Abstract of title A concise statement of the substance of documents or facts appearing on the public land records that affect the title to a particular tract.

Acceleration clause Provision in note, mortgage, or deed of trust that provides for the acceleration of the due date of the loan; generally results in the full amount of the loan being due upon default such as nonpayment.

Accounting In probate, process of providing a report on the collection and distribution of the estate; in partnerships, an equitable proceeding in which the use and distribution of partnership funds are examined to determine whether each partner has received his or her appropriate share.

Acknowledgment Notary signature and seal; appears on deeds and some contracts as well as on wills.

Act Statute enacted by a legislative body.

Americans with Disabilities Act (ADA) 1990 federal law prohibiting discrimination on the basis of disability and requiring reasonable accommodation by employers and landowners.

Articles of incorporation Document used to create a corporation. Defines the Association’s basic structure and its areas of responsibility.

Assessments  The total amount of assessments charged to each member, and includes monthly (or quarterly) assessments, special assessments, and any other assessments levied against the property.

Association  The corporate entity which is responsible for the management and operation of the property.

Basis Property owner's cost of property; used for computing gain or loss on the sale of property.

Bequest A gift of personal property by will.

Best available treatment (BAT) The highest standard the EPA can impose

Bid notice Call for bids on a project by a contractor.

Blind pool partnership A partnership in which the general partner is selling

Board of Directors or Board of Administration or Directors  The Board of Directors responsible for administration of the Association.

Broker Party who is licensed to handle property listings.

Business judgment rule Standard for imposing liability on directors of corporation; they must give time and thought to decisions.

Bylaws In multiunit housing, the document governing the details of operation; voting rights of members, meetings, notices, etc.

Capital gains The amount of a net gain made on the sale of property; carries  

Change order In construction contracts, a change in work, design, or materials. \

Common Areas  The portions of the property not included in the Units.

Common Expenses  All expenses, debts and obligations incurred by the Association, including the Reserve Fund Requirements.

Common Surplus  The excess of all receipts of the Association, but not limited to, assessments, rents, profits and revenues on account of the Common Areas over the amount of Common Expenses.

Condominium  In Florida, a “creature of statute.”  Condominium means the form of ownership of real property that is created un the Condominium Act and is comprised of units owned individually by one or more persons together with joint ownership of an undivided share in the common elements. The Florida Condominium Act governs their creation and their ongoing activities.  The Act also addresses the rights of unit owners and the responsibilities of those who govern the condominium on their behalf.   Condominium living is designed to create a lifestyle where joint ownership of property promotes the common welfare.

Condominium Association  The governing entity for the community and each unit owner is a member of the association.

Contract for deed Another name for an installment contract; financing transaction in which seller carries the buyer and holds onto title until the buyer has paid in full.

Contract statutes With references to liens, statutes that require lienors to have a direct contractual agreement with property owners to be able to place lien on property on which work was performed.

Cooperative Form of multiunit housing in which a corporation owns the property and owners of the shares in the corporation live in each of the units.

Cooperative Parcel  In a Cooperative form of association, means the Membership Certificate, Proprietary Lease, and, if applicable, the mobile home affixed to the leased unit.

Cooperative Share or Share or Cooperative Parcel  The comginationof the Membership Certificate, which evidences ownership of an undivided share in the assets of theCooperative, together with this Proprietary Lease for the Member’s Unit.

Counteroffer Offer made in response to offeror by the offeree; can occur by a change in the offeror's terms.

Covenant Promise in a deed that affects or limits the use of the conveyed property.

Declaration  In a Cooperative, means the Master Form Proprietary Lease.

Declaration of condominium  The document or the set of documents that established the covenants and restrictions which will affect the property and govern the residents during the entire existence of the condominium.

Declaration of covenants, conditions, and restrictions (CCRs) The restrictions and limitations on the use and construction of land.

Deed Instrument used to convey title to real property.

Deed in lieu of foreclosure Process of borrower/property owner/mortgagor surrendering title to property to prevent lender's foreclosure.

Deed restrictions Provisions usually recorded for subdivisions; the CCRs; restrictions of the use, development, and construction of the premises.

Default Failure to comply with document stated requirements.

Depreciation Wear and tear on property; can be deducted each year and used to offset income earned on income-producing property; greatly limited under Tax Reform Act.

Earnest money Deposit given by buyer on signing a contract for the purchase of property.

Escrow Process whereby details of property transfer, payments, and deed conveyance are handled by a third party.

Fee simple Highest land interest; full title; right to convey or transfer by will or mortgage without restriction.

Fee simple subject to a condition subsequent Full title provided that  

Fixtures Personal property that becomes attached to and is so closely associated with real property that it becomes a part of the real property.

