| A.L.T.A.
owner's policy |
An owner's extended title insurance policy. |
| A.L.T.A. title
policy |
A type of title insurance policy issued
by title insurance companies that expands the risks normally insured
against under the standard type policy to include unrecorded mechanic's
liens; unrecorded physical easements; facts a physical survey would
not show; water and mineral rights; and rights of parties in possession,
such as tenants and buyers under unrecorded instruments. |
| abandonment
(abandono) |
The obvious and intentional surrender
of the easement. |
| abandonment
of homestead (abandono de casa) |
A legal document that proves a homestead
was abandoned. An owner must file an abandonment of homestead on the
old property in order to obtain a homestead on a new property. |
| abatement of
nuisance |
Extinction or termination of conduct
or activity that interferes with use or enjoyment of property. |
| abrogation (abrogación)
|
The rescission or annulling of a contract;
the revocation or repealing of a contract by mutual consent of parties
to the contract, or for cause by either party to the contract. (Pronounced
"ab-ro-ga-tion") |
| abstract of
judgment (extracto del juicio) |
A summary of a court decision. |
| abstract of
title (titulo de sumario) |
Written summary of all useful documents
discovered in a title search. |
| abstractor (abstractor)
|
A person who, historically, searches
out anything affecting the title to real property and summarizes the
information in the findings. |
| acceleration
clause (cláusula de aceleración) |
A clause in a loan document describing
certain events that would cause the entire loan to be due. |
| acceptance (aceptación)
|
An unqualified agreement to the terms
of an offer. |
| accession (accesión)
|
(1) The acquisition of title to additional
land or to improvements as a result of annexing fixtures or as a result
of natural causes such as alluvial deposits along the banks of streams
by accretion. (2) A process by which there is an addition to property
by the efforts of man or natural forces. |
| accretion (aumento)
|
A buildup of soil by natural causes on
property bordering a river, lake, or ocean. |
| accrued |
Accumulated over a period of time. |
| accrued depreciation
(depreciación acumulada) |
The difference between the cost to replace
the property and the property's current appraised value. |
| acknowledgment
(reconocimiento) |
(1) A signed statement, made before a
notary public, by a named person confirming the signature on a document
and that it was made of free will. (2) A formal declaration to a public
official (notary) by a person who has signed an instrument which states
that the signing was voluntary. |
| acquisition
(adquisición) |
The act or process by which a person
procures property. |
| acre |
A measure of land equaling 160 square
rods, or 4,840 square yards, or 43,560 square feet, or a tract about
208. 71 feet square. |
| action |
A lawsuit brought to court. |
| action in ejectment
(acción reinvindicatoria) |
(1) The legal remedy to remove a tenant.
(2) Also known as unlawful detainer action. |
| actual age (edad
real) |
(1)The chronological age of a building.
(2) Real age of a building. |
| actual authority
(autoridad real) |
Authority expressly given by the principal
or given by the law and not denied by the principal. |
| actual notice
(aviso real) |
A fact, such as seeing the grand deed
or knowing a person inherited a property by will. |
| "ADAM E. LEE"
|
The mnemonic for the eight ways to terminate
an easement: Abandonment, Destruction,Adverse possession, Merger,
Express agreement, Lawsuit, Estoppel, and Excessive use. |
| ad valorem (el
anuncio valoren) |
A Latin prefix meaning "according to
value". (Pronounced "adva-lo-rem") |
| addendum |
Additional documents attached to and
made part of a contract. |
| adjustable rate
mortgage (hipoteca de tarifa adjustable) |
A note whose interest rate is tied to
a movable economic index. |
| adjusted cost
basis (adjused base del coste) |
Original basis plus capital improvements
and costs of the sale, less depreciation if income producing. |
| administrator
(administrador) |
A person appointed by the probate court
to administer the estate of a deceased person. His or her duties include
making an inventory of the assets, managing the property, paying the
debts and expenses, filing necessary reports and tax returns, and
distributing the assets as ordered by the probate court. |
| advance fees
(honorarios anticipados) |
A fee paid in advance of any services
rendered. Sometimes unlawfully charged in connection with an illegal
practice of obtaining a fee in advance for the advertising of property
or businesses for sale, with no intent to obtain a buyer, by persons
representing themselves as real estate licensees, or representatives
of licensed real estate firms. |
| adverse possession
(posesión adversa) |
Acquiring title to property owned by
someone else by continued possession and payment of taxes. |
| affirm (afirme)
|
(1) To conform, to aver, to ratify, to
verify. (2) To make a declaration. |
| after-acquired
title (titulo despues-adquirido) |
Any benefits that come to a property
after a sale must follow the sale and accrue to the new owner. |
| agency (agencia)
|
A legal relationship in which a principal
authorizes an agent to act as the principal's representative when
dealing with third parties. |
| agency coupled
with an interest (agencia juntada con un interés) |
An agent acquires an interest in the
subject of the agency (the property). |
| agency relationship
(relación de la agencia) |
A special relationship of trust by which
one person (agent) is authorized to conduct business, sign papers,
or otherwise act on behalf of another person (principal). This relationship
may be created by expressed agreement, ratification, or estoppel. |
| agent (agente)
|
A person who acts for and in the place
of another, called a principal, for the purpose of affecting the principal's
legal relationship with third persons. |
| agreement |
A mutual exchange of promises (either
written or oral). Although often used as synonymous with contract,
technically it denotes mutual promises that fail as a contract for
lack of consideration. |
| agreement of
sale |
(1) A contract for the sale of real property
where the seller gives up possession, but retains the title until
the purchase price is paid in full. (2) Also called contract for sale
or land contract. |
| agricultural
property |
Property zoned for use in farming, including
the raising of crops and livestock. |
| air rights (derechos
aéros) |
The rights in real property to the reasonable
use of the air space above the surface of the land. |
| airspace (espacio
aéreo) |
The interior area which an apartment,
office or condominium occupies. Airspace is considered real property
to a reasonable height. For example, an owner or developer of condominiums
may sell the airspace as real property. |
| alienate |
(1) To transfer, convey, or sell property
to another. (2) The act of transferring ownership, title, or interest. |
| alienation clause
(cláusula de enajenación) |
(1) A clause in a loan document that
would allow the lender to call the balance of the loan due upon the
sale of the property. (2) Also called the due-on-sale clause. |
| all-inclusive
trust deed |
A purchase money deed of trust subordinate
to-but still including-the original loan. |
| alluvial deposit
(depósito alluvial) |
Sand or mud, carried by water and deposited
on land. |
| alluvium (alluvium)
|
The gradual build-up of soil. |
| amenities (amenidades)
|
Features that add value to a property. |
| Americans with
Disabilities Act |
Federal law passed in 1990 that prohibits
discrimination against individuals with disabilities. |
| amortization
(amortización) |
The liquidation of a financial obligation
on an installment basis. |
| amortized loan
(préstamo amortizado) |
(1) A loan to be repaid, interest and
principal, by a series of regular payments that are equal or nearly
equal, without any special balloon payment prior to maturity. (2)
Also called a level payments loan. |
| anchor bolt
|
Attached mud still to foundation; embedded
in concrete foundation. |
| annual (anual/per
annum) |
Once per year. |
| annual percentage
rate |
The relationship of the total finance
charge to the total amount to be financed as required under the Truth-in-Lending
Act. |
| anticipation,
principle of |
Affirms that value is created by anticipated
benefits to be derived in the future. |
| appraisal (avalúo)
|
An unbiased estimate or opinion of the
property value on a given date. |
| appraisal process
|
An orderly systematic method to arrive
at an estimate of value. |
| appraisal report
(información de la evaluación) |
A written statement where an appraiser
gives his or her opinion of value. |
| appraiser (tasador)
|
A written statement where an appraiser
gives his or her opinion of value. |
| appraiser (tasador)
|
A person 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
(aprecio) |
(1) An increase in the worth or value
of property. (2) The increase in market value of real estate. (3)
An increase in property value with the passage of time. |
| appropriation
|
The right to use water for a beneficial
use by diverting surface water. |
| appurtenance
(accesorio) |
Anything used with the land for its benefit.
(Pronounced "ap-pur-te-nance"). |
| appurtenant
|
Belonging, appended or annexed to. Appurtenant
items transfer with the land when property is sold. |
| architectural
style |
Generally the appearance and character
of a building's design and construction. |
| arm's length
transaction |
A transaction, such as a sale of property,
in which all parties involved are acting in their own self-interest
and are under no undue influence or pressure from other parties. |
| arranger of
credit |
A person who is not party to the real
estate transaction, but will be compensated for arranging the credit,
negotiating the credit terms, completing the credit documents, and
facilitating the transaction. |
| articles of
incorporation |
An instrument setting forth the purposes,
power and basic rules under which a private corporation is formed. |
| as is |
Term stating the seller will not be responsible
for the cost of repairing any defect. |
| asbestos |
A mineral fiber used in construction
which has been found to cause lung and stomach cancer. |
| assemblage (ensambladura)
|
The process of putting several smaller
less valuable lots together under one ownership. |
| assessed value
|
Value placed on property by a public
tax assessor as a basis for taxation. |
| assessment (tasación)
|
The valuation of property for the purpose
of levying a tax or the amount of the tax levied. |
| assessment roll
(rodillo del gravamen) |
A list of all taxable property showing
the assessed value of each parcel; establishes the tax base. |
| assessor |
The official who has the responsibility
of determining assessed values. |
| assignee (cesionario)
|
Party to whom a lease is assigned or
transferred. |
| assignment (asignación)
|
The transfer of entire leasehold estate
to a new person. |
| assignor (transferidor)
|
The person transferring a claim, benefit
or right in property to another. |
| associate licensee
|
Another term used for a licensed real
estate salesperson employed by a licensed real estate broker. |
| assumption clause
(cláusula de la asunción) |
A clause in a document that allows a
buyer to take over the existing loan and agree to be liable for the
repayment of the loan. |
| assumption fee
(honorarios de la asunción) |
A lender's charge for changing over and
processing new records for a new owner who is assuming an existing
loan. |
| assumption of
mortgage (asunción de la hipoteca) |
The taking of a title to property by
a grantee wherein grantee 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. |
| attachment (embargo)
|
The process by which the court holds
the property of a defendant pending outcome of a lawsuit. |
| attachment lien
(embargo preventivo del accesorio) |
(1) The process by which the court holds
the real or personal property of a defendant as security for a possible
judgment pending the outcome of a lawsuit. (2) Also known as writ
of attachment. |
| attorney-in-fact
(abogado en hecho) |
(1) The person holding the power of attorney.
(2) A competent and disinterested person who is authorized by another
person to act in his or her place in legal matters. |
| avulsion (avulsion)
|
The sudden washing or tearing away of
land by the action of water. |
|
|
| backfill
(relleno) |
Soil that is used to fill in holes or
support a foundation. |
| balloon payment
(pago de globo) |
Under an installment loan, a final payment
that is substantially larger than any other payment and repays the
debt in full. |
| bankruptcy (bancarrota)
|
A court proceeding to relieve a person's
or company's financial insolvency. |
| base and meridian
|
Imaginary lines used by surveyors to
find and describe the location of public or private lands. |
| baseline (linea
de fondo) |
A survey line running east and west,
used as a reference when mapping land. |
| beam |
A long thick piece of wood, metal or
concrete, used to support weight in a building. |
| bearing wall
|
A wall that supports a vertical load
as well as its own weight. |
| bench mark (marca
de fija) |
Location indicated on a permanent marker
by surveyors. |
| beneficiary
(beneficiario) |
The lender under a deed of trust. |
| beneficiary
statement (declaración del beneficiario) |
A statement of the unpaid balance of
a loan and describes the condition of the debt. |
| bequeath (legar)
|
To convey real or personal property by
will. |
| bequest |
A gift of personal property by will.
(See legacy) |
| bilateral contract
(contrato bilateral) |
An agreement in which each person promises
to perform an act in exchange for another person's promise to perform. |
| bill of sale
|
A written agreement used to transfer
ownership in personal property. |
| blanket loan
(préstamo combinado) |
A loan secured by several properties.
The security instrument used can be a blanket deed of trust or a blanket
mortgage. |
| blighted area
(area marchitada) |
A section of a city, generally the inner
city, where a majority of the buildings are run-down, and the property
values are extremely low. |
| blind advertising
|
Advertising that fails to disclose that
the party is a licensee acting as an agent. |
| blind pool |
A type of syndication where money is
raised for unspecified properties that meet specific investment criteria. |
| blockbusting
(rompe cuadras) |
The illegal practice of telling people
that property values in a neighborhood will decline because of a specific
event, such as the purchase of homes by minorities. |
| board foot (pie
de tablero) |
A unit of measurement for lumber: one
foot wide, one foot long, one inch thick (144 cubic inches). |
| bona fide purchaser
|
Bona fide means good faith (auténtico),
so a bona fide purchases is one who pays fair value for property in
good faith, and without notice of adverse claims. |
| book value (valor
de la libro) |
The current value (for accounting purposes)
of a property, calculated as the original cost, plus capital improvements,
minus accumulated or accrued depreciation. |
| boot |
Extra cash or non like-kind property
put into an exchange. |
| bracing |
Diagonal board nailed across wall framing
to prevent sway. |
| breach of contract
(abertura del contrato) |
A failure to perform on part or all of
the terms and conditions of a contract. |
| bridge loan
|
(1) A loan to "bridge" the gap between
the termination of one mortgage and the beginning of another, such
as when a borrower purchases a new home before receiving cash proceeds
from the sale of a prior home. (2) Also known as a swing loan. |
| British Thermal
Unit |
(1) A measurement that calculates heat;
the amount of heat needed to raise one pound of water one degree Fahrenheit.
