Real Estate Glossary

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.