Post on 01-Jan-2020
SUBJECT CLASSIFICATION OF TERMS
Accounting (see also Taxation)account payableaccount receivableaccrual methodaccruedaccrued depreciationacquisition costassetbalance sheetbook valuecapitalizecash methodcreditdebitdepreciation allowancedisbursementdouble entryincome statementliabilitymodified accelerated cost
recovery system (MARCS)net worthprofit and loss statementpro forma statementquick assetswrite-off
Agency (see also Brokerage)agencyagency coupled with an
interestagentattorney-in-fact
brokerCode of Ethicscomminglingdesignated agentdual agency (limited agency)durable power of attorneyequal dignities ruleethicsfacilitatorfiduciaryfull disclosuregeneral agentgratuitous agentimplied agencyimputed noticeinformed consentinspectionlimited power of attorneylimited referral agentministerial actsostensible agencypartially disclosed principalpower of attorneyprincipalratificationreal estate agentrespondeat superiorscope of authorityspecial agentsubagenttransaction brokertrusteeundisclosed agency
Appraisalabnormal saleabstractionacceleration principleaccessibilityacquisition appraisalactual ageadjustmentsaesthetic valueage-life depreciationamenitiesappointmentsappraisalAppraisal Foundation, Theappraisal reportappraiserappraiser independence
requirementsappreciationassemblageassessed valuationaxial growthband of investment (BOI)before-and-after methodbuilding residual techniquebuilt-up methodcapitalizationcapitalization (CAP) ratecash equivalencycertified appraiserchangecomparablescomparative unit methodconcession
x
Lang_of_RE.indb 10 4/10/2019 10:34:45 AM
SAMPLE
conformitycontract rentcontributioncorner influencecost approachcurable depreciationcurb appealdeferred maintenancedemanddemographydepreciation (appraisal)depth tablesdirectional growthdirect sales comparison
approachdiscountingeconomic-base analysiseconomic lifeeconomic obsolescenceeconomic renteffective ageeffective gross incomeengineering breakdown
methodexternal obsolescencefee appraiserfiltering down processFinancial Institutions Reform,
Recovery, and Enforcement Act of 1989 (FIRREA)
forecastfunctional obsolescencegoing-concern valuegoodwillgovernment forcesgross income multiplier
(GIM)gross rent multiplier (GRM)highest and best usehomogeneousincome approachincurable obsolescence
indicated valueinfiltrationintrinsic valueInwood tablesland capacityland economicsland residual techniquelegally permissibleletter reportmarket conditionsmarket valuemisplaced improvementmodificationmultiple regressionnarrative reportnet operating income (NOI)nonhomogenicobserved conditionobsolescenceoccupancy rateoperating expense ratiooverimprovementpaired sales analysisphysical deteriorationphysical lifeplottage valuepresent value of one dollarpriceprinciples of appraisalproperty residual techniquequantity surveyrecapture ratereconciliationregressionreproduction costresidual processreversionary factorreversionary valuereview appraiserscarcityseller’s marketsitus
special-purpose propertysplit-ratesquare-foot methodstate-certified appraisersubjective valuesubstitutionsummation approachsuperadequacysupply and demandthin marketTitle XIunbalanced improvementunderimprovementunearned incrementuniformityUniform Residential Appraisal
Report (URAR)Uniform Standards of
Professional Appraisal Practice (USPAP)
unit-in-place methodunit valueuse valueutility valuevaluevalue addedyield capitalization
Bankingaccommodation partycashier’s checkcertified checkcheckclearing accountdemand notediscount rateendorsementholder in due courseletter of creditline of creditmakernegotiable instrument
Subject Classification of Terms xi
Lang_of_RE.indb 11 4/10/2019 10:34:45 AM
SAMPLE
notice of dishonorpayeepostdated checksetoffunderwritingwithout recourse
Brokerage (see also Agency, Listing)advance feeadvertisingasking priceauctionbird dogblind adblue bookboiler roomBoard of REALTORS®branch officebrokerbrokeragebroker-dealerbroker-in-chargebroker price opinion (BPO)business opportunitybuyer’s brokerbuyer’s marketcaravanclient trust accountcold callcold canvasscommissionconsultantcooperating brokercounselingcourtesy to brokerscustomerdeferred commissionDINK (dual income, no kids)discount brokerdrawemployee
empty nesterexposurefalse advertisingfarm areafees for servicefloor dutyfor sale by ownerfranchisegeneration Xguaranteed sale program
(GSP)independent contractorindustrial brokerin-house salelimited service brokerlockboxlotterymiddlemanNational Do Not Call Registryone hundred percent
commissionopen houseparticipating brokerpersonal assistantprincipal broker (PB)prospectpuffingqualified buyerrange of valueready, willing, and ablerebatereferralreferral agencyrelocation companyresidualsales associatesales kitsalesperson(s)selling brokershoppingsignssite office
splitting feesstagingStandards of Practicesubmittal noticetrade-intrade usagetrust fund accountturnoverunethicalworkers’ compensation lawyuppie