(2) Also known as BTU. |
| broker (corredor)
|
An agent who earns income by arranging
sales and other contracts. A real estate broker is an individual licensed
by the state of California to arrange the sale or transfer of interests
in real property for compensation. |
| broker's trust
fund account |
An account set up by a broker; withdrawals
from this account may be made only the broker. |
| brokerage (mediación)
|
An activity involving the sale of something
through an intermediary who negotiates the transaction for payment. |
| brownfield |
An abandoned commercial or industrial
site or under-utilized neighborhood where redevelopment is complicated
by actual or perceived contamination. |
| building manager
|
A person employed by a property manager
or directly by an owner, and usually manages a single large building
or office complex. |
| building paper
|
Waterproof paper used between sheathing
and roof covering. |
| bulk transfer
law |
The law concerning any transfer in bulk
(not a sale in the ordinary course of the seller's business). |
| bundle of rights
|
An ownership concept describing all the
legal rights that attach to the ownership of real property. |
| Business and
Professions Code |
The statute regulating the conduct of
real estate brokers and establishing the Department of Real Estate. |
| business opportunity
|
Any type of business that is for lease
or sale. |
| buyer's agent
|
A broker employed by the buyer to locate
a certain kind of real property. |
|
|
| C.L.T.A.
standard policy |
A policy of title insurance covering
only matters of record. |
| calendar year
|
Starts on January l and continues through
December 3l of the same year. |
| California Fair
Employment and Housing Act |
State law that prohibits discrimination
in the sale, rental or financing of practically all types of housing. |
| California Land
Title Association |
A trade organization of the state's title
companies. |
| CAL-VET Program
|
A program administered by the State Department
of Veterans Affairs for the direct financing of farm and home purchases
by eligible California veterans of the armed forces. |
| "CAN-SPAM" laws
|
Federal and state law regulating commercial
e-mail messages. |
| capital ("capital")
|
Money and/or property owned or used by
a person or business to acquire goods or services. |
| capital gain
|
At resale of a capital item, the amount
by which the net sale proceeds exceed the adjusted cost basis (book
value). Used for income tax computations. Gains are called short or
long term based upon length of holding period after acquisition. Usually
taxed at lower rates than ordinary income. |
| capitalism |
An economic system in which most of the
economy's resources are privately owned. |
| capitalization
(capitalización) |
(1) The process that can be employed
to convert income to value. (2) An economic system in which most of
the economy's resources are privately owned. |
| capitalization
rate (tasa de capitalización) |
(1) The rate of interest which is considered
a reasonable return on the investment, and used in the process of
determining value based upon net income. It may also be described
as the yield rate that is necessary to attract the money of the average
investor to a particular kind of investment. (2) It is sometimes call
the "cap rate". |
| carryback financing
|
Financing by a seller who takes back
a note for part of the purchase price. |
| cash flow |
The net income generated by a property
before depreciation and other non cash expenses. |
| caveat emptor
("caveat emptor") |
"Let the buyer beware". |
| CC&Rs (See covenants,
conditions and restrictions) |
|
| certificate
of eligibility |
Issued by Department of Veterans Affairs
- evidence of individual's eligibility to obtain VA loan. |
| certificate
of reasonable value (certificado de valor razonable) |
The Federal VA appraisal commitment of
property value. |
| certificate
of title (certificado de título) |
A written opinion by an attorney that
ownership of the particular parcel of land is as stated in the certificate. |
| chain of title
(cadena de título) |
A chronological history of property's
ownership. |
| change, principle
of |
Holds that it is the future, not the
past, which is of prime importance in estimating value. Change is
largely result of cause and effect. |
| chattel |
Personal property |
| chattel real
|
An item of personal property which is
connected to real estate; for example, a lease. |
| chattels |
(1) Personal property. (2) This term
is sometimes used in a law to describe any interest in real or personal
property other than a freehold. |
| client (cliente)
|
The person who employs an agent to perform
a service for a fee. |
| closed sheathing
|
Foundation for exterior siding; boards
nailed to studding. |
| closing (cierre)
|
(1) Process by which all the parties
to a real estate transaction conclude the details of a sale or mortgage.
The process includes the signing and transfer of documents and distribution
of funds. (2) Condition in description of real property by courses
and distances at the boundary lines where the lines meet to include
all the tract of land. |
| closing costs
|
The miscellaneous expenses buyers and
sellers normally incur in the transfer of ownership of real property
over and above the cost of the property. |
| closing statement
|
An accounting of funds made to the buyer
and seller separately. Required by law to be made at the completion
of every real estate transaction. |
| cloud on title
|
Any condition that affects the clear
title of real property or minor defect in the chain of title which
needs to be removed. |
| "COALD" |
The mnemonic for the five duties an agent
owes a principles: Care, Obedience, Accounting, Loyalty, and Disclosure. |
| Code of Ethics
(código de ética) |
A set of rules and principles expressing
a standard of accepted conduct for a professional group and governing
the relationship of members to each other and to the organization. |
| codicil |
A change in a will before the maker's
death. |
| cold calling
|
The practice of making unsolicited calls
to people you do not know in order to get new business. |
| collateral |
Something of value given as security
for a debt. |
| color of title
|
That which appears to be good title but
which is not title in fact. |
| commercial acre
|
(1) The area remaining from an acre of
newly subdivided land after deducting the area devoted to streets,
sidewalks, alleys, curbs, etc. (2) Also known as a buildable acre. |
| commercial e-mail
message |
Any electronic mail message whose primary
purpose is the commercial advertisement or promotion of a commercial
product or service. |
| commingling
|
(1) Depositing client funds in the broker's
personal account or general business. (2) The illegal practice of
depositing client's funds in a broker's personal or general business
account. |
| commission |
A fee for services rendered usually based
on a certain percentage of the sales price of a property. |
| commission split
|
The previously agreed upon division of
money between a broker and sales-associate when the brokerage has
been paid a commission from a sale made by the associate. |
| common area
|
An entire common interest subdivision
except the separate interests therein. |
| common interest
development |
A common-interest development combining
the individual ownership of private dwellings with the shared ownership
of common facilities of the entire project. |
| common interest
subdivision |
Individuals owning a separate lot or
unit, with an interest in the common areas of the entire project.
The common areas are usually governed by a homeowners association. |
| common law dedication
|
When a property owner implies through
his or her conduct the intent that the public use the land. |
| common law |
A body of unwritten law that was developed
in England from the general customs and usage that was adopted in
the United States. |
| community property
|
All property acquired by a husband and
wife during a valid marriage (excluding certain separate property). |
| community property
with right of survivorship |
A law allowed a husband and wife to hold
title to their property. |
| compaction |
Extra soil that is added and compressed
to fill in the low areas or raise the level of the parcel. |
| company dollar
|
The amount a broker has left after all
commissions have been paid. |
| comparable sales
|
(1) Sales which have similar characteristics
as the subject property and are used for analysis in the appraisal
process. (2) Commonly called "comps", they are recent selling prices
of properties similarly situated in a similar market. |
| comparative
market analysis (análisis del mercado comparative o competitivo) |
A comparison analysis that real estate
brokers use while working with a seller to determine an appropriate
listing price for the seller's house. |
| comparison approach
|
(1) A real estate comparison method which
compares a given property with similar or comparable surrounding properties.
(2) Also called market comparison. |
| compensating
balance |
When a borrower deposits funds with the
bank in order to induce the lender into making a loan. |
| competent |
Legally qualified |
| competition,
principles of |
Holds that profits tend to breed competition
and excess profits tend to breed ruinous completion. |
| complete escrow
|
All terms of the escrow instructions
have been met. |
| compound interest
|
Interest paid on original principal and
also on the accrued and unpaid interest which has accumulated as the
debt matures. |
| comps |
A term used by real estate agents and
appraisers to mean comparable properties. |
| concurrent ownership
|
(1) When property is owned by two or
more persons or entities at the same time. (2) Also known as co-ownership. |
| condemnation
|
(1) The process by which the government
acquires private property for public use, under its right of eminent
domain. (2) The proceeding to exercise the power of the government
to take private property from an owner for the public good, paying
fair market value. (3) The proceeding to exercise the power of eminent
domain. |
| condition |
Similar to a covenant, a promise to do
or not to do something. The penalty for breaking a condition is return
of the property to the grantor. |
| condition precedent
|
A condition which requires something
to occur before a transaction becomes absolute and enforceable; for
example, a sale that is contingent on the buyer obtaining financing. |
| condition subsequent
|
A condition which, if it occurs at some
point in the future, can cause a property to revert to the grantor;
for example, a requirement in a grant deed that a buyer must never
use the property for anything other than a private residence. |
| conditional
use permit |
Allows a land use that may be incompatible
with other uses existing in the zone. |
| condominium
(condominio) |
A housing unit consisting of a separate
fee interest in a particular specific space, plus an undivided interest
in all common or public areas of the development. Each unit owner
has a deed, separate financing and pays the property taxes for their
unit. |
| conduit |
A flexible pipe in which electrical wiring
is installed. |
| conformity |
When land uses are compatible and homes
are similar in design and size, the maximum value is realized. |
| consideration
|
Something of value-such as money, a promise,
property or personal services. |
| constructive
fraud |
A breach of duty legally declared fraudulent
because it deceives others despite no dishonesty nor deceptive intent. |
| construction
loan |
An interim loan made to finance the actual
construction or improvement on land. Funds are usually disbursed in
increments as the construction progresses. |
| constructive
eviction |
Conduct by a landlord that impairs tenant's
possession of the premises making occupancy hazardous. |
| constructive
notice |
Notice given by recording a document
or taking physical possession of the property. |
| Consumer Credit
Protection Act |
A federal law that includes the Truth-in-Lending
Law. |
| consumer goods
|
Goods sold or purchased primarily for
personal, family, or household purposes. |
| contiguous |
In close proximity |
| contour |
The surface configuration of land. Shown
on maps as a line through points of equal elevation. |
| contract (contrato)
|
A legally enforceable agreement made
by competent parties, to perform or not perform a certain act. |
| contract date
|
The date the contract is created. The
contract is created when the final acceptance was communicated back
to the offeror. |
| contract of
sale (contrato de compraventa) |
(1) A contract for the sale of real property
where the seller gives up possession but retains title until the total
of the purchase price is paid off. (2) Also called installment sales
contract, a contract of sale, an agreement of sale, a conditional
sales contract, or a land sales contract. |
| contract rent
|
The amount actually paid by a renter
for use of the premises. |
| contribution,
principle of |
The worth of an improvement and what
it adds to the entire property's market value, regardless of the actual
cost of the improvement. Holds that maximum values are achieved when
the improvements on a site produce the highest (net) return, commensurate
with the investment. |
| convenant |
A promise to do or not do certain things. |
| conventional
loan |
Any loan made by lenders without any
governmental guarantees (FHA insured or VA guaranteed). |
| conversion |
The appropriation of property or funds
belonging to another; as in a broker using a clients' money. |
| convey |
To transfer ownership or title. |
| conveyance (escritura
de traspaso) |
The transfer of title to land by use
of a written instrument. |
| cooperating
agent |
A selling agent who assists another broker
by finding a buyer. |
| cooperative
|
(1) Ownership of an apartment unit in
which the owner has purchased shares in the corporation that holds
title to the entire building. (2) A residential multifamily building. |
| corner influence
|
Commercial properties benefit from more
exposure on a corner lot. |
| corner lot |
A lot found at the intersection of two
streets. It may be desirable because of its accessibility, but may
also be noisy and expensive to maintain because of the increased frontage. |
| corporation
(corporación) |
A legal entity whose rights in business
are similar to that of an individual. |
| correlation
|
(1) A step in the appraisal process involving
the interpretation of data derived from the three approaches in value
(cost, market and income) leading to a single determination of value.
