Abandonment - The voluntary relinquishment of ownership or another interest by failure to use the property, coupled with an intent to abandon.
Absentee Landlord - A lessor of real property that does not occupy the property.
Absentee Owner - An owner of property who does not occupy the property.
Abstract of Judgment - Summary of the essential provisions of a court judgment, which when recorded in the county recorder's office, creates a lien upon the property.
Abstract of Title - A compilation of the recorded documents relating to a parcel of land, from which an attorney may give an opinion as to the condition of title.
Acceleration Clause - A clause in a Deed of Trust or note that accelerates or hastens the time when the debt becomes due. For example, most deeds of trust of loans contain a provision that the note shall become due immediately upon the sale or transfer of title of the loan, or upon failure to pay an installment of principal or interest. This is also called a due on sale clause.
Acceptance - Voluntary agreement to an offer. Real property acceptance must be unequivocal. Acceptance for goods, according to the Uniform Commercial Code, need not be unequivocal.
Accretion - Growth or increase in size by gradual external addition. Usually the shore or bank of a waterway.
Accrued Interest - Interest on a note which has been earned but not yet paid.
Accumulated Interest – Unpaid, past due interest.
Acknowledgment - A formal declaration made before an authorized official (usually a notary public), by the person who has executed (signed) a document, that such execution in his/her own act and deed. In most instances, a document must be acknowledged (notarized) before it can be accepted for recording.
Acquisition Appraisal - An appraisal to determine the value of a property to be taken by eminent domain.
Acre - A unit in the U.S. and England equal to 43,560 square feet.
Acre Foot - The volume that would cover one acre to a depth of one foot.
Acreage - Area in acres.
Act of God - Damage caused by mother nature rather than by people.
Actual Age - The chronological age of a structure.
Ad Valorem - "According to value." A tax based on the assessed value of real estate or personal property.
Addendum - A list or other declaration added to a document, letter, contractual agreement, escrow instructions, etc.
Addition - A portion of a building added to the original structure.
Adjustable Rate Mortgage (ARM) - A mortgage with an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages).
Adjustment Period -The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM, which means that the interest rate can change once a year.
Advance Payments - Payments made to a contractor before performance.
Advancements - Gifts made prior to death to one who would inherit the property.
Adverse Possession - A method of obtaining ownership rights by the open, exclusive, notorious and hostile possession of private real property for a statutory period.
Aesthetic Value - The value of a property attributable to the beauty of the surroundings.
Affidavit - Sworn statement in writing made before an officer who has authority to administer an oath.
Agency - Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the principal. Agency involving real property should be in writing, such as listing, trust, powers of attorney, etc.
Agency by Estoppel - An agency created by operation of law when one who is not an agent acts as an agent or an agent oversteps his/her authority.
Agent - One who is authorized to act for or represent another.
Agreement - A contract duly executed and legally binding between two or more people.
Agricultural Lien - A lien against crops to secure the money used to grow the crop.
Air Rights - The right to the use of the air space above property without the right to use the surface area of the property.
Alienation - Transfer of property from an owner to another owner.
Alienation Clause - A type of acceleration clause, calling for a debt under a property to be due in its entirety upon transfer of ownership.
A.L.T.A. (American Land and Title Association) - A title insurance policy that protects the interest in a collateral property of a mortgage lender.
Amenities - The attractiveness and value of real estate or of a residential structure. Examples: Swimming Pool, Spa etc.
Amortization - Repayment of a loan in equal installments of principal and interest, rather than interest-only payments.
Amortization Schedule - A schedule showing the breakdown of each payment of a loan applied to principal and the amount applied to interest.
Amortize - To reduce a debt by payments of principal and interest.
Amortized Loan - A loan repaid in payments of principal and interest.
Annual Percentage Rate (APR) - The interest percentage of a loan expressed by the actual rate of interest paid.
Appraisal - An estimation of value based upon a factual analysis.
Appraised Value - An opinion of the value of a property at the time of estimation.
Appurtenance - Something belonging to something else, either attached or not that passes with it upon transfer of title.
Arm’s Length Transaction - A transaction between parties acting in their own self-interest.
“As In Condition” – Premises accepted by the buyer or tenant existing condition at the time of sale, including physical defects.
Asking Price - The price at which the seller is offering for the sale.
Assessed Value - Value place upon property by the tax assessor.
Assessments - Specific and special taxes (in addition to normal taxes) imposed on real property to pay for public improvements within a specific geographic area.
Assumption of Mortgage - A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.
Attorney-In-Fact - An agent authorized to act for another under the power of attorney.
[Return to top]
Have a discrepancy with the definitions? If so, please email me, the webmaster. It is in my best interest to provide you with the most thorough and comprehensive mortgage glossary on the internet. -Eric J. Sunquist