Building Terms (see also Construction, Development, Subdivision)absorberabutmentaccessory buildinganchor boltapartment buildingarcadeasbestosash dumpatticbackfillbalconybalusterband or box sillbaseboardbasementbase shoebase top moldingbattenbaybay windowbeambearing wallbedrockbermblacktopboard footbracing
xii Subject Classification of Terms
Lang_of_RE.indb 12 4/10/2019 10:34:45 AM
SAMPLE
bridgingBritish thermal unit (Btu)building heightbuilding paperbus ductcantilevercasingcatwalkcaulkingchimneychimney capchimney flashingchimney potcinder fillclapboardcleanout doorclear spancollar beamcombed (striated) plywoodconduitcornicecorridorcurtilagedamperdampproofingdemising walldoorstopdouble-corner studdouble-load corridordouble platedouble-window headerdownspoutdrain tileducteaveeave troughexterior insulating and
finishing system (EIFS)facadefelt joint coverfinish flooringflashing
floor joistsfloor loadfluefoot-candlefootingFormica®foundation wallfreestanding buildingfrieze boardgirderhead casinghearthHVACindirect lightinginsulationinsulation disclosurejalousiejambjoistlathleewardlintellouverlow-E glassluminous ceilingmantelmaster switchmitermudsillmullionmuntinnosingopen wall systemsoriented strandboard (OSB)overhangparapetpilasterplateradonrafterretaining wallridgeboard
roof boardsroofing feltroofing shinglesshake shingleshear wallshoe moldingsidingsillstringersubflooringtongue and groovetreadtrimtrussunder-floor ductsveneerventwainscotingwallboardwall sheathingwall studwaste linewindow jamb trimwindow sashx-bracing
Closingabstracteradjustmentsapportionmentarrearsback-to-back escrowclosing (settlement)closing agentclosing costsclosing statementcollection accountcreditdouble entrydouble escrowdry closingescrow
Subject Classification of Terms xiii
Lang_of_RE.indb 13 4/10/2019 10:34:46 AM
SAMPLE
escrow instructionsgood-faith estimate (GFE)good fundsholding escrowHUD-1 formimpound accountoutside of closingperfect escrowpreclosingprepaid expensesprepaid itemsproceeds-of-loan escrowprorateReal Estate Settlement
Procedures Act (RESPA)relation-back doctrinesettlementUniform Settlement Statementwalk-through
Commercial Investment Propertyabsorption rateair parkbreak-even pointbuild-to-suitbulk sales transfercash flowcash-flow statementcommercial propertycontinuous operation clauseconvenience storecovenant not to competediscount department storediscounted cash flowdownside riskdownstrokeflea marketgross areagross incomeincome propertyinstitutional property
internal rate of returnland poorleveragemaintenancemerchants’ associationnegative cash flowneighborhood shopping centernet after taxesnet incomenet yieldnutoffice buildingoverall ratepyramidingrate of returnregional shopping centerresort propertyreverse leveragesecond-generation leasingshopping centervacancy factoryield
Condominiumair spaceappurtenantassociation of unit ownersbylawscommon areascommon elementscommon expensescommon interestcommon profitscommon wallcondocondominium mapcondominium owners
associationcondominium ownershipconversioncooperative ownershipdeclaration
highrisehomeowners association
(HOA)horizontal property actshouse ruleslimited common elementsmaintenance feemaster deedmixed useproprietary leaseproxyquadrominiumunit
Construction (see also Building Terms)absorption bedadaptabilityadditionA-frame constructionarchitectural drawingsarchitectureartesian wellas-built drawingsbidblueprintbrownstonebuilding linebuilding permitbuilding standardsbungalowcarportcertificate of completion (CC)cesspoolchaletchange ordercisternclosed-wall constructioncompactionconcrete basement floorcontractorcost-plus contract
xiv Subject Classification of Terms
Lang_of_RE.indb 14 4/10/2019 10:34:46 AM
SAMPLE
crawlspacecushiondeckdisposal fielddormerdrainagedry rotdrywall constructionduplexdwellingefficiency unit or apartmenteffluenceescarpmentfactory-built constructionfast-track constructionfire sprinkler systemfire stopfire wallfire yardflatfloor area ratiofloor planfrost linegablegambrel roofgazebogeneral contractorgranny flatshabitable roomheight, buildinghighriseInternational Code Council
(ICC)kilnkitchenetteknockdownlanaileaching cesspoollive loadloadlobbyloft
lowrisemallmansard roofmanufactured housingmarinamezzaninemidrisemodulemoldmotelmudroommultiple dwellingon-frame modularon-site improvementpanelized constructionparquet floorparticleboardpavilionpayment bondpenthouseperformance bondpierpitchplaster finishporte cochereprecutsproceed orderprogress paymentspunch listquadraplex (quad)retainagerooming houserow houseR-valuesanitary sewer systemsemidetached dwellingseptic tankshoringsingle-family residencesingle-load corridorskylightslab
solar heatingspec homespecificationssplit-levelstagingstaging areastick-built on-sitestructural alterationsstructural defectsstructural densitystructurestuccostudstudiosubcontractorsumptake offtermite shieldtopping-offtown housetract housetriplexUniform Building Code
