|
    
 |
|
Here is the 'Ag-Az' page from our dictionary of commonly used
real estate terms, starting with 'agency', ending with 'avulsion'.
We try to provide as much information
as possible to buyers of Ocala Real Estate. These terms and definitions apply
pretty much nation wide, and we try to update with terms specifically relating
to Florida Real Estate as soon as we come across something we've missed. We
welcome your comments and suggestions!
AGENCY:
The relationship between principal and agent which arises out of a
contract, either expressed or implied, written or oral, wherein the agent is
employed by the principal to do certain acts dealing with a third party.
AGENCY BY ESTOPPEL (OSTENSIBLE AGENCY):
An agency relationship created by the actions, behavior or statements of
the Principal and/or the Agent upon which a third party relies. Ostensible
Agency may be found by a court where no agency relationship was intended by the
Principal.
AGENCY BY NECESSITY:
An agency relationship where the authority to represent is imputed to the
Agent as a result of an emergency situation to protect the interests of the
Principal.
AGENCY BY RATIFICATION:
An agency relationship which is created after the fact when the Principal
agrees to be bound by the actions of another person who was acting without
authority.
AGENT:
One who represents another from whom he has derived authority.
AGREEMENT:
A legally binding contract between two or more people, representing a
meeting of minds on one or more issues.
AGREEMENT FOR PURCHASE AND SALE:
A land contract.
AGREEMENT OF SALE:
A written agreement or contract between seller and purchaser in which
they reach a meeting of minds on the terms and conditions of the sale.
AGREEMENT TO CONVEY:
A Land contract.
AGRICULTURAL PROPERTY:
Land zoned for agricultural or farming activities.
AIR RIGHTS:
A saleable commodity, the right to occupy or use the air space above a
specific property.
ALIENATION:
The transferring of property to another; the transfer of property and
possession of lands, or other things, from one person to another.
ALIENATION CLAUSE:
Clause in a loan document providing for full payment if the property is
sold.
ALLOCATION (ABSTRACTION) METHOD:
Estimating the value of land only by deducting the value of the buildings
etc. on the land from the actual market value of the property as a whole.
ALLODIAL SYSTEM:
The system of ownership of property in the United States, meaning free
from any claims or rights of a monarch or a feudal lord.
ALLUVION (ALLUVIUM):
Soil deposited by accretion. Increase of earth on a shore or bank of a
river.
ALTERATION:
A change made to an executed contract which has not been approved by the
parties to the contract. An alteration may constitute fraud if it has the impact
of significantly affecting the rights of a party to the contract and was
intentionally carried out by another party. If fraud is found, the innocent
party may void the contract.
AMENITIES:
Satisfaction of enjoyable living to be derived from a home; conditions of
agreeable living or a beneficial influence arising from the location or
improvements.
AMERICAN LAND TITLE ASSOCIATION (ALTA):
Trade association of American title insurance companies, with a view to
standardizing the policies nationwide.
AMERICAN RURAL APPRAISER:
A Professional Designation. Awarded by the American Society of Farm
Managers and Rural Appraisers.
AMERICAN SOCIETY OF APPRAISERS:
A Professional Society, for persons involved in the appraisal of both
real and personal property.
AMERICAN SOCIETY OF HOME INSPECTORS, INC. (ASHI):
A Professional Trade Organization, for persons specializing in the
inspection of the physical condition of homes.
AMERICAN SOCIETY OF REAL ESTATE COUNSELORS (ASREC):
A Professional Society, for persons specializing in helping people buy
and sell homes.
AMORTIZATION:
The liquidation of a financial obligation on an installment basis, also
recovery, over a period, of cost or value.
AMORTIZATION SCHEDULE:
The printed table of the payments to be made on an amortized loan showing
the date and amount of each payment, the amount of each payment which will be
applied to interest and to principal and the balance of principal still
outstanding on the loan after the payment is made.
AMORTIZED LOAN:
A loan that is completely paid off, interest and principal, by a series
of regular payments that are equal or nearly equal. Also called a level payments
loan.
Return to top
ANACONDA MORTGAGE:
A specific kind of mortgage. Contains a clause that states that it
secures all debts owed to the mortgagee by the mortgagor and applies to rules of
the mortgage to all such debts. Clause is also known as a Mother Hubbard clause.
ANCHOR TENANT:
Description of a tenant in a shopping mall or center. A "name" store that
will draw shoppers to the mall and, therefore, benefit the other mall stores.
Usually receives a favorable lease.
ANNUAL DEBT SERVICE:
The total amount required to service a loan in a given year.
ANNUAL LOAN CONSTANT:
Ratio of Annual Debt Service to original principal of the loan. Also
known as a mortgage constant.
