ABANDONMENT - The deliberate relinquishing of all rights to a property. Unlike nonuse, abandonment usually involves a person who has no intention of reclaiming their property rights.In abandonment, another person is not given the rights to property.The properties simply left to its fate.
ABSTRACT - A record of the past owners of a property.An abstract shows information about mortgages and other factors that affect ownership, including transfers of ownership.If you are interested in foreclosure homes, you should always get an abstract for the foreclosed homes you're considering. This is because abstracts can often reveal red flags -- such as frequent changes of ownership -- suggesting that there's something wrong with the property.
ABUTTER - A person who owns property that is adjacent, joined, ordering, or abutting a property where no other street, road, or land intervenes.
ACCELERATION CLAUSE - this cause is usually related to a home loan or an agreement of sale, and it gives a lender the right to call in the total amount due on a loan.Often, this clause is intended to allow a lender to recall a loan before a specific agreed-upon date for repayment.In many cases, the debtor can make use of this clause by giving advance notice of intent.An acceleration clause is not automatic on home loans, promissory notes, or agreements of sale.It must be explicitly added to a document.When buying foreclosure homes, it is important that you look over any documents related to the home.If an acceleration clause appears on your mortgage, it should also appear on a promissory note or agreement of sale.
ACCEPTANCE - the stated intention of the seller of a home to agree to the terms of an offer being made by the buyer.In order to be valid, and acceptance must be in writing, Even with an acceptance in place, the person buying a property can revoke the offer before the seller has officially signed it.
ACCESSION - Acquirement of title to real estate improvements necessitated by accumulation of alluvial deposits or appropriation of fixtures.
ACCRETION - the expansion of dry land because of increasing accumulation of material and land.Accretion is also called accretion by alluvian.The person holding title to land were accretion takes place also becomes the owner of the land which is newly formed by the process.
ACCRUED DEPRECIATION - the disparity between the cost of replacement and the current price of home improvements.Accrued depreciation is calculated based on the appraisal data of a property.
ACKNOWLEDGMENT - a legal declaration stating that a document is signed freely.Itmust be made before an accepted authorized or official, usually a notary public.The acknowledgement must be witnessed by an official who also checks the identity of the person signing the document.
ACQUISITION - the real estate or object being acquired.This term also refers to the actual act of getting title to a property.When you buy foreclosed home, for example, the process of gaining the property is called acquisition.Once the properties is yours, it is your acquisition.
ACRE - a way of measuring area.An acre is approximately the same as 160 square rods, 43, 560 square feet, or 4 640 square yards.When selecting foreclosed properties, you may wish to ask how large the land attached to the property is.If multiple acres are offered as part of the foreclosure listings, you may be able to sell extra acres to developers for profit.
ACRE FOOT OF WATER - a measurement of water.An acre foot of water is roughly 43560 ft.³.This amount of water at the depth of a foot will cover one acre of land mass.
ACTIVE INSTALLATION - an installation that an active Army Organization makes continuous use of.
AD VALOREM TAX - A tax that charges the value of something rather than its purchasing cost.If you are purchasing foreclosed homes, you will wish to know whether these homes are subject to this type of tax.If so, you could end up paying more in taxes than you had thought based on the discount price of your foreclosed property.
ADMINISTRATOR - the individual whom a court contracts with the settling and managing an estate in cases where someone has left no will before passing on.
ADVERSE POSSESSION - the attainment of ownership of a property which is owned by someone else.Adverse possession can only take place when someone has openly and continuously possessed a property for specific length of time and then has recorded and gotten a judicial degree to prove title.In cases of adverse possession, the person taking possession must prove that they have a right to the property.It is impossible to get adverse possession on properties owned by the United States.If you're interested in foreclosed homes, you wish to make sure that there are no legal actions being taken to prove adverse possession on a property.If there are, you could be involved in legal delays before you're allowed ownership of the property.
AFFIDAVIT - a declaration that is made in writing and is administered under oath before an authorized official.
AGREEMENT OF SALE - an agreement to that is written up which declares that a seller agrees to sell a property and a purchaser agrees to purchase the property.In addition to naming both seller and buyer, an agreement of sale also sets up conditions and terms for the sale.If you're buying foreclosed properties, you will need an agreement of sale before you can move in.
AIR RIGHTS - gives the property holder a right to use the air space above a property.In some cases, air rights specify which space above the ground or above vertical places can be used.
ALIENATION - The deliberate transfer of property from one individual to another person.
ALLOCATION - The amount of authority and obligation which is transmitted and set apart in a transfer appropriation account.Allocation is used to further the purposes of the original fund or appropriation.
ALLOTMENT - The process by which an authority at an agency authorizes specific financial obligations to subordinates.The amount of these financial obligations is usually specified in an allotment.
ALLUVION - The opposite of erosion.A process where land is gained due to water or some other medium which adds deposits of soil and sediment to a property.If alluvion affects your REO property, you will own the new land created this way as well as the land stipulated in your sales contract.
ALLUVIUM - The deposits of matter such as clay, silt, sand, clay, mud, or soil which are deposited on riparian land in the process of alluvion.If you have purchased a foreclosed property that has alluvium, you are fortunate.You are in the process of gaining land and you likely are located near a river, which is a key selling point when it is time to resell your property.
AMENITIES - The advantages - both tangible and intangible - that come from exercising your rights to a property.Usually, amenities are not in cash form, but they can help you get extra cash for your property when it is time to sell.Buying foreclosed property with plenty of attractive amenities will make it easier for you to rent or resell the property.
AMORTIZATION - The process of paying regular installments in order to take care of a financial obligation. When you buy a distressed property, amortization may refer to the creation of a payment plan for your mortgage or home loan.This plan will let you make equal and regular payments for the mortgage term (which is called the amortization period).Each payment made in amortization goes towards paying interest and reducing the principal owed.
AMORTIZATION PERIOD - The term of a loan or the amount of time needed to recover the net investment made in a specific project.When it comes to foreclosed real estate, your amortization period will likely be the term of your home loan.
ANGLE - A measure used in surveys, an angle is designed to describe the correlation between two lines where two lines are connected at one point.Angles are measured in degrees.
ANIMAL UNIT - A way of measuring cattle and livestock.An animal unit relies on a mature cow as the basis of measurement, so one animal unit equals roughly the live weight of one cow (1000 pounds).
