AAA Tenant - A commercial tenant with the highest credit rating and lowest possibility of default. Owners can secure better financing terms and selling prices with such a tenant in their property.

Abatement - A reduction. Usually in reference to taxes.

Abode - A home, residence, domicile.

Abrogate - Withdraw, rescind, revoke, or cancel. 

Abstract of Judgment – A summary of a court judgement filed with the County Recorder.

Absolute Auction - A sale will be to the highest bidder no matter how low the highest amount bid.

Abstract of Title - A summary of all recorded proceedings and investments that affect a property’s title.

Abut - Next to, or touching.

Accelerated Cost Recovery System - A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.

Acceleration Clause – A loan provision which allows the lender to declare the loan due immediately in full and payable if another specific loan provision is violated. This is also referred to as the Due on Sale Clause.

Acceptance – An agreement between a buyer and seller to enter into a contract and be legally bound by its terms.

Accrued Interest – Earned but unpaid interest.

Accumulated Depreciation – In accounting, the amount of depreciation expense that has accumulated to date.

Acknowledgment - A declaration by a document’s signer that he or she voluntarily signed the document, made before a duly authorized person.

ACM - Asbestos containing material.

Acquisition Cost - The price and all fees required to purchase a property.

Acquisition Loan - Money which is borrowed for the specific purpose of buying a property.

Acre - A two-dimensional measure of land that is equal to 43,560 square feet or 4,840 square yards.

Act of God - An act caused exclusively by nature, without intervention from humans.

ADA - Americans with Disabilities Act.

Addendum – An additional article or provision which has been attached to an existing contract.

Additional Principal Payment – Additional money paid as part of the monthly payment in order to reduce the principal and shorten the length of the loan.

Adjacent - Next to, but not necessarily touching.

Adjoining – Land which is attached, contiguous, or shares one or more borders.

Adjustable Rate Mortgage (ARM) - A mortgage loan whose rate may be changed at specific intervals over the life of the loan.

Adjusted Cost Basis - The cost of any improvements the seller makes to the property. This cost is deducted from the original sales price to find a home’s net profit or loss after it is sold.

Adjusted Tax Basis - The original cost of the property, reduced by depreciation deductions and increased by capital expenditures.

Adjustment Period - The time between interest rate adjustments in an adjustable-rate mortgage.

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

Administrator's Deed - A legal document used to transfer property by the administrator of an estate.

Adverse Possession – A method of acquiring a property when an occupant has been in legal occupancy of the property for a set period of time (variable by state).

Affiant - A person that makes a written statement under oath through an affidavit.

Affidavit - a written statement, sworn to or affirmed before a legally authorized officer or agent.

Agency - the relationship between a principal and his agent as defined by a contract in which the principal asks the agent to perform certain deeds on behalf of the principal.

Agent - One who acts on behalf of a principal in an agency relationship.

Aggrieved Party - A party who has suffered a wrong or injury, and has a complaint or grievance against another party.

Agreement for Deed - see Contract for Deed.

Agreement of Sale - Typically refers to any real estate sales contract.

Air Rights - Historically, property owners owned to the center of the earth and to the top of the heavens, which included the right to the air above the property and the right to exclude trespassers. Typically sighted in the right to remove tree limbs that hang over a property line.

Alienation - to transfer title and possession of property to another party.

All Inclusive Trust Deed – An all inclusive trust deed is identical to a wraparound mortgage. It is used in states that use trust deeds instead of mortgages.

Alley - A path between buildings or behind buildings, usually with walls on both sides.

Amendment - A change to an agreement.

Amenities - Particular features that add value to a property, such as a whirlpool bathtub, sauna,  or int he case of a condo, a workout facility.

Americans with Disabilities Act (ADA) - A federal law that grants civil rights protection to individuals with disabilities.

Amortized Loan - a loan that is repaid in several installments, each containing a portion used to reduce the principal amount of the loan and a portion that is applied to pay interest. Each payment designates a larger portion to principal reduction and a smaller portion to interest payment, until the outstanding balance is eventually paid off in full.

Angel Investor - An investor who invests in riskier start-up ventures.

Annual Cap – the maximum amount by which the interest rate on an adjustable rate mortgage can increase or decrease during a one-year period.

Annual Percentage Rate (APR) – The yearly rate of interest for a loan, including points and fees. The Truth-in-Lending Law requires the disclosure of this rate.

Anticipatory Breach – A preliminary notification that informs one party that the other party will not fulfill the obligations of their original contract.

Appraised Value – The estimated value of a property. The Appraised Value is determined by comparable sales for residential properties, replacement cost for insurance properties, or income approach for commercial properties.

Appraiser - A person that performs appraisals of real or personal property.

Appreciation – When a property’s value increases.

Appurtenance - That belonging to something of greater importance.

APR - See Annual Percentage Rate.

Arable - Able to be cultivated.

Architecture - The science and art of structural design and construction supervision.

Arrears – Extra payments, such as prior months’ interest or overdue payments in default.

As-Is – A property offered with no guarantees related to its condition.

Assessed Value – A property’s value that is established for property tax purposes.

Assessor - A public official charged with maintaining the property tax rolls and the accuracy of the appraised and assessed value of properties.

Assignee - The party to whom an Assignor sells or transfers an agreement or contract.

Assignment - The method by which a party transfers a right or contract.

Assignor – The party who assigns or transfers a contract or agreement to another party (the Assignee).

Assumable Mortgage - An existing mortgage in which the new purchaser of a property is made liable for the payments and any other obligations of the note and mortgage. Depending on the type of loan, the new purchaser’s assumption of these obligations may require a process of approval, and may or may not release the original borrower from future liability. A written release from the mortgagee (lender) is required for the original borrower to be relieved of responsibility for the payments.

Attornment - The formal agreement of a tenant to be a tenant to a landlord.

Auction - A sales technique in which real or personal property is offered for sale to the highest bidder.