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Abatement - A reduction or decrease. Usually applies to a decrease of assessed valuation of ad valorem taxes after the assessment and levy.

Abstract - A summary; an abridgment. Before the use of photostatic copying, public records were kept by abstracts of recorded documents.

Abstract of Judgment - A summary of the essential provisions of a court judgment, which when recorded in the county recorder's office, creates a lien upon the property of the defendant in that county, both presently owned or after acquired.

Abstract of Title - A summary prepared by a licensed abstractor of all documents recorded in the public records of the political subdivision where the land is located.
An abstract in some states or areas is reviewed by an attorney or other experienced title examiner to determine the status of title. Virtually every abstractor today provides actual copies of the records rather than an abstract of each document.

Abutting Owner - One whose land is contiguous to (abuts) a public right of way.

Acceleration Clause - Clause in a deed of trust or mortgage, which accelerates, or hastens, the time when the indebtedness becomes due. For example, some deeds of trust contain a provision (an acceleration clause) stating that the note shall become due immediately upon the sale of the land or upon failure to pay interest or an installment of principal and interest.

Access Right - A right to ingress and egress to and from one's property. May be express or implied.

Accommodation Recording - Recording of instruments with the county recorder by a title company merely as a convenience to a customer and without assumption of responsibility for correctness or validity.

Acknowledgement - A formal declaration before a duly authorized officer (such as a notary public) by a person who has executed an instrument that such execution is his own act and deed. An acknowledgment is necessary to entitle an instrument (with certain specific exceptions) to be recorded, to impart constructive notice of its contents and to entitle the instrument to be used as evidence without further proof. The certificate of acknowledgment is attached to the instrument or incorporated therein.

Addendum - Something added. A list or other material added to a document, letter, contractual agreement, escrow instructions, etc. (see also Amendment).

Additional deposit - A buyer of real property will generally give a small deposit with an offer, and a more substantial deposit after the offer has been accepted. The second deposit is the "additional deposit."

Adjacent - Close to. May or may not be contiguous (touching).

Adjoining - Touching or contiguous to.

Adjustable Mortgage Loans (AML'S) - Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM'S), Flexible Rate Loans, Variable Rate Loans. (See also: Indexing, Rate Index).

Administrator - A person appointed by the probate court to carry out the administration of a decedent's estate when the decedent has left no will. If a woman is appointed, she is called an administratrix.

Administrator's Deed - A conveyancing instrument used by an administrator to transfer property from an estate. (See Administrator).

Ad Valorem - "According to value." A method of taxation using the value of the thing taxed to determine the amount of tax. Taxes can be either "ad valorem" or "specific." Example: a tax of $5.00 per $1000.00 of value per house is "ad valorem." A tax of $5.00 per house (irrespective of value is specific.

Adverse Land Use - A use which causes surrounding property to lose value, such as an industrial development in a residential area.

Adverse Possession - A method of acquiring title by possession under certain conditions. Generally, possession must be actual, under claim of right, open, continuous, notorious, exclusive, and hostile (knowingly against the rights of the owner). Exact time (years) of possession and specific requirements (such as payment of property taxes) vary with the statutes of each state.

Affiant - One who makes an affidavit. Also called a deponent, although technically not the same.

Affidavit - A written statement or declaration, sworn to before an officer who has authority to administer an oath.

Affidavit of Alimony and Child Support - A sworn statement of a separated or divorced person showing the amount (if any) of alimony or child support.

Affirmative Easement - An easement described from the benefited estate (dominant tenement). Also called a parcel 2 easement. The same easement described from the burdened estate (servient tenement) would be a negative easement.

Agency - Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter agency involving real property should be in writing, such as listings, trusts, powers of attorney, etc.

Agent - One who is authorized to act for or represent another (principal), usually in business matters. Authority may be express or implied.

Agency agreement (agency listing) - In some states, the term describing a listing under which the broker's commission is protected against a sale by other agents but not by a sale by the principal. Called a "not-exclusive" listing in some states.

