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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 or history of a property prepared by an abstractor of all the documents in public record regarding the property.

Abstract - A history of all transactions shown in the public records affecting a particular tract of land.

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 of the public records affecting the title to a particular piece of land. An attorney or title insurance company officer creates the abstract of title by examining all recorded instruments (documents) relating to a specific piece of property, such as easements, liens, mortgages, etc.

Abstract plant - Also called "title plant" in some areas. A geographically filed assemblage of title information that helps in expediting title examinations, such as copies of previous attorneys' opinions, abstracts, tax searches and copies or take-offs of the public records.

Abstracting - The process of making and compiling an abstract.

Abstractor - The person or company engaged in making abstracts

Abut - To touch or border upon. For example, a piece of land bordering on a street or an adjoining property is said to abut such street or property.

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

Acceleration Clause - A 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 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 recorded 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 acknowledgement 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 acknowledgement is attached to the instrument or incorporated herein.

Acre - A measure of land equaling 43,560 square feet.

Action to quiet title - A court action to establish ownership to real property. Although technically not an action to remove a cloud on a title, the two terms are often used interchangeably.

Ad valorem - 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.

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 loan (AML) - Adjustable rate mortgages (ARM's), flexible rate loans, variable rate loans. (see also: indexing, rate index).

Adjustable rate loans - 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

Adjustable-rate mortgage (ARM) - Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indicator, to more closely coincide with the current rates. The extent and number of these adjustments are agreed to at the inception of the loan.

Adjustment date - The date on which the interest rate changes for an adjustable-rate mortgage (ARM).

Administer - To pay the debts and wind up the business of a deceased person’s estate. Also, to handle and dispose of properties of an estate by an executor, administrator or trustee in conformity with legal procedures and provisions of wills or trust instruments.

Administrator - A person appointed by a court to administer the estate of a deceased person who left no will.

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

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

Adverse possession - The unauthorized occupation of land belonging to another, by a person who does not have the consent of the owner. Said occupier is said to hold possession adversely to the rights and interests of the owner. In most states, by operation of law, title to the land becomes vested in such occupier after a fixed number of years of peaceful occupancy.

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.

Affidavit of title - A written statement, made under oath by a seller or grantor of real property and acknowledged by a notary public, in which the grantor (1) identifies himself and indicates marital status, (2) certifies that since the examination of the title on the date of the contracts no defects have occurred in the title and (3) certifies that he is in possession of the property (if applicable).

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 - A relationship in which one-person (agent) acts for or represents another (principal) under the authority of the latter.

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.

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

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 - 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.

Alienation clause - A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.

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.

Amortization - The process of paying off a debt (such as a mortgage) in regular installments over a period of time.

Amortization schedule - A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.

Amortization term - The amount of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate mortgage.

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

Annual percentage rate (APR) - The cost of credit, expressed as a yearly rate including interest, mortgage insurance, and loan origination fees.

Annuity - A payment received every year.

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.

Application - A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security.

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 - A right or privilege that is a part of the ownership of property, such as a right of way to a highway across the land of another. Water rights are also an example.

Appurtenant - Belonging to, or accessory to, or incident to a principal property.

Arbitration - The process by which parties who cannot agree among themselves submit the dispute to the judgment of an impartial party

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 valuation - The value placed on property by the count assessor; used as a basis for computing property 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.

Assessor - A public official who establishes the value of a property for taxation purposes.

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

Assignee - The person who receives ownership of a contract by transfer by another

Assignment - The transfer of a mortgage from one person to another.

Assignor - For example, the person who transfers ownership of a contract or mortgage to another.

Assumable mortgage - A mortgage that can be taken over ("assumed") by the buyer when a home is sold.

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 agreement - Undertaking or adoption of a debt or obligation primarily resting on another person.

Assumption clause - A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller.

Assumption fee - The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.

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.

Attachment - Legal seizure of property to force payment of a debt.

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")

Attorney's Opinion - The written statement of an attorney setting forth what he believes to be the condition of a real estate title.

Avigation easement - An easement over private property which abuts and extends out from the end of airport runways with said easement restricting the graduated height of agricultural crops, bushes, trees and other objects in the take off and landing path of aircraft.

Avulsion - A change or shift in a water boundary resulting in loss of land by an owner and the acquiring of such land by another.