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An opinion of value of adequately defined real property as of a specified date, supported by objective market data.

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appraisal

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The process of physically attaching personal property to land, causing it to be a fixture.

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actual annexation

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The right to undisturbed use and control of airspace over a parcel of land (within reasonable limits for air travel) may be transferred separately from the land.

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Air rights

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The process of attaching personal property to land so the law views it as part of the real property.

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annexation

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Water rights allocated by government permit, according to an appropriation system. It is not necessary to own property beside the body of water in order to apply for an appropriation permit.

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Appropriative Rights

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A right that goes along with ownership of real property; usually transferred with the property but may be sold separately.

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Appurtenances

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Things connected to the land, whether natural or man-made; generally considered to be real property.

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Attachments

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The gradual addition to dry land by natural forces, as when tide deposits waterborne sediment on shoreline property.

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Accretion

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The erosion of land through natural causes, such as flooding which may remove soil or cause the collapse of riverbanks.

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Avulsion

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When a possessor who holds less than fee ownership misuses or abuses the property.

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Act of Waste

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Monthly fees paid by each condominium or cooperative owner for common area expenses such as utilities, management, building maintenance hazard and liability insurance for the common areas of the property and other amenities.

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Association Fees

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In an agency relationship the agents fiduciary duty to account to the principal information related to financial accounting or responsiveness.

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Accountability

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Intentional misrepresentation or concealment of a material fact; when a person actively conceals material information or makes statements known to be false or misleading.

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Actual fraud

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A person licensed to represent another (the principal) in a real estate transaction; a person authorized to represent the principal in dealings with third parties (clients or customers).

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Agency

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A situation in which the agent has a personal interest in the subject of the agency, as when one co-owner has been authorized by the others to sell their property.

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Agency coupled with Interest

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The placement of public announcements in any medium with the intention of promoting or enticing a consumer into purchasing goods or engaging the services of someone.

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Any authorized person to act for another by a power of attorney.

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Attorney in fact

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When one party to a contract informs the other before the time set for performance that he does not intend to perform as agreed.

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Anticipatory Repudiation

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1) When a person transfers his interests under a contract to another. 2)When a tenant transfers his right of possession or other interest in leased property to another person for the remainder of the lease term.

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Assignment

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A provision in a purchase agreement stating the buyer accepts the property in the current condition.

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As-is Clause

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Tax based on the assessed value of the property.

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Ad Valorem Tax

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The value of real property established for purposes of computing taxes.

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Assessed Value

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A lien intended to prevent property transfer pending the outcome of litigation.

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Attachment lien

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1) Recognition of validity. 2)A document signer's declaration to an authorized official (notary) that he or she is signing voluntarily.

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Acknowledgement

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The open, notorious, hostile, and uninterrupted possession of another person's property for a number of years, after which time the adverse possessor may obtain title to the property.

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Adverse Possession

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Actual knowledge; that which is known.

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Actual notice

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A person who acts on behalf of a real estate broker in performing any act of that broker.

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Associate broker

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The legal process of forcing someone off of a property or preventing someone from re- entering property

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Actual eviction

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In Georgia, is any person who; for another, and who, for a fee commission, or any other valuable consideration or with the intent or expectation of receiving the same from another: negotiates or attempts to negotiate, or assists in procuring prospects for the listing, sale, purchase, exchange, renting, lease or option for any real estate or the improvements thereon.

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Broker

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A situation in the housing market where there are many homes available for sale, but few buyers.

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Buyer's Market

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A document used to transfer title to personal property from one person to another.

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Bill of sale

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One who receives a benefit. In real estate usually the lender in a trust deed.

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Beneficiary

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Application materials for admission to a cooperative that includes financial qualifications, employment verification, letters of reference, and other material as requested by a cooperative board.

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Board package

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Rules and regulations that govern the activities of condo and cooperative associations including the purpose of the building, rules for elections and voting, and frequency of board of directors or shareholders meetings.

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Bylaws

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A business concept premised primarily on bringing parties together for the purpose of a transaction.

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Brokerage

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A written contract where in the seller, buyer, landlord, or tenant becomes the client of the broker and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another in consideration of the broker procuring a seller, buyer, tenant, or landlord ready able, and willing to sell, buy, or rent the property or performing other brokerage services.

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Broker Engagement

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An agent representing the interest of the buyer of a property.

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Buyer's Agent

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A contract in which the parties expressly enter into a mutual agreement or engagement; each party promises to perform some act, and both parties are required to perform.