(UBC)utility roomvestibulevillavoucher systemwalk-upwall-to-wall carpetingwarehouseweep holewet columnworking drawings
Contractsacceptanceaccord and satisfactionactual damagesaddendumadditional depositadhesion contract
Subject Classification of Terms xv
Lang_of_RE.indb 15 4/10/2019 10:34:46 AM
SAMPLE
agreement of salealeatory contractantenuptial agreementanticipatory breacharm’s-length transaction“as is”assignmentbackup offerbenefit-of-bargain rulebilateral contractboilerplatebreach of contractbuy-back agreementcapacity of partiescompetent partyconditional sales contractconsequential damagesconsiderationconstructive fraudconsummatecontingencycontractcontract for deedcontract of salecooling-off periodcounteroffercounterpartcovenants and conditionsdamagesdatedefaultdepositdisaffirmdischarge of contractdisclaimerdisclosuredisclosure statementdown paymentdual contractdummyduressearly occupancy
earnest moneyelection of remedieselectronic signatureequitable conversionescape clauseexecuted contractexecutory contractexhibitextensionfirst papersforbearanceforce majeureforfeitureforum shopping clausefraudgood considerationgrace periodhold-harmless clausehome inspectionilliterateimplied contractincorporation by referenceinnocent misrepresentationinstrumentironclad agreementlatent defectsliquidated damageslove and affectionmarkmeasure of damagesmeeting of the mindsmenaceminormisrepresentationmistakemodificationmutual agreementmutuality of consentnatural affectionnetting outnomineenondisclosure
noticeoccupancy agreementofferoffer and acceptanceofferoron or beforeoptionoral contractparty to be chargedplain language lawprivitypropositionqualified acceptancereceiptreformationreleaserescindrescissionreservation moneyrisk of lossroof inspection clausesale by the acreshort-form documentsignaturespecial conditionsspecific performancestatute of fraudsstraw man“subject to” clausetendertermite inspectionthird party“time is of the essence”trading on the equityunconscionabilityundue influenceunenforceable contractUniform Vendor and
Purchaser Risk Actunilateral contractunjust enrichmentunreasonably withheld consent
xvi Subject Classification of Terms
Lang_of_RE.indb 16 4/10/2019 10:34:46 AM
SAMPLE
upgradesupset datevaluable considerationvoidvoidablewaiverwarrantywitnessX
Conveyancealienationassignment of leaseconveyancecounterpartdescriptiondocumentary tax stampsdocumentexceptionexecutegovernment patentgrantinitialslivery of seisinlocus sigillimaster form instrumentmesne conveyancemisnomermortmainpatentrevenue stampright, title, and interestrule against perpetuitiessealed and deliveredsubscribesuccessors and assignstestimonium clausetransfer tax (conveyance fee)undersignedUniform Land Transactions
Act (ULTA)
Corporationannual meetingannual reportarticles of incorporationassociationboard of directorsbuy-sell agreementclose corporationcorporate resolutioncorporationd/b/adouble taxationeleemosynary corporationfictitious company namefiscal yearforeign corporationholding companyincorporatename, reservation ofnonprofit corporationspersonal propertyS corporationsealSection 1244 corporationspin-offthin capitalizationultra viresunincorporated association
Deathadmeasurement of doweradministratoraugmented estatecodicilcollateral heirscurtesydecedentdescentdevisedowerelective shareescheat
executorheirheirs and assignsholographic willinheritance taxintestatejointurelegateelinealnuncupative willpersonal representativeper stirpesprobatetestatorwidow’s quarantinewillworthier title doctrine
Deedbargain and sale deedcession deedcorrection deedcovenantcovenants running with the
landdeeddeed in trustdeed polldeed restrictionsdeliveryestoppel by deedgift deedgrant deedgranteegrantorhabendum clauseindenture deedlegacylimited warranty deednominal considerationpremisesquitclaim deed
Subject Classification of Terms xvii
Lang_of_RE.indb 17 4/10/2019 10:34:46 AM
SAMPLE
reddendum clausereservationrestrictive covenantsheriff’s deedspecial warranty deedsupport deedtax certificatetax deedunrecorded deedwarranty deedwild deed
Development (see also Construction, Subdivision)affordable housingair parkbedroom communitybusiness parkbed-and-breakfastcarrying chargescluster developmentcommercial acrecommon area maintenance
(CAM)community shopping centercompletion bondcompliance inspectioncontract documentscorridor developmentculvertcurb linecut and filldeveloperdevelopment impact feedevelopment loandevelopment rightselevation sheetentrepreneurenvironmental impact
statement (EIS)feasibility studyfront-ending
front moneyground areaguest-car ratioHomeowners’ Warranty
Program (HOW)housing for the elderlyhousing startshundred percent locationimpact feesincrementindirect costsjoint venturelandlease communitiesletter of intentmaster leasemobile-home parkmodel homemodular constructionNHP Foundation (NHPF)net usable acreoff-site costsoff-street parkingopen spaceoutparcelpadpedestrian traffic countpercolation testplans and specificationsplazapreliminary costspresaleprojectredevelopment agencyrenderingresidence propertyRule of Fiveschematicssight-linesignagesoft moneyspeculatorstarts