(2) Also frequently referred to as "reconciliation". |
| cost |
The expenses in money, labor, material
or sacrifices in acquiring or producing something. |
| cost approach
(cálculo de costos) |
An appraisal method whereby a value estimate
of a property is derived by estimating the replacement cost of the
improvements, deducting the estimated accrued depreciation, then adding
the market value of the land. |
| cost basis |
Original price paid for a property. |
| counteroffer
(contraoferta) |
(1) The rejection of an original offer
that becomes a new offer. (2) The rejection of an original purchase
offer and the submission of a new and different offer. |
| covenants, conditions
and restrictions (CC&Rs) |
Restrictions are placed on certain types
of real property and limit the activities of owners. Covenants and
conditions arepromises to do or not to do certain things. The consequence
for breaking those promises may either be money damages in the case
of covenants, or the return of the property to the grantor, in the
case of conditions. |
| crawl space
|
Exterior or interior opening permitting
access underneath a building, as required by building codes. |
| credit (credito)
|
A bookkeeping entry on the right side
of an account, recording the reduction or elimination of an asset
or an expense, or the creation of an addition to a liability or item
of equity or revenue. |
| credit reporting
agency |
A company that who researches the credit
records of consumers and summarizes the findings in a factual credit
report. |
| credit scoring
|
An objective, statistical method that
lenders use to quickly assess the borrower's credit risk. |
| credit unions
|
An association whose members usually
have the same type of occupation. |
| cripple |
Stud above or below a window opening
or above a doorway. |
| cubic-foot method
|
Similar to the square-foot method, except
that it takes height as well as area into consideration. The cubic
contents of buildings are compared instead of just the square footage. |
| cul-de-sac lot
|
A lot found on a dead-end street with
the same way for ingress and egress. |
| curable depreciation
|
Items of physical deterioration and functional
obsolescence which are customarily repaired or replaced by a prudent
property owner. |
| customer |
A prospective buyer of real estate; not
to be confused with a property seller, who is the listing broker's
client. |
|
|
| debt
service |
The sum of money needed for each payment
period to amortize the loan or loans. |
| debtor (deudor)
|
A person who is in debt; the one owing
money to another. |
| "DEC" |
The mnemonic for the three disclosure
requirements: Disclose, Elect, and Confirm. |
| deciduous |
Plants and trees that lose their leaves
seasonally in the fall. |
| decimal point
|
The period that sets apart a whole number
from a fractional part of that number. |
| Declaration
of Homestead |
The recorded document that protects a
homeowner from foreclosure by certain judgment creditors. |
| Declaration
of Restrictions |
A written legal document which lists
covenants, conditions and restrictions (CC&Rs). This document gives
each owner the right to enforce the CC&Rs. |
| dedication |
The giving of land by its owner to a
public use and the acceptance for such use by authorized officials
on behalf of the public. |
| deed (escritura
de propiedad) |
A formal transfer by a party. |
| deed in lieu
of foreclosure |
A deed to real property accepted by a
lender from a defaulting borrower to avoid the necessity of foreclosure
proceedings by the lender. |
| deed of trust
|
(See Trust Deed) |
| deed restrictions
(limitaciones en la escritura) |
Limitations in the deed to a property
that dictate certain uses that may or may not be made of the property. |
| default |
Failure to pay a debt or on a contract. |
| defeasible |
Capable of being defeated. A defeasible
estate is one that has a condition attached to the title, which if
broken causes the termination of that estate. |
| deferred maintenance
|
Negligent, postponed, care of a building. |
| deficiency judgment
|
A judgment against a borrower for the
balance of a debt owed when the security or the loan is not sufficient
enough to pay the debt. |
| defined channel
|
Any natural watercourse, even if it is
dry during a good portion of the year. |
| definite and
certain |
Precise acts to be performed are to be
clearly stated. |
| delivery (of
a deed) |
The unconditional, irrevocable intent
of a grantor immediately to divest (give up) an interest in real estate
by a deed or other instrument. |
| demand (demanda)
|
The desire to buy or obtain a commodity. |
| demise |
(1) To rent. (2) A conveyance of an estate
in real property to someone for a certain length of time, as in a
lease. (3) To let. |
| demographics
|
Information from a variety of sources
used to create a broad profile of any community. |
| demography (demografía)
|
The statistical study of human populations. |
| deposit receipt
|
Contract that acts as the receipt for
earnest money given by the buyer to secure an offer, as well as being
the basic agreement, between the buyer and seller. |
| depository institution
|
A institution that accepts deposits in
the form of savings accounts, and makes loans using their depositors'
monies. |
| depreciation
(depreciación) |
(1) Loss in value from any cause. (2)
A tax advantage of ownership of income property. |
| depth table
|
A statistical table that may be used
to estimate the value of the added depth of a lot. |
| deregulation
|
A process whereby regulatory restraints
are gradually relaxed. |
| desk cost |
(1) Profitability measure calculated
by dividing the total operating expenses of the firm by the number
of licensed sales associates. (2) Shows how much each sales associate
must earn to cover expenses. |
| devise |
A gift of real property by will. |
| directional
growth |
The location or direction toward which
the residential sections of a city are destined or determined to grow. |
| discharge of
contract |
The cancellation or termination of a
contract. |
| disclosure statement
|
The statement required by the Truth-in-Lending
Law whereby a creditor must give a debtor a statement showing the
finance charge, annual percentage rate, and other required information. |
| discount (rebaja)
|
(1) To sell a promissory note before
maturity at a price less than the outstanding principal balance of
the note at the time of sale. (2) Also an amount deducted in advance
by the lender from the nominal principal of a loan as part of the
cost to the borrower of obtaining the loan. |
| discount points
|
The amount of money the borrower or seller
must pay the lender to get a mortgage at a stated interest rate. This
amount is equal to the difference between the principal balance on
the note and the lesser amount which a purchaser of the note would
pay the original lender for it under market conditions. A point equals
one percent of the loan. |
| discount rate
|
The interest rate that is charged by
the Federal Reserve Bank to its member banks for loans. |
| discounting
a note |
Selling a note for less than the face
amount or the current balance. |
| disintermediation
|
The process of depositors removing funds
from savings. |
| dividend |
A number to be divided by another number. |
| divisor |
A number by which another number is divided. |
| "do not call"
|
Federal ad state regulations regarding
unsolicited telephone calls. |
| Doctrine of
Correlative Use |
Owner may use only a reasonable amount
of the total underground water supply for his or her beneficial use. |
| documentary
transfer tax |
A state enabling act allowing a county
to adopt a documentary transfer tax to apply on all transfers of real
property located in the county. Notice of payment is entered on face
of the deed or on a separate paper filed with the deed. |
| document (documento)
|
Legal instruments such as mortgages,
contracts, deeds, options, wills, bills of sale, etc. |
| dominant tenement
|
The property that benefits from an easement. |
| downzoning |
A zone change from a high density use
to a lower density use. For example, a commercial zone to a light
industrial zone. |
| drywall |
Gypsum panels used in place of wet plaster
to finish the inside of buildings. |
| dual agency
|
An agency relationship in which the agent
acts concurrently for both principals in a transaction. |
| dual agent |
A broker acting as agent for both the
seller and the buyer in the same transaction. |
| due on sale
clause |
An acceleration clause granting the lender
the right to demand full payment of the mortgage upon a sale of the
property. |
| duress (coerción)
|
The use of force to get agreement in
accepting a contract. |
| 18-month conditional
license |
Initial license issued to real estate
salesperson who has only completed the Real Estate Principles course. |
|
|
| earnest
money (adelanto) |
Down payment made by a purchaser of real
estate as evidence of good faith. A deposit or partial payment. |
| easement |
(1) The right to use another's land for
a specified purpose, sometimes known as a right-of-way. (2) The right
to enter or use someone else's land for a specified purpose. |
| easement appurtenant
|
An easement that enhances land; usually
a right of way. |
| easement by
prescription |
Created by continuous and uninterrupted
use, by a single party, for a period of five years. The use must be
against the owner's wishes and be open and notorious. No confrontation
with the owner is required and property taxes do not have to be paid.
The party wishing to obtain the prescriptive easement must have some
reasonable claim to the use of the property. |
| easement in
gross |
An easement that is not appurtenant to
any one parcel; for example, public utilities to install power lines. |
| eaves |
The part of roof that hangs over the
exterior walls. |
| economic age
(vida económica) |
Age of a building determined by its condition
and usefulness. |
| economic life
(valor económica) |
The estimated period over which a building
may be profitably used. |
| economic obsolescence
|
A type of depreciation occurring because
of forces outside the property. Changes in the social or economic
make-up of the neighborhood, zoning changes, over-supply of homes,
under-supply of buyers, recession or legislative restrictions can
cause economic obsolescence. |
| economic rent
|
What a leased property would be expected
to rent for under current market conditions if the property were vacant
and available for rent. |
| effective age
|
The age of a building based on its condition
and usefulness. |
| effective demand
|
The desire coupled with purchasing power. |
| effective gross
income |
The amount of net income that remains
after the deduction from gross income of vacancy and credit losses. |
| effective interest
rate |
The percentage of interest that is actually
being paid by the borrower for the use of the money, distinct from
nominal interest. |
| effective life
|
The estimated period over which a building
may be profitably used. |
| egress |
The right to exit from a property using
an easement. |
| elevation sheet
|
Drawing that shows front and side exterior
views of a building as it will be when finished. |
| emancipated
minor |
Someone who is legally set free from
parental control/ supervision. |
| emblements |
Growing crops that are cultivated annually
for sale. |
| eminent domain
|
(1) The right of the government to take
private property from an owner, for the public good, paying fair market
value. (2) Also known as condemnation or a "taking". |
| employee |
Someone who is under the control and
direction of a broker. |
| encroachment
|
The unauthorized placement of permanent
improvements that intrude on adjacent property owned by another. |
| encumbrance
|
An interest in real property that is
held by someone who is not the owner. |
| energy efficient
ratio |
(1) A measurement of the efficiency of
energy; used to determine the effectiveness of appliances. (2) Also
known as EER. |
| Environmental
Impact Report (declaración de impacto ambiental) |
(1) A study of how a development will
affect the ecology of its surroundings. (2) Also known as EIR. |
| Equal Credit
Opportunity Act |
Federal act to ensure that all consumers
are given an equal chance to obtain credit. |
| equitable title
|
(1) The interest held by the trustor
under a trust deed. (2) Selling a note for less than the face amount
or the current balance. |
| equity |
The difference between the appraised
value and the loan. |
| equity buildup
|
The gradual increase of the borrower's
equity in a property caused by amortization of loan principal. |
| equity of redemption
|
Also known as the right of redemption;
the right of a debtor, before a foreclosure sale, to reclaim property
that had been given up due to mortgage default. |
| erosion |
The gradual wearing away of land by natural
processes. |
| escheat |
A legal process where property reverts
to the state because the deceased left no will and has no legal heirs.
The state must wait five years before trying to claim the property.
(Pronounced "es-cheat") |
| escrow (en custodia
de tercero persona) |
A small and short-lived trust arrangement. |
| escrow agent
|
The neutral third party holding funds
or something of value in trust for another or others. |
| escrow holder
|
Acts as a neutral agent of both buyer
and seller. |
| escrow instructions
|
Written directions, signed by a buyer
and seller, detailing the procedures necessary to close a transaction
and directing the escrow agent how to proceed. |
| estate |
(1) The ownership interest or claim a
person has in real property. (2) A legal interest in land; defines
the nature, degree, extent and duration of a person's ownership in
land. |
| estate at sufferance
|
A tenancy created when one is in wrongful
possession of real estate even though the original possession may
have been legal. |
| estate at will
|
The tenancy that may be ended by the
unilateral decision of either party. There is no agreed upon termination
date, and either party must give 30-days notice before ending the
tenancy. |
| estate for life
|
A possessory, freehold estate in land
held by a person only for the duration of his or her life or the life
or lives of another. |
| estate for years
|
A leasehold estate with a definite end
date; must be renegotiated; commonly used for commercial leases. |
| estate from
period to period |
A leasehold estate that is automatically
renewed for the same term; a conveyance for an indefinite period of
time; does not need to be renegotiated upon each renewal; commonly
a month-to-month rental. |
| estate in fee
|
The most complete form of ownership of
real property; a freehold estate that can be passed by descent or
by will after the owner's death; also known as estate of inheritance
or fee simple estate. |
| estate of inheritance
|
(1) An estate which may descend to heirs.
(2) Also known as perpetual estate. |
| estate tax |
Federal tax on the transfer of assets
owned by the estate of a person who has died. |
| estoppel |
(1) A legal doctrine which prevents a
person from denying something to be true or a fact which is contrary
to previous statements made by that same person. (2) Also known as
an implied or ostensible agency. |
| estuary |
Where sea water and fresh water mix together. |
| et al |
And others |
| et ux |
(1) Abbreviation for "et uxor." (2) Means
"and wife." |
| ethics |
A set of principles or values by which
an individual guides his or her own behavior and judges that of others. |
| eviction (evicción)
|
The legal process of removing a tenant
from the premises for some breach of the lease. |
| eviction notice
|
(1) Written notice from the landlord
to the tenant requesting that he or she move out of the property within
three days or meeting the landlord's requirements. (2) Also known
as an eviction notice. |
| evidence of
title |
Proof of property ownership. |
| exclusive authorization
and right-to sell listing |
An exclusive contract where the seller
must pay the listing broker a commission if the property is sold within
the time limit by the listing broker, any other broker, or even by
the owner. |
| exclusive listing
(exclusiva) |
An exclusive contract where the seller
must pay the listing broker a commission if any broker sells the property. |
| execute |
(1) To perform or complete. (2) To sign. |
| executed contract
|
All parties have performed completely. |
| execution sale
|
The forced sale of a property to satisfy
a money judgment. |
| executor/executrix
(albacea) |
A person named in a will to handle the
affairs of a deceased person. |
| executory contract
|
A contract in which obligation to perform
exists on one or both sides. |
| expedientes
|
Land grants recorded by the Mexican government
in California. |
| expenses |
Certain items which appear on a closing
statement in connection with a real estate sale. |
| express agreement
|
A written agreement, usually in the form
of a listing contract which authorizes the broker to represent the
seller in finding a ready, willing, and able buyer. |
| express contract
|
Parties declare the terms and put their
intentions in words, either oral or written. |
| extended policy
|
An extended title insurance policy. |
| external obsolescence
|
Any influence negatively affecting a
property's value that falls outside of the specific property site
(i.e., a property located under an airport flight pattern). |
|
|
| fair
market value |
(1) The price the property would bring
if freely offered on the open market with both a willing buyer and
a willing seller. (2) Also known as market value and objective value. |
| false promise
|
A false statement of fact. |
| farm |
A specific geographical location in which
an agent walks every month in order to obtain listings. |
| fault creep
|
Movement along an earthquake fault caused
by stress and/or earthquake shaking. |
| Federal Deposit
Insurance Corporation |
An agency of the federal government which
creates a secondary market in conventional residential loans, FHA
and VA loans by purchasing mortgages. |
| Federal Fair
Housing Act |
This law, amended in 1988, was created
to provide fair housing throughout the United States. |
| Federal Home
Loan Mortgage Corporation |
A shareholder-owned corporation that
purchases, secures and invests in home mortgages. |
| Federal Housing
Administration |
A federal government agency that insures
private mortgage loans for financing of homes and home repairs. |
| Federal National
Mortgage Association |
"Fannie Mae" a quasipublic agency converted
into a private corporation whose primary function is to buy and sell
FHA and VA mortgages in the secondary market. |
| Federal Reserve
System (Systema de la Reserva Federal) |
The federal banking system of the United
States under the control of a central board of governors (Federal
Reserve Board) involving a central bank in each of twelve geographical
districts with broad powers in controlling credit and the amount of
money in circulation. |
| fee |
See estate in fee or fee simple absolute. |
| fee simple |
The greatest possible interest a person
can have in real estate. |
| fee simple absolute
|
(1) The largest, most complete ownership
recognized by law. (2) An estate in fee with no restrictions on its
use. (3) Property transferred or sold with no conditions or limitations
on its use. |
| fee simple defeasible
|
Also known as fee simple qualified. |
| fee simple estate
|
The most complete form of ownership. |
| fee simple qualified
|
(1) An estate in which the holder has
a fee simple title, subject to return to the grantor if a specified
condition occurs. (2) Also known as fee simple defeasible. |
| fictitious business
name |
(1) A business name other than the name
of the person who has registered the business. (2) Also known as assumed
name. (3) A name that does not include the last name of the owner
in the name of the business. (4) Also known as DBA or "doing business
as." |
| fictitious trust
deed |
Recorded trust deed containing details
which apply to later loan documents. |
| fiduciary |
A relationship that implies a position
of trust or confidence. |
| fiduciary duty
|
That duty owned by an agent to act in
the highest good faith toward the principal and not to obtain any
advantage over the latter by the slightest misrepresentation, concealment,
duress of pressure. |
| fiduciary relationship
|
A relationship that implies a position
of trust or confidence. |
| final tract
map |
A map indicating any changes required
by the planning commission and recorded in the county where the property
is located. |
| finance charge
|
The dollar amount the credit will cost
and is composed of any direct or indirect charge as a condition of
obtaining credit. |
| financial intermediary
|
(1) An organization that obtains funds
through deposits and then lends those funds to earn a return-such
as savings banks, commercial banks, credit unions and mutual savings
banks. (2) Lenders that make real estate loans. |
| financing statement
|
(1) A written notice filed with the county
recorder by a creditor who has extended credit for the purchase of
personal property; establishes the creditor 's interests in the personal
property which is security for the debt. (2) A document used to record
debt. |
| finder's fee
|
(1) Money paid to a person for finding
a buyer to purchase a property or a seller to list property. (2) Also
known as a referral fee. |
| fire stop |
Boards nailed between studs to block
the spread of fire in the walls. |
| first trust
deed |
A legal document pledging collateral
for a loan (See "trust deed") that has first priority over all other
claims against the property except taxes and bonded indebtedness.