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Bilateral Contract

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When one party to a contract fails to perform with no legal cause.

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Breach of Contract

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A contract provision stating the broker is still entitled to a commission if the property is sold during a certain time under certain circumstances.

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Broker Protection Clause

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An employment contract between a buyer and a broker that grants the broker exclusive right to represent the purchaser in the purchase or lease of property and that makes the buyer responsible for paying commission to the buyer broker. (Buyer Brokerage Contract)

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Buyer Agency Agreement

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An express written contract where in the client promises to pay the real estate broker a valuable consideration or agrees that the broker can receive consideration from another in consideration of the broker's producing a seller, buyer, tenant that is ready and willing to sell, buy or rent property or in consideration of the broker's performing property management services or performing community associatoin management services.

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Brokerage Agreement

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A court process that cancel debt and provides some relief for creditors. Ch. 7 sometimes called straight bankruptcy is a liquidation proceeding; Ch 13, sometimes called a reorganization proceeding is filed by individuals who want to pay off their debts over a period of 3-5 years.

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Bankrupcy

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property pledged as security for a debt

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collateral

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A situation where a lender approves a loan under certain stated conditions.

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Conditional Approval

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a person's record of debt, repayment, often used a s guide to whether he or she is likely to pay accounts on time in the future.

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credit History

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A means by which the lender makes certain determinations regarding the credit worthiness of potential borrowers. This involves lender assigning specific numerical values to different aspects relating to a borrower.

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Credit Scoring

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A form of pre-paid interest that is charged by a lender to increase the yield on a lower than market interest rate loan. One point equals 1% of the loan amount.

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Discount Point

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the amount of money owed on a note or other promise to pay.

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Debt

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The amount of money a buyer pays to obtain a property in addition to the money that the buyer borrows.

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Down Payment

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Federal law that prohibits discrimination in granting credit to people based on sex, age, marital status, race, color, religion, national origin. or receipt of public assistance.

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Equal Credit Opportunity Act

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A policy that covers damage caused by the peril of flood.

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Flood Insurance

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A lender calculated estimate of the closing costs that the borrower must pay for a real estate loan.

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Good Faith Estimate

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A policy that covers loss or damage to the home or property in the event of fire or other disaster such as tornado, snow and hail damage.

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Hazard Insurance

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The relationship of a borrower's total monthly housing expense to income, expressed as a percentage. Total housing/ income= Ratio % (front end ratio)

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Housing Expense Ratio

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Combines the initial Truth in Lending and the Good Faith Estimate into a single 3 page disclosure.

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Loan Estimate

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The amount of money borrowed, compared to the value of the property. (LTV)

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Loan to Value Ratio

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A promissory note or other finance instrument that is freely transferable.

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Negotiable Instrument

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A fee charged by a lender to cover the administrative costs of making a loan, usually based on a percentage of the loan amount where 1% = 1 point

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Origination Fee

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A contract clause that gives a lender the right to charge the borrower a penalty for paying off the loan early.

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Pre-payment Clause

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The base amount of the loan.

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Principal

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An instrument that evidences a promise to pay a specific amount of money to a specific person within a specific time frame. A written, legally binding promise to repay debt.

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Promissory Note

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One percent of loan amount. A fee charged by a lender for making a loan, calculated based on loan amount.

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Point

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Process by which a lender determines if potential borrowers can be financed through the lender, and for what amount.

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Pre-approval

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The process of pre-determining how much a potential home buyer might be eligible to borrow.

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Pre-qualification

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A typical mortgage payment that includes principal, interest, taxes, and insurance.

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PITI

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A specific fixed interest rate for a specified amount of time that is guaranteed by the mortgage lender.

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rate lock

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Federal law, implemented as Regulation X, dealing with real estate closings that provides specific procedures and guidelines for disclosure of settlement costs.

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Real Estate Settlement Procedures Act (RESPA)

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The illegal action of a lender who denies loans in certain areas of a community because of the racial or ethnic composition of the neighborhood.

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Redlining

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Cash on deposit for other highly liquid assets a borrower must have in order to cover two months PITI mortgage payments, after they make the cash down payment and pay all closing costs.

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Reserves

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Income that can reasonably be expected to continue in the future.

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Stable monthly income

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Regulation Z. Federal law that requires disclosure of the terms of credit by a creditor to a prospective debtor.