subsidysubsidy rentsweetheart contracttrack recordtransfer of development rights
(TDR)turnkey projectutilitiesventure capital
Discriminationaccessibilityadministrative law judgeaffirmative marketing programacquired immunodeficiency
syndrome (AIDS)Americans with Disabilities
Act (ADA)ancestorblockbustingCivil Rights Act of 1866conciliation agreementdisabilitydiscriminationEqual Credit Opportunity Act
(ECOA)ethnic groupfamilial statusfederal fair housing lawghettohandicapminorityopen housingpanic peddlingprotected classredliningsteering
Easementadverse useancient lights doctrineavigation easementbuilding-related illness (BRI)
xviii Subject Classification of Terms
Lang_of_RE.indb 18 4/10/2019 10:34:46 AM
SAMPLE
declaration of restrictionsdominant estate (tenement)easementeasement by necessityeasement by prescriptioneasement in grosseave dripelectromagnetic fields (EMFs)equitable servitudeimplied easementlandlockedline-of-sight easementmeth labsNational Environmental
Protection Act (NEPA)negative easementparty drivewayparty wallreciprocal easementsright-of-way (R/W)run with the landscenic easementservient estatesolar easementsubsurface easementvisual rights
Environmentalabatementasbestosasbestos-containing materialsbrownfieldsComprehensive
Environmental Response, Compensation, and Liability Act (CERCLA)
de minimis settlementEndangered Species Actenvironmental auditEnvironmental Protection
Agency (EPA)environmental regulations
environmental riskformaldehydehazardous substancehazardous wasteindoor air qualitylead poisoningmitigationPhase I auditradonremediationsick building syndrome (SBS)Superfundunderground storage tanks
(USTs)wetlands
Estate (see also Title)adjunctionautre vieconventional estatecurtesydowerestateestate at willestate of inheritanceexecutory interestfee simplefee simple defeasiblefee tailfreeholdfreeholderfuture interesthereditamenthomesteadinchoateincorporeal rightsland, tenements, and
hereditamentsless-than-freehold estatelife estatelife tenantmerger
messuagepossibility of reverterprofit a prendrepur autre viequalified feequantumquarter-sectionreentryremainder estateremaindermanreversionright of reentryright-to-useseisinservitudetenementtenureusufructuary rightvested interest
Federal GovernmentAgricultural Foreign
Investment Disclosure Act (AFIDA)
Bureau of Land Management (BLM)
Clayton Antitrust ActDepartment of Housing and
Urban Development (HUD)Drug Enforcement ActEnvironmental Protection
Agency (EPA)Farm Credit SystemFederal Housing
Administration (FHA)Federal Reserve System (the
Fed)Federal Trade Commission
(FTC)Foreign Investment in Real
Property Tax Act (FIRPTA)Freddie Mac
Subject Classification of Terms xix
Lang_of_RE.indb 19 4/10/2019 10:34:46 AM
SAMPLE
General Services Administration (GSA)
Home Mortgage Disclosure Act
Lead-Based Paint Hazard Reduction Act (LBPHRA)
National Environmental Protection Act (NEPA)
Office of Equal Employment Opportunity Commission (EEOC)
Office of the Comptroller of the Currency (OCC)
Section 8 ProgramSection 203(b)Small Business Administration
(SBA)soil bankstandard metropolitan
statistical area (SMSA)
FinancingA, B, C, D paperADC loanadd-backadjustable-rate loanadvanceaffordability indexallotmentamortizationamortization scheduleannual debt serviceannual percentage rate (APR)annuityarranger of creditassumption of mortgageballoon paymentbasis pointbasket provisionbelly-upbondbonus clause
bridge loanbuilding and loan associationbullet loanbuydownCAP ratecarryback financingcarve outcertificate of claimcertificate of eligibilitycertificate of reasonable valuecollateralcollection reportcommercial bankcommitmentCommunity Reinvestment Actcompensating balancecomputerized loan origination
(CLO)construction loancontract for deedconventional loanco-obligorcreative financingcreditorcredit ratingcredit reportcredit scoringcredit unioncurtail schedulecustomer trust fund (CTF)debenturedebt coverage ratiodebt financingdebtordebt servicedebt-to-equity ratiodirect endorsementdiscountdiscount pointsdiscount ratediscretionary fundsdisintermediation
effective yieldelasticityEllwood techniqueend loanequity buildupequity participationequity sharing loanface valueFair Credit Reporting Act
(FCRA)Fannie MaeFarmers Home Administration
(FmHA)Federal Deposit Insurance
Corporation (FDIC)Federal Housing
Administration (FHA)federal land bank (FLB)Federal Reserve System (the
Fed)federal savings and loan
associationfederal underwritersFICO scoresfinance chargefinance feefinancial institutionfinancial statementfinancingfinancing gapfirm commitmentfive-year forecastfixed-rate loanfloatfloor loanFreddie Macgap financingGinnie Maeguaranteed mortgage
certificatehangoutholdback
xx Subject Classification of Terms
Lang_of_RE.indb 20 4/10/2019 10:34:46 AM
SAMPLE