Foreclosure Process of selling mortgaged property to satisfy the debt owed by the defaulting mortgagor.

Home Mortgage Disclosure Act Federal law mandating disclosure on consumer loans for second mortgages on residential property.

Homeowner  In a Mobile Home Cooperative, shall mean a person or persons who own(s) a mobile home and rents or leases a unit within the Park for residential use, is governed b y Chapter 723, Florida Statutes and is not a Member of the Cooperative.

Homestead exemption Debtor protection that entitles the debtor to a certain amount in real property that is exempt from attachment by creditors.

Insurer Party who indemnifies for loss.

Integration SEC practice of combining back-to-back exempt offerings with result being offerer is in noncompliance with restrictions for exemption.

Interest Acceleration clause Clause in note that increases interest in the event of a default.

Internal Revenue Code (IRC) Federal law governing income taxation.

Interval-ownership grant Form of time-sharing interest ownership.

Invitee Party who has a specific invitation to enter another's property or is a member of the public in a public place.

Joint tenancy Method of co-ownership that gives title to the property to the last survivor.

Lease-purchase Financing method that permits potential buyers to lease property for a period with an option to buy.

Lender liability Doctrine that makes lenders liable for the lack of timely approval or withdrawal of an approval for financing already issued.

License Revocable right to enter another's property.

Lien Interest in real property that serves as security for repayment of a debt.

Lienee Person whose property is subject to a lien.

Lienor Party who places a lien on real property.

Life estate Interest in land that lasts for the life of the grantee.

Life tenants Those who hold a life estate in property.

Limited agent Agent whose authority is limited in time or scope.

Limited Liability Company (LLC) Business entity that is a cross between a corporation and a partnership.

Limited Liability Partnership (LLP) Business entity that has limited liability for all partners (except for professional negligence of each).

Limited partner Investor in limited partnership whose maximum liability is his capital investment.

Limited partnership A partnership with at least one general partner in which limited partners can purchase interest and be liable only to the extent of their interests and not risk personal liability.

Liquidated damages Damages that are specified in formula or in amount in the written and signed agreement of the parties; must be reasonable.

Lis pendens "Suit or action pending"; document recorded with the land records to indicate a suit involving the land is pending; filed in mortgage foreclosures and quiet title actions.

Listing agreement Contract between a broker and landowner for the broker's services in helping to sell the owner's property.

Living will Term for authorization to take testator off life-support equipment; authorized in many states but must use appropriate or required language and be formally executed.

Marketable title Form of title generally required to be delivered in the sale of property; property is free from liens and there are no defects in title other than those noted or agreed to.

Member  In a cooperative, shall be the person or persons owning a Membership Certificate issued by the Cooperative, pursuant to its Article of Incorporation, Bylaws and Master Form Proprietary Lease.

Membership Certificate  The certificate issued to each Cooperative Member that evidences membership in the Cooperative and ownership of an undivided share in the assets of the Cooperative.

Metes and bounds Method of land description that begins with a permanent object and then through distances and directions describes the parcel of land.

Misrepresentation Giving incorrect or misleading information to a party in contract negotiations or failing to disclose relevant information; inaccurate information that would affect the buying or selling decision.

Monthly  Assessment  The share of the funds required from each Member on a monthly basis for the payment of Common Expenses, Reserve Fund Requirements, and other charges and expenses.

Mortgage Lien on real property used to secure a debt.

Mortgage broker Agent who matches borrowers with mortgage companies.

Mortgage trust Real estate syndication trust that invests in real estate mortgages.

Mortgagee Lender or party who holds the mortgage lien.

Mortgagor Borrower or party occupying land that is mortgaged.

Multiple listing A listing that appears on more than one broker's inventory of homes.

Multiple listing service (MLS) A specific multiple listing service that is nationwide and to which most brokers subscribe.

National Association of Realtors (NAR) Professional organization of brokers and agents; has standards for admission and maintenance of membership.

Nuisance Use of property so as to interfere with another's use and enjoyment of property; e.g., bad smells and loud noises.

Offer Initial communication in contract formation that, if accepted, results in the formation of a contract.

Open listing Listing that pays a commission to whichever broker or salesperson sells the property; permits the owner to list with more than one broker and be liable for only one commission.

Operating expenses In commercial leases, the costs of running the property; variable and defined by lease.

Ordinances Laws passed on a local level of country, state, or city governments.

Patriot Act Federal law with many aspects designed to curb terrorist activities; impacts real estate transactions because of disclosure requirements imposed on escrow agents regarding transfer of title and deposits of cash; imposes new disclosure and signature requirements for buyers and sellers.