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Truth in Lending Act (TILA)

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The relationship of a borrower's total monthly debt to income expressed as a percentage. Debt obligations include housing and long term debts with more than 10 payments remaining. (Back End Ratio)

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Total debt to income ratio

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Charging an illegal rate or amount of interest o a loan.

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Usury

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A form lenders require potential borrowers to complete that allows them to collect pertinent information about the borrower and the property.

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Uniform Residential Loan Application

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(VOD) A form sent by a lender directly to a bank verifying the borrower's accounts.

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Verification of Deposit

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Compensation paid to a broker for services in a real estate transaction; usually a percentage of the sales price.

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Commission

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Personal property that is tangible. Goods or other items of property movable or immovable, which are not real property.

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chattel

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Personal property associated with real property in such a way that the law treats it as a fixture, even though it is not physically attached to the real property.

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Constructive Annexation

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A life estate in which the measuring life and the life tenant are the same person.

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Conventional Life estate

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A husband's interest in his wife's property. (not in Georgia)

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Curtesy

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The process of taking private property for public use, through the government's use of eminent domain. Appropriation.

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Condemnation

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Property accumulated by a married couple through the efforts of either during the marriage. (not in Georgia)

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Community property

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Any form of ownership in which tow or more people share title to the property; holding undivided interest. Co-Tenancy or Concurrent ownership

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Co-Ownership

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A legal structure authorized by state law that allows a business to organize as a separate legal entity from its owners for liability or tax purposes.

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Corporation

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A declaration of covenants, conditions and restrictions. Usually recorded by a developer to create a general plan of private restrictions for a subdivision.

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CC & R's

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the land and improvements in a condo, planned unit development, or co-op that all residents use and own as tenants in common, such as parking lot, hallways, and rec facilities.

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Common Elements

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A property developed for co-ownership with each co-owner having a separate interest in an individual unit combined with and undivided interest in the common areas of the property and air space consisting of the areas between the walls, floor, and ceiling.

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Condominium

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the document that must be filed in the public record when property is developed as, or converted to a condo.

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condo declaration

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A type of property ownership under which residents have the right to occupy a unity by purchasing stock shares in the corporation that owns the property.

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Cooperative

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A person being represented by a licensee. Principal.

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Client

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Illegally mixing personal funds with money held in trust on behalf of a client.

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Commingle

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The protection of the client's confidential information.

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Confidentiality

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A negligent misrepresentation or concealment of a material fact; when a person carelessly fails to disclose material information, or makes false or misleading statements.

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Constructive Fraud

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A person or entity seeking or receiving licensed activity.

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Consumer

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A party in a transaction with who an agent does not have a fiduciary duty or relationship, but with whom an agent must till be fair and honest.

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Customer

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the illegal use of any of the clients money maintained in a trust or escrow account for personal or brokerage expenses.

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Conversion

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Compensation paid to a broker for services in a real estate transaction usually a percentage of the sales price.

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commission

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The valuable consideration given one person by another in exchange for performance of service. May include commission; referral fees; bonuses; prizes; merchandise; finder fee; performance of services; coupons or gift certificates, etc.

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compensation

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An agreement between 2 or more parties to do or not to do a certain thing. Certain contracts must be in writing.

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contract

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The legal ability to enter a contract.

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contractual capacity

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A response to an offer to enter into a contract changing some of the terms of the original offer. A counter offer is a rejection of the original offer and does not create a binding contract until it is agreed on by both parties.

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Counteroffer

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Termination of a contract without undoing the acts already performed under it.

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Cancellation

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Award. Usually money intended to compensate the plaintiff for harm caused by the defendant's act or failure to act. Actual Damages

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Compensatory Damages

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A provision in a contract or deed that makes the parties' rights and obligations depend on the occurrence of a particular event. A condition

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Contingency

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Recently sold properties with similar characteristics that are in close proximity to the house being appraised.

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comparables

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A method of determining the approximate market value of a home by comparing the subject property to other homes that have sold; are presently for sale, or did not sell in a given area.

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Comparative Market Analysis

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A document that is given to the winning bidder of a real estate tax or foreclosure sale. Once the sale is confirmed, a deed will be issued to convey title.

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Certificate of Purchase

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An opinion letter written by a lawyer who has examined an abstract of title; it states that the title is vested in a particular individual.

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Certificate of Title

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The chain of deeds showing transfer of title of real property from one person to the next as disclosed in the public records.

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Chain of Title

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A valid encumbrance affecting title of estate in land, such as a mortgage or judgement.