home loanidentity theftilliquidityindex ratein-service loaninstitutional lenderinterest-only mortgage loansinterest rate capinterim financinginvestment interestjumbo loankickersland contractland leasebacklate chargelead lenderliquidityloan balance tableloan commitmentloan correspondentloan poolloan poolerloan submissionloan-to-value (LTV) ratiolump-sum paymentMaggie Maemarginminimum property
requirementsmoney market fundmortgage subsidiesmutual savings banksnegative amortizationorigination feepaperparpartially amortizedparticipation certificate (PC)payorpension fundpermanent financingpiggyback loan
pledgepointspreapproved loanprepaymentprequalified loanpredatory lendingqualificationrecastingrefinanceRegulation Brescission clauseRule of 78sSavings Association Insurance
Fund (SAIF)sale-leasebacksatisfactionsavings and loan association
(S&L)savings banksseasoned loansecondary financingsecondary mortgage marketsecured partyseller financingservicingset-aside lettersinking fundsleeper notesplit-fee financingspot loanstandby feestandby loanstanding loansubagreement of salesubordinated sale-leasebacksweat equityswing loantake downtakeout financingtandem planteaser rate mortgagetight money market
time-price differentialtime value of moneyTruth in Lending Actunderlying financingunderwater loanU.S. League of Savings
AssociationsusuryvendeevendorVA loanwarehousingyield to maturity
Government (see also Zoning)ambient airappropriationbenefitsbettermentcertificate of occupancycondemnationcountydedicationeminent domainenterprise zoneexcess condemnationexpropriationFederal Emergency
Management Agency (FEMA)
general improvement districtinverse condemnationirrigation districtsjust compensationland grantlarger parcelletter of patentlocal improvement districtoccupancy permitordinancespartial taking
Subject Classification of Terms xxi
Lang_of_RE.indb 21 4/10/2019 10:34:46 AM
SAMPLE
police powerseizureseverance damagesslum clearancespecial benefitsubsidized housingtakingwipeoutzone condemnation
Industrial Propertybumperdrill trackincubator spaceindustrial parkloading dockmain lineminiwarehousepiggybackpoint of switchspur tracktruck wellup-ramp
Insuranceactual cash valueactuaryall-risks policybinderbuilder’s risk insurancebureau ratebusiness interruption
insurancebusiness life insurancecertificate of insurancecoinsurancecommercial leasehold
insuranceComprehensive Loss
Underwriting Exchange (CLUE)
errors and omissions (E&O) insurance
face valuefire insuranceflood insuranceFlood Insurance Rate Map
(FIRM)hazard insurancehomeowners insurance policyinflation guardinsurable interestinsurancekey man insuranceloss payeemortgage insuranceMutual Mortgage Insurance
FundNational Flood Insurance
Program (NFIP)owner’s policypremiumprivate mortgage insurance
(PMI)reinsurancereissue rateridershort ratetsunami damageunderwriter
Interest (see also Financing, Mortgage)add-backadd-on interestamortizationarbitrageblock interestcapcompound interestconstantdiscount rateeffective interest rateinterestlawful interest
legal rate of interestnominal interest rateprepaid interestprevailing rateprime raterediscount rateRegulation QRule of 72simple interestvariable interest rate
Landaccessacre (AC)acre footaeolian soilagreed boundariesair rightsalluvionareabeachbottomlandboundariescontour mapfarmlandfilled landflag lotfloodplainflood-prone areaforeshore landfructus naturalesimproved landlandlateral and subjacent supportlight and airlittoral landlot splitmarginal landmineral rightsparcelpublic landquadrangle
xxii Subject Classification of Terms
Lang_of_RE.indb 22 4/10/2019 10:34:47 AM
SAMPLE
rangeraw landreal estatereal propertyrealtyreclamationshorelinesitespite fencesubjacent supporttidewater landtopographytractunimproved propertywastelandwaterfront propertywetlandsyard
Land Description (Surveying)angleazimuthbase linebearingbenchmarkboundscallchainclosurecompass pointsconnection linecorner stakescorrection linesdegreedescriptionfractional sectionfront footgeodetic survey systemgovernment survey methodgrid systemguide meridians
half-sectionhectarehigh-water markland descriptionlandmarklegal descriptionline stakeslot, block, and subdivisionmaps and platsmeander linemeasurement tablesmeridianmetes and boundsmilemonumentmore or lessplat mapplot planpoint of beginning (POB)principal meridianrange linerodsecondsection(s)spot surveysquarestakingstandard parallelsurveytax maptiertownshipU.S. Geological Survey
(USGS)
LeasingAAA tenantabandonmentadditional space optionanchor tenantattornmentattraction principle
back-to-back leasebase periodbase rentbuilding leasecancellation clausechain storeconcessionconcurrent leaseconstruction allowanceconstructive evictionconsumer price index (CPI)cost-of-living indexdemisedispossess proceedingsdistrainteffective rateestoverevictionexculpatory clauseexpansion optionexpense stopfirst refusal, right offixturing periodflat leasegraduated rental leasegross leaseground leasehabitableholdover tenantimplied warranty of