ANIMAL UNIT MONTH - A way of measuring feed for livestock.One animal unit month refers to the amount of feed needed for one animal unit for a period of one month (30 days).The animal unit month is usually described as being relative to acres.
ANNEXATION - The process of attaching fixtures, land, or something else to a basic structure or already existing property.Usually, this term refers to the process of attaching something less important or something smaller to a main object.If you add a wing to a foreclosed property before resale, for example, you are annexing.
APPORTIONMENT - The process of dividing obligation for specific costs between parties.Also referred to as adjustment, apportionment often refers to such things as realty taxes in foreclosure purchases.In many parts of the county, the seller is the one responsible for the apportionment up until the closing day.
APPRAISAL - An official and written estimation of a property value.An appraisal is made by a qualified professional who inspects the property and analyses the various aspects of a property before giving his or her opinion about the value of the real estate.If you are purchasing repossessed homes, the appraisal is usually completed for you by a government agency or lender.Since this appraisal can be rushed, there is a good chance that some of the foreclosed homes you look at will be undervalued, meaning that their actual value will be higher - sometimes much higher - than the appraisal suggests.
APPRAISER - The professional person who appraises real estate or other types of property.This person is usually chosen to do an appraisal because they are specially trained and educated in the process.An appraiser will use their past experience, the facts they have available, as well as their judgment when appraising property.
APPRECIATION - The gradual increase of property value.Appreciation takes place over long periods of time (usually years) and is affected by many factors, including changes to the property area, market conditions, inflation, property demand, economic conditions, and other factors.Appreciation can be permanent or only temporary.If you are buying foreclosed homes, appreciation can help you make more money on resale.It can also help you build equity.
APPROPRIATION - A way for government agencies to make use of funds for specific purposes.It is authorized by Congress.
APPROPRIATIONS BILL - a bill that provides the legal ability as well as the actual authority to obligate or use money stored in the treasury.Appropriations bills usually specify the money approved to be spent.However, they do not always specify the full amount that can be obtained from the treasury.
APPURTENANCE - something which belongs to another property or something else but which is passed during transfer of title.For example, outbuildings, barns, gardens, orchards, rights-of-way over other properties, riparian rights, and easements are all examples of appurtenance.
ASSESSED VALUATION - a determination of the value of a property.Assessed valuation is made by a government body or by a government representative or by someone authorized by the government.It is used to determine taxes for property.If you're interested in buying foreclosed homes, you'll want to consider assessed valuations as well as actual assessments for your property, especially if you will be living in the property for some time.This is because foreclosed properties will often be undervalued during assessment, while an assessed valuation for the same property may place a higher value on the home, ensuring that you pay higher taxes.Considering the assessed valuation as well as the assessment can help you determine how much you will pay per year for your foreclosed house.
ASSESSMENT - an amount payable against the owner of a real estate property.An assessment is usually made by a government unit, government representative, or by a professional authorized by the government.Assessment is meant to cover the costs of improvements -- such as sewers or streets -- that affect the property as well as surrounding areas.
ASSETS - valuable property and things which are owned by an entity, company, business, or an individual.Assets can be encumbered with the debt or not.They are generally used when determining credit worthiness and equity.When you buy a foreclosed home, you add to your assets.
ASSIGNMENT (OF TEASE) - the transfer to another person of the interest, claims, or rights to a property.The person who is transferring property is referred to as the assignor and the person receiving the rights, claims, or interest is the assignee.
ASSUMPTION AGREEMENT - an agreement to take over an obligation or debt that belongs to another person. If you're interested in foreclosed homes, you may often get great deals on repossessed properties by signing an assumption agreement with a house owner who is facing foreclosure.This means that you essentially purchase the property in pre-foreclosure.
ASSUMPTION OF MORTGAGE - the process of taking over title ownership of a property by assuming payments of mortgage or deeds against the property.There are several ways of assuming mortgage.A purchaser can become all responsible for payment of the mortgage with the seller.The purchaser can also completely take over the mortgage, meaning that he or she is fully responsible for making payments.The purchaser can also take title subject to the mortgage, which means that the purchaser takes on less responsibility.Assumption of mortgage usually requires a fee as well as an agreement, but is commonly used in foreclosed home investing to help finance a foreclosed property.
ATTACHMENT - the process of legally taking and holding in custody the property of someone who is a defendant in a lawsuit.Attachment must be made by judicial order or levy and to the property seized in this manner is held in court custody primarily as a means of security against the judgment.
ATTORNEY IN FACT - a person who has been given the authority to act in lieu of another person.A person who has power of attorney over another is an attorney in fact.
AUDIT - an investigation of records relating to real estate and other financial matters.An audit is meant to find inaccuracies, detect fraud, and find any irregularities.
AUTHORIZATION BILL - gives someone the right to continue or legally set up the operation of a Federal agency or program.The authorization bill also gives the legal right to sanction a specified type of expenditure or obligation.
AVIGATION EASEMENT - the right adopted by airports and others to own the right to airspace around an airport or property.Airports seek this right to use the air space for flights, and other airport activities.If you purchase a foreclosed property near an airport, it is important to check what air rights you have.You may find that you are not able to set up structures higher than a specific height.
AZIMUTH - a type of angle used in engineering surveys.The azimuth refers to the angle between a line to an object and a reference line.The azimuth is usually measured clockwise.
BALLOON PAYMENT - the final payment on a loan or the final payment on a note.The balloon payment tends to be larger than previous installments, as it is often used by debtors to finally pay off an obligation.
BASE LINE AND MERIDIAN - lines used by surveyors use in most states to survey a land using the rectangular survey method.These established lines are used to survey properties. The meridian is a north to south line, while the baseline is the first east to west line of the property.The baseline is almost always at a right angle to the right meridian.
BASE MAP - a map used for noting down land property and ownership of land.This map usually comes with predetermined reference points.These can be land features, state lines, county lines, township lines, and other distinctive markings that help to orient a property in terms of its immediate surroundings.
BATTURE LAND - the land between a levee, shore, or river bank and the water edge at low tide.This type of land can be sold separately, although it often comes with the ownership of abutting land.If you are purchasing a foreclosed property near water source, you may wish to seek out whether you can purchase batture land as well to make your investment more valuable.
BEARING - a way of describing a line by cardinal direction, such as East West, North or South.When describing bearing, for example, you may say North 30º, 40 minutes west.Bearing can help describe location more precisely.
