Glossary of Terms
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The voluntary relinquishment of rights
of ownership or other interest (such as an easement) by
failure to use the property, coupled with an intent to
abandon (give up the interest).
A reduction of decrease Usually
applies to a decrease of assessed valuation of ad valorem
taxes after the assessment and levy.
A summary: an abridgement
before the use of photo static copying, public records were
kept by abstracts of recorded documents.
A certificate contained in an abstract
which shows the time period and scope of the search of
public records done by the abstracter.
ABSTRACT OF JUDGMENT
A summary of the essential provisions
of a court judgment. Which when recorded in the county
recorder's office, creates a lien upon the property of the
defendant in that county. both presently owned or after
ABSTRACT OF TITLE
A compilation of the recorded
documents relating to a parcel of land, from which an
attorney may give an opinion as to the condition of title
Still in use in some states but giving way to the use of
Clause used in an installment note and
mortgage (or deed of trust). Which gives the lender the
right to demand payment in full upon the happening of a
certain event, such as failure to pay an installment by a
certain date change of ownership without the lender's
consent destruction of the property, or other event which
endangers the security of the loan.
The location of a site in terms of how
easily it may be reached by customers, employees, carriers,
and others necessary to the intended use of the property.
An agreement by which one accepts
something different (usually less) from what is owed as full
satisfaction The amount owed may be in dispute or simply
accepted as full satisfaction by the creditor or claimant.
The agreement and acceptance is called "Accord and
The gradual addition to the shore or
bank of a waterway. The land generally becomes the property
of the owner of the shore or bank, except where statutes
(1) The amount reserved each year in
the accounting system for replacement of a building or other
(2) The useful life of a property at any given time.
A written declaration by a person
executing an instrument, given before an officer authorized
to give an oath (usually a notary public) stating that the
execution is of his own volition.
Costs of acquiring property other than
purchase price escrow fees, title insurance lenders fees.
ACT OF GOD
Damage caused by nature (floods,
winds, etc) rather than destruction by man.
A method of charging interest usually
used in the financing of automobiles but not generally used
in real estate financing Interest is computed on the total
amount borrowed and added on to the principal Each payment
is then deducted from this total amount Interest on real
estate loans is usually figured based on the balance owing
after each payment is made (declining balance).
ADJUSTED GROSS INCOME
Gross income of a building if fully
rented. less an allowance for estimated vacancies.
ADJUSTABLE MORTGAGE LOANS (AML'S)
Mortgage loans under which the
interest rate is periodically adjusted to more closely
coincide with current rates. The amounts and times of
adjustment are agreed to at the inception of the loan. Also
called: Adjustable Rate Loans, Adjustable Rate Mortgages
(ARM'S), Flexible Rate Loans, and Variable Rate Loans.
"According to value:" A
method of taxation using the value of the thing taxed to
determine the amount of tax. Taxes can be either
"Ad Valorem" or "Specific." Example: A
tax of $5.00 per $1000.00 of value per house is "Ad
Valorem." A tax of $5.00 per house (irrespective of
value) is "Specific."
A fee charged by a broker to a seller
to cover all or a portion of the broker's costs of promoting
the property. The fee is generally credited against
commissions but is not refunded if no commissions are
received. Most frequently used in connection with large
offerings which require a substantial outlay of funds for
A County located on the Lake Michigan
shoreline in West Michigan including such towns as Douglas,
Saugatuck, Holland, and Fennville.
Payment of a debt in equal
installments of principal and interest, rather than interest
ANNUAL PERCENTAGE RATE [A.P.R.)
The yearly interest percentage of a
loan, as expressed by the actual rate of interest paid. For
example: 6% add-on interest would be much more than 6%
simple interest, even though both would say 6%. The A.P.R.
is disclosed as a requirement of federal truth in lending
APPEL LOAN (ACCELERATING PAYOFF
PROGRESSIVE EQUITY LOAN)
A residential property loan
which calls for a payment increase over the first 6 years.
Level payments are made for the remaining years and the loan
paid off during the 15th year. There is no prepayment
penalty and P.M.I. is required.
An opinion of value based upon a
factual analysis. Legally, an estimation of value by two
disinterested persons of suitable qualifications.
Generally, three major methods of appraisal: Cost Approach,
Income Approach, Market Value (comparables) Approach.
made after it is due is in arrears.
(2) Interest is said to be paid in
arrears since it is paid to the date of payment rather than
in advance, as is rent. Example: A rental payment made July
1 pays the rent to August 1. An interest payment made July 1
Pays the interest to July 1.
ASSUMPTION OF MORTGAGE
Agreement by a buyer to assume the
liability under an existing note secured by a mortgage or
deed of trust. The lender usually must approve the new
debtor in order to release the existing debtor (usually the
seller) from liability.
An easement over private property
abutting an airport runway, which limits the height of
crops, trees, structures, etc., in the aircraft's take off
and landing path.
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