That trust deed is superior to any other. |
| fiscal year
|
Starts on July 1 and runs through June
30 of the following year; used for real property tax purposes. |
| fixed rate full
amortized loan |
A loan with two distinct features. First,
the interest rate remains fixed for the life of the loan. Second,
the payments remain level for the life of the loan and are structured
to repay the loan at the end of the loan term. |
| fixed rate loan
|
The most common type of loan. The principal
and interest are calculated for the term of the loan. Payments are
determined by dividing the total by the number of payments in the
term of the loan. Regular payments of fixed amounts, to include both
interest and principal are made. This payment pays off the debt completely
by the end of the term. |
| fixture |
(1) Personal property that has become
affixed to real estate. (2) Real property that used to be personal
property. |
| flag lot |
A lot that looks like a flag on a pole.
The pole represents the access to the site, which is usually located
to the rear of another lot fronting a main street. |
| flashing |
Sheet metal or other material that keeps
the water from seeing into a building. |
| flood (100-year)
|
Boundary indicating areas of moderate
flood hazards. |
| flood hazard
boundary maps |
Maps that identify the general flood
hazards within a community. |
| floodplain |
Low land adjacent to a river, lake or
ocean. |
| floodwater |
Water that overflows a defined channel. |
| footing |
(1) The spreading part at the base of
a foundation wall or pier. (2) A footing is an extended part of the
foundation at the base or bottom of a foundation wall, pier or column. |
| forbearance
|
(1) Refraining from action by a creditor
against a debt or after the debt has become due. (2) Forgiving a debt
or obligation. |
| foreclosure
|
A legal procedure by which mortgaged
property in which there has been default on the part of the borrower
is sold to satisfy the debt. |
| foreclosure
action |
After a mechanic's lien is recorded,
the claimant has 90 days to bring foreclosure action to enforce the
lien. If he or she does not bring action, the lien will be terminated
and the claimant loses the right to foreclose. |
| foreclosure
sale |
A sale where property is sold to satisfy
a debt. |
| formaldehyde
|
A chemical organic compound found in
building materials which may be a carcinogen. |
| foundation |
The base of a house; usually concrete. |
| foundation plan
|
Drawing that shows foundation, sub-floors,
footing, and pier placement. |
| franchise (franquicia)
|
A right or privilege awarded by law to
operate a business using another company's name and products. In real
estate, there are franchised brokerages such as Century 21 and ERA. |
| fraud |
An act meant to deceive in order to get
someone to part with something of value. |
| freehold |
The full use of real estate for an indeterminate
time. It differs from leasehold, which allows possession for a limited
time. |
| freehold estate
|
An estate in real property which continues
for an indefinite period of time. |
| front foot |
The width of a property on the side facing
the street. |
| front money
|
The minimum amount of money necessary
to initiate a real estate venture, to get the transaction underway. |
| frontage |
The length of a property along a street. |
| fructus industrials
|
Crops produced by human labor such as
lettuce and grapes. |
| fructus naturals
|
Naturally occurring plant growth such
as grasses. |
| fully amortized
note |
A note that is fully repaid at maturity
by periodic reduction of the principal. |
| functional obsolescence
|
A type of depreciation stemming from
poor architectural design, lack of modern facilities, out-of-date
equipment, changes in styles of construction, or changes in utility
demand. |
| functional utility
|
The combined factors of usefulness with
desirability. |
|
|
| gable
roof |
A pitched roof with two sloping sides. |
| gambrel roof
|
Typically seen in Dutch colonial architecture,
is a curbed roof, with a steep lower slope with a flatter one above. |
| general agent
|
A person authorized by a principal to
perform any and all tasks associated with the continued operation
of a particular project. |
| general lien
|
A lien on all the property of a debtor. |
| general plan
|
A measurement of length, rather than
area (square foot) or volume (cubic foot). |
| gift deed |
Used to make a gift of property to a
grantee, usually a close friend or relative. |
| gift tax |
Tax that can be due when you give property
or other assets to someone. |
| gold rush |
A large migration of people to a newly
discovered gold field. |
| good consideration
|
Gifts such as real property based solely
on love and affection. |
| goodwill |
An intangible, salable asset arising
from the reputation of a business; the expectation of continued public
patronage. |
| Government National
Mortgage Association |
(1) An agency of HUD, which functions
in the secondary mortgage market, primarily in social housing programs.
(2) Also known as Ginnie Mae. |
| government survey
|
A method of specifying the location of
parcel of land using prime meridians, base lines, standard parallels,
guide meridians, townships, and sections. |
| grace period
|
An agreed-upon time after the payment
of a debt is past due, during which a party can perform without being
considered in default. |
| graduated payment
mortgage |
(1) A loan with partially deferred payments
of principal at the start of the term, increasing as the loan matures.
(2) Also known as the flexible rate mortgage. |
| grandfather
clause |
An expression used in law that permits
the continuation of a use or business to proceed because the current
law denies permission. |
| grant |
(1) A technical legal term in a deed
of conveyance bestowing an interest in real property on another. (2)
The words "convey" and "transfer" have the same effect. |
| grant deed |
A type of deed in which the grantor warrants
that he or she has not previously conveyed the property being granted,
has not encumbered the property except as disclosed, and will convey
to the grantee any title to the property acquired later. |
| grantee |
The person receiving the property, or
the one to whom it is being conveyed. |
| grantor |
The person conveying, or transferring,
the property. |
| gratuitous agent
|
A person not paid by the principal for
services on behalf of the principal, who cannot be forced to act as
an agent, but who becomes bound to act in good faith and obey a principal's
instructions once he or she undertakes to act as an agent. |
| gross domestic
product |
The measure of goods and services produced
by the nation during any one calendar year. |
| gross income
|
Total income from property before any
expenses are deducted. |
| gross income
multiplier |
A figure which, when multiplied by the
annual gross income, will theoretically determine the market value.
A general rule of thumb which varies with specific properties and
areas (industrial and commercial). |
| gross lease
|
(1) A gross lease is also called a flat,
fixed or straight lease. The tenant pays an agreed-upon sum as rent
and the landlord pays any other expenses such as taxes, maintenance,
or insurance. (2) The tenant pays an agreed upon sum as rent, plus
certain agreed upon expenses per month (i.e., taxes, insurance and
repairs). |
| gross national
product |
The total value of all goods and services
produced in an economy during a given period of time. |
| gross rent |
Income (calculated annually or monthly)
received from rental units before any expenses are deducted. |
| gross rent multiplier
|
A method used by real estate agents and
appraisers to quickly convert gross rent into market value. It is
used for income producing properties and is an easy way to get a rough
estimate of the value of rental units. |
| ground lease
|
A lease for only the land. |
| ground rent
|
(1) Earnings of improved property credited
to earnings of the ground itself after allowance is made for earnings
of improvements. (2) Also called economic rent. |
| growth equity
mortgage |
This type of mortgage will be paid back
faster than the typical 30 year fully amortized mortgage. |
| guarantee of
title |
An assurance of clear title. |
|
|
| habendum
clause |
The "to have and to hold" clause which
may be found in a deed. |
| handicap |
Any physical or mental impairment which
substantially limits one or more major life activities. |
| hard money loan
|
Any loan made on real property in exchange
for cash. |
| hazard insurance
|
A property insurance policy that protects
the owner and lender against physical hazards to property such as
fire and windstorm damage. |
| hazardous household
waste |
Consumer products such as paints, cleaners,
stains, varnishes, car batteries, motor oil, and pesticides that contain
hazardous components. |
| hazardous waste
|
Materials--chemicals, explosives, radioactive,
biological--whose disposal is regulated by the Environmental Protection
Agency (EPA). |
| header |
The horizontal, load-bearing, board over
a doorway or window opening. |
| hedge against
inflation |
Real property appreciation keeps pace
or exceeds inflation rates. |
| heir (heredero)
|
One who inherits property at the death
of the owner of the land, if the owner has died without a will. |
| highest and
best use |
An appraisal phrase meaning that use
which at the time of an appraisal is most likely to produce the greatest
net return to the land and/or buildings over a given period of time;
that use which will produce the greatest amount of amenities or profit.
