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

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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

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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

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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

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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

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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

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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

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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

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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

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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