BENCH MARK - a reference used in land measuring and other survey tasks.A benchmark is usually something very concrete which has a predetermined and measurable elevation.It is usually attached to something permanent or something that is embedded in concrete.For example, a marker or monument may be used as a benchmark.
BENEFICIARY - the individual designated to receive the benefits, acts, gifts, or other property from someone else.A beneficiary is most commonly used to describe someone who has been determined as the person who will be bequeathed property in a trust or will.
BEQUEATH - a term used to describe leaving personal property to a beneficiary through the means of a will.If you wish to leave real property to a beneficiary, this is called devising.
BILL OF SALE - a document that is written and that legally transfers right, interest, and property title to another individual.
BINDER - a written agreement that concerns the deposit (called earnest money) that is the declaration of intention to buy property.The binder, in combination with the deposits, shows that the buyer is acting in good faith and intends to actually purchase the property.
BLANKET MORTGAGE - one mortgage that involves more than one piece of property.A blanket mortgage can help you purchase foreclosed properties affordably.
BOND - a written obligation that is under seal or issued on some type of security.Real estate bonds, for example, use trust deeds or mortgages as security.
BORROW PIT - the depression that results when borrowed material is used up.The borrow pit also refers to the location where the borrowed material is removed.
BREACH OF CONTRACT - the breach, disregard, violation, or breaking of any of the stipulations, conditions, or terms which are set out in a contract.Usually, breach of contract occurs when there is no legal excuse or legal arrangements made ahead of time for the violation or irregularity.In general, it does not matter whether you know or do not know that you are violating a contract.Breach of contract in some cases can result in court action or in the breaking of a contract.Therefore, when you sign any contract when purchasing foreclosed homes, it is important that you read exactly what is stipulated in each contract so that you know what is required of you.
BUDGET AUTHORITY - the ability that permits someone or an entity to set up a contract or obligation that will require them to use federal funds at once or at some point in the future. There are three types of budget authority: contract authority, borrowing authority, and appropriation.
BUNDLE OF RIGHTS - The rights that are related to title of property.These rights can include the rights to control the land, to posses it, to enjoy it, will it to a beneficiary, and so on.These rights usually allow you to lease or rent as well as sell your land.When you purchase foreclosed real estate - or indeed any real estate - you buy these rights from the previous owner.However, you will want to ensure that no rights are restricted or limited in your contract.
CADASTRAL - The land surveying and mapping of a property.Cadastral also refers to the public records that delineate the vale, ownership, title, and details about a property.
CAPITALIZATION - A process of determining property value.Capitalization is often used in appraisals, when percentage of probable returns on a property is compared to the net income and price of a property.This is a type of math you will want to do if you are interested in foreclosed homes.
CAPITALIZATION RATE - Also known as "return on and return of" capital, the capitalization rate is simply the ratio of the value of an investment and the net income that is derived from the investment of security.The capitalization rate is usually expressed in percentages and can help investors decide whether an investment is a good deal or not.
CARTOGRAPHY - The process by which maps and some charts are made.Cartography includes artistic skill as well as science and mathematics.
CASH VALUE - The amount of actual cash, expressed as a dollar value, that a piece of property or an asset will make on the market.Usually, cash value is calculated by considering what an asset will make currently on the market - it is not used to determine possible future profits.If you are interested in quickly reselling foreclosed real estate, you will want to consider cash value for each foreclosed property you buy.
CAVEAT EMPTOR - Latin phrase that is commonly translated as "buyer beware."This phrase is used to mean that the purchaser is responsible for assessing, evaluating, and testing property before buying it, rather than relying on advertising or other opinions.This phrase is certainly one to keep in mind when buying repossessed properties - each investor and home buyer needs to do their own inspections and decide for themselves which properties to buy and which real estate is worth the investment.
CERTIFICATE OF NO DEFENSE - The legal document that is drawn up by a lender or lender's representative, the certificate of no defense delineates the details of an unpaid mortgage or home loan.This document usually describes the interest rate, the amount of interest that has been paid and up to what date, and the precise balance that is unpaid on the home loan.It also declares that the mortgagor cannot claim defenses or offsets.Once the certificate is executed, the mortgager has a legal proof that of amount owed.The certificate is often used by a mortgagee in the event that a home loan is sold.
CERTIFICATE OF TITLE - A legal document drawn up by a professional or an attorney who declares that they have looked at the abstract of title of a specific property and have found the title to be clear.The certificate of title is usually included with the deed when a homeowner has a deed presented to them.However, the certificate of title is less binding than title insurance - it basically only states that a lawyer thinks that the title is clear, it does not guarantee it.
CHAIN - A unit of measurement used by surveyors and other contracting professionals.One chain is equivalent to 66 feet linear.The term "chain" is also often used to describe the steel tape that is used in measurement, regardless of the tape's length.
CHATTEL - Derived from the word "cattle", which was one of the earliest types of assets, the term now refers in general to any type of personal property which is both movable and tangible.
CIVIL ACTION - A legal process or action that is begun in order to protect, address, avenge, or enforce private rights.A civil action includes a wide array of legal proceedings, but does not include those that involve criminal matters.
CIVIL RIGHTS ASSURANCE - A statement of assurance of impartiality.Basically, civil rights assurance declares that no one will be discriminated against due to ethnicity, sex, race, age, religious faith, disability, or nationality of origin. Many real estate agents offer such an assurance, partly since at one time in many parts of the country real estate was in fact sold or offered only to specific types of individuals.
CLEAR TITLE - A title to property that is free and has no known hindrances, burdens, or other encumbrances. When buying foreclosed real estate, it is important to buy land and property with clear title, as this property will give you the most options when you wish to lease, rent, or sell your property for profit.
CLOSING STATEMENT - A statement made to the buyer and the seller or a property, the closing statement is basically a tally or reckoning of the funds involved in a sale of real estate or property.The closing statement is usually created or drawn up by a broker of funds.
CLOUD ON TITLE - An encumbrance or unaddressed claim on a property title.A valid cloud on title can impact or even challenge the title of the owner of a property.A cloud on title is also used to refer to dower interest or a judgment.You will want to make sure before buying any foreclosed property that there are no clouds on title.If there are, you could find, even after all your work in securing the property, that you might not be able to rent or sell the property and might in fact face legal problems or hassles.
COINSURANCE - A way of relatively splitting the risk between the insured party and the insurance provider.Coinsurance depends in large part on the value of the insured property and the amount specified in the insurance policy.Coinsurance only applies to situations where there is only a partial property loss or partial damage.