habitabilityindex leasekey moneykey tenantlandlordleaseleased feeleaseholdlease optionlease purchase agreementlesseelessor
Subject Classification of Terms xxiii
Lang_of_RE.indb 23 4/10/2019 10:34:47 AM
SAMPLE
letlife-care facilityloss factormaster leasemilitary clauseminimum rentmitigation of damagesmonth-to-month tenancymost favored tenant clausenet leasenoncompetition clausenormal wear and tearnotice to quitoffer to leaseoffset statementoil and gas leaseoption to renewoverageoverriding royaltyoweltypartial evictionpercentage leaseperiodic tenancypermissive wasteprime tenantquiet enjoymentreappraisal leaserecapture clauserecreational leaserelocation clauserenegotiation of leaserenewal optionrentrentable arearental agent (leasing agent)rental agreementrent controlrent escalationrent-upretaliatory evictionright of first refusalriparian lease
royaltysale of leased propertysandwich leasesatellite tenantsecurity depositself-helpshell leasesky leasespace planstep-up leasesubleasesummary possessionsurchargesurrendertax participation clausetax stop clausetenanttenant alternative coststenant contributionstenant mixtenant uniontriple-net leaseundertenantunfinished office spaceUniform Residential Landlord
and Tenant Act (URLTA)unlawful detainer actionusable areavacateveto clausewastewear and tearwork letteryear-to-year tenancy
Legal Terms (see also Contracts)abandonmentabatementabsoluteabstract of judgmentacknowledgment
act of Godactual noticeadjudicatedadministrative regulationsaffidavitaffirmationaggrievedamicus curiaeantitrust lawsapostilleappealarbitrationattachmentattestationattorney feesattractive nuisancebankruptcybenchmarkbeneficiaryblue lawsburden of proofbusiness dayby operation of lawcause of actioncaveat emptorcease and desist ordercertified copycertifycertiorarichange of namecommissionercommon lawcompensatory damagescomplainantconfession of judgmentconfirmation of saleconservatorconstructivecourtcoverturecram downdecree
xxiv Subject Classification of Terms
Lang_of_RE.indb 24 4/10/2019 10:34:47 AM
SAMPLE
de factodefault judgmentdefendantdeponentdepositiondisclosure statementdiscoverydomicileejectmentenabling legislationenjoinentitlementequityestoppelet al.et ux.et vir.executionexpert witnessfamilyfelonyforce and effect of lawforumgarnishmentgroup boycottguardianhearingholidayincompetentindemnificationinjunctioninterlocutory decreeinterpleaderinterstatejoint and several liabilityjudgmentjudgment-proofjudicial precedentjuratjurisdictionlacheslaw
legal agelegal namelevyliabilitylimitations of actionslis pendens (Lis/P)majoritymalfeasancemandamusmediationmisdemeanorname, change ofnatural personnotary publicnuisancenull and voidoathoperation of lawparol evidence rulepartiespenaltypersonpetitionplaintiffpractice of lawpreemptionpresumptionprevailing partyprice-fixingprima facie evidencepro formapromulgatepunitive damagesquantum meruitquashquasiquorumreasonable timereceiverrefereeregulationreplevin
residencerestraint of traderestraint on alienationresulting trustrevocationright of contributionsequestration orderservice of processshallshouldsmall claims courtspendthrift truststatutestatute of limitationssubpoenasubpoena duces tecumsubrogationsummonssuretytie-in contracttollingtorttreble damagestrespasstrustee in bankruptcyunfair and deceptive practicesuniform and model actsvalidvenueverifyvicarious liabilityviolationwrit of execution
Licensingadministrative regulationsassociate brokerAssociation of Real Estate
License Law Officials (ARELLO)
auctioneerbroker-in-charge
Subject Classification of Terms xxv
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SAMPLE
continuing educationexamination, licensingforfeitureinactive licenseirrevocable consentlicenselicenseelicense lawsmoral charactermoral turpitudenotice of consentpocket license cardreal estate commission/
departmentreciprocityrecovery fundsingle licensingsuspensionvocation
Lienabstract of judgmentagricultural liencommencement of workencumbranceequitable lienfloating liengeneral lieninvoluntary lienjudgment lienlienmaterialmanmechanic’s lienmortgage liennotice of completionnotice of liennotice of nonresponsibilityspecial lientax lienvendor’s lien
Listingable
asking priceauthorization to sellcash-outcontingency listingexclusive agencyexclusive listingexclusive right to sellextender clauseimplied listinglistinglistormultiple listingnegotiationnet listing“no deal/no commission”
clauseoffice exclusiveopen listingoption listingoverridepocket listingprocuring causetermination of listing
Mortgage/Deed of Trust (see also Interest, Lien, Financing)acceleration clauseadditional charge mortgageadverse financial change
conditionalienation clauseall-inclusive deed of trustallongealternative mortgage
instrumentanaconda mortgageannual mortgagor statementassignment of rentsbeneficiary statementbiweekly payment loanblanket mortgage
