REAL ESTATE TERMS

Abstract of Title 
A summary of or digest of the conveyances, transfer and any other facts relied on as evidence of title together with any other elements of record which may impair the title.

Appraised Value 
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

Attorney-in-fact 
One who holds a power of attorney from another to execute documents on behalf of the grantor of the power.

Balloon Payment 
The final lump sum payment that is made at the maturity date of a balloon mortgage.

Beneficiary 
The person designated to receive the income from a trust, estate, or a deed oftru

Broker 
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.

Capital 
(1) Money used to create income, either as an investment in a business or an income property. (2) The money or property comprising the wealth owned or used by a person or business enterprise. (3) The accumulated wealth of a person or business. (4) The net worth of a business represented by the amount by which its assets exceed liabilities.

Caveat Emptor 
Means "let the buyer beware." The buyer must examine the goods or property and buy at his own risk.

Certificate of Title 
A statement provided by an abstract company, title company, or attorney stating that the title to real estate is legally held by the current owner.

Condominium 
A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas.

Contract 
An oral or written agreement to do or not to do a certain thing..

Deed 
The legal document conveying title to a property. The deed is the document that transfers ownership from the seller to you. Only the seller signs the deed at closing, and you'll receive a copy of it. The closing agent will record the deed with you listed as the new property owner. Your name and the names of any other buyers appear on the deed, and it will be sent to you after it is recorded.

Depreciation 
The loss of value in real property brought about by age, physical deterioration for functional or economic obsolescence. Broadly, a loss in value from any cause.

Encroachment 
An improvement that intrudes illegally on another's property.

Equity of Redemption 
The right to redeem property during the foreclosure period, such as a mortgagor's right to redeem within a year after aforeclosure sale.

Estate 
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

Fee Simple 
The greatest possible interest a person can have in real estate. Fee simple ownership provides the owner with unrestricted powers to dispose of the owned property as the owner sees fit. Of all types of ownership a person can have in real estate, fee simple provides the greatest amount of personal control.

Fiduciary 
A person in a position of trust and confidence as between a principal and a broker as fiduciary owes a certain loyalty which cannot to breached under rules of agency.

Forfeiture 
The loss of money, property, rights, or privileges due to a breach of legal obligation.

Highest and Best Use Principle 
The use which will bring the optimum or highest returns or advantage asa of a certain time.

Instrument 
A written legal documents created to affect the rights of the parties.

Legal Description 
A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.

Subdivision 
A housing development that is created by dividing a tract of land into individual lots for sale or lease.

Torrens Title 
A system of title records provided by law; a certificate issued by register of deeds.