This is the starting point for appraisal. |
| hip roof |
A pitched roof with sloping sides and
ends. |
| "hold harmless"
clause |
Protects the broker from incorrect information. |
| Holden Act |
(1) A law designed primarily to eliminate
discrimination in leading practices based upon the character of the
neighborhood in which real property in located. (2) Also known as
Housing Financial Discrimination Act of 1977. (See Redlining) |
| holder |
The party to whom a promissory note is
made payable. |
| holder in due
course |
A person who has obtained a negotiable
instrument (promissory note, check) in the ordinary course of business
before it is due, in good faith and for value, without knowledge that
it has been previously dishonored. |
| holographic
will |
Written in the maker's own handwriting,
dated and signed by the maker. |
| home equity
loan |
A cash loan made against the equity in
the borrower's home. |
| homeowner's
association (asociación de los dueños) |
A group of property owners in a condominium
or other subdivision neighborhood, who manage common areas, collect
dues, and establish property standards. |
| homeowner's
exemption |
A $7,000 tax exemption available to all
owner-occupied dwellings. |
| homestead |
A piece of land that is owned and occupied
as a family home. |
| Hoskold Tables
|
A method used to value an annuity that
is based on reinvesting capital immediately; used by appraiser to
valuate income property. |
| houseboat |
A barge that is designed and equipped
for use as a dwelling. |
| housing inventory
|
Housing units that are available for
sale or in the process of being made ready for sale. |
| "HVAC" |
The acronym for heating, ventilation
and air conditioning. |
| Hypothecation
|
A process which allows a borrower to
remain in possession of the property while using it to secure a loan. |
|
|
| intestate
(intestado) |
Dying without leaving a will. |
| implied contract
|
An agreement shown by acts and conduct
rather than written words. |
| implied warranty
of habitability |
The property will be maintained to meet
bare living requirements. |
| impound account
|
A trust account set up for funds set
aside for future costs relating to a property. |
| improvements
(hacer reformas) |
Valuable additions made to property to
enhance value or extend useful remaining life. |
| income approach
|
Estimates the present worth of future
benefits from ownership of a property. |
| independent
contractor |
A person who is hired to do work for
another person but who is not an employee of that person. |
| infill development
|
The development of vacant parcels in
existing urban and suburban areas. |
| inflation |
The increase in the general price level
of goods and services. |
| ingress |
The right to enter onto a property using
an easement. |
| inheritance
tax |
A tax levied by states on inherited property
and paid by the person receiving the property. |
| injunction (requerimiento
judicial) |
A court order forcing a person to do
or not do an act. |
| innocent misrepresentation
|
When a person unknowingly provides wrong
information. |
| installment
note |
A note which provides for a series of
periodic payments of principal and interest, until amount borrowed
is paid in full. This periodic reduction of principal amortizes the
loan. |
| installment
sales |
Where payments are made, by the buyer,
to the seller, over a period of more than one year. |
| institutional
lenders |
A financial intermediary, such as a savings
and loan association, commercial bank, or life insurance company,
which pools money of its depositors and then invests funds in various
ways, including trust deed and mortgage loans. |
| instrument (instrument)
|
A formal legal document such as a contract,
deed or will. |
| insurance company
|
Major supplier of money for large commercial
loans to developers and builders. |
| interest (interés)
|
The charge for the use of money. |
| interest only
loan |
A straight, non-amortizing loan in which
the lender receives only interest during the term of the loan and
principal is repaid in a lump sum at maturity. |
| interest rate
|
The percentage charged for the use of
money. |
| interim loan
|
A short-term, temporary loan used until
permanent financing is available, e.g., a construction loan. |
| interim use
|
(1) When the highest and best use is
expected to change. (2) A short-term and temporary use of a property
until it is ready for a more productive highest and best use. |
| interior lot
|
A lot that is surrounded by other lots,
with a frontage on the street. It is the most common type lot and
may be desirable or not, depending on other factors. |
| intermediation
|
The process of transfer capital from
those who invest funds to those who wish to borrow. |
| interpleader
action |
A court proceeding initiated by the stakeholder
of property who claims no proprietary interest in it for the purpose
of deciding who among claimants is legally entitled to the property. |
| intestate succession
(intestado) |
When a person inherits property as a
result of someone dying without a will. |
| inverse condemnation
|
When a private party forces the government
to pay just compensation if the property value or use has been diminished
by a public entity. |
| involuntary
lien |
When the owner does not pay taxes or
the debt owed, a lien may be placed against his or her property without
permission. |
| Inwood tables
|
Means by which an income stream can be
converted into present value; used by appraisers to valuate income
property. |
| irrigation districts
|
Quasi-political districts created under
special laws to provide for water services to property owners in the
district; an operation governed to a great extent by law. |
|
|
| joint
and several liability |
(1) A legal term used in reference to
a debt or a judgment for negligence, in which each debtor or each
judgment defendant is responsible for the entire amount of the debt
or judgment. (2) An activity involving the sale of something through
an intermediary who negotiates the transaction for payment. |
| joint tenancy
|
When two or more parties own real property
as co-owners, with the right of survivorship. |
| joint venture
(contrato de asociación en participación) |
When two or more individuals or firms
join together on a single project as partners. |
| joists |
Parallel boards supporting floors or
ceilings. The boards supporting them are girders, beams or bearing
walls. |
| judgment |
The final legal decision of a judge in
a court of law regarding the legal rights of parties to disputes. |
| judgment lien
|
The final determination of the rights
of parties in a lawsuit by the court. |
| judicial foreclosure
|
Foreclosure by court action. |
| junior mortgage
|
A second mortgage; one that is subordinate
or has an inferior priority to the first mortgage. |
| junior trust
deed |
Any trust deed that is recorded after
a first trust deed, whose priority is less than that first trust deed. |
| just compensation
|
Fair and reasonable payment due to a
private property owner when his or her property is condemned under
eminent domain. |
|
|
| key
lot |
A lot that resembles a key fitting into
a lock, is surrounded by the back yards of other lots. It is the least
desirable because of the lack of privacy. |
| kiosk |
A free-standing small booth, such as
a jewelry stand or a newsstand. |
|
|
| laches
|
Delay or negligence in asserting one's
legal rights. |
| land |
Includes airspace, surface rights, mineral
rights, and water rights. |
| "LAND" |
The mnemonic for the four elements of
a valid lease: Length of time, Amount of rent, Names of parties, and
Description of the property. |
| land contract
|
(1) A contract for the sale of real property
where the seller gives up possession, but retains he title until the
purchase price is paid in full; also known as a contract of sale or
agreement of sale. (2) Also called agreement of sale. |
| land project
|
Subdivisions located in sparsely populated
areas (fewer than 1,5000 registered voters within the subdivision
or within two miles of its boundaries), made up of 50 parcels or more. |
| landlocked |
Property surrounded by other property
with no access to a public road, street or alley. |
| landlord (arrendador)
|
(1) Lessor (2) Property owner. |
| lateral support
|
The support which the soil of an adjoining
owner gives to a neighbor's land. |
| lease (arrendamiento)
|
(1) A contract between owner, (lessor
or landlord) and a lessee (tenant) which gives the tenant a tenancy.
(2) Also known as a rental agreement. (3) A contract between an owner
and tenant. (4) A movable document describing the temporary possession
and use of the property. |
| leased-fee estate
|
The interest of the lessor in property. |
| leasehold |
(1) An agreement, written or unwritten,
transferring the right to exclusive possession and use of real estate
for a definite period of time. (2) Also known as a rental agreement
or lease. |
| leasehold estate
|
A tenant's right to occupy real estate
during the term of the lease. This is personal property interest. |
| legacy |
A gift of personal property by will |
| legal description
|
A land description recognized by law;
a description by which property can be definitely located by reference
to government surveys or approved recorded maps. |
| legal title
|
Title that is complete and perfect regarding
right of ownership. |
| lessee |
(1) Tenant. (2) Renter. |
| lessor |
(1) Landlord. (2) Property owner. (3)
The person who owns the property and signs the lease to give possession
and use to the tenant. |
| less-than-freehold
estate |
(1) The lessee's interest. (2) An estate
owned by a tenant who rents real property. (3) Also known as a leasehold
estate. |
| leverage |
Using a lender's money to finance a sale. |
| license (licencia)
|
Permission to use a property, which may
be revoked at any time. |
| license law
|
Another term for the real estate law. |
| lien (gravamen)
|
(1) A claim on the property of another
for the payment of a debt. (2) A legal obligation to pay. |
| "LIEN$" |
The mnemonic for the dollar sign $ to
show that lien$ involve money. |
| life estate
|
An estate that is limited in duration
to the life of its owner or the life of another designed person. |
| limited liability
company |
An alternative business that has characteristics
of both corporations and limited partnerships. |
| limited partnership
|
A partnership of at least one general
partner and one limited partner. |
| linear feet
|
Refers to length rather than area. |
| liquidated damages
clause |
Clause in a contract that allows parties
to the contract to decide in advance the amount of damages to be paid,
should either party breach the contract. |
| lis pendens
|
(1) A recorded notice that indicates
pending litigation affecting title on a property. (2) Also called
a pendency of action. (Pronounced "lis pendenz") |
| listing |
A contract between an owner of real property
and an agent who is authorized to obtain a buyer. |
| listing agent
|
A broker who obtains a listing from a
seller to act as an agent for compensation. |
| listing agreement
|
A written contract by which a principal,
or seller, employs a broker to sell real estate. |
| littoral |
Land bordering a lake, ocean or sea--as
opposed to land bordering a stream or river (running water). (Pronounced
"lit-to-ral") |
| loan assumption
|
A buyer assumes the exiting loan when
a property is sold. The buyer takes over primary liability for the
loan, with the original borrower secondarily liable if there is a
default. |
| loan to value
ratio |
The percentage of appraised value to
the loan. |
| lot, block and
tract system |
(1) A process where developers divide
parcels of land into lots. Each lot in a subdivision is identified
by number, as is the block in which it is located; each lot and block
is in a referenced tract. This process is required by the California
Subdivision Map Act. (2) Also known as lot and block system, subdivision
system or recorded map system. |
| love and affection
|
Consideration used in a gift deed. |
|
|
| maker
|
The borrower who executes a promissory
note and becomes primarily liable for payment to the lender. |
| management contract
|
A contract that shows the terms of the
agreement between the owner and the property manager. |
| mansionization
|
A new trend of home remodeling and construction
is emerging in older neighborhoods with small to medium-sized homes. |
| manufactured
home |
A home built in a factory after June
15, 1976 and must conform to the U.S. government's Manufactured Home
Construction and Safety Standards. |
| "MARIA" |
The mnemonic for the five tests of a
fixture: Method of attachment, Adaptation, Relationship of the parties,
Intention, and Agreement of the parties. |
| market comparison
approach |
(1) An appraisal method using the principles
of substitution to compare similar properties. (2) A means of comparing
similar type properties, which have recently sold, to the subject
property. (3) Also called market data approach. |
| market price
|
The price paid regardless of pressures,
motives or intelligence. |
| market rent
|
The rent a property should bring in the
open market. |
| market value
(valor de mercado) |
(1) The highest price a property would
bring if freely offered on the open market, with both a willing buyer
and a willing seller. (2) Sometimes called objective value. |
| marketable title
|
Good or clear saleable title reasonably
free from risk of litigation over possible defects. |
| material fact
|
Any fact that would seem likely to affect
the judgment of the principal in giving consent to the agent to enter
into the particular transaction on the specified terms. |
| maximum allowable
rent |
The maximum legal rent that a landlord
may charge for a controlled rental unit. |
| mechanic's lien
(gravamen de una constructora o de un constructor) |
A lien placed against a property by anyone
who supplies labor, services, or materials used for improvements on
real property and did not receive payment for the improvements. |
| median home
price |
The price that is midway between the
least expensive and most expensive home sold in an area during a given
period of time. |
| Mello Roos Act
|
Allows developers to make improvements
(roads, parks, schools, fire stations) while making each homeowner
pay for the improvements. These improvements are listed in the property
taxes. |
| Mello Roos District
|
An area where a special tax is imposed
on those real property owners within a Community Facilities District.
Public services such as roads, sewers, parks, schools and fire stations
in new developments may be financed under this law. |
| menace |
Using the threat of violence to get agreement
in accepting a contract. |
| meridian |
A survey line running north and south,
used as a reference when mapping land. |
| metes and bounds
|
Land description that delineates boundaries
and measures distances between landmarks to identify property. |
| minerals |
Land elements found beneath the ground
such as gold and coal and owned as real property. Fugitive substances
that are not solid such as oil or gas must be taken from the ground.
Once these elements are taken from the ground, they become the personal
property of whoever removed them. |
| mineral rights
|
The legal interest in the valuable items
found below the surface of a property (i.e., gold and coal). |
| minor (menor
de edad) |
A person under l8 years of age. |
| misplaced improvements
|
Improvements on land which do not conform
to the most profitable use of the site. |
| misrepresentation
|
(1) Making a false statement or concealing
a material fact. (2) A false statement of fact. |
| mistake |
(1) An agreement was unclear or there
was a misunderstanding in the facts. Mistake does not include ignorance,
incompetence or poor judgment. (2) An error or misunderstanding. |
| Mnemonics |
The following memory aids may be found
alphabetically in this Glossary: "ADAM E. LEE", "COALD", "DEC", "DUST",
"LAND", "LIEN$", "MARIA", "PANCHO", "PEPS", "PETE", "SCI", "TIMMUR",
"T-TIP", and "UPTEE". |
| mobile home
|
A factory-built home manufactured prior
to June 15, 1976, constructed on a chassis and wheels, and designed
for permanent or semi-attachment to land. |
| mobile home
park |
Any area or tract of land where two or
more mobile home lots are rented or leased or held out for rent or
leased to accommodate manufactured homes or mobile homes used for
human habitation. |
| monetary policy
|
The actions taken by the federal government
to influence the availability and cost of money and credit as a means
of promoting national economic goals. |
| money encumbrance
|
An encumbrance that affects the title. |
| month-to-month
tenancy |
A tenant rents property for a month at
a time, under a periodic tenancy that continues for successive months
until terminated by proper notice. |
| monument |
A fixed landmark used in a metes and
bounds land description. |
| mortgage (hipoteca)
|
A legal document used as security for
a debt. |
| mortgage banker
|
A person whose principal business is
the originating financing, closing, selling and servicing of loans
secured by real property for institutional lenders on a contractual
basis. |
| mortgage loan
disclosure statement |
A statement that informs the buyer of
all charges and expenses related to a particular loan. |
| mortgage yield
|
The amount received or returned from
an investment expressed as a percentage. |
| mortgage-backed
securities |
Pools of mortgages used as collateral
for the issuance of securities in the secondary market. |
| mortgagee (acreedor
hipotecario) |
The lender under a mortgage. |
| mortgagor (deudor
hipotecario) |
The interest rate stated in the note. |
| multiple listing
service |
A cooperative listing service conducted
by a group of brokers (usually members of a real estate association)
to provide an inventory of all available properties in the area. |
| mutual assent
|
(1) An agreement between the parties
in a contract. (2) The offer and acceptance of a contract. |
| mutual consent
|
(1) The offer by one party and acceptance
by another party. (2) Also known as mutual assent or "meeting of the
minds". |
| mutual mortgage
insurance |
A fee for an insurance policy charged
the borrower to protect lender under an FHA loan, in the event of
foreclosure on the property. |
| mutual rescission
|
When all parties to a contract agree
to cancel an agreement. |
| mutual water
company |
A water company organized by or for water
users in a given district with the object of securing an ample water
supply at a reasonable rate; stock is issued to users. |
| naked legal
title |
Title lacking the rights and privileges
commonly associated with ownership may be held by trustee under a
trust deed. |
| narrative appraisal
|
A summary of all factual materials, techniques
and appraisal methods used by the appraiser in setting forth his or
her value conclusion. |
| negative amortization
|
Occurs when monthly installment payments
are insufficient to pay the interest, so any unpaid interest is added
to the principal due. |
| negligent misrepresentations
|
Untrue statements made without facts
to back them up. |
|
|
| negotiable
|
Capable of being negotiated, assignable
or transferable in the ordinary course of business. |
| negotiable instrument
|
Any written instrument that may be transferred
by endorsement or delivery. |
| net lease (arrendamiento
neto) |
The tenant pays an agreed-upon sum as
rent, plus certain agreed upon expenses per month (i.e., taxes, insurance
and repairs). |
| net listing
|
A listing agreement in which the commission
is not definite. The broker receives all the money from the sale of
the property that is in excess of the selling price set by the seller.