Agreement - A general term usually describing a common view of two or more people regarding the rights and obligations of each with regard to a given subject. Not necessarily a contract, although all contracts are agreements.

Agreement of Sale - A written contract entered into between the seller (vendor) and buyer (vendee) for sale of real property (land) on an installment or deferred payment plan. It is also known as an agreement to convey, a long form Security Agreement, or a real estate installment contract.

Alienation - Transfer of property from one owner to another.

Alienation Clause - A type of acceleration clause, calling for a debt under a mortgage or deed of trust to be due in its entirety upon transfer of ownership of the secured property. Also called a "due-on-sale" clause.

All-Inclusive Rate - Rate which includes charges for title insurance, searching or abstract fees and examination fees.

Allocation - A method for appraising a site (land) by comparing other site values as a percentage of total value of a site (including \improvements). Property x has a total (improved) value of $100,000. The land is worth $35,000. The term is often (and incorrectly) used synonymously with abstraction.

ALTA (American Land Title Association) - Organization composed of title insurance firms which sets standards for the industry, including title insurance policy forms used on a national basis.

Amendment - Changes to alter, add to, or correct part of an agreement without changing the principal idea or essence.

Amortized Loan - A loan that is paid off, both interest and principal, by regular payments that are equal or nearly equal.

Annual Percentage Rate (A.P.R.) - The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. For example: 6% add-on interest would be much more than 6% simple interest, even though both would say 6%. The A.P.R. is disclosed as a requirement of federal truth in lending statutes.

Apartment - One or more rooms of a building used as a place to live, in a building containing at least one other unit used for the same purpose. Usually has, at least, cooking facilities, a bathroom, and a place to sleep. Those who live in these units pay rent for their use, usually on a monthly basis.

Appraisal - An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.

Appraisal Methods - Generally, three major methods of appraisal: cost approach, income approach, market value (comparables) approach.

Appraisal Report - A written report by an appraiser containing his opinion as to the value of a property and the reasoning leading to this opinion. The factual data supporting the opinion, such as comparables, appraisal formulas, and qualifications of the appraiser, will also be set forth.

Appraised Value - An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc., of the property and surroundings.

Appraiser - One who is trained and educated in the methods of determining the value of property through analysis of various factors which determine said value.

Appreciation - An increased value of property due to either a positive improvement of the area or the elimination of negative factors. Commonly, and incorrectly, used to describe an increase in value through inflation.

Approved Attorney - An attorney whose opinion is acceptable to a title company as the basis for issuance of a title insurance policy by the insurer. The insurer, rather than the attorney, executes the policy.

Appurtenance - Something belonging to something else, either attached or not, such as a barn to a house, or an easement to the land. The appurtenance is part of the property and passes with it upon sale or other transfer.

Articles of Incorporation - Documentation filled with the state which sets forth general information about a corporation. More specific rules of the corporation would be contained in the by-laws.

Assess - To fix a value; to appraise. Most commonly used in connection with taxes.

Assessed Value - Value placed upon property for property tax purposes by the tax assessor.

Assessment - (1) The estimating of value of property for tax purposes. (2) A levy against property in addition to general taxes. Usually for improvements such as streets, sewers, etc.

Assets - Everything owned by a person or corporation which can be used for the payment of debts.

Assumption - The act of conveying real property; taking title to a property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the property.

Assumption Fee - Lender's charge for paperwork involved in processing records for a new buyer assuming an existing loan.

Assumption of Mortgage - Agreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust. The lender usually must approve the new debtor in order to release the existing debtor (usually the seller) from liability.

Attorney at Law - An advocate, counsel, or official agent employed in preparing, managing, and trying cases in court. Must be licensed by the state.

Attorney-in-Fact - One who is appointed to act (as agent) for another (principal) under a power of attorney. The scope of the agent's authority is limited to that given by the power of attorney, which may be limited to one specific act or may be broader. (see also Power of Attorney).

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