Real Estate Glossary

Delay or negligence in asserting one's legal rights.

A monument or object used to establish the boundary line of a property.

A contract whereby the lawful owner of the property transfers his rights of use and possession to another for a specified term.

An estate or right in real property held under a lease.

A gift of personal property, usually money, by will.

A requirement of parties entering into a valid contract is that they be legally competent and duly authorized.

A description, recognized by law, that will definitely locate and identify the property.

One, generally in direct line of descendancy, who receives any property through the will of a deceased person.

A situation that exists when a sale of immovable property has been made for less than half of its market value.

One who rents property under a lease contract.

An owner who enters into a lease with a tenant.

The use of borrowed funds in financing, with the anticipation that the property acquired will increase in return so that the investor will realize a profit, not only on his own investment, but on the borrowed funds as well.

A personal privilege to perform some act on the land of another.

A right, given by law, whereby a creditor may satisfy a debt out of the proceeds of the sale of real or personal property belonging to the debtor; an encumbrance, usually naming property as security for payment of a debt or for the discharge of an obligation.

The theory of collateral property which gives the lender a lien against the borrower's property until the debt is repaid. Title is said to be hypothecated to the lender, i.e., if the borrower defaults, the lender can foreclose.

An estate or interest in real property held for the duration of the life of a certain person. Upon the expiration of that life, the estate will automatically be vested in a remainderman or reversioner.

A partnership composed of general and limited partners whose contribution and liability are limited and specifically defined.

An amount pre-determined by the parties to an agreement that will be forfeited as compensation for breach of contract.

A legal document giving constructive notice that an action at law is pending; a notice of pendency.

A written employment agreement between a property owner and a broker authorizing the broker to sell, lease or exchange the realty.

Property which borders a large body of water, such as a lake, ocean, or sea.

The charge made by a lender to make a loan.

In subdividing land, the tract is first assigned a name and each block and lot within that subdivision is numbered or lettered. A map of the subdivision is then recorded with the proper governmental authority.

Loan to value ratio; the relationship in size between the amount of the borrower's loan and the value of the property. Found by dividing the loan amount by the property's appraised value or selling price, whichever is less; the percent of value which the bank will lend.