Active contingent. Growing crops that are produced annually through the tenant’s own care and labor and that she or he is entitled to take away after the tenancy is ended. Delivery of a deed to a third person until the performance of some act or condition by one of the parties. These persons are the beneficial owners of the trust or the shareholders of the corporation, each having a proprietary lease. A binding agreement, often accompanied by surety and usually posted by one who is to perform work for another, that assures that project or undertaking will be completed as per the agreement or contract. Ebook. A legal action intended to establish or settle the title to a particular property, especially when there is cloud on the title. Real estate is full of jargon (“DOM”, “HOA”, “pre-qual”, etc), and it can add layers of confusion to an already convoluted process. A tax rate used by municipalities to compute property tax. As a digital marketplace with an exhaustive range of property listings, we know it is easy to get lost. Glossary of Real Estate Terms. Citation: Maria Sicola, “Commercial Real Estate Terms and Definitions.” March, 2017. A written instrument given to pass title to personal property. Commercial Real Estate Investment Terms to Know. A good financial investment has the following characteristics: safety, regularity of yield, marketability, acceptable denominations, valuable collateral, acceptable duration, required attention, and potential appreciation. The condition of a property owner who dies without leaving a will. Once filed, the collateral pledged (mortgage) is returned to the mortgagor for a “mortgage burning party.”. A written agreement by which the purchaser agrees to buy certain real estate and the seller agrees to sell, on the terms and conditions set forth in the agreement. The world of real estate and property terms can sometimes be a confusing one. A purchaser’s inability to obtain clear title. A tract of land divided by the owner, known as the subdivider, into blocks, building lots, and streets according to recorded subdivision plat that must comply with local ordinances and regulations. A means of settling a controversy between two parties through the medium of an impartial third party whose decision on the controversy (if agreed upon) will be final and binding. An agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser’s good faith and intent to complete the transaction. Top real estate agents know these terms and definitions, so start building your vocabulary. We have gathered 100 such terms we think every real estate agent, broker, and industry member should have down pat and explain each and every one of them relates to your everyday work. The person for whom a trust operates or in whose behalf the income from a trust estate is drawn. Functional obsolescence reflects the loss in value brought about by factors that affect the property, such as overcapacity, inadequacy, or changes in the art. Use it as a study guide for taking the real estate exam. A lien or charge on a mortgagor’s property that secures the underlying debt obligations. When working with new clients use this downloadable PDF to highlight the most commonly used, client facing real estate terms to inform and impress your clients! In 2003, IREM published a Glossary of Real Estate Management Terms describing the responsibilities of property managers and asset managers in the following way: These definitions still have relevance, but the property management and asset management disciplines are clearly different today than they were 10 to 20 years ago. The rate at which real property is taxed in a tax district or county. Insurers use the report to ascertain patterns of possible future claims and adjust their insurance premiums according to risk. An appraising principle created by the expectation of certain future events causing values to either increase or decrease. If you want to become a realtor, than these 497 real estate terms are for you. Go back. Acts by the landlord that so materially disturb or impair the tenant’s enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent. Most states have abolished curtesy. A federal law, effective in 1992, designed to eliminate discrimination against individuals with disabilities. Get for free. A map of a town, section, or subdivision indicating the location and boundaries of individual property. ADJUSTMENT DATE. An approach under which value equals estimated land value plus reproduction costs of any improvements after depreciation has been subtracted. To that party, you only owe honesty and fairness. While great care and research was undertaken to provide accurate explanations and definitions for the thousands of real estate terms and words, one dictionary cannot be 100% accurate in all jurisdictions. The voluntary and permanent cessation of use or enjoyment with no intention to resume or reclaim one’s possession or interest. Under Section 1031 of the IRS Code, some or all of the realized gain from the exchange of one property for a like kind property may be deferred. The Indian Easements Act, 1882 6.4. At this Mississauga, (Erin Mills, Churchill Meadows, Sawmill Valley, Credit Mills and or Meadowvale ) Ontario, Canada Real Estate Homes and Property Internet web site you will find relevant information to help you and your family. If an easement only is acquired, instead of the title to the land itself, one has title by prescription, or easement by prescription. The division of cotenants’ interests in real property when the parties do not all voluntarily agree to terminate the co-ownership; takes place through court procedures. Real Estate Terms and Definitions Acceleration clause. A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note. Such leases are usually long-term net leases; a tenant’s rights and obligations continue until the lease expires or is terminated through default. The act of transferring property to another. A charge against property created by the operation of law. A processing fee issued by a lender during the creation of the loan. While great care and research was undertaken to provide accurate explanations and definitions for the thousands of real estate terms and words, one dictionary cannot be 100% accurate in all jurisdictions. The act of entering or recording documents affecting or conveying interests in real estate in the recorder’s office established in each county. Lease that provides for rent increases at set future dates. An ordinance specifying minimum standards of construction of buildings for the protection of public safety and health. The limitations on the size or type of property improvements established by zoning acts or by deed or lease restrictions. A method of calculating for tax purposes the depreciation of income property at a faster rate than would be achieved using the straight-line method. 