Here is a list of terms used in Real Estate that you may use if you need too.

Absolute auction: an aution in which the subject property is sole to the highest bidder regardless of the amount of the winning bid. There is no reserve price.

Abstract of title: A historical summary of all the recorded instruments and proceedings that affect the title of property

Accelerated Cost Recovery System (ACRS): A method of depreciation introduced by the Economic Recovery Tax Act of 1981 and modified in 1984 and 1986. Apartments may be depreciated over 27 1/2 years, commercial property over 39 years (both using straigt-line depreciation).

Acceleration Clause: A loan provision giving the lender the right to declare the entire amount immediately due and payable upon the violation of a specific loan provision, such as a failure to make payments on time or transferring the title.

Acknowledgements: A form used as an recognition of both parties appearing before notary.

Acquisiton Cost: The selling price, plus all required fees, in order to obtain a property.

Acre: A two dimentional measure of land equaling 160 square rods, 10 square chains, 4,840 square yards, or 43,560 square feet.

Addendum: Something that is added, such as an attachment to a contract. Addenda are often used to place contingencies onto a contract. similar to a rider.

Adjustable-Rate Mortgage (ARM): A mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan.

Adjusted Sales Price: In an appraisal, It is the indicated price of a comparable property after adjustments have been made to account for differences between comparable and subject properties.

Adjusted Tax basis: The original cost. or other basis of property reduced by depreciation, deductions and increased by capital expenditures.

Adjustments: Dollar value, or percentage amounts, that when added to or subtracted from the sales price of a comparable, provide an indication of the value of a subject property. Adjustments are necessary to compensate for variation in the features of the comparable relative to the subject.

Adverse possession: A means of aquiring title to real estate where an occupant has been in actual, open, notorious, exclusive, and continuous occupancy of a property for the period required by state law.

Affidavit and Memorandum of Agreement: a written statement, sworn to or affirmed before an officer who is authorized to administer an oath of affirmation. The person making the affirmation is called the affiant. The seller does not need to sign it. In fact, the seller may not even know the investor has recorded the affidavit. The document affirms the real estate purchase agreement entered into on that particular day. This document is used to record an option on a property at the county recorder's office. You should not record the option contract; instead, you use this affidavit.

Affordable Housing: A general term applied to public and private sector efforts to help low  and moderate-income people purchase homes. Usually the programs offer lower cash down payments, eased loan-qualifying rules, and / or below -market interest rates.

Agency: The legal relationship between a principal and his or her agent arising from a contract in which the principal engages the agent to perform certain acts on the principal's behalf.

Agency Disclosure: A written explanation, to be signed by a prospective buyer or seller, explaining to the client the role that the broker plays in the transaction. The purpose of disclosure is to explain whether the broker represents the buyer or the seller or is a dual agent. or a subagent (an agent of the seller's broker) this allows the customer to understand to which party the broker owes loyalty.

Agent: 1. A licensed real estate broker or salesperson 2. one who undertakes to transact some business, or to manage some affair, for another, with the aurhority of the latter.

Agreement for the sale of goods: A written agreement used to show the sale of goods with respect to real estate transactions. It is commonly used to create an agreement on items such as appliances, or other personal property. Included in the sale of real estate.

Agreement for continued occupancy: An agreement that provides a seller of a property the right to continue living in the property after the property has been sold to another party.( the buyer).

Agreement for Deed: This agreement os also referred to as contract for deed or land contract, depending on your area of operation. The Agreement for Deed is an installment-selling arrangement whereby the buyer may use, occupy, and enjoy land, but no deed is given by the seller (so no title passes) until all or a specified part of the sale has been paid.

Agreement for Early Use: In order to begin marketing a property, there are many instances where it would benefit an investor to take early possession of a property. This agreement allows a buyer to occupy, or take possession of a property prior to closing escrow. However, it is not always advisable to allow buyers to take possession of a property prior to closing because there are always risks associated with removing a tenant if they fail to close on the property.

Agreement of Sale: A written agreement (contract) between a seller and a purchaser in which the purchaser agrees to buy certain property and in which the seller agrees to sell the property. upon terms within the agreement. Also called offer and acceptance, contract of sale, Standard Purchase and Sales Agreement, or Earnest money contract.

Ammenities: 1. In an apprasial, the non-monetary benefits derived from property ownership, such as pride of home ownership. 2. features that add to a properties desirability, such as modern appliances and fixtures.

Amortization: A gradual paying off a debt by periodic installments.

Amortization Schedule: A table that shows the periodic payment, interest and principal requirements, and unpaid loan balance for each period of the life of a loan.

Annual percentage rate: The effective rate of interest for a loan per year; disclosure of which is required by the Truth-in-Lending Law.

Apprasial: A opinion or estimate of the value of a property also, the act or process of estimating value.

Apprasial Standard Board (ASB): Develops, interprets and amends the uniform standards of professional apprasial practices (USPAP)

Appraiser: One qualified to estimate the value of real property

Appreciation: An increase in the value of property. Causes of appreciation may include inflation, demand pressures for land and buildings, a physical addition,modernization, removal of a negative factor from within or outside a property, and sweat equity.

Arrears: 1. at the end of a term. 2. sometimes used to signify default: overdue in payment.

Asbestos: Insulation material that was frequently used in older buildings. such as pipe wrap, boiler insulation floor tile, and ceiling coating. Asbestos may become friable (brittle)  with age. In that condition, it may crumble and release particles, which, like dust become airborne. Breathing asbestos particles may cause several serious lung illnesses. Removal or encapsulation of asbestos in building is expensive but necessary to prevent illness. The discovery of asbestos in a building is likely to cause a significant decrease in value.

As is: Without guarantees as to condition, as in a sale. A buyer or tenant accepts premises as they are, including physical defects, except latent defects.

Asking Price: The list price that an owner would like to recieve

Assessed Valuation: The value of a property, established for property tax purposes.

Assign: To transfer one's property rights or contract rights to another. Contracts commonly assigned include Leases, mortgages, and deeds of trust.

Assignee: The person whom an agreement or contract is sold or transferred.

Assignment: The method by which a right, or contract is transferred from one person to another.

Assignment of Beneficial Interest in Trust: This document transfers from the assignor to the assignee the beneficial interest,and/or ownership, of the trust. It instructs the trustee who is to be the new beneficiary of the trust agreement.

Assignment of Contract: An agreement to assign an existing real estate purchase agreement, or option, that you created. Assign the existing contract to a buyer other then yourself. In return, you may recieve cash payment, which will essentially be a finder's fee.

Assignment of Mortgage: The assignment (assumption) of a mortgage is the purchase of a mortgaged property whereby the buyer accepts liability for the debt that continues to exist. The seller remains liable to the lender unless the lender agrees to release him or her from it. You should note that many mortgages are no longer assumable; however, in certain instances, lenders have allowed the assumption of a mortgage that includes FHA loans.

Assignor: A person who assigns or transfers an agreement or contract to another.

Assumable Loan: A mortgage loan that allows a new home purchaser to undertake the obligation of the loan with no change in loan terms.

Authorization to Release Information: This contract provides a buyer/investor to have loan information released to then from the lender regarding the purchase of real estate property. This agreement is used primarily in conjuction with short-sale strategies. In order to negotiate a short-sale with a lender, you must take this agreement signed by the homeowner. Most lending institutions will likely have their own form that they prefer you to use.

This concludes the A's stay tuned for the B's of Glossery terms Hope this helps you

Be blessed

Patricia