Performance bond Bond on general contractor that guarantees performance; if the general contractor does not perform, the surety will provide performance or payment for damages resulting from noncompletion of the work.

Personal representative Party responsible for the probate of a will under the Uniform Probate Code; formerly referred to as an executor.

Planned unit development (PUD) Subdivision that includes a development of a full community.

Plat map Method of land description that relies on a recorded map of a subdivision, with each deed making reference to the map and the particular lot being transferred.

Posthumous heirs Heirs born after the death of the decedent.

Premarital agreements Contracts that serve to waive marital property rights of the spouses; must be voluntary and carefully drafted.

Premises The words of conveyance in a deed; e.g., "do hereby grant and convey."

Prenuptial agreements Agreements in advance of marriage that alter statutory marital property rights.

Prepayment penalty clause Clause in mortgage or promissory note that requires the mortgagor to pay an additional charge for paying off the loan early.

Priority of Documents  In a condominium, the document with the highest priority in the community is the declaration of condomium.  The articles of incorporation have the next highest priority.  Next in priority are the bylaws, followed by the rules and regulations attached to the recorded declaration of condominium, and subsequently, followed by the rules and regulations promulgated by the board of directors.

Probate Process of collecting the assets of a decedent; paying the decedent's debts, determining the decedent's heirs, and distributing property to the heirs.

Procuring cause of the sale standard Standard of determining commission among brokers under an open listing agreement.

Promissory note Two-party debt instrument that, in real estate, is generally secured by a mortgage or deed of trust or some other interest in real estate.

Property tax roll Assessor's formal records of parcels of land; the valuation and assessment.

Proprietary lease Interest of cooperative owner in a dwelling unit.

Prorated Allocation of prepaid insurance, taxes, and rent; generally done at close of escrow between buyer and seller.

Prospectus  Offering circular, which is the introductory synopsis to the entire set of documents governing the community.  The prospectus is prepared by the developer of the community at the beginning of the project and must be distributed to each new purchaser. 

Purchase money mortgage A mortgage used to secure a debt for the funds used to buy the mortgaged property.

Qualified residential interest Under the Tax Reform Act of 1986, the interest that qualifies as a deduction on individual tax returns as home interest paid.

Quiet title action Court action brought to determine the true owner of a piece of land.

Quitclaim deed Deed that serves to transfer title if the grantor has any such title; there are no guarantees that the grantor has any title or good title.

Range In the United States Government Survey, the lines placed vertically every six miles between the guide meridians.

Real Estate Settlement Procedures Act (RESPA) Federal statute regulating disclosure of closing costs in advance and prohibiting kickbacks for referring customers to title companies.

Realtor Trademark/name used by the National Association of Realtors (NAR) to refer to one of its members.

Recording Process of placing a deed or other document on the public records to give notice of a transaction or interest in the land.

Redlining Practice of targeting certain areas or neighborhood as high-risk areas for loans or insurance or requiring lower valuation.

Refinancing Negotiating a new loan for real estate; generally done to obtain a lower rate or in the case of a sale, to allow a buyer to be able to purchase a property.

Remainder Future interest in someone other than the grantor; a remainder follows a life estate.

Resident  In a Cooperative, shall refer to Members, Homeowners and Tenants.

Residential mortgage transactions Mortgages for the purchase of property to be used primarily as a residence for the buyer.

Reverse mortgage A form of mortgage that enables retired individuals to draw the equity from their homes in the form of a monthly payment. No payments or finance charges are due on the loan underlying the mortgage until the owner dies.

Reversion Future interest in grantor that results after life estate terminates and no remainder interest was given.

Riparian Doctrine In water rights, governs the landowner who adjoins water; a theory that entitles all riparians to use of their water; does not allow one riparian to use all of the water.

Satisfaction of mortgage Payment of full loan amount by mortgagor.

Section In the United States Government Survey, one-mile squares in townships.

Security agreement Under Article 9, the contract that gives the creditor a lien in the personal property or fixture; makes it the collateral for the loan.

Security deposit In the lease, the amount of money prepaid by the tenant to secure performance of the lease and often provide the amount of liquidated damages if the tenant does not perform.

Security interest Creditor's right in collateral under Article 9; the lien on the personal property or fixture.

Shared-appreciation mortgages Method of creative financing in which the lender charges a lower interest rate in exchange for the right to a return of a portion of the equity, including the increased value, of the home.

Soldiers and Sailors Relief Act Federal law that provides time limitations on foreclosures involving those in active military service.

Special Assessment  Any assessment levied against members other than the Monthly Assessment.

Specific performance Equitable remedy that requires a party to a contract to perform the contract promise or promises.