COLLOCATE - the mutual use of a property by more than one property user.Collocating is a type of sharing which is often used by the military for facilities.
COLLATERAL HEIR - An heir or beneficiary who is not a direct descendant of a deceased person.A collateral heir may include a cousin, a nephew or niece, an aunt or uncle or a brother or sister.
COLLATERAL SECURITY - A way of enforcing a principal or main agreement, this is a distinct obligation or responsibility that is added to a contract. The aim of collateral security is to ensure that a contract is adhered to.Collateral security may include transfer of assets, contracts, or real property in order to ensure that those signing the contract are highly motivated to keep the contract intact.
COLOR OF TITLE - Also known as the appearance of title or apparent title.Color of title refers to something that is used by a claimant to make claims of title.Ultimately, the color of title has some flaw that cannot help a claimant lay claim to a title.The color title is almost always something external to the will or act of a claimant; it is often a fact that is brought forth in a claim.
COMMAND OPERATING BUDGET (COB) - Justified budget requirements that are made by estimating the expenses of decisions relating to resources.The COB is determined by general operating agencies, who submit their calculations to the HQDA in the summer (July).The COB is calculated using data from the PGB (May Program Budget Guidance).
COMMERCIAL CONCESSION - usually made at a civil works project, this is a special type of arrangement.It usually involves renting property controlled by the military to an investor, private party, or organization who intends to offer the property to the general public for recreational services and/or some type of facilities.Usually, this private party is seeking to make a profit as well is to offer some benefit to the general public.Related terms: MINOR CONCESSION, MIXED CONCESSION, MAJOR CONCESSION.
COMMITMENT OF FUNDS - based on an estimate of value, the process of reserving money or funds before they are obligated to be spent for specific aim.
COMMON ELEMENT - the building spaces as well as the land of a condominium building that is designed to be used by all condo owners.The common element is often meant to add convenience, value, pleasure, and safety to condo owners.If you are buying a repossessed or foreclosed condominium, you want find out what common elements are available in the building you are purchasing into.Often, the common elements of the building affect condo values dramatically.For example, a condominium building with a pool, indoor gym, and other facilities is far more valuable than a building without these extras.Related terms: CONDOMINIUM.
COMMON EXPENSE -the fees and costs of operation and other related expenses of a condominium.These expenses are decreed by bylaws.When buying repossessed condominiums, you want to find out the common expenses, as these can make your property more expensive before reselling.
COMMUNITY PROPERTY - commonly owned property in a marriage.Community property is usually acquired either by the husband or the wife, or by both in tandem during the term of the marriage.
COMPARABLE - in an appraisal, the properties which are delineated as comparable or equitable to specific property in terms of income, rental price, market value, selling price, loan amount, or some other measure of value.
COMPENSABLE INTEREST - the interest of declared parties that needs to be reimbursed.
COMPLIANCE INSPECTION - a professional examination of civil and military outgrants, meant to determine whether outgrant properties meet the terms and conditions of the outgrant.Compliance inspections also aim to determine the quality of development as well as management of the property in question.This type of inspection is often used for outgrants which are accessible to the general public and to outgrants that offer services to the general public.
COMPOUND INTEREST - Interest that is payable not only on the original loan amount (the principal) but also on the interest accumulated on the principal.
CONCESSION - A privilege offered by the government to a person to use government owned land for commercial or other purposes.
CONCURRENT LEGISLATIVE JURISDICTION - Jurisdiction held both by a specific state and by the United States government in which the state and the US is granted the right to have the same legislative power.
CONDEMNATION - By the right of eminent domain, the process of taking over private property for use by the public.In this process, the property owner is given fair reimbursement or compensations for the inconvenience.
CONDITION SUBSEQUENT - If this condition takes place, it will end a current obligation or will defeat an estate that currently exists.
CONDITIONAL COMMITMENT - A commitment for a loan - including a home loan - but a commitment that is subjected to at least one condition.
CONDITIONAL SALE CONTRACT - A type of contract in which a property owner holds onto the property tile pending the buyer's meeting all the conditions, stipulations, and terms of the sales contract.
CONDOMINIUM - A type of real estate property that is one unit in a larger building holding many units.Ownership of a condominium requires the payment of a regular fee to the managers of the building but entitles the owner to own parts of the common areas of the building.It is possible to buy condominiums that have been foreclosed for a fraction of the price of regular condominiums - however, you will still be responsible for the fee to the property manager.
CONSIDERATION - An inducement or promise offered to one person or business or entity in order to encourage them to enter into a contract.Consideration can also refer more generally to something that is given in exchange for something else.In general, consideration is often something that is attractive to the buyer or the person being encouraged to enter into contract.In the sale of a foreclosed real estate property, for example, a seller may offer exchanged property, cash back on the purchase price, or some repair work done at no cost. The promise of consideration is often enough.However, consideration is supportive of the contract and is mutually beneficial to both purchaser and seller.
CONSTRUCTIVE EVICTION - a breach of contract, warranty, or agreement that prevents at tenant or buyer from enjoying their property or possessing it.Often, constructive eviction has to do with a landlord or seller's actions or with the presence of an outstanding title.
CONSTRUCTIVE NOTICE - the affirmation that all individuals or entities listed in a recorded document are aware of the contents of the document.A constructive notice is also sometimes called a legal notice.
CONTAMINATION - the existence of dangerous entities or substances, which are outlined in the 1980 Environmental Response Compensation and Liability Act.These substances may include chemical toxins, dangerous substances, biological dangers, radioactive materials, and unexploded materials that offer a real public danger or negatively affect safety and health standards.
CONTINUING RESOLUTION - legislation offered by Congress to provide federal groups budgetary authority with the purpose of providing operating funds.Continuing resolution is generally meant to last until some form of regular income can be gathered for the federal agency or group affected.In many cases, continuing resolution is necessary in cases where Congress has not been able to properly push through appropriation bills before the beginning of a new financial year.
CONTOUR LINE - represented by a single line on a topographic map, this line shows elevation on land surface.It does this by connecting all the points on a land map that represent the same elevation.
CONTRACT - a written or oral legally binding agreement in which the person named promises to do or avoid specific things.Obviously, this is a very general definition for a very general term.Specifically, in real estate, there are many types of contracts that the buyer and seller needs to be aware: options, home loans, leases, tenant agreements, deeds, loans, escrow agreements, contracts of sale, listings, and others.
