Abandonment in real estate refers to the voluntary surrender of property, owned or leased, without naming a successor. Such property often reverts to an entity holding a prior interest or, if no owner is apparent, to the state. Abandonment does not negate obligations unless acknowledged by the obligee.
Absolute Title refers to a clear and unequivocal ownership of property, devoid of any liens, judgments, or other encumbrances. It confirms that the titleholder has indisputable legal right to transfer ownership or use the property as they see fit.
An 'Abstract of Title' is a comprehensive summary of all significant legal actions, including recorded instruments and court proceedings, that relate to a particular property's title. It serves as an essential document for title examination, providing potential buyers, investors, and lenders with a detailed history of property ownership and encumbrances.
The allodial system is a legal framework that grants individuals full property ownership rights. It is one of the foundational principles underlying property rights in the United States.
Alluvium refers to soil or sediment that is deposited by the process of accretion, generally considered to belong to the owner of the land to which the material is added.
The term 'attorn' refers to the legal act of transferring or turning over money or property to another party, often used to describe a tenant recognizing a new property owner as their landlord. This can occur during the sale or transfer of leased commercial or residential properties.
Below-Market Interest Rate (BMIR) is a government-driven program where property owners are charged a reduced interest rate with the stipulation that the savings from the reduced rate are passed on to tenants through lower rents.
A Cadastral Map is a legal map utilized for recording and determining the ownership of properties. It provides detailed information about the boundaries and ownership of each parcel of land.
A Certificate of Title is an authoritative opinion rendered by an attorney regarding the status of a property's title based on public records. It ensures the property's title is clear of public record claims.
A clear title, also known as a marketable title, is one that is free of liens, encumbrances, or other legal questions about the ownership of the property. A clear title ensures that the seller actually owns the property and has the right to sell it, allowing the new owner to enjoy full ownership rights.
Closing is the final step in executing a real estate transaction where ownership is officially transferred from the seller to the buyer.
A 'Cloud on the Title' refers to an outstanding claim, lien, or encumbrance that can potentially impair or affect the owner's title to a property. Resolving this issue is crucial for attaining a clear, marketable title when buying or selling real estate.
A 'CO-OP' (Cooperative) is a dual concept in real estate that can refer to a cooperative arrangement between agents for splitting commissions, or more commonly, a type of housing where residents own shares in a corporation that owns the property.
Co-ownership refers to any of several legal arrangements by which property is owned by more than one person. This includes forms such as Tenancy in Common, Joint Tenancy, Community Property, Partnership, LLP, and LLC.
Community Property refers to the principle under which property accumulated through the joint efforts of spouses is considered equally owned by both. This legal doctrine exists in several U.S. states and impacts how assets are divided in events such as divorce or death.
A condominium, often shortened to condo, refers to a private residential unit within a complex or building of multiple units. While individual condo units are separately owned, common areas are jointly owned by all condo owners.
A condominium is a type of residential property where individuals own individual units but share ownership of common areas and facilities.
A Controller’s Deed is a legal document that serves as evidence of property ownership, issued by a governmental unit after the property is sold at a public auction, often as a result of unpaid property taxes.
To convey means to transfer ownership or interest in a property from one party to another, typically through the execution of a deed or other legal document.
A deed is a written document, properly signed and delivered, that conveys title to real property. It serves as a legal record of ownership and may include warranties or specific conditions. There are several types of deeds, including general warranty deeds, quitclaim deeds, and special warranty deeds.
Document recording is a crucial process in real estate transactions that involves filing documents, such as deeds or mortgages, with a recorder of deeds or an appropriate government office to create a public record of property ownership and interests.
An entity is the legal form under which property is owned, impacting the benefits and risks associated with owning real estate. It can vary widely and includes structures like corporations, individual ownership, joint ventures, limited liability companies (LLCs), limited partnerships, partnerships, and real estate investment trusts (REITs).
Equity represents the interest or value that an owner has in real estate over and above the liens or debts against it. It is calculated by subtracting the total liens from the market value of the property.
Equity participation entails property owners selling an interest in their property to an investor, who, in return, provides capital or financial support. It enables property owners to unlock capital without relinquishing full control.
Equity sharing is a financing arrangement where the property owner and lender both hold stakes in the property's future value, meaning the lender is entitled to a portion of any resale profits, usually resulting in a lower interest rate for the property owner.
An estate encompasses the degree, nature, and extent of interest that a person has in real property as well as all their property, real or personal, that they own and leave at death.
An Estate for Years is an interest in land that grants possession for a specified and limited period, often defined in a lease agreement. It is a fixed-term tenancy where the duration of the estate is explicitly stated.
An Estate in Severalty, also referred to as Tenancy in Severalty, is a real estate ownership structure where a single entity, either an individual or a corporation, holds exclusive ownership of a property. This type of ownership means that the owner has the complete responsibility and control over the property, making all decisions independently.