The broker must disclose the selling price to both buyer and seller
within 30 days after the transaction. |
| net operating
income (ingreso neto de operación) |
The balance remaining after deducting
gross receipts of all fixed expenses. |
| net worth |
The value of all assets minus all liabilities. |
| neutral depository
|
An escrow business conducted by someone
who is a licensed escrow holder. |
| "no fault" eviction
|
A lawful eviction in which the tenant
is not at fault. This includes whether the owner wants to occupy the
apartment or to get out of the rental housing business. |
| no notice of
completion |
If the owner does not record a notice
of completion when work is finished, all claimants have a maximum
of 90 days from the day work was finished to record a mechanic's lien. |
| nominal interest
rates |
The interest rate that is named or stated
in loan documents. |
| non-conforming
use (uso no conforme) |
Legal use of property that at one period
was established and maintained at the time of its original construction
but no longer conforms to the current zoning law. |
| notary public
|
A licensed public officer who takes or
witnesses the acknowledgement. |
| note |
An evidence of a debt. |
| notice of completion
|
A notice filed by the owner or general
contractor after completion of work on improvements, limiting the
time in which mechanic's liens can be filed against the property. |
| notice of default
|
A notice to a defaulting party that there
has been a nonpayment of a debt. |
| notice of non-responsibility
|
When an owner discovers unauthorized
work on the property, he or she must file a notice. This is a notice
that must be recorded and posted on the property to be valid, stating
the owner is not responsible for work being done. This notice releases
the owner from the liability for work done without permission. |
| notice of trustee's
sale |
Notice given, and published, that a trustee's
sale will be held to sell a property to satisfy a debt. |
| notice to pay
rent or quit |
(1) A written notice from the landlord
to the tenant informing him or her to move out of the property within
three days or meet the landlord's requirements. (2) Also known as
an eviction notice. |
| novation (novación)
|
The substitution by agreement of a new
obligation for an existing one. |
| null and void
|
Of no legal validity or effect. |
| 1 month |
For escrow purposes, 30 days |
| 1 year |
For escrow and proration purposes, 360
days, 12 months, 52 weeks. |
| 1031 exchange
|
(1) A method of deferring tax liability.
(2) Also known as a "tax-free" exchange. |
|
|
| obligor
|
A person, delinquent in paying child
support, whose name is listed by the Child Support Services. |
| obsolescence
(obsolescencia) |
Loss in value due to reduced desirability
and usefulness of a structure because its design and construction
became obsolete; loss because of becoming old-fashioned and not in
keeping with modern needs, with consequent loss of income. May be
functional or economic. |
| offer |
A presentation or proposal for acceptance
to form a contract. |
| offer to purchase
|
The proposal made to an owner of property
by a potential buyer to purchase the property under stated terms. |
| offeree |
The party receiving an offer. |
| offeror (oferente)
|
The party making an offer. |
| open end loan
|
A loan where the borrower is given a
limit up to which may be borrowed, with each advance secured by the
same trust deed. |
| open house (casa
abierta) |
A common real estate practice of showing
listed homes to the general public during established hours. |
| open housing
law |
Congress passed a law in April 1968 which
prohibits discrimination in the sale of real estate because of race,
color, or religion of buyers. |
| open listing
|
A listing agreement that gives any number
of brokers the right to sell a property. |
| open sheathing
|
Boards nailed to rafters to form foundation
for roof. |
| option (opción)
|
A contract to keep open, for a set period
of time, an offer to purchase or lease real property. |
| optionee |
The person who wants to purchase or lease
(lessee) the property. |
| optionor |
The person who owns the property (seller,
lessor). |
| "or more" clause
|
A clause in a mortgage or trust deed
that allows a borrower to pay it off early with no penalty. |
| orientation
(orientación) |
The placement of a building on its lot
in relation to exposure to sun, prevailing wind, traffic and privacy
from the street. |
| ostensible agency
|
An agency relationship created by the
actions of the parties rather than by an express agreement. |
| ownership |
(1) The right of one or more persons
to possess and use property to the exclusion of all others. (2) A
collection of rights to the use and enjoyment of property. |
| ownership in
severalty |
Property owned by one person or entity. |
|
|
| package
loan |
A type of loan on real property used
in home financing covering land, structures, fixtures and other personal
property. |
| "PANCHO" |
The mnemonic for the six requirements
for adverse possession: Possession, Adverse, Notorious, Continuous,
Hostile, and Open. |
| paramount title
|
Title which is superior or foremost to
all others. |
| parcel map |
Map showing a parcel of land that will
be subdivided into less than five parcels or units, and shows land
boundaries, streets, and parcel numbers. |
| parol evidence
rule |
Oral or written negotiations made prior
to a dispute about an executed contract and brought forward to influence
the executed contract. "Parol" mean "oral" or "by word of mouth" but
in this case means any evidence outside of the written agreement.
Prohibits introducing any kind of outside evidence to change or add
to the terms of deeds, contracts or other writing once they have been
executed. |
| partial reconveyance
|
A clause in a trust deed or mortgage
permitting the release of a parcel or part of a parcel from the lien
of that security instrument. The release usually occurs upon the payment
of a specified sum of money. |
| partially amortized
note |
A promissory note with a repayment schedule
that is not sufficient to amortize the loan over its term. |
| partition action
|
A court action to divide a property held
by co-owners. |
| partnership
|
A form of business in which two or more
persons join their money and skills in conducting the business. |
| party wall |
A wall erected on the line between two
adjoining properties, which are under different ownership, for the
use of both parties. |
| patent |
The legal document that transmit real
property from the state or federal government to a person. |
| "PEPS" |
The mnemonic for the four forces influencing
value: Physical characteristics, Economic Influences, Political (governmental)
regulations, and Social ideals. |
| percentage lease
|
The tenant pays a percentage of gross
monthly receipts in addition to a base rent. |
| percolating
water |
Underground water not flowing in a defined
channel. |
| percolation
test |
Test used to determine the ability of
the land to absorb and drain water and is frequently used when installing
septic systems. |
| personal property
|
Anything movable that is not real property. |
| "PETE" |
The mnemonic for four types of government
controls: Police power, Eminent domain, Taxation, and Escheat. |
| physical deterioration
|
(1) A type of depreciation that came
from wear and tear, negligent care, damage by dry rot or termites
or severe changes in temperature. (2) Also known as deferred maintenance. |
| pier |
A column of masonry used to support other
structural members. |
| pitch |
The slope, incline or rise of a roof. |
| planned development
|
(1) A planning and zoning term describing
land not subject to conventional zoning to permit clustering of residences
or other characteristics of the project which differ from normal zoning.
(2) Sometimes called a planned unit development (PUD). |
| planning commission
|
An agency of local government charged
with planning the development, redevelopment or preservation of an
area. |
| plat map |
Map of a subdivision indicating the location
and boundaries of individual lots. |
| pledge |
The transfer of property to a lender
to be held as security for repayment of a debt; lender takes possession
of property. |
| pledged savings
account mortgage |
A borrower has a large amount of money
in a savings or thrift account, and uses this money to maintain the
account as security for a lender. The lender requires a certain ration
of the new loan amount to the balance in the account. The borrower
must keep that amount in the account for a specified length of time.
The lender can release the pledge account when the property has acquired
enough equity to qualify under normal loan-to-value ratios. |
| plottage increment
|
Putting several smaller, less valuable
parcels together under one ownership to increase value of total property. |
| pocket listing
|
A list that is kept by the listing broker
or salesperson, and is not shared with other brokers in the office
or other multiple listing service members. This is discouraged by
the real estate profession and is prohibited by many broker's offices. |
| points |
Charges levied by the lender based on
the loan amount. Each point equals one percent of the loan amount;
for example, two points on a $100,000 mortgage is $2,000. Discount
points are used to buy down the interest rate. Points can also include
a loan origination fee, which is usually one point. (See Discount
Points) |
| police power
|
The power of the state to enact laws
within constitutional limits to promote the order, safety, health,
morals and general welfare of our society. |
| potable water
(agua potable) |
Fresh water that is safe and agreeable
for drinking. |
| power of attorney
(energía del abogado) |
A legal document that gives another person
the legal authority to act on his or her behalf. |
| power of sale
|
A clause in a trust deed or mortgage
that gives the holder the right to sell the property in the event
of default by the borrower. |
| preliminary
notice |
A written notice that must be given to
the owner within 20 days of first furnishing labor or materials for
a job by anyone eligible to file a mechanic's lien. |
| preliminary
title report |
An offer to issue a policy of title insurance
in the future for a specific fee. |
| prepaid items
of expense |
Prorations of prepaid items of expense
which are credited to the seller in the closing escrow statement. |
| prepayment clause
|
A clause in a trust deed that allows
a lender to collect a certain percentage of a loan as a penalty for
an early payoff. |
| prepayment penalty
|
(1) Penalty for the payment of a note
before it actually becomes due. (2) A fee or charge imposed upon a
debtor who desires to pay off their loan before its maturity. |
| prescription
|
The process of acquiring an interest,
not ownership, in a certain property. |
| price |
What the property actually sold for. |
| prima facie
|
Latin meaning first sight, a fact presumed
to be true until disproved. |
| primary mortgage
market (mercado hipotecario primario) |
Lenders make mortgage loans by lending
directly to borrowers. |
| principal |
(1) In a real estate transaction, the
one (seller) who hires the broker to represent him or her in the sale
of the property. (2) The amount of money borrowed. |
| priority |
The order in which deeds are recorded. |
| private grant
|
The granting of private property to other
private persons. |
| private mortgage
insurance (seguro hipotecario privado) |
Mortgage guarantee insurance available
to conventional lenders on the first part of a high risk loan. |
| private restrictions
|
Created at the time of sale or in the
general plan of a subdivision. |
| pro rata |
In proportion; according to a certain
percentage or proportion of a whole. |
| probate |
A court-approved sale of the property
of a deceased person. |
| procuring cause
|
A broker who produces a buyer "ready,
willing and able" to purchase the property for the price and on the
terms specified by the seller, regardless of whether the sale is completed. |
| progression,
principle of |
The worth of a lesser valued residence
tends to be enhanced by association with higher valued residences
in the same area. |
| promissory note
(nota promisoria) |
The evidence of the debt. |
| promulgate |
To publish or make laws known. |
| property |
Anything that may be owned and gained
lawfully. |
| property management
(administración de inmuebles) |
(1) A specialty in which real estate
brokers manage homes and large real estate projects such as industrial
complexes, shopping centers, apartment houses and condominiums. (2)
The branch of the real estate business involving the marketing, operation,
maintenance and day-to-day financing of rental properties. |
| property taxes
|
Taxes used to operate the government
in general. |
| proprietary
lease |
The lease used in co-op apartment buildings. |
| prorate (proratear)
|
(1) The division and distribution of
expenses and/or income between the buyer and seller of property as
of the date of closing or settlement. (2) The process of making a
fair distribution of expenses, through escrow, at the close of the
sale. |
| prospecting
|
The process of identifying potential
customers. |
| public dedication
|
When private property is intended for
public use. There are three types of public dedication: common law
dedication, statutory dedication or deed. |
| public grant
|
The transfer of title by the government
to a private individual. |
| public record
|
A document disclosing all important facts
about the property, its marketing and the financing of the subdivision. |
| public report
|
A document disclosing all important facts
about the property, its marketing and the financing of the subdivision. |
| puffing |
(1) A statement of opinion about property
that is not factual. (2) Exaggerated comments or opinions not made
as representations of fact, thus not grounds for misrepresentation. |
| pur autrie vie
|
A life estate created on the life of
a designated person. |
| purchase money
mortgage or trust deed |
A trust deed or mortgage given as part
or all of the purchase consideration for real property. In some states
the purchase money mortgage or trust deed loan can be made by a seller
who extends credit to the buyer of property or by a third party lender
(typically a financial institution) that makes a loan to the buyer
of real property for a portion of the purchase price to be paid for
the property. In many states there are legal limitations upon mortgages
and trust deed beneficiaries collecting deficiency judgments against
the purchase money borrower after the collateral hypothecated under
such security instruments has been sold through the foreclosure process.
Generally no deficiency judgment is allowed if the collateral property
under the mortgage or trust deed is residential property of four units
or less with the debtor occupying the property as a place of residence. |
|
|
| quantity
survey method (estudio de costas) |
A detailed estimate of all labor and
materials used in the components of a building. Items such as overhead,
insurance and contractor's profit are added to direct costs of building.
