
The right of the defaulted property owner to recover the property after its sale by paying the appropriate
fees and charged.
The illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of
an area or to change the character of an area, which limits their choices of where they can live.
A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven
years), resulting in increased payments as well. At the end of the specified period, the rate and payments
will remain constant for the remainder of the loan.
Land not acquired for, or in connection with, General PP&E is Stewardship Land. “Acquired for or in
connection with” is defined as including land acquired with the intent to construct General PP&E and
land acquired in combination with General PP&E, including not only land used as the foundation, but
also adjacent land considered to be the common grounds to General PP&E. Without exception, all land
provided to DoD from the public domain, or at no cost, shall be classified as Stewardship Land,
regardless of its use. Therefore, public domain or no-cost land used in a General PP&E context shall be
classified as Stewardship Land, not as General PP&E land.
A property that has acquired an undesirable reputation due to an event occurred on or near it, such as
violent crime, gang-related activity, illness or personal tragedy. Some states restricted the disclosure of
information about stigmatized properties.
A loan in which only interest is paid during the term of the loan, with the entire principal amount due
with the final interest payment.
A method of calculating depreciation for tax purposes, computed by dividing the adjusted basis of a
property by the estimated number of years of remaining useful life.
to sidestep legal restrictions of sales between spouses or joint owners, or to incorporate a new survey
description. Party B is a trusted intermediary, either a close friend or attorney.
Strip A rectangular piece of land adjoining a parcel, created when a resurvey turns up a tiny bit larger than the
original survey. The difference is accounted for by temperature or other effects on measuring chains. See
also gore.

Subagent One who is employed by a person already acting as an agent. Typically a reference to a salesperson
licensed under a broker (agent) who is employed under the terms of listing agreement.
Subdivider One who buys an undeveloped land, divides it into smaller, usable lots and sells the lots to potential
users.
Subdivision A tract of land divided by the owner, known as the subivider, into blocks, buildings lots and streets
according to a recorded subdivision plats, which must comply with local ordinances and regulations. A
housing development that is created by dividing a tract of land into individual lots for sale or lease.

Subdivision And Municipal ordinances that establish requirements for subdivisions and ordinances.
Development Ordinances
Subdivision Plat See plat map
Sublease See subletting
Subletting The leasing of premises by a lessee to a third party for a part of the lessee's remaining term. See also
assignment.
Subordinate Financing Any mortgage or other lien that has a priority that is lower than that of the first mortgage.
Subordination Relegation to a lesser position, usually in respect to a right security.
Subordination Agreement A written agreement between holders of liens on a property that changes the priority of mortgage,
judgment and other liens under certain circumstances.

Subrogation The substitution of one creditor for another, with the substituted person succeeding to the legal rights and
claims of the original claimant. Subrogation is used by title insurers to acquire from the injured party
rights to sue in order to recover any claims they have paid.

Subsidized Second Mortgage An alternative financing option known as the Community Seconds® mortgage for low- and moderate-
income households. An investor purchases a first mortgage that has a subsidized second mortgage
behind it. The second mortgage may be issued by a state, county, or local housing agency, foundation, or
nonprofit corporation. Payment on the second mortgage is often deferred and carries a very low interest
rate (or no interest rate). Part of the debt may be forgiven incrementally for each year the buyer remains
in the home.

Substitution An appraisal principle that states that the maximum value of a property tends to be set by the cost of
purchasing an equally desirable and valuable substitute properly, assuming that no costly delay is
encountered in making the substitution

Subsurface Rights Ownership rights in a parcel of real estate to the water, minerals, gas, oil and so forth that lie beneath the
surface of the property.
Suit For Possession A court suit initiated by a landlord to evict a tenant from leased premises after the tenant has breached
one of the terms of the lease or has held possession of the property after the lease's expiration.
Suit To Quiet Title A court action intended to establish or settle the title to a particular property, especially when there is a
cloud on the title.
Superfund Popular name of the hazardous-waste cleanup fund established by the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA)
Superfund Amendments and An amendatory statue that contains stronger cleanup standards for contaminated sites, increased funding
Reauthorization Act (SARA) for superfund and clarifications of lender liability and innocent landowner immunity. Also see
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)

Supply The amount of goods available in the market to be sold at a given price. The term is often coupled with
demand.
Supply & Demand The appraisal principle that follows the interrelationship of the supply of and demand for real estate. As
apprasing is based on economic concepts, this principle recognizes that real property is subject to the
influences of the market place just as is any other commodity.

