A - F | Real Estate Terms and Definitions

A - F | Real Estate Terms Definitions

Abstract of Title - a condensed history of a particular title, the summary on the links and activities affecting ownership of a property.

Acceleration Clause - a clause in the contract that states an immediate payment demand to an outstanding balance because of a failure of payment.

Acceptance - an agreement to the offer either expressly or by conduct.

Accession - The right of the owner to everything produced, incorporated or attached to a property.

Accretion - an act which the land bordering a stream or body of water increases gradually by deposit of soil due to current of river.

Actual Use - it refers to the present utilization of the property.

Adverse Possession - a right of an occupant to acquire title against the property owner where possession has become actual, continuous hostile, visible and distinct and in the concept of owner for a statutory period.

Agency, Exchange - the authority given by the property owner for the broker to sell or exchange his property with another.

Agency, Lease - the authority by the owner to a broker to find a lessee to his property.

Agency, Loan - the authority given by the property owner- borrower for the broker to negotiate for a loan with a financing company.

Agency, Purchase - the authority given by the property owner -seller for the broker to look for a buyer.

Alienation - the transfer of property and possession of lands or other things from one person to another.

Alluvion - refers to soil deposited in the process of accretion.

Amenities - refers to anything that adds to ones comfort and convenience.

Amortization - a financial obligation on installment basis.

Antichresis - a form of mortgage wherein the mortgagee takes possession of the property and pays the real estate taxes and receives fruits with an obligation to apply them in payment of the principal and interest.

Appraisal - an act or process of determining the value of property or an estimate and opinion of value for a specific date and purpose.

Appreciation - an increase in the value of property due to economic cause or inflation.

Assessed Value/Taxable Value - the value placed on taxable property by the assessor for ad valorem tax purposes. The tax due is the amount when the assessed value is multiplied by the tax rate.

Assessment - the act or process of determining the value of property or proportion thereof subject to tax.

Assessment Level - the percentage applied to the market value to determine the taxable or assessed of the property.

Assignment - the transfer of property or rights and obligations over it in favor of another. Assignor is the one assign or transfer a property and Assignee is to whom the property is assigned.

Assignment of Lease - the lessee assigns or transfers the lease to a third party.

Balloon Payment - where an installment payment paid in grater amount and in full, a lump sum payment.

Blanket Mortgage - A simple mortgage which covers more than one piece of real estate property.

Breach - the breaking of the law or failure of duty to ones agreement.

Bundle of Rights - the rights of ownership whereby the owner has the right to possess, use, enjoy, dispose, abuse, exclude others, recover and to the fruit of a property.

Buyer's Market - a market when there are many sellers as against very few buyers.

Commission - an Agent's compensation in performing his duties of Agency, a percentage from selling or rental of property.

Common Areas - a place or units separately granted, held or reserved.

Condominium - an interest in real estate consisting of separate interest in a unit in a residential, industrial or commercial building.

Consent - the occurrence of the offer and acceptance of over the thing, the cause which constitute the contract.

Contract - a meeting of minds between two persons whereby one binds with respect to the other. Essential elements are consent, object, contract and cause of obligation.

Contract of Sale - an agreement between a buyer and a seller whereby there is transmission of ownership on the object of contract.

Contract to Sell - an agreement whereby the seller promises to sell a thing in consideration of the buyer's compliance and obligated to transfer and convey the ownership of the subject of contract.

Conversion - a change from one classification or use of land to another.

Conveyance - the means or medium by which title to real estate is transferred.

Cul De Sac - a passageway with one outlet, a blind alley, a dead end.

Declaration of Restrictions - a document that provide guidelines, rules and regulations regarding the rights of condominium unit owners, use, occupation, ownership and disposition of units, all of which constitutes a lien upon the project and all units.

Deed - a written instrument which, when properly executed and delivered conveys title to a buyer.

Depreciation - loss in value brought about by deterioration through ordinary wear and tear, action of elements, functional or economic obsolescence.

Earnest Money - a sum of money tendered by a buyer to a seller that shall form part of a purchase price and becomes a proof of the perfection of the contract.

Easement - the right advantage or privilege which an individual has in land of others, a right of way.

Economic Life - the period over which a property will yield a return on investment.

Eminent Domain - the superior right of government to acquire property necessary for public or quasi public use by condemnation.

Encroachment - a building or part of a building or obstruction which intrudes or invades a highway, sidewalk or tress passes upon the property of another.

Equity - the amount representing the difference between the selling price and loanable amount.

Equity Redemption - right of original owner to reclaim property sold through juridical foreclosure proceedings by payment of debt, interests and cost.

Expropriation - the procedure for enforcing the eminent domain powers of the state.

Fair Market Value - the price at which the willing seller will sell and willing buyer will buy.

Fee Simple - an absolute ownership.

Forfeiture - the loss of money or anything of value due to failure to perform duties under the agreement to purchase.

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Good day! I'm Jerome, your friendly Real Estate Broker with PRC License 0012399 and HLURB registration. Just sharing simple tips, please share if you find it useful! Thanks!

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