This method is time consuming but very accurate. |
| quiet enjoyment
|
Right of an owner or tenant to the use
of the property without interference from the acts or claims of third
parties. |
| quiet title
action |
(1) A court proceeding to clear a cloud
on the title of real property. (2) Also known as action to quiet title. |
| quitclaim deed
|
Transfers any interest the grantor may
have at the time the deed is signed with no warranties of clear title. |
|
|
| radon
|
Colorless, odorless, gas that is a carcinogen
detected by a spectrometer. |
| rafter |
One of a series of boards of a roof designed
to support roof loads. |
| rafters |
Slanted boards of a roof that are designed
to support the roof boards and shingles. To strengthen the load bearing
factor of a roof, the rafters should be placed closer together. |
| range |
A land description used in the U.S. government
survey system consisting of a strip of land located every six miles
east and west of each principal meridian. |
| range lines
|
Government survey imaginary vertical
lines six miles east and west of the meridian to form columns. |
| rate |
The percentage of interest charged on
the principal. |
| ratification
|
The approval of a previously authorized
act, performed on behalf of a person, which makes the act valid and
legally binding. |
| ratified |
Approved after the fact. |
| "ready, willing
and able" buyer |
A person who is prepared to enter into
a purchase contract, really wants to buy, and meets the financing
requirements of purchase. |
| real estate
(bienes raices) |
Land and whatever physical property is
on it, including buildings and structures. Current usage makes the
term real estate synonymous with real property. |
| Real Estate
Advisory Commission |
A 10 member commission to offer advice
to the Commissioner on matters pertinent to the DRE. |
| real estate
agent |
A broker licensed by the Department of
Real Estate who negotiates sales for other people. |
| real estate
broker |
Someone holding a broker license issued
by the Department of Real Estate and permitted by law to negotiate
real estate transactions between principals to employ persons holding
salesperson or broker licenses. |
| Real Estate
Commissioner |
A person appointed by the governor to
determine administrative policy and enforce the provisions of the
real estate law and the Subdivided Lands Law. |
| Real Estate
Investment Trust (Fideicomiso de Inversiones en Bienes Raíces) |
A special arrangement under federal and
state law whereby investors may pool funds for investments in real
estate and mortgages and yet escape corporation taxes, profits being
passed to individual investors who are taxed. |
| real estate
law |
(1) The law that affects the licensing
and conduct of real estate licensees. (2) Another name for the Business
and Professions Code, Part 1 entitled Licensing of Persons. |
| Real Estate
Recovery Fund |
A separate account funded through collection
of a fixed amount from each license fee. |
| real estate
salesperson |
A person with a real estate license who
must be employed by a real estate broker in order to perform any of
the activities that requires a license. |
| Real Estate
Settlement Procedures ACT |
A federal law requiring disclosure to
borrowers of settlement (closing) procedures and costs by means of
a pamphlet and forms prescribed by the United States Department of
Housing and Urban Development. |
| real estate
syndicate |
An organization of investors usually
in the form of a limited partnership who have joined together for
the purpose of pooling capital for the acquisition of real property
interests. |
| Real Estate
Transfer Disclosure Statement |
A document that the seller must provide
to any buyer of residential property (one-to-four units). |
| real property
(bienes inmuebles) |
Land (air, surface, mineral, water rights),
appurtenances and anything attached, and immovable by law. Also included
in real property are the interests, benefits and rights inherent in
owning real estate, i.e., the "bundle of rights." Current usage makes
the term real property synonymous with real estate. |
| Real Property
Loan Law |
Article 7 of Chapter 3 of the Real Estate
Law under which a real estate licensee negotiating loans secured by
real property within a specific range is required to give the borrower
a statement disclosing the costs and terms of the loan and which also
limits the amount of expenses and charges that a borrower may pay
with respect to the loan. |
| Real Property
Sales Contract |
An agreement to convey title to real
property upon satisfaction of specified conditions which does not
require conveyance within one year of formation of the contract. |
| Realtist |
A member of a national organization,
generally composed of African-American real estate brokers, known
as the National Association of Real Estate Brokers (NAREB). |
| REALTOR® |
A real estate broker holding active membership
in a real estate board affiliated with the National Association of
Realtors®. |
| reconciliation
|
(1) The adjustment process of weighing
results of all three appraisal methods to arrive at a final estimate
of the subject property's market value. (2) Also known as correlation. |
| reconveyance
deed |
Conveys title to property from a trustee
back to the borrower (trustor) upon payment in full of the debt secured
by the trust deed. |
| recording |
The process of placing a document on
file with a designated public official for public notice. This public
official is usually a county officer known as the County Recorder
who designates the fact that a document has been presented for recording
by placing a recording stamp upon it indicating the time of day and
the date when it was officially placed on file. |
| rectangular
survey system |
(1) A process that uses imaginary lines
to form a grid to locate land. (2) Also known as the U.S. Government
Section and Township Survey. |
| red flag |
Something that alerts a reasonably observant
person of a potential problem. |
| redemption period
|
A period of time established by state
law during which a property owner has the right to recover real estate
after a foreclosure or tax sale by paying the sales price plus interest
and costs. |
| redlining ("redlining")
|
(1) The illegal lending policy of denying
real estate loans on properties in older, changing urban areas, usually
with large minority populations, because of alleged higher lending
risks, without due consideration being given by the lending institution
to the credit worthiness of the individual loan application. (2) The
illegal use of a property's location to deny financing. |
| refinancing
|
The paying-off of an existing obligation
and assuming a new obligation in its place. To finance anew, or extend
or renew existing financing. |
| rehabilitation
|
The restoration of a property to its
former or improved condition without changing the basic design or
plan. |
| reinstate |
To bring current and restore. |
| release clause
|
A provision found in many blanket mortgage
or trust deeds enabling the borrower to obtain partial release from
the loan of specific parcels. |
| reliction |
When land covered by water becomes uncovered
because of alluvial deposits along the banks of streams. |
| remodeling |
Changes the basic design or plan of the
building to correct deficiencies. |
| renegotiable
rate mortgage |
Loan in which the interest rate is renegotiated
periodically. |
| rent (alquiler)
|
Payment for the use of a property, generally
under a lease agreement. |
| rent control
|
(1) A collection of law in some communities
that limit or prohibit rent increases. (2) Also known as rent stabilization. |
| rental agreement
|
Another name for lease. |
| replacement
cost (costo de reposicíón) |
The cost of replacing improvements with
modern materials and techniques. |
| reproduction
cost (costo de reproducción) |
The current cost of building a replica
of the subject structure, using similar quality materials. |
| request for
notice |
A notice that is sent, upon request,
to any parties interested in a trust deed, informing them of a default. |
| rescission |
Legal action taken to repeal a contract
either by mutual consent of the parties or by one party when the other
party has breached a contract. |
| resident manager
|
A person employed to manage an apartment
building on a part or full-time basis. |
| residential
ceiling height measurements |
Minimum - 7.5 feet; normal - 8 feet |
| residential
lease |
A lease used for single family homes
and duplexes. |
| restricted license
|
A type of probationary license issued
when a license has been suspended, revoked or denied after a hearing. |
| restriction
|
A limitation placed on the use of property
and may be placed by a private owner, a developer or the government.
It is usually placed on property to assure that land use is consistent
and uniform within a certain area. |
| retaliatory
eviction |
An eviction that occurs in revenge for
some complaint made by the tenant. |
| return |
Profit from an investment; the yield. |
| reverse annuity
mortgage |
A loan that enables elderly homeowners
to borrow against the equity in their homes by receiving monthly payments
from a lender, that are needed to help meet living costs. |
| reversionary
interest |
(1) The right of the landlord to reclaim
the property. (2) A future interest. |
| revocation |
The canceling of an offer to contract
by the person making the original offer. |
| revoke |
Recall and make void. |
| ridge board
|
The highest structural part of a frame
building. |
| right of replevin
|
The tenant has a legal right to recover
personal property unlawfully taken by the landlord. |
| right of survivorship
|
The right of a surviving tenant or tenants
to succeeds to the entire interest of the deceased tenant; the distinguishing
feature of a joint tenancy. |
| riparian rights
|
The rights of a landowner whose land
is next to a natural watercourse to reasonable use of whatever water
flows past the property. |
| rollover mortgage
|
A loan that allows the rewriting of a
new loan at the termination of a prior loan. |
| R-value |
A rating that measures how well insulation
resists heat. |
|
|
| S
corporation |
A corporation that operates like a corporation
but is treated like a partnership for tax purposes. |
| safety clause
|
Protects the listing broker's commission,
if the owner personally sells the property to someone who was shown
the property or made an offer during the term of the listing. |
| sale and leaseback
|
A financial arrangement where at the
time of sale the seller retains occupancy by concurrently agreeing
to lease the property from the purchaser. The seller receives cash
while the buyer is assured a tenant and a fixed return on buyer's
investment. |
| sales associate
|
(1) A licensed real estate salesperson
or broker whose license is held by an employing licensed broker. (2)
Also known as associate licensee. |
| sales contract
|
A contract by which buyer and seller
agree to terms of a sale. |
| sales tax |
Collected as a percentage of the retailing
sales of a product, by a retailer, and forwarded to the State Board
of Equalization. |
| sandwich lease
|
A lease agreement created when a tenant
sublets the property to another person, thus creating a sublessor-sublessee
relationship. The person in the "sandwich" is a lessee to the owner
and a lessor to the sub-lessee. |
| satisfaction
|
Discharge of a mortgage or trust deed
from the records upon payment of the debt. |
| savings and
loan association |
A lending institution created as a mutual
organization or as a stock institution . Deposits are insured by the
Federal Deposit Insurance Corporation (FDIC). |
| scarcity |
The availability of a commodity in the
marketplace. |
| schematics |
Preliminary drawings and sketches by
an architect, such as site plans and elevations. |
| "SCI" |
The mnemonic for three approaches to
value: Sales comparison approach, Cost approach, and Income approach. |
| second trust
deed |
The evidence of a debt that is recorded
after a first trust deed; a junior trust deed. |
| secondary mortgage
market (mercado hipotecario secundario) |
The buying and selling of existing mortgages. |
| secret profit
|
Undisclosed profit made by a broker at
their principal's expense. |
| section |
An area of land, one square mile, or
640 acres; 1/36 of a township. |
| security (garantía)
|
Evidence of obligations to pay money. |
| security agreement
(contrato de garantía) |
A document commonly used to secure a
loan on personal property. |
| security deposit
|
Money given to a landlord to prepay for
any damage other than just normal wear and tear. |
| security interest
|
The interest of a creditor (lender) in
the property of a debtor (borrower). |
| seller's market
|
The market condition which exists when
a seller is in a more commanding position as to price and terms because
demand exceeds supply. |
| seller's permit
|
Allows a retailer to buy the product
at wholesale prices without paying sales tax. The retailer must then
collect the proper sales tax from customers and pay it to the State
Board of Equalization. |
| selling agent
|
The broker who finds a buyer and obtain
an offer for the real property. |
| semiannual |
Twice per year at six month intervals. |
| semimonthly
|
Twice a month |
| separate property
|
Property owned by a married person in
his or her own right outside of the community interest including property
acquired by the spouse (1) before marriage, (2) by gift or inheritance,
(3) from rents and profits on separate property, and (4) with the
proceeds from other separate property. |
| septic tank
|
A sewage settling tank which must be
at least five feet away from the improvements. |
| servicing loans
|
Supervising and administering a loan
after it has been made. This involves such things as - collecting
the payments, keeping accounting records, computing the interest and
principal, foreclosure of defaulted loans, and so on. |
| servient tenement
|
The property that is burdened by an easement. |
| setback |
The distance a building must be set back
from the property line, street; or curb usually determined by local
building codes. |
| severalty |
Ownership of real property by one person
or entity. |
| shared appreciation
mortgage |
Lender and borrower agree to share a
certain percentage of the appreciation in market value of the property. |
| sheriff's deed
|
A deed given to a buyer when property
is sold through court action in order to satisfy a judgment for money
or foreclosure of a mortgage. |
| shoreline |
The intersection of the land with the
water (mean high water line). |
| short fund |
When a home is sold and the homeowner's
insurance policy is cancelled, the seller or owner of the policy receives
a refund which is less than the credit they would receive if the buyer
were to take over the existing homeowners insurance. |
| side yard setback
|
The distance a building must be set back
for the lot line at the side of the property. |
| sill (mud sill)
|
The lowest part of the frame of a house.
It is fastened with bolts to the foundation and supports the upright
studs of the frame. |
| simple interest
|
Interest computed on the principal amount
of a loan only as distinguished from compound interest. |
| single agency
|
The representation of only one party
in a real estate transaction. |
| sinking fund
|
A fund set aside from the income from
property which, with accrued interest, will eventually pay for replacement
of the improvements. |
| site |
The position, situation or location of
a piece of land in a neighborhood. |
| smart growth
|
Reconciling the needs of development
with the quality of life. Smart growth focuses on revitalizing older
suburbs and older city centers. |
| soil pipe |
A pipe that carries waste from the house
to the main sewer line. |
| Soldier's and
Sailor's Relief Act |
A federal law designed to protect persons
in the military service from loss of property when their ability to
make the payment has been affected by their entering military service. |
| sole plate |
(1) A board, usually 2" x 4", on which
wall and partition studs rest. (2) A support for studs. |
| sole proprietorship
|
A business owned and operated by one
person. |
| special agent
|
A person employed to perform a specific
task. |
| special assessments
|
Taxes used for specific local purposes. |
| special power
of attorney |
A written instrument where a principal
confers limited authority upon an agent to perform certain prescribed
acts on behalf of the principal. |
| specific lien
|
A lien placed against a certain property,
such as a mechanic's lien, trust deed, attachment, property tax lien
or lis pendens. |
| specific performance
|
An action brought in a court to compel
a party to carry out the terms of a contract. |
| specific plan
|
A particular development site or area
of the general plan. |
| square-foot
method |
The most common method used by appraisers
and real estate agents to estimate the cost of construction. |
| standard depth
|
Generally the most typical lot depth
in the neighborhood. |
| standard policy
|
A policy of title insurance covering
only matters of record. |
| standard subdivision
|
A land division with no common or mutual
rights of either ownership or use among the owners of the parcels
created by the division. |
| standby commitment
|
A letter that promises to deliver a takeout
loan in the future. |
| State Housing
Law |
Outlines the minimum construction and
occupancy requirements for dwellings. |
| Statute of Frauds
|
A state law which requires that certain
contracts must be in writing to prevent fraud in the sale of land
or an interest in land. |
| Statute of Limitations
("ley de prescripción") |
The period of time limited by statute
within which certain court actions may be brought by one party against
another. |
| statutory |
Regarding laws created by the enactment
of legislation as opposed to law created by court decisions. |
| steering |
The illegal practice of only showing
clients property in certain areas. |
| stepped-up basis
|
A higher, increased tax value of property
given as the result of most sales or taxable transfers. The tax basis
is used in computing capital gains and losses on the transfer of property. |
| stigmatized
property |
(1) Property in which buyers or tenants
may avoid for reasons which are unrelated to its physical conditions
or features. The most common properties associated with stigmatized
property are those in which there have been murders, suicides, or
criminal activity. (2) Also known as psychologically impacted property. |
| stock cooperative
|
A corporation formed for the purpose
of owning property. |
| straight line
depreciation |
A method of depreciation under which
improvements are depreciated at a constant rate throughout the estimated
useful life of the improvement. |
| straight note
|
A promissory note in which payments of
interest only are made periodically during the term of the note, with
the principal payment due in one lump sum upon maturity; may also
be a note with no payments on either principal or interest until the
entire sum is due. |
| Street Improvement
Act of 1911 |
A law that empowers cities and counties
to levy a special assessment to repair streets. |
| studs |
Vertical supporting 2" x 4" boards in
the walls spaced 16" on the center. |
| subagent |
A broker delegated by the listing agent
(if authorized by the seller) who represents the seller in finding
a buyer for the listed property. |
| Subdivided Lands
Law |
A state law protecting purchasers of
property in new subdivisions from fraud, misrepresentation or deceit
in the marketing of subdivided property. |
| subdivision
(subdivisión) |
The division of land into five or more
lots for the purpose of sale, lease or financing. |
| Subdivision
Map Act |
The law that authorizes a city or county
to control the orderly and proper development of the community. |
| subdivision
system |
Also known as a recorded map system. |
| "subject to"
clause |
A buyer takes over the existing loan
payments, without notifying the lender. The buyer assumes no personal
liability for the loan. |
| subjective value
|
Value given for personal reasons. |
| sublease (subarrendamiento)
|
Transfers less than the entire leasehold,
with the original lessee being primarily liable for the rental agreement. |
| subleasee |
The new person who has possession of
a leased property. |
| sublessor |
The original tenant of a leased property.