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Cloud on the Title

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Notice given by a publication in a newspaper, recording or other method.

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Constructive Notice

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Eviction that occurs when a landlord's direct action or failure to act when there is a duty to act restricts a tenant's use of the property.

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Constructive Eviction

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A contract. A promise. A guarantee in a document such as a deed or lease. A restrictive covenant.

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Covenant

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An expense incurred to improve property

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Capital Expense

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The ratio of income generated by the cash investment. Cash flow /Purchase costs = cash on cash return

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Cash on cash return

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A person who acts on behalf of a real estate broker in providing only community association services.

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Community Association manager

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What tenants are actually paying for in rent, as stated in the terms of the lease.

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Contract rent

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Maintenance that increases a property's appeal.

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cosmetic maintenance

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Repairing or restoring broken or failed equipment to a specified condition.

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Corrective Maintenance

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Property pledged as security for a debt.

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Collateral

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A person's record of debt repayment, often used as a guide to whether he or she is likely to pay accounts on time in the future.

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Credit History

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Loans that meet Fannie Mae/ Freddie Mac standards and which can be sold on the secondary market.

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Conforming loan

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A temporary loan used to finance the construction of improvements and buildings on land.

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construction Loan

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A certificate issued by Department of Veteran's Affairs to established status and amount of a veteran's eligibility to qualify for loan guaranty.

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Certificate of Eligibility (COE)

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A document issued by the VA which establishes the reasonable value of the subject property based on an approved appraisal. The VA loan amount cannot exceed the CRV.

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Certificate of Reasonable Value (CRV)

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the relationship between the unpaid principal balances of ALL mortgage loans and the appraised value (or sales price if it is lower) of the property.

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Combined Loan to Value (CLTV)

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A loan that is not insured or guaranteed by the federal government.

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conventional loan

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Rule that allows an agricultural tenant to re-enter the land to harvest crops if the lease ends through no fault of the tenant before the crop can be harvested. (applies only to the first crop)

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Doctrine of Emblements

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The need for or desire of a specific good or service by others.

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demand

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A type of freehold estate conveying ownership interest that comes with a condition (qualified fee).

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defeasible fee

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A wife's interest in her husband's property (Not in GA)

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dower

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An agent's fiduciary obligation to reveal certain points or facts.

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disclosure

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Points or facts in a real estate transaction that must be revealed.

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disclosures

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One or more licensees affiliated with a broker who are assigned by the broker to represent solely one client to the exclusion on all other clients in the same transaction and to the exclusion of all other licensees affiliated with the broker.

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Designated agent

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A contractual relationship between a broker and a client in which one or more licensees associated with or employed by the broker are appointed to the designated agent of the client.

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designated agency

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An agency relationship in which a licensee is representing both the buyer and the seller or both landlord and tenant in the same transaction.

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dual agency

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A licensee who represents both the buyer and the seller in a single real estate transaction.

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dual agent

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the name that identifies a website, usually followed, for commercial purposes, by .com

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domain name

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A legal doctrine that allows a court to enforce an oral agreement that should have been in writing when the promisee has taken irrevocable steps to perform hi or her side of the bargain, and failure to enforce the contract would result in an unjust benefit for the promisor.

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doctrine of part performance

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Restrictive covenant in a deed that transfers with the title in future conveyances to the new owners.

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Deed restriction

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A person with easement rights on another's property either the owner of a dominant tenement or someone who has an easement in gross.

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Dominant tenant

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a written instrument transferring the grantor's ownership of or interest in real property.

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deed

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An operation of law when real property is transferred to an heir after death of the owner who leaves no will, intestate.

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descent

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Real property transferred in a will. To transfer real property by a will.

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devise

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The eviction of a tenant in a superior court, state court or any other court with jurisdiction over the matter in the county where the property is located.

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dispossession

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A lease in which the tenant pays two of the expenses associated with the property, including rent. Net-net

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double net lease

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To seize and hold personal property of another as payment or reciprocation for debt, such as unpaid rent.

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distrain

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A clause used to defeat or cancel a certain right upon the occurrence of a specific event. Clause used to give a borrower the right to redeem real estate after default on a note by paying the full amount due plus fees and court costs.

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defeasance clause

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A form of prepaid interest that is charged by a lender to increase the yield on a lower than market interest rate loan. One point equals 1%

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discount point

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Failure to fulfill an obligation, duty or promise to pay.