CONTRACT RENT - the practice of paying in order to use a real estate or property.
COENTIONAL MORTGAGE - a loan on real estate property that is offered by a private lender, and is not guaranteed by the VA, FHA, or other government entities that insure mortgages.
COEYANCE - the process of passing on property title using a written document.
COOPERATIVE - a building with multiple units in which each individual owner holds company stock that is equal to the monetary value of the owner's apartment.A cooperative is usually owned by a company or corporation and title is offered through a proprietary lease.
COST OF REPRODUCTION - the expected, normal, reasonable cost of precisely copying a property using the same materials or very similar materials.Insurance companies often calculate this cost when a whole property or building needs to be rebuilt after fire or environmental disaster.
COURSES AND DISTANCES - a way of finding or delineating property, courses and distances give experts away of discussing direction and the length of lines that need to be run.Courses and distances are almost used synonymously to the term "metes and bounds".
COVENANT - a written contract contained in the deed.A covenant declares that an individual will either avoid certain acts on a specific property or will perform certain actions on the property.A covenant can also stipulate or prohibit specific uses of a piece of real estate.
CURTESY - the common-law right that gives a husband right to his wife's real property due to marriage.Specifically, it is the right that a husband has in terms of his wife's property at the time of her death.In some states, this right is only present if children who have rights of inheritance were born to the couple during the course of the marriage.In some states, this right does not exist at all.
DAMAGES - reimbursement, compensation, or reparation given to someone who has suffered injury, loss, or other forms of disadvantage in terms of their property, rights, or person.Damages are awarded by court and are often also enforced by courts.Some damages or punitive rather than cash awards.Often, damages revolve around the idea of liability -- or the idea that one person is responsible for another person's injury or harm.
DEBT SERVICE - the payments made on a debt periodically.Debt service is meant to reduce the overall principle of the debts and also to pay off the interest alone.
DECLARATION OF TAKING - a document to that delineates a specific property, outlined a need for the property, and declares that the real estate property is being possessed by someone.A declaration of taking is usually part of condemnation.Once a declaration of taking has been filed in court and a deposit of for compensation has been granted, the condemner gets the title to the land or property.
DEDICATION - the transfer of land or property from private ownership to public ownership with no compensation or reimbursement.The intent of the dedication is that the property will be used for public, and usually non-commercial or not profitable causes.Real estate that is dedicated is often taxed differently.Dedication can encompass an entire estate or can simply grant something such as transport or easement to rights across the property.
DEED - a legal written document that has been delivered, sealed, and properly executed.A deed involves a grantor and grantee.In a deed, the grantor or person with ownership of a property conveys to the grantee an interest in the property, the title, or some rights to the property in question.
DEED RESTRICTION - an exception or limitation in a deed.A deed restriction is usually meant to limit or manage specifically the use of a property.
DEFAULT - the nonperformance of a mandatory and specific legal obligation.
DEFERRED MAINTENANCE - requirements for maintenance, repairs, and correction of a property that are not yet fulfilled.The understanding is that these repairs will be made, but are delayed until a future point in time.
DEFICIENCY JUDGMENT - the discrepancy between the unpaid balance of a home loan debt and the market value or the selling price of the specific real estate property on which the home loan has been made.Related term: DEFICIENCY PAYMENT.
DEFICIENCY PAYMENT - an extra payment or reparation that is often necessitated in the final stages of condemnation.Related term: DEFICIENCY JUDGMENT.
DEPRECIATION - this term actually has three meanings: 1) the disparity between the cost of replacing a property and the market value of the property, as determined by an appraisal.2) the yearly right of part of an asset made during accounting procedures.3) the reduction in property value, usually occurring over some time.Depreciation may result from neglect of a property, sudden changes in a neighborhood, and property damage.
DESCENT - the way in which real estate title passes from one person to another via inheritance after the death of the owner.Dissent is controlled by state law.
DESIGN MEMORANDUM - before any land can be used or bought for specific projects, a design memorandum or official planning document needs to be drawn up by the district commander or by the division of the district commander.
DETERIORATION - the degeneration of a property's condition caused by use, the environment, time, and other factors.It is a key cause of depreciation and lowering property value.If you're considering purchasing foreclosed real estate, you must consider deterioration, as many real estate owned properties have been vacant for some time before being resold and therefore may suffer from some forms of deterioration.This is one of the reasons why a thorough inspection of all repossessed homes is vital before purchasing.
DEVISE - the transmission of property via a will after the death of a property owner. In a devise, the device or is the person transferring property while the person who's the beneficiary or heir is referred to as the devisee.
DISCOUNT - the reduction of a pre-agreed cost.For example, once home loans are paid in advance, the lender often grants a discount which allows the debtor to pay less in exchange for their prompt payment.A discount may also refer to the amount of money paid in order to secure preferred forms of financing.For example, homeowners interested in buying property will sometimes pay additionally to have VA or FHA insured mortgages.
DISPOSAL - the sale of government foreclosures for sale.Disposal also refers to the actual legal process of removing control and ownership of property from the government.
DISPOSSESS - take away from someone the ownership and the right to use specific property.
DOWER - the right of a wife to have the interest or access to her husband's property after her husband's death.In most cases, a widow has the right to at least one third of all the real estate property that the husband had ownership of during the course of the marriage.This is regardless of what the husband has stated in his will.In some cases, a widow may be able to claim life interest and her husband's property as well.
DURESS - coercion or compulsory force meant to compel someone to do something against their will.
EASEMENT - a right or benefit that one land owner may exercise or have on the property of someone else.Easement often includes such things as right-of-way, right of transport, and right of use of common areas.
EASEMENT APPURTENANT - a type of easement which is designed exclusively to benefit a specific property.This type of easement will generally transfer along with the transfer of title of property.Often, this type of easement is meant to help provide access to specific land.For example, this type of easement may give rights to cross a specific parcel of land in order to allow access to another property.The property over which this right is granted is referred to as the servient estate while the property granted the right is called the dominant estate.Related terms: PERTAINING EASEMENT.
EARNEST MONEY - the money paid by a real estate buyer that is used as a deposit to show good faith in proceeding with the transaction.When you buy foreclosed homes, you will be asked to make an earnest money deposit of a few percent of total purchasing costs to show that you are serious in purchasing the property.If you cannot secure financing before closing date or if you decide to simply stop the purchasing procedure, your earnest money may be withheld.If you bid is simply not high enough, you will often be given your earnest money back.