Squatters's rights A lay term for adverse possession or prescription.

Statute of Frauds Statute dictating what types of contracts must be in writing to be enforceable.

Statutory right of redemption Specified period of time after foreclosure sale for buyer to redeem property by paying full amount of debt, interest, and costs associated with foreclosure.

Steering Form of racial discrimination in which brokers or salespeople direct interested purchasers away from and toward certain neighborhoods to control racial composition.

Subchapter S corporation A special form of corporation under the IRC that allows the protection of limited liability but direct flow-through of profits and losses.

Subcontractor A worker hired by the general contractor on a project to complete certain portions of the project.

Sublease Arrangement in which a tenant leases rental property to another, and the tenant becomes landlord to the subtenant.

Subordinate mortgage Mortgage with a lesser priority than a preexisting mortgage.

Substantial performance Construction doctrine that requires good faith completion of a project but not necessarily perfection.

Surety One who stands as a guarantor for an obligation, as in a payment or performance bond.

Tax deed Form of title given in the event property is sold to satisfy taxes; carries no warranties.

Tax lien Lien placed on property for amount of unpaid taxes.

Tax Reform Act (TRA) Federal law (1986) that substantially changed real estate income tax issues. Tax sale Foreclosure sale on property for nonpayment of taxes.

Telecommunications Act of 1996 Federal law that includes regulation of local zoning for location of cellular phone towers; section of this federal law was passed to limit the local resistance to placement of the towers because the local objections were impeding the progress of the cellular network.

Tenancy at sufferance Tenancy wherein the tenant is on the property of the landlord but has no right to be and may be evicted at any time.

Tenancy at will Tenancy wherein the tenant remains as long as both parties agree; either party may terminate at any time and without notice.

Tenancy by the entirety Method of co-ownership that is a joint tenancy between husband and wife.

Tenancy for years Tenancy for a stated period of time.

Tenancy in common Simplest form of co-ownership; unless otherwise stated, the presumed method of ownership for multiple landowners.

Tenancy in partnership Form of co-ownership in which the parties are partners; similar to joint tenancy in that the partners have a right of survivorship.

Tenant or Renter  In a Cooperative, shall mean an occupant of a home who is neither a Member nor a Homeowner, but who occupies and rents a Unit owned by a Membr, Homeowner, or the Cooperative.

Testamentary Disposition by will.

Testamentary capacity The requisite mental capacity needed to make a valid will; a person's need to understand who his or her relatives are and how the property will be distributed by his or her will.

Time-sharing Form of multiunit housing in which owners own the unit for a limited period of time during each year.

Title insurance Insurance that pays the buyer of property in the event certain title defects arise.

Title theory Theory of mortgage law that puts title in the mortgagee and possession in the mortgagor.

Township Term in the United States Government Survey for the six-mile squares formed between the guide meridians and the parallels.

Transaction broker Broker used for a sale but not listing broker.

Trespass Invasion of the property of another by a person or object.

Trespassers One who is on the property of another without permission.

Truth-in-Lending Act Name given to federal statutes and regulations concerning credit terms and their disclosure.

Unit  In a Mobile Home Cooperative, shall refer to the cooperative parcel upon which a Member’s mobile home is located or a rental unit upon which a Homeowner’s mobile home is located, as said units are shown on the Plot Plan attached to the governing documents of the Cooperative.

Unit  In a Condominium, that portion or part of the condominium property which is subject to exclusive ownership. 

Unit pricing Means of costing in construction that divides contract into units for prices and payment.

Unit Owner  In a Condominium, the owner of a condominium parcel and title includes ownership of both the unit and a portion of the common elements assigned to it.

United States Code (U.S.C.) Compilation of all federal laws.

United States Constitution Framework for federal government.

United States Government Survey National survey of land.

Usury Charging interest rates in excess of the statutorily allowed maximums.

VA Veteran's Administration.

Variances Approved uses of land outside the scope of an area's zoning.

Voting Certificate  A document which designates one of the record title owners, or the corporate, partnership, or entity representative who is authorized to vote on behalf of a unit that is owned by more than one owner or by any entity.

Voting Interests  The voting rights distributed to the Members as provided for in the Articles of Incorporation and Bylaws of the Association. 

Warranty deed  Deed that conveys title and carries warranties that the title is good, the transfer is proper, and there are no liens and encumbrances other than the ones noted.

Water rights System of priority for water use.

Wetlands Protected areas near water; formerly known as swamps.

Will Legal document that transfers property rights from testator to named beneficiaries.

Zoning Process of regulating land use by designating areas of a community for certain uses.

Zoning commission Governmental agency responsible for developing the zoning plan .