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Default

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The rate charged by the federal reserves when it lends money to member banks.

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discount rate

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A certificate of Release or Discharge from active duty, or DD 214 issued by the Department of Defense. Identifies the character of service and the reason for discharge.

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DD-214

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Process by which the deed to a property is given by a borrower to the lender to avoid foreclosure.

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deed in lieu of foreclosure

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The debt that remains due and payable by the borrower after a sheriff's sale of property.

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Deficiency judgement

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Any loss in value to real property improvements caused by deterioration or obsolescence. A decrease in the book value as an accounting procedure for use as a tax deduction.

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Depreciation

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the main business or industry in an area that a community uses to support and sustain itself.

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Economic base

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A crop that is planted and cultivated through someone's labor and industry. Emblements are considered to be personal property. (fructus industriales)

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emblements

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A gradual loss of soil due to the action of wind or water.

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Erosion

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A possessory interest in real property; either a freehold estate or a leasehold estate.

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Estate

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The constitutional power or right of governmental bodies to take private real estate for public use upon payment of just and equitable compensation to the owner.

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Eminent Domain

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The reversion of a property to the state after a person dies without leaving a will or any heirs.

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Escheat

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Agency relationship based on an expressed agreement either written or oral.

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expressed agency

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Someone who works under the direction and control of another.

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Employee, common law

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The contract between a broker and an affiliated licensee that defines the terms of the relationship.

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Employment agreement

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Professional liability insurance that protects real estate professionals from mistakes or negligence.

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Errors and omissions insurance

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money offered as an indication of good faith regarding future performance of a purchase agreement.

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Earnest money

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An account maintained by a broker for the deposity of client's money. (Trust account) An account maintained by a lender for the deposit of borrowers' extra 1/12 monthly deposits to cover next year's insurance and tax payments (reserve account)

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Escrow Account

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A contract under which all parties have completely performed their contractual obligations.

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executed contract

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A contract in which one or more parties have not yet completed performance of their obligations and may be in the process of carrying out their duties.

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executory contract

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Contract that has been put into words either spoken or written.

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express contract

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Any present right to acquire legal title to property.

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equitable title

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A written brokerage agreement that provides that the broker has the sole right through one or more licensees, to act as the exclusive designated agent or representative of the client.

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exclusive brokerage agreement

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A listing agreement in which the broker earns commission when a ready, willing, and able buyer is found unless it is the seller who procures the buyer.

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exclusive agency agreement

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A listing agreement that entitles the broker to a commission if anyone, including the seller, finds a buyer for the property during the listing term.

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Exclusive right to sell agreement

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An agreement in which the sponsoring broker is paid the negotiated fee even if the buyer purchases property through another brokerage.

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exclusive buyer agency agreement

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Any claim, lien, charge, or liability that affects or limits the fee simple title to real property.

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encumberances

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The non ownership right acquired by a person to use the land of another for a specific purpose. An easement is irrevocable and creates an interest in the property.

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easement

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The right acquired by the owner of one parcel of land to use another's adjacent land for a specific purpose. There must be 2 tracts of land. One becomes the dominant tenement and the other becomes the servient tenement.

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easement appurtenant

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An easement that benefits a person or company, rather than benefiting another parcel of land.

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easement in gross

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A physical object intruding onto neighboring property, often due to a mistake regarding the boundary.

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encroachment

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A leasehold estate set to last for a definite period after which it terminates automatically. (term tenancy/ tenancy for years)

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estate for years

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Federal law that prohibits discrimination in granting credit to people based on sex, age, marital status, race, color, religion, national origin, or receipt of public assistance.

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equal credit opportunity act

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An owner's unencumbered interest in his property.

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equity

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The dollar amount of loan guarantee to which an eligible veteran is entitled.

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entitlement

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The right of a debtor to redeem property from foreclosure proceedings prior to confirmation of sale.

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equitable right of redemption

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The date specified by the client or by the type of assignment for which value is established by an appraisal.

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effective date

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The time during which a building can be used for its intended purpose or generate more income than is paid out for operating expenses.

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economic life

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A loss of value due to a change in external factors affecting a piece of property.

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external obsolescence

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A man made attachment; an item of personal property that has been attached to or closely associated with real property in such a way that it is now leagally part of the real property.