Surety Bond An agreement by an insurance or bonding company to be responsible for certain possible defaults, debts
or obligations contracted for by an insured party; in essence, a policy insuring one's personal and / or
financial integrity. In the real estate business a surety bond is generally used to ensure that a particular
project will be completed at a certain date or that the contract will be performed as stated.

Surface Danger Zone The area designated on the ground of a training complex (to include associated safety areas) for the
vertical and lateral containment of projectiles, fragments, debris, and components resulting from the
firing or detonation of weapon systems, including explosives.

Surface Rights Ownership rights in a parcel of real estate that are limited to surface of the property and do not include
the air above it (air rights) or the minerals below the surface (subsurface rights)
Surface Water All water naturally open to the atmosphere and all wells, springs, or other collectors that are directly
influenced by surface water
Surplus Real Estate Any excess real property not required for the needs and discharge of the responsibilities of all federal
agencies, as determined by the GSA Administrator.
Survey The process by which boundaries are measured and land areas are determined; the onsite measurement
of lot lines, dimensions and position of a house on a lot, including the determination of any existing
encroachments or easements. A drawing or map showing the precise legal boundaries of a property, the
location of improvements, easements, rights of way, encroachments, and other physical features.

Swamp In the southeast, a stream, particularly one that has swampy parts. A marsh.
Sweat Equity Contribution to the construction or rehabilitation of a property in the form of labor or services rather than
cash.
Syndicate A combination of people or firms formed to accomplish a business venture of mutual interest by pooling
resources. In a real estate investment syndicate the parties own and/or develop property, with the main
profit generally arising from the sale of the property.

Tacking Adding or combining successive periods of continuous occupation of real property by adverse
possessors. This concept enables someone who has not been in possession for the entire statutory period
to establish a claim of adverse possession.

Tax Credit An amount by which tax is owed is reduced directly.

Tax Deed An instrument, similar to a certificate of sale, given to a purchaser at a tax sale. See also certificate of
sale.
Tax Lien A charge against property, created by operation of law. Tax liens and assessments take priority over all
liens.
Tax Sale A court-ordered sale of real property to raise money to cover delinquent taxes.
Taxation The process by which a government or municipal quasi-public body raises monies to fund it operation.

Tenancy By The Entirety A form of joint tenancy held by husband and wife. Title automatically transfers to the survivor upon the
death of one party. Neither party can sell or divide the property without the consent of the other. A type
of joint tenancy of property that provides right of survivorship and is available only to a husband and
wife. Contrast with tenancy in common.

Tenancy In Common Title held by two or more people where each person can sell their interest without the consent of the
other owners. There are no rights of survivorship. A type of joint tenancy in a property without right of
survivorship. Contrast with tenancy by the entirety and with joint tenancy.

Tenant One who holds or possesses lands or tenements by any kind of rights or title. A unit or activity of one
military agency that receives services and occupies facilities provided by another military agency
through a mutually developed written or oral agreement
Tenant Improvement Alterations to the interior of the building to meet the functional demands of the tenant.
Tenant-Stockholder The obligee for a cooperative share loan, who is both a stockholder in a cooperative corporation and a
tenant of the unit under a proprietary lease or occupancy agreement.
Tenement Permanent property, whether concrete or not, such as land, buildings, cars, or the stock represented by a
stock certificate. In most common usage it means a house or building.
Testate Having a will.
Testator A person who has made a valid will. A woman often is referred to as a testatrix, although testator can be
used for either gender.
Teste (Latin). Witness.
Third-Party Origination A process by which a lender uses another party to completely or partially originate, process, underwrite,
close, fund, or package the mortgages it plans to deliver to the secondary mortgage market. See
mortgage broker.