ECONOMIC LIFE - the term of time during which a property will provide a return on the initial investment of the property.
ECONOMIC OBSOLESCENCE - that which reduces the functionality or desirability of a property.Economic obsolescence often as the result of laws which affect real estate property rights or is the result of changes in the use of the property or changes in demand. This is one of the risks of buying foreclosed properties.To lessen this risk, investors interested in bank foreclosures will want to research to make sure that there are no pending laws or economic changes which can affect their investment.
EFFECTIVE AGE - a way of indicating the condition of our real estate foreclosures. Calculated by inspectors and appraisers, effective age is given as an age in years.However, the effective age may be either longer or shorter than the actual age of a property, depending on the property's condition and shape.
EJECTMENT - a type of legal action that aims to repossess property.Ejectment also seeks damages or compensation for the fact that a property has bees illegal withheld by a defendant.
ELEVATION - in surveying, elevation is the distance that is measured below or above a specific marker.In architecture, elevation is a diagram, sketch, or drawing of the side or the front of a structure.
EMBLEMENTS - growing crops which are considered personal property because they are created each year through work.Emblements offer tenants and land owners certain rights.For example, if a tenant is evicted or leaves before the annual harvest, they have a right to return for their crops.
EMINENT DOMAIN - the right of governments to make use of private property for public usage in cases of need or emergency.In these cases, reimbursement is paid to the person with ownership of the property.No private property is exempt and the government may give this power two companies, agencies, groups, governments, and associations.
ENCROACHMENT - the structure, part of the building, part of a structure, or building -- or in fact any improvements, repairs, or property -- that trespasses on property belonging to another owner.If you're considering buying real estate owned property and wish to do repair work or additions before reselling for profit, it is important to always consult deeds and maps to ensure that your new improvements are not guilty of encroachment.
ENCUMBRANCE - any liability, lien, charge, claim, or other factor related to a property that will or may decrease the property value but will generally not impact transfer of ownership.Encumbrance may affect either the physical shape of the property or the title of ownership.That is, encumbrances may be easements, restrictions, and encroachments.They can also be liens, judgment against an owner or property, and home loans.
ENDANGERED SPECIES - those animals and plants listed by the US Department of the Interior as being in peril of extinction in their natural habitats.
ENGINEERING FEASIBILITY STUDY - the investigation of a planed construction design to be erected at a specific site.The point of an engineering feasibility study is to decide whether a projected plan or project is reasonable economically, environmentally, structurally, and even socially.
EIRONMENTAL ASSESSMENT - an investigation that yields a written document that states and the possible environmental effects of a proposed plan, project, or action.An environmental assessment is usually done in the early stages of planning, before much work or effort has been expended on a project.If you're planning on making repairs, or are planning on building extra property on foreclosed land or property that you have purchased, it is important to do environmental assessment before you buy.This can help you determine whether your project is feasible or not.
EIRONMENTAL IMPACT ASSESSMENT - the environmental investigation of a projected action.This assessment is used to determine whether the planned project or act will impact the environment significantly or not.In addition, the assessments can determine whether the impact will be environmentally beneficial or detrimental.
EIRONMENTAL IMPACT STATEMENT - authorized by the 1969 NEPA (National Environmental Policy Act), this statement is meant to help those in the position of authority and those who are entrusted with making decisions understand the possible facts of an action or plan on the environment.Often written for large areas, these can also be written for real estate property.Environmental impact statements are created with participation in input from the public.They include facts, possible alternatives to proposed projects, as well as breakdowns of the information and its significance.
EQUITY - The real estate value of a property that is not encumbered with debt.For example, if you have a home worth $200 000 and a mortgage of $100 000, you have $100 000 in equity.Equity can be used to borrow against.Foreclosed properties are an excellent way to build equity fast, since they often are under priced and require only very small mortgages.
EQUITY OF REDEMPTION - The right of a debtor to reposses a property before foreclosure by repaying the outstanding debt. Commonly referred to as statutory redemption or simply redemption, equity of redemption may require a debtor to pay full capital on the debt as well as additional costs and full interest.This can stop foreclosure.
EROSION - The process by which land disappears through natural elements.For example, winds, water, and time can remove deposits of land and reduce overall land mass of an area.
ESCALATION CLAUSE - A part of a lease or rental agreement that stipulates when rent or lease costs can rise.
ESCHEAT - The process by which a property is transferred to the government because there are no heirs or suitable persons who can legally take over the property after a death or abandonment of the property.
ESCROW - A money amount or condition that is stipulated by a deed and is held for a specified time by an escrow agent.The agent is a third party to a real estate transaction and holds the escrow until some agreed-upon obligation, condition, or act is fulfilled.
ESCROW AGREEMENT - A written document that sets up an escrow between (usually) three parties.
ESTATE - The type, extent, and the level of interest or involvement an individual has in a real estate property.
ESTATE AT SUFFERANCE - What occurs when a tenant remains after eviction or after their term for lease or rent is expired.This is illegal and a landlord or property manager can have the tenant evicted or treated as a trespasser.They can also continue to accept the tenant by continuing to demand the same terms they exacted from the tenant before.This last is referred to as "tenancy at sufferance."If you plan to buy foreclosed properties for renting out, you will want to consider what to do if a tenant simply refuses to leave after their agreement is up.
ESTATE FOR LIFE - An estate that has not been acquired through inheritance and which can be held by a renter or occupant for an undetermined length or time - this time is usually specified as the life span of the occupant or the life term of other individuals, hence the name of this estate.
ESTATE FOR YEARS - An interest in land that is expressed in terms of measurable time.Usually at least a day in duration, an estate for years, which is also known as a tenancy for years, stipulates the exact amount of time an occupant or renter may use or have rights to a property.
ESTATE FROM PERIOD TO PERIOD - An interest in a property which is determined intermittently.In other words, no specific date for interest is given, but the contract remains flexible and allows a tenant and manager to determine interest on a yearly, monthly, or weekly basis.
ESTATE IN REVERSION - After the end of an estate, the rest of the estate that is left to the grantor.
ESTOPPEL - A law which prohibits an individual from making claims or demanding rights that are incongruent with a past representation or assertion. This means that once someone has given up their right to a property, they cannot revert and claim those rights again.