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fixture

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The greatest estate one can have in real property. It is freely transferable and inheritable, and of indefinite duration with no conditions on the title. (fee simple absolute)

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fee simple

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A defeasible fee that's terminated automatically if certain conditions occur. Grantor (or his heirs) has a possibility of reverter. (determinable fee)

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fee simple determinable

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A condition in which the grantor retains title to the estate until a specific condition occurs.

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fee simple subject to a condition precedent

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A type of defeasible fee; title may be terminated by former owner if conditions started in deed are not met. Former owner has power of termination. (conditional fee)

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fee simple subject to a condition subsequent

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A possessory interest of uncertain duration.

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freehold estates

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Person in a position of trust held by law to high standards of good faith and loyalty.

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fiduciary

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An intentional or negligent misrepresentation or concealment of a material fact. Making statements that a person knows or should realize are false or misleading.

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fraud

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An agency relationship in which a licensee is representing both buyer and seller.

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first substantive contract

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An event triggering agency disclosure (prior to listing agreement or showing property)

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first substantive contact

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the process of working on a specific area over a period of time to identify prospects for services; encompasses a number of techniques including cold calling, mass mailing, door to door solicitation.

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farming

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A system designed to prevent unauthorized access to or from a private network. Information in front of a firewall is public; information behind a firewall is private.

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firewall

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The portion of a webpage that does not change when the user links to a different site or moves to different pages.

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frame

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a legally binding promise to refrain from doing a particular act.

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forebearance

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An attempt to sell one's own property without listing it with a real estate broker.

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For Sale By Owner (FSBO)

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The process used by a lien holder to force a property to be sold, so that the proceeds of the sale can be applied toward debt satisfaction.

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foreclosure

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Person in a position of trust, held by law to high standards of good faith and loyalty.

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fiduciary deed

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any business entity including but not limited to a corporation, partnership, LLC, or sole proprietorship.

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firm

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Ongoing expenses that do not vary based on occupancy levels of the property (taxes, insurance)

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fixed expenses

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A policy that covers damage caused by the peril of flood.

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flood insurance

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Purchasing a property and immediately reselling it for profit.

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flipping

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security instrument with a first lien position, meaning the first mortgage holder is paid first from foreclosure sale's proceeds.

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first mortgage

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A loan where the interest rate remains constant for the duration of the loan.

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fixed rate loan

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a type of loan structure that requires regular payment of principal and interest calculated to pay off the entire balance by the end of the loan term.

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fully amortizing loan

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Loans insured by the FHA

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FHA insured loans

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When the lender agrees to temporarily reduce, postpone, or suspend the mortgage payment and not proceed with the foreclosure as long as the borrower brings the loan current within a specified period of time.

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Forebearance agreement

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A lawsuit filed by a creditor to begin foreclosure proceedings in judicial foreclosure states.

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foreclosure action

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The dimension across the access side of a parcel of land. The access could be a road, railroad tracks, or water. When referring to lot size, frontage is the first number (front foot).

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frontage

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A loss in value due to a property's design characteristic that does not meet current market expectations.

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Functional Obsolescence

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A partnership in which each member has an equal right to manage the business and share in the profits as well as equal responsibility for partnership debts.

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general partnership

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A person authorized to handle a principal's affairs in one area or in specified areas.

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general agent

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An agency relationship where the agent is NOT compensated for hi services, but still owes the principal all statutory obligations due every client.

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gratuitous agency

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A lien against all property of a debtor, instead of a particular piece of property.

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General lien

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A deed in which the grantor warrants the title against any and all defects that might have arisen before or during his or her period of ownership (standard warranty deed / simple warranty deed)

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General warranty deed

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Person receiving a grant of real property

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grantee

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A deed clause stating a grantors intent to transfer an interest in real property.

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granting clause

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A person who conveys his or her interest in real property.

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grantor

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A lease under which rental increases are made at scheduled intervals for specific amounts.

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graduated lease

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A lease for which the tenant pays a fixed amount to the landlord and the landlord is responsible for paying all expenses.

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gross lease

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A lender calculated estimate of the closing costs that the borrower must pay for a real estate loan

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good faith estimate

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A temporary buydown plan where payment subsidies in the early years of the loan keep payments low, buy payments increase each year until they are sufficient to fully amortize the loan.

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graduated payment buydown

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A fixed rate mortgage set up like a 30 year conventional loan, but payments increase regularly.

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growth equity mortgage

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legal description for land referencing principal meridians and baselines designated throughout the country (rectangular survey system)

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government survey system

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Residential space that is finished, heated, and above grade. Garages, finished basements, and storage areas do not count i the GLA.