Thirds See dower

Threatened Species Plant and wildlife species likely to become endangered in the foreseeable future.
Tier (Township Strip) A strip of land six miles wide, extending east and west and numbered north and south according to its
distance from the base line in the rectangular (government) survey system of legal description.
Time Is of Essence A phrase in a contract that requires the performance of a certain act within a stated amount of time.
Time-Share A form of ownership interest that may include an estate of interest in property and which allows use of
the property for a fixed or variable time period.
Title Legal ownership as evidenced by a deed or other instrument. A legal document evidencing a person's
right to or ownership of a property.
Title Company A company that specializes in examining and insuring titles to real estate.
Title Insurance A policy insuring the owner or mortgagee against loss by reason of defects in the title to a parcel of real
estate, other tan encumbrances, defects and matters specifically excluded by the policy. Insurance that
protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over
ownership of a property.

Title Search The examination of public records relating to real estate to determine the current state of the ownership.
A check of the title records to ensure that the seller is the legal owner of the property and that there are
no liens or other claims outstanding.

Title Theory Some states interpret a mortgage to mean that the lender is the owner of the mortgaged land. Upon full
payment of the mortgage debt the borrower becomes the landowner.
To Wit That is to say.
Torrens System A method of evidencing title by registration with the proper public authority, generally called the
register, named for its founder, Sir Robert Torrens.
Total Expense Ratio Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly
housing expenses plus other monthly debts.
Township In the U.S. public land surveying system, an area six miles square, containing 36 sections. The townships
are organized in rows and are identified with respect to a reference latitudinal baseline, for example,
Township 13 North. See range. The principal unit of the rectangular (government) survey system. A
township is a square with six-mile sides and an area of 36 square miles.

Township Strips See tier

Trade Equity Equity that results from a property purchaser giving his or her existing property (or an asset other than
real estate) as trade as all or part of the down payment for the property that is being purchased.
Trade Fixture An article installed by a tenant under the terms of a lease and removable by the tenant before the lease
expires.
Training Complex Includes all firing ranges, weapons training facilities, associated impact areas, and maneuver training
areas within the installation/community boundary.
Training Land (s) All types of facilities (for example, ranges, maneuver land, direct support facilities, or proficiency
courses) dedicated to the conduct of preparing and sustaining personnel and units to meet mission roles
and standards. Examples include but are not limited to weapon systems use and proficiency,
occupational skills, and standards development.

Transfer Change of jurisdiction over real property from one federal agency or department to another, including
military departments and defense agencies. A transfer accords permanent irrevocable use of land
coupled with the authority to control and regulate all aspects of the land. Transfer by the Army to
another military department is usually accomplished by Secretarial Memorandum under 10 USC2571
Transfer to agencies outside DoD are in accordance with delegations from GSA or by specific statutory
authority and are usually accomplished by Secretarial letter.

Transfer of Ownership Any means by which the ownership of a property changes hands. Lenders consider all of the following
situations to be a transfer of ownership: the purchase of a property "subject to" the mortgage, the
assumption of the mortgage debt by the property purchaser, and any exchange of possession of the
property under a land sales contract or any other land trust device. In cases in which an inter vivos
revocable trust is the borrower, lenders also consider any transfer of a beneficial interest in the trust to be
a transfer of ownership.

Transfer Tax Tax stamps required to be affixed to a deed by state and / or local law. State or local tax payable when
title passes from one owner to another.
Treasury Index An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM)
plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and
securities or is derived from the U.S. Treasury's daily yield curve, which is based on the closing market
bid yields on actively traded Treasury securities in the over-the-counter market. See adjustable-rate
mortgage (ARM).