2. A real estate broker may not conduct business without a real estate broker’s license. Once you are familiar with the lingo, it will become much easier to traverse. A court-ordered sale of real property to raise money to cover delinquent taxes. The process by which a government or municipal quasi-public body raises monies to fund its operation. A three to five year blueprint for an organization or individual real estate practitioner. An entity that loans money, acquiring a security interest in the property. An agency relationship where a client designates a broker to appoint an office agent to singularly represent his or her interest to the exclusion of all of the other agents in the broker’s office. A period of time established by state law during which a property owner has the right to redeem her or his real estate from a foreclosure or tax sale by paying the sales price, interest, and costs. One apartment or space in a condominium or part of a property intended for independent use and having lawful access to the public way is called a unit. The actual, visible, hostile, notorious, exclusive, and continuous possession of another’s land under a claim to title. An instrument used to create a lien by which the trustor conveys his or her title to a trustee, who holds it as security for the benefit of the note holder (the lender). If an attempt is made to do so without prior approval, all of the mortgaged balance becomes due on the sale of the property. An agreement between the broker and the seller that if the seller’s real property is not sold before a certain date, the broker will purchase it for a specified price. A person who works with lenders and buyers/borrowers to facilitate the loan process. A lease may be terminated by expiration of the term, surrender and acceptance, constructive eviction by lessor, or option, when provided in the lease for breach of covenants. Ex. A classification of real estate that includes income-producing property, such as office buildings, restaurants, shopping centers, hotels, and stores. An increase in the worth or value of a property, due to economic or related causes, which may prove to be either temporary or permanent. The remnant of an estate that the grantor holds after he or she has granted a life estate to another person; the estate will return or revert to the grantor. A one-sided contract by which one party makes a promise to induce a second party to do something. The rate of interest a commercial bank must pay when it borrows from its federal reserve bank. The legal right or interest recognized in some states that a wife acquires in the property her husband held or acquired during their marriage. Any person, partnership, association, or corporation that sells (or offers to sell), buys (or offers to buy), or negotiates the purchase, sale, or exchange of real estate, or that leases (or offers to lease) or rents (or offers to rent) any real estate or the improvements thereon for others and for a compensation or valuable consideration. An amount of money deposited by a buyer under the terms of a contract. This testimony is preserved in a notarized affidavit to eliminate the problem of finding the witnesses at the maker’s death and to assist in the probating procedure. Real Estate Terminology PDF. Use this dictionary as a study guide for the real estate agent exam. A lease or property under which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. A provision that may be included in notes, leases, and contracts by which the debtor, lessee, or obligor authorizes any attorney to go into court to confess a judgment against him or her for a default in payment. Every kind of inheritable property, including person, real corporeal, and incorporeal. In many states, known as (and licensed as) associate broker or broker/associate. 26. Something owed to another; an obligation to pay or return something. The imposition of a tax, charge, or levy, usually according to established rates. The law, in effect in most states, that stipulates that no person shall conduct a business under any name other than his or her own individual name, unless such person files the desired name with the county clerk in each county where the business is conducted. For purposes of appraisal analysis, it is most common and convenient to divide physical deterioration into curable and incurable components. Go back. Emblements are regarded as personally property even prior to harvest, so if the landlord terminates the lease, the tenant may still reenter the land and remove such crops. Carelessness and inattentiveness resulting in violation of trust. The acquisition of run-down city areas for purposes of redevelopment. ABATEMENT OF NUI SANCE The act of ending or … An enforceable lease that has the following essential parts: lessor and lessee with contractual capacity, offer and acceptance, legality of object, description of the premises, consideration, signatures, and delivery. The ownership of real property by one person only; also called sole ownership. In most surveys, two different PRMs are used to locate the POB. A public notice that a lawsuit affecting title to or possession, use, and enjoyment of a parcel of real estate has been filed in either a state or federal court. to estimate the value of the property. Terminology related to financial documents in real estate can be intimidating. concrete terms can improve communication and understanding between these two groups. The payment made to a broker for services rendered, such as in the sale or purchase of real property; this is usually a percentage of the selling price of the property. A method of financing in which the purchase of the land also finances the purchase of certain personal property items. better understand the terms commonly used in the real estate and mortgage marketplace. An acknowledgment taken outside of the state in which the land lies.