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gross living area

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A conversion factor derived from the sale price of a comparable rental property divided by its gross monthly rent. This factor is multiplied by the estimated rent of the subject to estimate its value.

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gross rent multiplier

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A residential facility in a residential zone for 3 or more unrelated people.

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group home

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A generic name given to state laws that create the legal framework that allows a condo form of ownership and makes it possible for lenders to provide mortgages on condos, for tax authorities to assess property taxes, etc.

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horizontal property acts

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starting page of a website.

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homepage

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A clause in a deed usually that begins with "to have and to hold," that describes the type of estate granted.

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habendum clause

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A lessee who remains in possession of property after the lease expired.

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holdover tenant

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The act of pledging property to be the security for a loan without having to give up possession of it. ( as with a mortgage)

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hypothecation

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A policy that covers loss or damage to the home or property in the event of fire or other disaster such as tornado, snow and hail damage.

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hazard insurance

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The relationship of a borrower's total monthly housing expense to income, expressed as a percentage. total housing/ income= % (front end ratio)

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housing expense ratio

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Available money that can be borrowed by a homeowner, secured by the second mortgage on the principle residence. Home equity lines of credit can be accessed at any time up to a predetermined borrowing limit and are often used for non-housing expenditures.

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home equity line of credit

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A loan taken by a homeowner that is secured by a second mortgage on his principal residence.

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home equity loan

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The most profitable, legally permitted, financially feasible, and physically possible use of a parcel of land.

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highest and best use

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In Illinois, a county municipality with a population of more than 25,000 that may exercise any power and perform any function pertaining to its government and affairs, including the power to regulate for the protection of public health, safety, and welfare; license; tax and incur debt.

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home rule

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A non profit association comprised of homeowner's in a subdivision, responsible for enforcing the subdivision's CC&R and managing other community affairs.

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homeowner's association

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An increase in the cost of goods or services ; or too much money chasing too few goods.

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Inflation

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The cost that people or businesses must pay to use another's money for their own purposes.

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Interest Rate

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Man made attachments that are artificially attached to the land for example, buildings, pipelines, pavements, sewers, roads, driveways, and fences.

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Improvements

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A physical characteristic of real estate, referring to the fact that it cannot move from one place to another.

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immobility

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A physical characteristic of real property referring to the fact that it cannot be destroyed.

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indestructability

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An agency relationship created through behavior (action or words) of one or both parties.

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Implied Agency

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A real estate transaction in which the listing agent, or another licensee affiliated with that broker, procures a buyer for the listed property.

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In house Transaction

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Under common law, a person who is self employed

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Independent Contractor

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A contract not put into words but implied by the action of the parties.

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Implied Contract

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A court ordered prohibition against a particular act, as opposed to a judgement for money (injunction relief)

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Injunction

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References taxes that are paid for the previous year, which does not imply any sort of breach.

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In Arrers

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A lien that arises by operation of law, without the consent of the property owner.

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Involuntary lien

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A lawsuit or legal action directed toward property, rather than toward a particular person. Judgements are binding to all persons who claim title to the property.

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In rem

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The state of dying without making a will, causing the descendant's estate to pass on according to the state laws of descent and distribution.

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intestate

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when title to property is transferred during the owner's lifetime without his consent.

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involuntary alienation

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when circumstances indicate a possible problem prompting further investigation, a person may be held to have had notice of the problem even if he does not have actual knowledge of it.

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inquiry notice

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Method used to determine rent for long-term leases.

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index lease

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An implied guarantee that the property is sage and fit for human habitation; treated by law as an implicit provision in every residential lease, regardless of the express terms of the lease. (covenant of habitability)

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implied warranty of habitability

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A charge a borrower pays to a lender for the used of the lender's money. 2. A right to share in something, such as a piece of real estate.

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Interest

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states where a mortgage holds a lien against property until the loan is repaid. Mortgagees must pursue judicial foreclosure to gain title in the event of borrower default; a hybrid of lien theory and title theory.

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intermediate theory

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property purchased at a low price, appraised at a high value without reason, and resold at the higher price.

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Illegal flipping

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The decision of use for the appraisal.

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Intended use

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A party identified by the client at the time of assignment.

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intended user

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An appraisal method that estimates the value of real estate by analyzing the amount of income the property currently generates, or could generate, often comparing rents and expenses of the subject property to other similar properties.