blended ratebudget mortgagecall provisioncall reportcertificate of no defenseclosed-end mortgageclosed mortgagecollateralized mortgagecosignercredit bidcross-defaulting clausedebt reliefdeed in lieu of foreclosuredeed of reconveyancedeed of trustdefeasance clausedeficiency judgmentdeflated mortgagedirect reduction mortgagedry mortgagedue datedue-on-sale clauseeffective rateentitlementequity mortgageequity of redemptionescalator clausefirst mortgageflexible-payment mortgageFLIPforeclosurefull reconveyancefunding feegift lettergraduated-payment mortgage
(GPM)growing equity mortgage
(GEM)guarantyhard-money mortgagehypothecateinstallment note
xxvi Subject Classification of Terms
Lang_of_RE.indb 26 4/10/2019 10:34:47 AM
SAMPLE
intermediate theoryjudicial foreclosurejunior mortgagelaw dayleasehold mortgagelevel-payment mortgagelien statementlien-theory stateslifting clauselock-in clausemarginal releasematuritymortgagemortgage bankermortgage brokermortgageemortgage lienmortgage networkmortgage spreading agreementmortgaging outmortgagornondisturbancenonjudicial foreclosurenonrecourse loannotenotice of defaultnovationobligation bondobligoroffering sheetopen-end mortgageopen mortgage“or more” clauseoutstanding balancepackage mortgageparagraph 17parity clausepartial reconveyancepartial-release clauseparticipation mortgagepayoffPITI
placement feepledged account mortgagepower of saleprepayment penaltyprepayment privilegeprimary mortgage marketpromissory notepublic salepurchase-money mortgage
(PMM)real estate mortgage trust
(REMT)recognition clausereconveyancerecourse noteredemption, equitable right ofredemption periodreduction certificatereinstatementrelease clauserenegotiable rate mortgage
(RRM)reserve fundreverse annuity mortgage
(RAM)satisfaction of mortgagesecond mortgageshared appreciationshort salesilent secondSoldiers and Sailors Civil
Relief Act (SSCRA)straight note“subject to” mortgagesubordination agreementsubordination clausesubprime loansubstitution of collateralsurmortgageterm mortgagetitle-theory statesunsecured
upset priceupside downvariable-payment planworkout planwraparound mortgage
Ownershipabsentee ownerabutting ownerair rightsalienallodial systembundle of rightscommunity propertyconcurrent ownershipcondocontribution, right ofcooperative ownershipcorporeal propertycotenancydisseisindivided interestentity, legalfeudal systemgeneral partnergeneral partnershiphome ownershipinterest in propertyinterval ownershipinter vivos trustjoint tenancyland trustleased feeleaseholdlimited liability company
(LLC)limited partnershipliving trustmaster limited partnershipowner occupantownership, form ofpartition
Subject Classification of Terms xxvii
Lang_of_RE.indb 27 4/10/2019 10:34:47 AM
SAMPLE
partnershippassive investorpossessionprescriptionprincipal residencepropertyproprietorshipreal estate investment trust
(REIT)real estate owned (REO)right of survivorshipseparate propertyseveraltysole proprietorshipsurvivorship, right ofsyndicationtackingtenancy at sufferancetenancy at willtenancy by the entirety
(entireties)tenancy for lifetenancy for yearstenancy in commontenancy in partnershiptenancy in severaltytime-share ownership plantime-sharingtrusttrust beneficiaryundivided interestUniform Simultaneous Death
Actunity (joint tenancy)
Personal Propertyassetbailmentbequeathbill of salecapitalchattel
chattel mortgageemblementfinancing statementfructus industrialesinventorypersonal propertysecurity agreementseverancetermination statementtrade fixtureUniform Commercial Code
(UCC)
Property Management (see also Leasing)budgetfidelity bondfixed expensesmanagement agreementmanagement surveynet spendable incomeoff-site managementon-site managementoperating budgetoperating expensesper-unit cost methodpositive cash flowproperty managementrent rollreserve for replacementsresident manager
Recording (see also Title Evidence)bona fideconstructive noticeconveyance taxdefect of recordfilegood faithgrantor-grantee indexinnocent purchaser for valueinquiry notice
legal noticeliberpriorityrecordingregistrar (recorder)regular system (REG)subsequent bona fide
purchasertract index
Securitiesantifraud provisionsblind poolblue-sky lawscallcollateralized mortgage
obligation (CMO)direct participation program
licensesdue diligenceguaranteed mortgage
certificateintrastate exemptioninvestment contractlegend stockmortgage-backed security
(MBS)“no action” letteroffer to sellpass-throughprivate offeringprospectusreal property securities
registrationred herringRegulation ARegulation DRegulation Trental poolrisk capitalRule 10-B5Rule 146
xxviii Subject Classification of Terms
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SAMPLE
Rule 147securitysubscriptionUniform Limited Partnership
Act (ULPA)Uniform Partnership Act
(UPA)
Subdivisions (and Roads)air parkaliquotavenueboulevardbusiness parkCC&Rscircleconsolidatecontiguouscul-de-saccurvilineardeclaration of restrictionsdriveegressfreewayfrontagefrontage streetgradegradientgridironhighwayinfrastructureingressinside lotInterstate Land Sales Full
