Real Estate Glossary

A mortgage clause that allows the lender to demand immediate payment of the entire loan balance if the borrower defaults on covenants like monthly payments.

Latin for 'according to value,' used to describe property tax assessments based on the assessed valuation of the property.

A method of acquiring title to real property by possessing it in an open, notorious, hostile, and continuous manner for a statutorily defined period.

A legal relationship where one party (the agent) acts on behalf of and under the control of another party (the principal) in dealings with third parties.

Also known as a 'due-on-sale' clause, this mortgage provision allows the lender to demand immediate repayment of the full loan balance if the property is sold or transferred.

The gradual liquidation or repayment of a financial debt through regular, periodic payments of both principal and interest over a specified term.

An unbiased, defensible estimate of the fair market value of a property, conducted by a licensed professional appraiser using standardized valuation methods.

A right, privilege, or improvement that is associated with a property and transfers automatically with the title (e.g., easements, outbuildings, or water rights).

A naturally occurring fibrous mineral formerly used in insulation and fireproofing that can crumble (friable) and cause severe respiratory illness if inhaled.

The valuation placed on a property by a public tax assessor for the purpose of calculating local annual property taxes.

A contract where both parties exchange mutual promises of performance, binding both parties to execute terms (e.g., a standard purchase agreement).

An illegal practice where real estate agents induce property owners to sell at low prices by claiming that minority groups are moving into the neighborhood.

A strip of land, such as a park, greenbelt, or playground, designated to separate two incompatible zoning districts (e.g., residential and industrial).

The legal rights associated with real property ownership, including the rights of possession, control, enjoyment, exclusion, and disposition.

A ratio used to estimate the rate of return on an investment property, calculated by dividing the Net Operating Income (NOI) by the purchase price or current value.

Latin for 'let the buyer beware,' a legal principle holding the buyer responsible for assessing property quality and defects before purchasing.

The chronological history of all recorded ownership transfers, liens, and encumbrances affecting a property, tracing back to the original patent.

An illegal practice where a licensed broker mixes client funds (such as earnest money escrows) with their personal or business operating funds.

An estimate of a property's value prepared by a real estate agent based on recent sales of similar nearby properties to assist in pricing.

The legal process by which a government exercises its power of eminent domain to take private property for public use, paying just compensation.

A written legal instrument that transfers ownership of real property from the grantor (seller) to the grantee (buyer).

Private clauses or covenants in a deed that limit the use, occupancy, or physical characteristics of a property (often established by developers).

A mortgage clause requiring the lender to release their lien on the property (via a satisfaction piece) once the borrower fully repays the loan.

A relationship where a single broker represents both the buyer and the seller in the same transaction. Requires written disclosure and consent from both parties.

A non-possessory right to cross or use another person's land for a specific, limited purpose (e.g., utility access or shared driveways).

The constitutional right of a government to take private property for public use, provided just compensation is paid to the owner.

The unauthorized physical intrusion of an improvement (e.g., a fence, driveway, or roof overhang) onto a neighboring property.

A claim, charge, lien, or liability attached to a property that may lessen its value or restrict its use but does not prevent transfer of title.

The reversion of property to the state when an owner dies intestate (without a will) and has no legal heirs or successors.

An arrangement where a neutral third party holds funds, deeds, or documents until specified contract conditions are met by both parties.

A leasehold estate that has a specific, definite start and end date. No notice is required to terminate this tenancy.

A listing agreement where the broker receives a commission regardless of who finds the buyer, even if the seller sells the property independently.

A federal law prohibiting discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability.

The highest and most complete form of real property ownership, subject only to government rights (Police Power, Eminent Domain, Taxation, Escheat).

The legal duties of loyalty, obedience, disclosure, confidentiality, accountability, and reasonable care (OLD CAR) owed by an agent to their client.

An item of personal property that has been permanently attached to land or a building so that it legally becomes real property (measured by the MARIA method).

The legal process where a lender seizes and sells a property to recover the unpaid mortgage balance after the borrower defaults.

Intentional misrepresentation or concealment of material facts designed to deceive another party into acting to their financial detriment.

The person receiving title to real property in a deed transaction (typically the buyer).

The person conveying title to real property in a deed transaction (typically the seller). Must be of legal age and sound mind.

The legally permissible, physically possible, financially feasible, and most productive use of a property, determined during appraisals.

A form of co-ownership characterized by the right of survivorship and the four unities: Time, Title, Interest, and Possession (PITT).

A legal claim against a property that secures payment of a debt (e.g., mortgages, tax liens, mechanics' liens).

A freehold estate limited in duration to the life of the owner or another designated person (known as a life tenant).

Latin for 'suit pending,' a recorded legal notice warning the public that a property is the subject of an active lawsuit.

The most probable price a property should bring in a competitive, open market under fair sale conditions with no undue pressure.

The illegal practice of lenders refusing to make loans or providing worse terms in specific geographic areas based on neighborhood demographics.

The legal rights of a landowner whose property borders a flowing body of water, such as a river or stream.

The illegal practice of channeling home seekers toward or away from specific neighborhoods to preserve or alter demographics.

A form of co-ownership where owners can hold unequal shares and there is no right of survivorship. Shares pass to heirs upon death.