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Income Approach

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A simple calculation for the finding the net operating income, the rate, or the value of an investment property. When any two factors are known, the third can be determined. (Capitalization Rate Formula)

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IRV formula

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A system by which developers receive zoning incentives on the condition that specific physical, social, or cultural benefits are provided to the community.

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Incentive zoning

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A court ordered prohibition against a particular act, as opposed to a judgement for money (injunction relief)

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injunction

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Each co-owner has an equal, undivided interest in the land and right of survivorship.

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joint tenancy

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Two or more individuals or companies joining together for one project or a series of related projects, but not as an ongoing business.

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joint venture

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A recorded claim against another for a wrongful act, as ordered by a court (often for money owed). The result of a judgement lien can be the forced public sale of real estate.

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judgement lien

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Fee or other compensation given for services not performed but as a means of undisclosed commission for business referrals. Kickbacks are prohibited by RESPA

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kickback

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A written agency contract between a seller and a real estate broker stipulating the broker will be paid a commission for finding or attempting to find a buyer for the seller's real property.

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Listing agreement

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The actual surface of the earth. From a legal standpoint, also refers to everything under the ground to the center of the earth and everything over the land into the air.

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land

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A fixture attached to real property by a landlord for the use of a tenant.

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leasehold improvement

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Surface water rights of landowners whose land touches navigable "non flowing" body of water such as a commercial lake, sea or ocean.

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littoral rights

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A life estate " for the life of another" where the measuring life is someone other than the life of the tenant.

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life estate pur autre vie

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A trust in which real estate is the only asset. The beneficiary has the right to possess the property as well as to the income or proceeds from its sale. The trustee manages the real estate as directed by the beneficiary.

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land trust

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A business ownership structure that offers its owners the advantage of limited liability (like a corporation) and partnership like taxation, in which profits are passed through to the owners and taxed on their personal income tax returns.

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Limited liability Company (LLC)

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A partnership comprised of one or more general partners and one or more limited partners.

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Limited partnership

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Areas in a condo or coop owned by all but used by only one owner (balcony or parking space)

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limited common elements

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A fiduciary duty that requires an agent to put the principal's interest above all others' interests, including the agent's own.

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loyalty

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A defect that is not visible or apparent; a hidden defect that would not be discovered in a reasonably thorough inspection of the property.

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latent defect

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An agent representing the interest of the seller of a property.

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listing agent

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A person who has been issued a real estate license by the state who chooses to work as an assistant to a licensee through an employment agreement with a broker.

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licensed assistant

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A sum of money the parties to a contract agree in advance will serve as compensation in the event of a contract breach.

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liquidated damages

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A real estate installment agreement under which the buyer makes payment to the seller in exchange for the right to occupy and use property. No deed or title is transferred until all or specified portion of payments have been made (installment sales agreement)

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land contract

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the disclosure of known information on lead based paint and lead based paint hazards before sale or lease of most housing built before 1978.

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lead based paint disclosure

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The interest in a property held by the rightful owner 2. The seller's interest in property under a land contract.

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legal title

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Signifies 2 or more parties agree to do business together.

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letter of intent

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A written agency contract between a seller and a real estate broker stipulating the broker will be paid a commission for finding a buyer for the seller's real property.

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listing agreement

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The asking price for property being sold.

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list price

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To impose a tax. 2. The tax

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levy

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A non possessory interest in property, giving a lienholder the right to foreclose if the owner does not pay a debt owed the lienholder.

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lien

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A recorded notice stating that there is a lawsuit pending that may affect title to the defendant's real estate.

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lis pendens

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official permission to do a particular thing that the law does not allow everyone to do. 2. Revocable non-assignable permission to enter another person's land for a particular purpose.

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license

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A deed in which the grantor warrants title only against defects arising during the time he owned the property and not against defects arising before the time of ownership.(Special warranty deed)

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limited warranty deed

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A person who leases property; tenant.

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lessee

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The owner's interest in a leased fee estate, which is reversionary in that possession reverts to landlord (lessor) when the lease ends.

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leased fee estate

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The temporary interest that an owner gives to a tenant (lessee) that includes the right of possession and quiet enjoyment, without title.

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leasehold estate

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A person who leases property to another; landlord.

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lessor

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Lease under which the tenant leases only the land from the owner, but the tenant owns the building.

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land lease

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written contract between the property owners and the tenant where the possession of the the land and or buildings is granted by the owner to the tenant for a specified period of time for a specified rent.

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lease

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