They are still primarily liable for paying the rent to the owner for
the sublease. |
| subordination
clause |
A clause in which the holder of a trust
deed permits a subsequent loan to take priority. |
| subrogation
(subrogación) |
Replacing one person with another in
regard to a legal right or obligation. The substitution of another
person in place of the creditor, to whose rights he or she succeeds
in relation to the debt. The doctrine is used very often where one
person agrees to stand surety for the performance of a contract by
another person. |
| substitution,
principle of |
Affirms that the maximum value of a property
tends to be set by the cost of acquiring an equally desirable and
valuable substitute property, assuming no cost delay is encountered
in making the substitution. |
| succession |
The legal transfer of a person's interest
in real and personal property under the laws of descent. |
| supply and demand,
principle of (oferta y demanda) |
In appraising, a valuation principle
stating that market value is affected by intersection of supply and
demand forces in the market as of the appraisal date. |
| surplus productivity,
principle of |
The net income that remains after the
proper costs of labor, organization and capital have been paid, which
surplus is imputable to the land and tends to fix the value thereof. |
| surrender |
When a tenant voluntarily gives up a
lease before the expiration of its term. |
| suspend |
Temporarily make ineffective. |
| swing loan |
(1) A short-term loan used to enable
the purchaser of a new property to buy that property on the strength
of the equity from the property the purchaser is now selling. (2)
Also known as a bridge loan. |
| syndicate |
(1) Two or more individuals who come
together for the business purpose of managing an investment. (2) Also
known as a real estate syndicate. |
|
|
| takeout
loan |
The permanent loan that pays off a construction
loan. |
| tax deed |
A deed given to a successful bidder at
a tax auction. |
| tax delinquent
property |
Property that has unpaid taxes. |
| tax lien (gravamen
de tributación) |
When income or property taxes are not
paid. |
| tax sale |
Sale of property after a period of non-payment
of taxes. |
| tax-deferred
exchange |
(1) The trade or exchange of one real
property for another without the need to pay income taxes on the gain
at the time of trade. (2) Also call a tax-free exchange. |
| tenancy |
(1) The interest of a person holding
property by any right or title. (2) A mode or method of ownership
or holding title to property. |
| tenancy in common
|
When two or more persons, whose interests
are not necessarily equal, are owners of undivided interests in a
single estate. |
| tenancy in partnership
|
Ownership by two or more persons who
form a partnership for business purposes. |
| tenant (arrendatorio
) |
A renter. |
| tender |
An offer by one of the parties to a contract
to carry out his or her part of the contract. |
| tentative tract
map |
A map of the proposed subdivision that
is submitted to a planning commission for approval or disapproval.
It is used to make sure that the improvements, such as lot layouts,
sizes and configurations; grading plans; traffic access and street
alignments; storm drainage, sewers, and water facilities; and other
project features have been designed to conform to city or county general
plans. The approval or disapproval of the planning commission is noted
on the map. Therefore, a final map of the tract embodying any changes
requested by the planning commission is required to be filed with
the planning commission. |
| testate |
A person who dies leaving a valid will. |
| testator / testatrix
(testador / testadora) |
A person who has made a will. |
| third party
(tercero) |
A person who may be affected by the terms
of an agreement but who is not a party to the agreement. |
| tidelands |
Lands that are covered and uncovered
by the ebb and flow of the tide. |
| tight money
|
An economic situation in which the supply
of money is limited, and the demand for money is high, as evidenced
by high interest rates. |
| time |
The duration of a loan. |
| timely manner
|
An act must be performed within certain
time limits described in a contract. |
| time is of the
essence clause |
A clause in a contract that emphasizes
punctual performance as an essential requirement of the contract. |
| time-share project
|
A form of subdivision of real property
into rights to the recurrent, exclusive use or occupancy of a lot,
parcel, unit, or segment of real property, on an annual or some other
periodic basis, for a specified period of time. |
| T-intersection
lot |
A lot that is fronted head-on by a street.
The noise and glare from headlights may be detractors from this type
of lot. |
| title (título)
|
Evidence that the owner of land is in
lawful possession. |
| title companies
|
Companies who perform a title search
on the property and issue a title policy for the lender and the purchaser
to ensure that there is a valid mortgage lien against the property
and title is clear. |
| title insurance
(seguro de título) |
An insurance policy that protects the
named insured against loss or damage due to defect in the property's
title. |
| title plant
|
The storage facility of a title company
in which it has accumulated complete title records of properties in
its area. |
| title report
|
A report which discloses condition of
the title, made by a title company preliminary to issuance of title
insurance policy. |
| "to let", "to
demise" |
These phrases mean the same as "to rent". |
| topography |
(1) Nature of the surface of land; topography
may be level, rolling, mountainous. (2) Variation in earth's surface. |
| tort |
A violation of a legal right, or a civil
wrong such as negligence, libel or nuisance. |
| townhouse |
One of a row of houses usually of the
same or similar design with common side walls or with a very narrow
space between adjacent side walls. |
| township (municipio)
|
A grid of squares--each six miles by
six miles (36 square miles). |
| township lines
|
Imaginary lines drawn every six miles
north and south of the base line to form a horizontal row or tier
of townships. |
| trade association
|
A voluntary nonprofit organization of
independent and competing business units engaged in the same industry
or trade, formed to help solve industry problems, promote progress
and enhance service. |
| trade fixture
|
An item of personal property, such as
a shelve, cash register, room partition or wall mirror, used to conduct
a business. |
| transferability
|
The title must be marketable with an
unclouded title. |
| trust account
|
An account separate and apart and physically
segregated from broker's own funds, in which broker is required by
law to deposit all funds collected for clients. |
| trust deed |
A security instrument that conveys naked
legal title of real property. |
| trust funds
|
Money or other things of value received
from people by a broker to be used in real estate transactions. |
| trustee (fideicomisario)
|
Holds naked legal title to property as
a neutral third party where there is a deed of trust. |
| trustee's deed
|
A deed given to a buyer of real property
at a trustee's sale. |
| trustee's sale
|
The forced sale of real property, by
a lender, to satisfy a debt. |
| trustor |
The borrower under a deed of trust. |
| Truth in Lending
Act ("ley de Veracidad en los Préstamos") |
(1) A federal law that requires borrowers
to be informed about the cost of borrowing money. (2) Also known as
Regulation Z. |
| "T-TIP" |
The mnemonic for the four unities of
joint tenancy: Time, Title, Interest, and Possession. |
| turnkey projects
|
Investors purchase projects that are
ready for occupancy. |
| two-year grace
period |
A period of time after the expiration
of a license that renewal is allowed as long as all real estate activity
has ceased during that time and a late fee is paid at the time of
renewal. |
|
|
| underwriting
|
The process of evaluating a borrower's
risk factors before the lender will make a loan. |
| undivided interest
|
The buyer receives an undivided interest
in a parcel of land as a tenant in common with all the other owners. |
| undue influence
|
Using unfair advantage to get agreement
in accepting a contract. |
| unearned increment
|
An increase in value to real estate that
comes about from forces outside the control of the owners, such as
a favorable shift in population. |
| unemployment
rate |
The percentage of the people classified
as unemployed as compared to the total labor force. |
| unenforceable
contract |
A contract that was valid when made but
either cannot be proved or will not be enforced by a court. |
| Uniform Commercial
Code |
A code that establishes a unified and
comprehensive method for regulation of security transactions in personal
property. |
| unilateral contract
(contrato unilateral) |
A contract where a party promises to
perform without expectation of performance by the other party. |
| unilateral rescission
|
Legal action taken to repeal a contract
by one party when the other party has breached a contract. |
| unit-in-place
method |
Cost of units in the building as installed
is computed and applied to the structure cost. The total costs of
walls in place, heating units and roof are figured on a square-foot
basis, including labor, overhead and profit. This is the most detailed
method of estimating value. |
| unity |
Equal right of possession or undivided
interest. For example, each tenant has the right to use the whole
property. None of the owners may exclude any co-owner from the property,
nor claim any portion of the property for exclusive use. |
| unjust enrichment
|
The situation where a person has received
and keeps money or goods that belongs to another. A lawsuit may be
necessary to get back the property. |
| unlawful detainer
action |
(1) The legal remedy to remove a tenant.
(2) Also called an action in ejectment. |
| Unruh Civil
Rights Act |
State law that prohibits discrimination
by businesses. |
| "UPTEE" |
The mnemonic for the five ownership rights
in the Bundle of Rights: Use, Possess, Transfer, Encumber, and Enjoy. |
| urban sprawl
|
The unplanned and often haphazard growth
of an urban area into adjoining areas. |
| useful life
|
The time frame when an asset (e.g., a
building) is expected to remain economical to the owner. |
| usury (usura)
|
The act of charging a rate of interest
in excess of that permitted by law. |
| utility (utilidad)
|
The ability of a property to satisfy
a need or desire, such as shelter, income or amenities. |
| utility value
|
The usefulness of the property to its
owner. |
|
|
| vacancy
factor |
Loss of income because of a vacant unit. |
| VA loan |
A loan made to qualified veterans for
the purchase of real property wherein the Department of Veteran's
Affairs guarantees the lender payment of the mortgage. |
| valid |
Legally binding |
| valid contract
|
A binding and enforceable contract; a
document that has all the basic elements required by law. |
| valuable consideration
|
Each party to a contract must give up
something to make the agreement binding. |
| valuation |
The process of estimating market value. |
| value |
(1) The present and future anticipated
enjoyment or profit from the ownership of property. (2) Also known
as worth. |
| variance (variación)
|
An exception granted to existing zoning
regulations for special reasons. |
| vendee |
The buyer under a contract of sale (land
contract). |
| vendor |
The seller under a contract of sale (land
contract). |
| vested |
Owned by |
| vesting |
The way title will be taken. |
| Veteran's Exemption
|
Entitles a resident of California who
has been in the military during wartime to take a $4,000 real estate
tax emption. |
| void |
An agreement which is totally absent
of legal effect. |
| void contract
|
A contract that has no legal effect due
to lack of capacity or illegal subject matter. |
| voidable |
An agreement which is valid and enforceable
on its face, but may be rejected by one or more of the parties. |
| voluntary lien
|
When an owner chooses to borrow money,
using the property as security for the loan. |
|
|
| wainscoting
|
The bottom portion of a wall that is
covered with wood siding; the top part is treated with another material. |
| waive |
To abandon; to relinquish a right to
enforce or require anything. |
| waiver |
The relinquishment or refusal to accept
a right. |
| walk-up |
An apartment of more than one story with
no elevator. |
| warehousing
|
The process of assembling into one package
a number of mortgage loans, prior to selling them to an investor. |
| warranty deed
|
No longer used in California; a deed
used to transfer title to property, guaranteeing that the title is
clear and the grantor has the right to transfer it. |
| "WASTO" |
The acronym for five ways to acquire
or convey property: will, accession, succession, transfer, or occupancy. |
| water |
Water on the surface flowing in a stream
or underground (percolating) is real property. If it is taken and
bottled, then it becomes personal property. |
| water pressure
test |
Water pressure can be tested by turning
on all faucets and flushing all toilets at the same time. |
| water table
|
The natural level at which water will
be found, either above or below the surface of the ground. |
| wear and tear
|
Depreciation of an asset due to ordinary
usage. |
| wetlands |
Areas where water covers the soil, or
is present either at or near the surface of the soil all year or for
varying periods of time during the year, including the growing season. |
| will (testamento)
|
A written instrument whereby a person
makes a disposition of his or her property to take effect after their
death. |
| witnessed will
|
Will usually prepared by an attorney
and signed by the maker and two witnesses. |
| wraparound loan
|
(1) A method of financing where a new
loan is placed in a secondary position; the new loan includes both
the unpaid principal balance of the first loan and whatever sums are
loaned by the lender. (2) Sometimes called an All-Inclusive Trust
Deed (AITD). |
| writ of execution
|
A legal document issued by a court forcing
the sale of a property to satisfy a judgment. |
| writ of possession
|
A legal action granted by the court to
the landlord if the tenant does not move out or answer a lawsuit. |
|
|
| "X"
|
A person who cannot write may execute
a document by placing a "X" (his or her mark) where the signature
is normally placed. Beneath the mark a witness then writes the person's
name and signs his or her own name as a witness. |
| yield
(rédito) |
(1) The interest earned by an investor
on an investment (or by a bank on the money it has loaned). (2) Also
called return. |
| yield rate |
(1) The yield expressed as a percentage
of the total investment. (2) Also called rate of return. |
| zoning
|
The regulation of structures and uses
of property within selected districts. |
| zoning
ordinance |
Regulates land use for individual projects. |