ANNUAL MORTGAGOR STATEMENT:
Document sent by the lender to the mortgagor each year which sets out
amounts paid for principal, interest and taxes in the given year and the amount
still owing on the principal of the mortgage at the end of the year.
ANNUAL PERCENTAGE RATE (A.P.R.):
A rate designed to allow for the comparison of one type of loan to
another. The annual cost of borrowing under a given form of loan (includes in
the calculation compounded interest, cost of borrowing etc.). Required to be
disclosed by the lender under the American Truth in Lending Act, Regulation Z.
ANNUITY:
A series of assured equal or nearly equal payments to be made over a
period of time or it may be a lump sum payment to be made in the future. The
installment payments due to the landlord under a lease is an annuity. So are the
installment payments due to a lender.
ANNUITY IN ADVANCE:
A form of periodic payment. Payments are made at the beginning of each
payment period rather than at the end of each period, as with a normal annuity.
ANTICIPATION, PRINCIPAL OF:
Affirms that value is created by anticipated benefits to be derived in
the future.
ANTITRUST LAWS:
Laws requiring competition and a free market, outlawing monopolies in
certain businesses.
AO (ACCEPTED OFFER):
A short form used by agents to designate that an offer to purchase has
been accepted by the offeree.
APPARENT AUTHORITY:
Where an agent compels, by actions, omissions or statements, a third
party to believe the agent has the authority to bind a principal. The authority
to bind is apparent due to the behavior of the agent but may not actually exist.
APPLICATION:
A form filled out in order to allow a lender to consider a person for a
mortgage or loan. Will contain personal and financial and personal information
on the applicant.
APPLICATION FEE:
The fees the lender charges the applicant. May include costs of a
property appraisal and a credit report on the applicant. May be payable by
applicant even if loan is not approved.
APPOINTMENTS:
Chattels or decorative touches that may affect the value of a property.
APPORTIONMENT CLAUSE:
A clause in a policy of insurance. Allows the payment of compensation for
a loss to be divided between insurers holding different policies on the same
property.
APPORTIONMENT:
Also known as adjustment. The division of responsibility for certain
costs between the parties to a transaction, such as realty taxes. In many U.S.
jurisdictions, the vendor is responsible for the day of closing and all days
prior to it.
APPRAISAL:
An opinion of the value of property.
APPRAISAL PRINCIPLES:
Elements to be considered by an appraiser in appraising the value of a
property, such as competition, supply and demand.
APPRAISAL PROCESS:
A standardized approach to appraising a property, to allow for accuracy
and consistency.
APPRAISAL REPORT:
Documentation to support an appraisal of a property. Varies in length but
sets out elements considered, positive and negative aspects of property etc.
APPRAISED VALUE:
The estimated market value of a property on a given date, given by a
qualified person as a result of an inspection of the property and a
consideration of other market forces.
APPRAISER:
One qualified by education, training and experience who is hired to
estimate the value of real and personal property based on experience, judgment,
facts, and use of formal appraisal processes.
APPRECIATION:
The increase over time in the value of a property caused by many factors:
market conditions, inflation, changes to area around the property, etc.
APPROACHES TO VALUE:
Different methods by which appraisers estimate the value of a property.
Include: (1) cost approach, (2) comparison approach, and (3) income approach.
APPROVED ATTORNEY:
A lawyer who meets the requirements of title insurance companies to be
able to complete transactions involving title insurance and to render title
opinions.
APPURTENANCE:
Something annexed to another thing which may be transferred incident to
it. That which belongs to another thing, as a barn, dwelling, garage, or orchard
is incident to the land to which it is attached.
Return to top
ARBITRATION:
An Alternative Dispute Resolution method. Allows an objective third party
to settle disputes between parties without resorting to court. Binding
arbitration involves the parties agreeing to be bound by the decision of the
arbitrator.
ARCHITECTURAL STYLE:
Generally, the appearance and character of a building's design and
construction.
"ARM'S LENGTH" TRANSACTION:
A colloquial description of a transaction where none of the parties are
related to each other or have common interests -- they have each other at "arm's
length". An arms-length transaction is generally at fair market value; in a
"non-arm's-length" transaction, the relationship between the parties may cause
one or the other to accept less than they are entitled or pay more than fair
market value.
ARREARS:
Money which is not paid when due, under a payment plan or amortization
schedule. Could lead to enforcement of loan agreement by lender
ARTERIAL STREET:
A main thorough fare or through road, one which is designed to carry
traffic through an area where that area is not the destination of the traffic.
ARTIFICIAL PERSON:
As opposed to a natural person. A corporation of other legal entity which
has at least some of the legal rights of a human being.
AS IS:
Implied in most Agreements of Purchase and Sale, suggests the Purchaser
is accepting the property in its current condition and releases the Vendor from
any liability for problems found before or after closing.