ESTOVERS - The lumber or wood that a renter or tenant is permitted to get from a manager or landlord's property.Estovers are usually intended to be used for repairs or fuel for the rented or occupied property.
ET AL. - The short form for the Latin term "et alii,"; translated as "and others".
ET UX. - The short form for the Latin term "et uxor,"; translated as "and wife".
ET VIR - A Latin phrase that is translated as "and husband".
EVICTION - Someone who is removed or compelled to remove themselves from a property by process of law.
EXCESS - A property that is not needed by the government agency who is responsible for the property.
EXCESSING - The method of deciding which property is no longer needed by the military and the process of reporting the excess real estate or land to an agency that can get rid of the property.If you are looking for foreclosed properties, excessing gives you great opportunity, as the agency who gets rid of such property is often willing to sell it inexpensively just to get rid of it.
EXCHANGE - the process in which an interest or property is gotten rid of by trade for another equally valuable interest or property.In such a swap, money may not be used at all.
EXCLUSIVE LEGISLATIVE JURISDICTION - The authority of the federal government to command as a state legislate in a specific area.The authority does not extend to cases where events outside the specified area affected are under jurisdiction.
EXECUTOR - The person or entity named in a will and given authority by a law court to manage or settle an estate.
EXPERT WITNESS - An experienced or specifically educated person whose knowledge or skill is deemed sufficient to make them an expert in a particular subject.The expert witness is often used to give knowlegeable and important advice or judgment about an unresolved matter.
FAIR MARKET VALUE - A term used in law that means the same thing as MARKET VALUE.
FEE - An estate in land that may be inherited.
FEE SIMPLE - Also known as the "fee," this type of ownership offers the widest possible ownership of property.Where possible, investors do well to seek out fee simple ownership to foreclosed property, as this gives them the biggest package of owner rights under law.
FEE TAIL - An interest in property or an estate that can only descend to heirs of an owner.A fee tail cannot be transferred in any other way and is not permitted in most areas of the country.
FIRST MORTGAGE - The home loan on a property that has preferred status over other loans taken out on the property.This mortgage is usually paid first and in case of default or repossession, this loan is paid first from any liquidation or secruities.Subordinate loans are paid with whatever remains after this primary loan is repaid.Because of its preferred status, the first mortgage usually offers a better interest rate.
FIXTURE - A movable and tangible property (known as chattel) which becomes a part of the property because it is or becomes fixed in place and so loses its status as moveable.
FORECLOSURE - A process in which property is sold because it is used as collateral for a debt that is defaulted. Foreclosure affords a good opportunity for bargains, as the agency taking over the property often wishes to liquidate quickly - even at a loss - in order to recover the costs associated with the defaulted loan.
FOREIGN EXCESS REAL ESTATE - Excess property that is not located in the United States or in U.S. Possessions (which include the Virgin Islands, American Samoa, Puerto Rico, Guam, and the Trust Territory of Pacific Islands).This real estate often excludes equipment that is installed as well as timber.Each location may have different laws and different definitions.
FORFEIT - The loss of rights, property, or assets that is caused by nonaction, incorrect action, or negligence.Property lost in this manner is referred to as a "forfeiture." In cases where the property winds up owned by an agency, it can often be purchased at significant discount as a repossessed property.
FRAUD - The intended deception of someone who is injured by the falsehood or misleading information presented.
FREEHOLD - An estate held for life or in fee simple ownership.
FRONT FOOT - A measurement of one linear foot (twelve inches) measured along the street frontage of a land or real estate property.
FUNCTIONAL OBSOLESCENCE - The reduced property value that is caused by a functional problem or liability.In many cases, functional obsolescence is caused by bad initial design or by age, and may include such things as lack of storage space, bad floor plan, outdated architecture, too-old plumbing, outdated fixtures, ceilings that are too high or too low, or other problems that make modern living difficult.
GENERAL LIEN - A type of lien that applies to all the assets or properties that a debtor possesses.
GENERAL WARRANTY - The part of a deed in which the person making the grant promises to defend or protect the person to whom the grant is made from "the world".
GRADUATED LEASE - Often used in rental agreements or leases made for long terms, the graduated lease allows landlords or leases to raise rental rates periodically. It is often based on inflation, appraisals, or increasing property value.
GRADUATED RENTAL SYSTEM - A type of special consideration lease where a tenant or renter's rent changes in accordance with the tenant's assets or income.A graduated rental system also allows for rent to be offset against the nonrefundable FMR (Fixed Minimum Rental).
GRANT - The process whereby property is transferred or changes ownership.Along with the terms "bargain" and "sell," "grant" is a key real estate term that is used when discussing the ways that property changes hands.Grants are offered via a deed.
GRANTEE - the purchaser of a real estate; the individual, group, or organization who receives real estate through conveyance or grant.
GRANTOR - the individual, group, or entity selling property via grant or deed.
GROSS INCOME - the forecast of the yearly income made from the management of property or from a business operation.Through foreclosed real estate property, an investor can make the gross income in several ways -- by managing and renting property or by selling multiple properties for yearly profits.
GROSS RENT MULTIPLIER - in single-family homes, the ratio between the price of a property and the monthly rental profit.If you are purchasing real estate owned property with the intention of renting it, determining the gross rent multiplier can help you determine whether a property will be profitable in the long run.
GROUND LEASE - a lease that allows the tenant to make use of the property or a land for a period of time specified in the lease or contract.Sometimes, the ground lease stipulates that the tenant must provide certain repairs or improvements to the property in order to secure the right to the property.
GUIDE ACQUISITION LINE - the line on a map, chart, or diagram that delineates the proposed or as yet unconfirmed boundaries of land that may be bought, leased, or otherwise gotten to complete a project.The guide acquisition line is often used in design memorandums and in initial stages of design projects.
HABENDUM CLAUSE - a clause that constrains or delineates the amount of property that is to be granted in the pre of the deed.Sometimes also called the "to have and to hold" clause.
HAZARDOUS MATERIALS - biological, chemical, physical, radioactive, or other types of matter that is considered unsafe according to experts and governments.Related term: CONTAMINATION.
HECTARE - a surface measurement from the metric system.A hectare equals roughly 2.471 acres or about 10,000 m² of land.
HEREDITAMENTS - all types of property that can be inherited.This can include personal property, real property, and incorporeal, and corporeal property.
HIGH WATERLINE - in an ordinary tide, the line at which high water is found.
