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ABANDONMENT - To give up possession voluntarily or involuntarily.

ABSENTEE OWNER - When the property owner does not reside on the property.

ABSTRACT OF TITLE - A chronological history of ownership relating to the title to a particular piece of land and /or property. An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable, and insurable title.

ACCELERATION CLAUSE -A clause in a mortgage allowing the lender to immediately declare that the full balance is due and payable upon default of the borrower.

ACCESS - Property owners have the right to ingress (enter) and egress (leave) their property.  A tenant shall not withhold these rights of the property owners.

ACCESSION - When a landlord becomes an owner of an improvement due to the fact that someone attached it to the property.

ACCEPTANCE - The act of agreeing to be bound by the terms of the offer and it must be in writing.

ACCRETION - An addition to property by alluvial deposits of soil along rivers and streams.

ACT OF GOD - An act of nature beyond human control (earthquake, hurricane, flood, tornado, etc) that may cause damage or destroy property.

ACKNOWLEDGMENT - Statement in front of a public official or notary public indicating that the document is prepared and signed as the free act of the signer with the signer verifying their identity and capacity to sign to the witness.

ACRE - A measure of area containing 43,560 square feet, irrespective of shape.

ACTUAL NOTICE - The actual knowledge that a person has about the existence of a particular fact.

AD VAL OREM - Latin for "according to value." In taxation, the greater the value, the greater the tax if the tax is based on value.

ADA - Americans with Disabilities Act

ADJUSTABLE RATE MORTGAGE (ARM) - A mortgage with an interest rate that varies with interest rate market changes.

ADJUSTMENTS - Estimated changes to a comparable price based on the presence or absence of a feature in the comparable versus the subject property.

ADMINISTRATOR/ADMINISTRATRIX - A person named by the court to manage and distribute an in testate decedent's property

ADVERSE POSSESSION - Open, notorious, hostile, continuous and visible use of another's property long enough to be awarded ownership by a court.

AGENCY - The relationship created when a person (principal) delegates to another (agent), the right to act on his behalf in a transaction.

AGENT - One who is authorized to act on behalf of another person.

AGREEMENT OF SALE - Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties.

ALIENATION - Transferring ownership to another entity. The process of conveying.

ALIENATION CLAUSE - Called a due-on-sale clause in a financing agreement providing that the balance of the mortgage becomes due upon transfer of ownership.

ALLODIAL SYSTEM - This system allows free and full ownership by individuals.  Private ownership of property allowed subject to government rights through police power, taxation, and eminent domain.

ALLUVION - The increase of land that results near water sources.

AMENITIES - Features that enhance the desirability of a property, usually intangible or external to the physical real estate.

AMORTIZATION- A method or payment plan which enables the borrower to reduce his debt gradually through monthly payments of principal.

ANTITRUST LAWS - Laws designed to promote business competition by preventing businesses from colluding to control markets, price fixing, or boycotting.

APPRAISAL - An expert judgment or estimate of the quality or value of real estate as of a given date.

APPRECIATION - An increase in value
 
ARELLO - Association of Real Estate License Law Officials.

ARMS-LENGTH - A transaction with parties at opposing interests, not with a common or mutual goal.

ASSESSED VALUE - Value placed by a tax assessor.             

ASSESSMENT - The amount of taxes levied against a property.

ASSESSMENT RATIO - The mathematical reduction from fair market value of property by a percentage to arrive at an assessed or taxable value.

ASSIGNED AGENCY - A form of representation recognized in some states allowing one agent of a company to be assigned to a buyer and another agent of the same company to be assigned to the opposing seller without creating a dual agency conflict between the agents. Only relevant on in-house transactions. Sometimes called designated agency.

ASSIGNMENT - The transfer of one's rights and duties to another entity.

ASSIGNEE - The one who is receiving the interest in real property.

ASSIGNOR - The one who is assigning the interest in real property.

ASSUMABLE - Loan characteristic allowing the rights and duties of a loan to be assigned to another buyer/borrower after the origination. Usually requiring qualifying and/or lender approval.

ASSUMPTION OF MORTGAGE - An obligation undertaken by the purchaser of property to be personally liable for payment of an existing mortgage. In an assumption, the purchaser is substituted for the original mortgagor in the mortgage instrument and the original mortgagor is to be released from further liability in the assumption, the mortgagee's consent is usually required.

The original mortgagor should always obtain a written release from further liability if he desires to be fully released under the assumption. Failure to obtain such a release renders the original mortgagor liable if the person assuming the mortgage fails to make the monthly payments.

An "Assumption of Mortgage" is often confused with "purchasing subject to a mortgage." When one purchases subject to a mortgage, the purchaser agrees to make the monthly mortgage payments on an existing mortgage, but the original mortgagor remains personally liable if the purchaser fails to make the monthly payments. Since the original mortgagor remains liable in the event of default, the mortgagee's consent is not required to a sale subject to a mortgage.

Both "Assumption of Mortgage" and "Purchasing Subject to a Mortgage" are used to finance the sale of property. They may also be used when a mortgagor is in financial difficulty and desires to sell the property to avoid foreclosure.

ATTACHMENT- To make a claim against one's property because of a debt owed by or expected of property owner.

ATTORNEY IN FACT - A person who is authorized by another to act in his/her place via a power of attorney. This person need not be a licensed attorney.

AVULSION - The removal of land by the action of a water source.

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