"AS-IS" AGREEMENT:
A statement in the Agreement of Purchase and Sale that confirms that the
Purchaser shall accept the property and all chattels included in the Purchase in
the condition in which they are found at the time the Agreement is signed.
ASKING PRICE:
The price at which the Vendor advertises a property. When used in the
advertisement, may suggest flexibility on the part of the Vendor regarding the
price.
ASSEMBLAGE:
Putting together two or more parcels to increase the total value.
ASSESSED VALUE:
A value placed upon property by a public officer or board as a basis for
taxation.
ASSESSMENT:
The valuation of property for the purpose of levying a tax or the amount
of the tax levied.
ASSESSMENT BASE:
The total of the assessed values of all properties in a municipality.
ASSESSMENT RATIO:
Assessed value as compared to full market value for a particular property
or for all properties as set by the municipality.
ASSESSMENT ROLL:
Public record of the assessed values of properties. Also includes
Assessment Roll Number for each property, the number by which the property is
identified in the municipal records.
ASSESSOR:
The official who has the responsibility of determining assessed values.
ASSETS:
Everything of value, both real and personal property, owned by a
business.
ASSIGN:
To transfer interest in a property, contract, right etc.
ASSIGNEE:
The person to whom an interest is transferred. An assignee of an
Agreement of Purchase and Sale may buy the property and enforce the contract in
the same fashion as the original party.
ASSIGNMENT:
A transfer or making over to another of the whole of any property, real
or personal, in possession or in action, or of any estate or right therein.
ASSIGNMENT OF LEASE:
Subject to the terms of the lease, a transfer of either the lessor's or
the lessee's interest in a lease.
ASSIGNOR:
One who assigns or transfers property.
ASSIGNS; ASSIGNEES:
Those to whom property shall have been transferred.
ASSOCIATE BROKER:
A qualified real estate broker who works with or for another broker.
ASSUMABLE MORTGAGE:
A mortgage that can be taken over ("assumed") by the buyer when a home is
sold. If interest rates have risen, an assumable mortgage at a low rate may
prove a selling point for the property.
ASSUMPTION AGREEMENT:
An undertaking or adoption of a debt or obligation primarily resting upon
another person.
ASSUMPTION CLAUSE:
The paragraph in the mortgage which sets out the borrower's right to have
the mortgage assumed by a purchaser.
ASSUMPTION FEE:
A lender's charge for changing over and processing new records for a new
owner who is assuming an existing loan.
ASSUMPTION OF MORTGAGE:
The taking of title to property by a grantee, wherein he assumes
liability for payment of an existing note secured by a mortgage or deed of trust
against the property, becoming a co-guarantor for the payment of a mortgage or
deed of trust note.
Return to top
AT-RISK RULE:
A limitation of the amount an investor can claim on his incomes taxes as
a result of losses from real estate investments, under the Tax Reform Act of
1986.
ATTACHED HOUSING:
Duplex, triplex, row housing, or townhouses. Two or more dwellings that
are attached physically but are owned and/or occupied by different people.
ATTACHMENT:
Seizure of property by court order, usually done to have it available in
event a judgment is obtained in a pending suit.
ATTEST:
To affirm to be true or genuine; an official act establishing
authenticity.
ATTESTATION:
A statement by a person who has witnessed another person signing a
document to the effect that they did in fact witness the document. May include
statements to the effect that the witness knew the person who signed personally,
that the person who signed understood the contents of the document when he
signed etc. Required in some states for deeds.
ATTORNEY AT LAW:
A person who has met the requirements to practice law in a particular
state of the United States.
ATTORNEY IN FACT:
One who is authorized to perform acts for another under a power of
attorney; power of attorney may be limited to a specific act or acts, or be
general.
ATTORNEY'S OPINION OF TITLE:
A statement of a lawyer's conclusions with regard to the state of the
legal title of a property, issued after the lawyer has completed the appropriate
investigations of title.
ATTRACTIVE NUISANCE:
"Attractive" refers to the response of children to a feature of land
(whether natural or man-made) which has the potential to be harmful (an
uncovered well, a swimming pool, a swift moving stream).
AUCTION:
The process of selling property to the highest bidder.
AUCTIONEER:
A professional (real estate broker or auctioneer, depending on local
laws) who sells property at public auctions. Usually paid a percentage of the
sale price.
AUGMENTED ESTATE:
The assets of a deceased person against which a surviving spouse may
claim an interest. Can include property which the deceased person disposed of
while still living if the disposal was in the form of a gift or was not for
value.
AUTHORITY:
The right of an agent, conferred by his principal, to bind the principal
in dealings with third parties. See actual authority, implied authority,
apparent authority, ostensible authority, inherent authority.
AUTHORIZATION TO SELL:
A listing.
AVULSION:
The sudden tearing away or removal of land by action of water flowing
over or through it.
Return to top
|