HOLDING AGENCY - the federal group, entity, or agency that is responsible for a specific property or land.If you are looking to purchase foreclosed homes, you may need to deal with a holding agency such as the Department of Veteran Affairs (for VA homes), The Department Of Housing And Urban Development (HUD) for hud homes, or another agency responsible for houses that have been repossessed.
HOLDOVER TENANT - a tenant who, even after the end of a term of lease, remains on the leased property or continues to seek the right to possess a rented property.
HOME STEAD - a real estate property that is used for residential purposes, rather than commercial ones. In areas where homestead protection is available, a real estate property owner can declare his or her home a homestead to the county recorder.This declaration requires the property owner to describe the property, provide a property value, and requires the owner to declare his or her marital status.After such declaration is made, the property is safe from creditor claims up to a specific amount.
IMPROVEMENTS - More than simply replacement or repair, improvement involves an actual addition to a property.This addition must necessitate money expenditure or labor in order to qualify as an improvement and must be generally permanently attached to the property to qualify.Examples of improvements include pavements, additional buildings, building wings, and so forth.
INCOME PROPERTY - A residential, commercial, or industrial real estate property that isbought or possessed chiefly for the profit it will realize.Foreclosed properties are an excellent way to buy an income property.These inexpensive real estate properties can be used for residential, industrial, commercial purposes to make money.
INDEMNIFY - to ensure, or to prevent damage or loss.Indemnify can also signified the process of compensating for damage or loss.
INDUSTRIAL INSTALLATION - a military facility owned by the military for the creation of supplies, munitions, and other military necessities.An industrial installation may be classified as active or inactive.
INGRANT - a property possessed by the Air Force or by the army.An ingrant is not acquired by fee, but rather by license, permit, or by lease.
INLEASING - the improvements of real estate and the leasing of interests related to property that are used for civil works or for the military.Inleasing can also refer to the improvements made or the leases held on property made for agencies of the government.
INSTALLATION - Army Department controlled improvements or property.An installation is used for military functions and is used by military groups or organizations.
INSTALLED BUILDING EQUIPMENT - a permanent part of a property or building that is needed to make a property usable.This can include furnishings and equipment such as docks, cranes, and other like items.
INSTALLMENT CONTRACT - also called a land contract, it is the buying of property via installment payments.If the purchaser defaults, the payments made are forfeited.The property deed is usually only surrendered to the buyer when a certain part of the price has been paid or when all of the installments have been made.
INSTRUMENT - a written agreement that is legally binding, an instrument is designed to protect or delineate the rights of those outlined in the instrument.
INTEREST RATE - the percentage rate that is charged on loans.Interest rate can also refer to the return rate made on an investment. It is the price paid for the privilege of borrowing money.
INTERNAL CONTROL - this subgroup or the process in a government agency whose aim is to protect and watch against mismanagement, waste, fraud, criminality, and other types of abuses.
INTESTATE - an individual who makes no will before passing on, or an individual who makes a will that is not legally binding or is flawed in a manner that makes it not binding.In such a situation, the estate is transferred to the next of kin or to the legal heirs.
IOLUNTARY LIEN - a lien that forcibly imposed on a property.It does not require that the property owner agree to it.Income tax and certain types of assessments count as this type of lien.
JOINT AND SEVERAL - a type of responsibility in which at least two individuals or entities are bound to the obligation jointly and individually.In this type of responsibility or duty, enforcement of the agreement can be made by joint action against one or more of the parties.
JOINT TENANCY - a mutual ownership of property by at least two entities or individuals.In this type of tenancy, the lease term begins at the same time, the property is held in equal parts, interest is equal, and the amount of money paid is generally the same.If one part of the joint tenancy passes on, the surviving tenant gets full tenancy.
JUDGMENT - the final decision made by a court about the liabilities and rights of those involved in an action or lawsuit.
JUNIOR LIEN - a secondary lien on a property which already has a lien on it.
JURISDICTION - the authority to impose municipal legislation (of a general type) in a predetermined area.
JUST COMPENSATION - in a condemnation, the amount of money paid -- usually the market value price -- for real estate affected.
LAND MANAGEMENT - the protection or the implementation of programs that are meant to improve, make use of, or maintain property for general public benefit.Land management usually has a stated aim.Types of land management include outdoor recreation, agriculture leasing, forest management, wildlife management, and so forth.
LAND SURVEYING - the process by which a qualified engineer or surveyor investigates and delineates the identity and location of the specific property or land.
LANDLORD - a person or entity who offers property for rent or lease to other parties.
LEASE - a written legal agreement through which a tenant gets the right to occupy and use a property in return for a specific amount of money or rental.A lease is usually determined for a specific timeframe.
LEASEHOLD - the estate or interest a tenant has, as outlined in a lease.
LEGAL DESCRIPTION - a statement that has within it a delineation of the land that identifies that property in a way that is created by the law or approved by the law.
LEGISLATIVE JURISDICTION - synonymous with jurisdiction, the authority to legislate over a specific area.There may types of jurisdiction, including concurrent, partial, and exclusive.
LESSEE - the tenant or party named in the lease to whom real estate property or land is leased or rented under specific terms of contract.
LESSER INTERESTS - an interest in a property, lesser interests are less than fee interest.
LESSOR - the landlord or renter of a real estate property or land, named in the lease.
LIABILITY - a disadvantage, obligation, or debt that must be performed.When purchasing real estate owned properties, it is good to seek out the liabilities a property has, as these can impact property values.
LICENSE - the revocable right to make use of another person's property or to enter that property without having interest in that property.Without license, such actions would be defined as trespassing.With license, these actions are legal.
LIEN - a claim or hold that one entity has upon a property that does not belong to them.In many cases, a lien is used as a security.
LINK - a linear measure used by surveyors when describing land.A link is equal to 7.92 inches.A link is also related to the measurement of a chain.A chain equals 100 links.
LIS PENDENS - a public notice which is filed against a property.This notice declares that a legal action that may impact property title is pending against the stated property.When purchasing repossessed properties, it is important to find whether any such liabilities on a property exist, as these can affect the purchase of the property.
LITTORAL RIGHTS - for property owners who live on land that has a lakeshore or seashore, the right to enjoy that shore or use it without making changes to that shore artificially.
LOCUS - a specific piece of property or parcel of land, the locus is often used when describing a part of a property that has already been defined.