Disclosure Actkey lotlanelimited access highwayloopOffice of Interstate Land Sales
Registration (OILSR)orientation
parkwayplaceplanned unit development
(PUD)plat bookproperty reportpublic offering statementrestrictionresubdivisionstatement of recordstreetsubdividersubdivisionsubdivision registration lawway
Taxationaccelerated cost recovery
systemaccelerated depreciationaccommodating partyadjusted basisad valoremannual exclusion for gift taxassessed valuationassessmentassessment rollsassessorat-risk rulesbargain salebasisbootbusiness energy property tax
creditcapital assetscapital expenditurecapital gaincapital improvementcapital losschurningconstructive receiptcontract price
cost recoverydealerdebt reliefdeclining-balance methoddeductionsdeferred-payment methoddeferred taxesdelayed exchangedemolition lossdepletiondepreciable lifedepreciable real property
(accounting)depreciation (tax)depreciation recapturedonordouble taxationenrolled agentequalization boardestate tax, federalexchangeexcise taxfarm assetsfederal tax lienfixing-up expensesgaingift causa mortisgift taxgrievance periodhistoric structureholding periodimprovementsimputed interestincome averagingincome taxindividual retirement accountinstallment saleintermediaryInternal Revenue Code of
1986 (IRC)investment interestinvoluntary conversion
Subject Classification of Terms xxix
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SAMPLE
Keogh planlandscapingleasehold improvementslevylike-kind propertylimited liability company
(LLC)limited partnershipmarginal tax ratemarital deductionmillmodified accelerated cost
recovery system (MACRS)multiple-asset exchangenotice of assessmentopen space taxation lawordinary and necessary
business expenseordinary gainorganizational expenses,
partnershippassive lossproperty taxqualified intermediaryrecapturerecognitionrehabilitate (rehab)related partiesrelinquished propertyrepairsreplacement propertyreporting requirementsresidence, sale ofrolloversafe harbor rulesale-leasebacksales-assessment ratiosalvage valueSavings Incentive Match Plan
for Employees (SIMPLE)short-term capital gainsilent partner
simplified employee plan (SEP)
special assessmentStarker exchangestepped-up basisstraight-line methodsubchapter S corporationsubstantial improvementtax abatementtax basetax brackettax certificatetax clearancetax credittax deedtax-deferred exchangetax-free exchangetax lientax maptax preferencetax ratetax rolltax saletax searchtax sheltertrading uptransfer tax (conveyance fee)undistributed taxable incomeunearned incomeup-leguseful lifeuse taxvacation homewasting assetwithholding
Title (see also Estates)accessionaccretionadverse possessionafter-acquiredannexation
appurtenanceavulsionbare titleclaim of rightclearing titleclear titlecloud on titlecolor of titlecontinuationdiluvionencroachmentencumbranceequitable titleerosionescheatfixturefree and clear titlegap in titlehostile possessionlost-grant doctrinemarketable titlemuniment of titlenaked titleopen and notorious possessionperfecting titlequiet title actionrecord ownerrecord titleroot titleslander of titletitletitle paramountunencumbered propertyunmarketable title
Title Evidence (see also Recording)abstracter’s certificateabstract of titleaffidavit of titleAmerican Land Title
Association (ALTA)
xxx Subject Classification of Terms
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SAMPLE
bring-down searchcadastral mapcertificate of titlechain of titleclosing protection letterderaignevidence of titleextended coverageflyspeckingforgeryhiatushidden riskidem sonansinsurable titlelate date orderletter reportoff-record title defectopinion of titleowner’s duplicate certificateplantpreliminary reportpurchaser’s policyregistered landstartertax and lien searchtax searchtitle insurancetitle reporttitle searchTorrens systemtransfer certificate of title
(TCT)
Watercorrelative water rightdiffused surface watersgroundwatermutual water companynavigable watersoverflow rightpotable waterprior appropriation
relictionriparian rightssurface waterwaterwatercoursewatershedwater table
Zoning (see also Government)acreage zoningairport zoningarea regulationsblighted areabuffer zonebuilding codesbuilding permitbuilding restrictionscemetery lotscentral business districtcluster zoningCoastal Zone Management
Actconditional-use zoningconservationdensitydensity zoningdownzoningdwelling unitexclusionary zoningfloating zonegeneral plangrandfather clauseheavy industryhotelinclusionary zoninginner cityland bankland-use intensityland-use maplight industrylivability space ratio
master planminimum lot areamoratoriummunicipal ordinancenew townnonconforming useparking ratioplanning commissionpreservation districtpyramid zoningruralrurbansatellite citysetbackspecial-use permitspot zoningupzoningurban enterprise zoneurban renewalurban sprawlvariancezero lot linezoningzoning estoppel
Subject Classification of Terms xxxi
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SAMPLE