Glossary of Real Estate Terms
The language of real estate is like that of other industries. Some words and phrases may seem foreign, others are ones that you hear every day. Following is a glossary that hopefully will allow you to better understand the real estate transactions with which you are involved.
- Abstract
- Adjustable Rate Mortgage (ARM)
- Adverse Possession
- Affidavit
- Agreement
- ALTA (American Land Title Association)
- Amortization
- Appraisal
- Appurtenance
- Assessment
- Assignment
- Attorney’s Opinion
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- Abstract
A history of all transactions shown in the public records affecting a particular tract of land.
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- 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.
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- Adverse Possession
The possession, by one person, of land belonging to another in a manner deemed adverse to the interest of the owner. In most states, by operation of law, title to the land becomes vested in such person after a fixed number of years if the owner fails to assert his or her rights.
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- Affidavit
A written statement made under oath before a notary public or other judicial officer.
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- Agreement
A legally binding contract made between two or more persons.
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- ALTA (American Land Title Association)
The trade association of the title insurance industry, which has adopted certain insurance policy forms to standardize coverage on a national basis.
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- Amortization
Payment to reduce the principal of a debt in regular, periodic installments.
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- Appraisal
A report from an independent third party detailing the estimated value of real estate.
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- 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.
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- Assessment
(1) The valuation of real estate for purposes of taxes or special improvement charges. (2) The amount of taxes or special improvement charges. Special improvement charges are usually for the costs of streets, sidewalks, sewers, etc.
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- Assignment
(1) The act of transferring an interest, such as a loan secured by a mortgage, from one person to another. (2) The instrument or paper by which one person transfers such ownership to another.
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- Attorney’s Opinion
A statement by an attorney as to the validity of a title, arrived at after investigation of the history of the title as recorded in the public records.