Trust A fiduciary arrangement whereby property is conveyed to a person or institution, called a trustee, to be
held and administered on behalf of another person, called a bebficiary. The one who conveys the trust is
a trustor. Confidence placed in someone by giving them property to be held or used for another's
benefit. The property held in trust.

Trust Deed An instrument used to create a mortgage lien by which the borrower conveys title to a trustee, who holds
it as security for the benefit of the noteholder (the lender) ; also called a deed of trust.
Trust Deed Lien A lien on the property of a trustor that secures a deed of trust loan.
Trustee An individual to whom another's property is entrusted. A fiduciary who holds or controls property for
the benefit of another.
Trustee's Deed A deed executed by a trustee conveying land held in trust
Trustor A borrower in a deed of trust loan transaction
Truth-in-Lending A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage,
including the annual percentage rate (APR) and other charges.
Two-Step Mortgage An adjustable-rate mortgage (ARM) that has one interest rate for the first five or seven years of its
mortgage term and a different interest rate for the remainder of the amortization term.
Two-To-Four-Family A property that consists of a structure that provides living space (dwelling units) for two to four families,
Property although ownership of the structure is evidenced by a single deed.

Underutilized Under GSA regulations, the term “underutilized” refers to an entire property or portion thereof, with or
without improvements, that is used only at irregular intervals or intermittent periods by the accountable
executive agency for current program purposes of that agency, or is used for current program purposes
that can be satisfied by only a portion of the property. Underutilized real property is to be declared
excess.

Underwriting The process of evaluating a loan application to determine the risk involved for the lender. Underwriting
involves an analysis of the borrower's creditworthiness and the quality of the property itself.
Undivided Interest See tenancy in common
Unenforceable Contract A contract that has all the elements of a valid contract, yet neither party can sue the other to force
performance of it. For example, an unsigned is usually unenforceable
Unexploded Ordnance (UXO) An item of ordnance that has failed to function as designed, or has been abandoned or discarded and is
still capable of functioning and causing injury to personnel or material

Uniform Commercial Code
A codification of commercial law, adopted in most states, that attempts to make uniform all laws relating
commercial transactions, including chattel mortgages and bulk transfers. Security interest in chattels are
created by an instrument known as a security agreement. To give notice of the security interest, a
financing statement must be recorded. Article 6 of the code regulates bulk transfers--the sale of a
business as a while, including all fixtures, chattels and merchandise.

Unilateral Contract A one-sided contract wherein one party makes a promise so as to induce a second party to do something.
The second party is not legally bound to perform; however, if the second party does not comply, the first
party is obligated to keep the promise.

Unit Of Ownership
Unit-In-Place Method
The four unities that are traditionally needed to create a joint tenancy-- unity of title, time, interest and
possession.
The appraisal method of estimating building cost by calculating the cost of all the physical components
in the structure, with the cost of each item including its proper installation, connection ect.; also called
segregated cost method.

Unsecured Loan A loan that is not backed by collateral.

Upper Toward the head of a stream. Further up along its course. Opposite of lower.
US Environmental The independent federal agency established in 1970 to regulate federal environmental matters and
Protection Agency oversee the implementation of federal environmental laws.

Usury Charging interest at a higher rate than the maximum rate established by state law.
Utilization Survey An on-site survey of an installation or activity to determine whether federal real property is being
adequately utilized to justify retention.
VA loan A mortgage loan on approved property made to a qualified veteran by an authorized lender and
guaranteed by the Department of Veteran Affairs in order to limit the lender's possible loss.
VA mortgage A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a
government mortgage.
Vacated Premises Property from which all military personnel and missions have been vacated.
Valid Contract A contract that complies with all the essentials of a contract and is binding and enforceable on all parties
to it.
Value The power of a good or service to command other goods in exchange for the present worth of future
rights to its income or amenities.
Vara Unit of length (the "Spanish yard") used in the U.S. southwest. The vara is used throughout the Spanish
speaking world and has values around 33 inches, depending on locale. The legal value in Texas was set
to 33 1/3 inches early in the 1900's.

Variance Permission obtained by zoning authorities to build a structure or conduct a use that is expressly
prohibited by the current zoning laws; an exception from zoning ordinances.
Vendee A buyer, usually under the terms of a land contract.
Vendor A seller, usually under the terms of a land contract.
Vested Having the right to use a portion of a fund such as an individual retirement fund. For example,
individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a
retirement fund. However, taxes may be due on any funds that are actually withdrawn.

Viz., Vizt. Videlicet (Latin). That is to say.

Voidable Contract A contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both parties.

Voluntary Alienation See alienation

Voluntary Lien A lien placed on property with the knowledge and consent of the property owner.
Warrant A governmental order authorizing some action. An arrest warrant instructs a sheriff to arrest someone. A
land warrant instructs a state to issue land to someone.
Warranty Deed A deed in which the seller warrants having a valid title and that the property is clear of any liens.
Waste Land Land that has not been claimed, or which has escheated.
Waters ("watters") of In the drainage of.
Wetlands Areas that are inundated or saturated with surface water or groundwater at a frequency and duration
sufficient to support a prevalence of vegetation typically adapted for life in saturated soil. This
classification includes swamps, marshes, bogs, and similar areas. Jurisdictional wetlands are those
wetlands which meet the vegetation, soils, and hydrology criteria under normal circumstances (or meet
the special circumstances as described in the US Army Corps of Engineers’ 1987 wetland delineation
manual where one or more of these criteria may be absent) and are a subset of “waters of the United
States."

What-If Analysis An affordability analysis that is based on a what-if scenario. A what-if analysis is useful if you do not
have complete data or if you want to explore the effect of various changes to your income, liabilities, or
available funds or to the qualifying ratios or down payment expenses that are used in the analysis.

What-If Scenario A change in the amounts that is used as the basis of an affordability analysis. A what-if scenario can
include changes to monthly income, debts, or down payment funds or to the qualifying ratios or down
payment expenses that are used in the analysis. You can use a what-if scenario to explore different ways
to improve your ability to afford a house.

Will A written document, properly witnessed, providing for the transfer of title to property owned by the
deceased, called the testator
Withdrawal Acquisition of public domain lands for either exclusive or nonexclusive use by a federal agency.
Withdrawn Public Lands Public domain lands held back for the use or benefit of an agency by reservation, withdrawal, or other
restriction for a special government purpose. Withdrawn lands are typically used for national parks,
wildlife refuges, and national defense. Withdrawal of public lands generally has the effect of
segregating such land from lease, sale, settlement, or other disposition under the public land laws.

Witness Tree Generally used in the U.S. public land states, this refers to the trees close to a section corner. The
surveyor blazed them and noted their position relative to the corner in his notebook. Witness trees are
used as evidence for the corner location.

Worker's Compensation Laws that require an employer to obtain insurance coverage to protect his or her employees who are
injured in the course of their employment.
Wraparound Loan A method of refinancing in which the new mortgage is placed in secondary, or subordinate, position; the
new mortgage includes both the unpaid principal balance of the first mortgage and whatever additional
sums are advanced by the lender. In essence it is an additional mortgage in which another lender
refinanced a borrower by lending an amount without disturbing the existence of the first mortgage.

Wraparound Mortgage A mortgage that includes the remaining balance on an existing first mortgage plus an additional amount
requested by the mortgagor. Full payments on both mortgages are made to the wraparound mortgagee,
who then forwards the payments on the first mortgage to the first mortgagee.

Zero Zero degrees, minutes, and seconds. A perfect zero.

Zoning The division of a municipality into districts for the purpose of regulating land use, types of buildings,
required yards, necessary off-street parking, and other prerequisites to development. Zones are typically
shown on a map, and the text of the zoning ordinance specifies requirements for each zoning category.
Zoning Ordinance An exercise of police power by a municipality to regulate and control the character and use of property.