An abbreviation of the Latin phrase 'et alii,' meaning 'and others,' commonly used in real estate documents to reference multiple owners or parties involved.
Evidence of title refers to the legal documents that demonstrate ownership rights to a property. These documents are essential in confirming and asserting a person's or entity's legal property ownership.
A federal tax lien is a legal claim by the government against a property when the owner fails to pay federal taxes. This debt attachment ensures the government has first priority on any proceeds from the sale of the property.
Fee Simple Defeasible refers to a type of property ownership where the grant of title or duration of ownership is dependent on a specified condition.
A free and clear title, also known as a clear title, refers to a property that is free of any encumbrances, such as mortgage debt or liens, that could affect the ownership rights of the buyer.
A good and marketable title assures the buyer that the seller has the legal right to transfer ownership and that there are no defects, liens, or other encumbrances on the property.
The term 'Grant' in the context of real estate refers to the act of transferring ownership or a property interest from one party to another. This technical term is commonly used in deeds of conveyance.
A grantor is an individual or entity that conveys ownership of an asset, typically through the execution of a deed. This figure plays a key role in real estate transactions by transferring the title of property to a grantee.
A Grantor/Grantee Index is a crucial public record that cross-indexes grantors and grantees and the properties they relate to. This index aids in tracing the history of property ownership.
Homeownership is the state of living in a structure that one owns. It is contrasted with being a renter or tenant in one’s home. Homeownership provides numerous benefits such as security, pride, and investment advantages but also introduces responsibilities.
Homeownership rate represents the percentage of owner-occupied dwellings compared to the total occupied dwellings in a specific area, providing insight into housing stability and economic activity.
Interval ownership, also known as time-sharing, is a method of property ownership where multiple owners have exclusive rights to use a property for different intervals of time.
Joint ownership refers to a property ownership structure where two or more individuals hold title to a property collectively. This structure can have various legal implications, depending on how the ownership is defined and agreed upon among the parties.
Joint Tenancy refers to the ownership of property by two or more individuals who collectively hold an undivided interest in the real estate, alongside the right of survivorship. This arrangement ensures that when one joint tenant passes away, their interest in the property automatically transfers to the surviving joint tenant(s).
A legal notice serves as a formalized notification required by law to communicate specific information to others. It ensures that all parties are informed about legal proceedings, decisions, or actions.
Legal title refers to the officially recognized ownership of property, as defined and protected by law. A person or entity with legal title has the full rights to control and transfer the property, subject to any restrictions that may apply.
A marketable title is defined as a title free from significant defects, ensuring that a court will enforce the title's acceptance by a purchaser. This concept contrasts with a 'cloud on the title,' which indicates a defect or potential issue that could limit marketability.
A Mortgagor’s Title Insurance policy protects the buyer or owner of real property from legitimate claims of ownership interest on the property, offering important supplemental coverage beyond the Mortgagee’s Title Insurance policy. Typically, the buyer covers the premium cost for additional security in property transactions.
An owner occupant is a resident of a property who also owns the property. This term differentiates from absentee owners and rental tenants and has significant implications for real estate, including financing and tax benefits.
The term 'Owner of Record' refers to the person or entity listed in public records as the legal owner of a property. While the owner of record is the recognized owner in official documents, beneficial ownership may differ.
An Owner's Title Policy, also known as Mortgagor's Title Insurance, provides protection to property owners against potential losses due to title defects, liens, or other legal encumbrances on the property that may arise after purchase.
A parcel is a defined piece of property under one ownership. It can be a standalone lot or part of a larger subdivision.
"Perfecting title" refers to the legal process of removing any "clouds" or claims against a real estate title, ensuring that the property has a clear and legally sound ownership status. This often involves actions such as paying off liens, resolving disputes, obtaining quitclaim deeds, and addressing other title defects. The goal is to ensure that the title is marketable and can be transferred without any legal challenges to the ownership rights.
Possession in real estate refers to the holding, control, or custody of property for one’s use, either as the owner or as a person with another legal right to the property. Possession can vary based on the extent and legality of the occupier's claim or usage.
A quiet title suit is a legal action taken to settle ownership disputes and remove any clouds on the title of real property, ensuring the owner has clear and undisputed rights to the property.
A quitclaim deed is a legal instrument that transfers the grantor's interest in a property to another party without warranties or guarantees regarding the property's title. It is often used to clear clouds on the title or transfer property between family members.
A Real Estate Investment Trust (REIT) is an investment vehicle that allows investors to invest in real estate or mortgages without directly owning the property. REITs avoid double taxation by distributing most of their income to shareholders and complying with specific IRS requirements.
Real Property encompasses a variety of rights associated with the use and ownership of land and structures. It can include a full ownership interest, the use of a property under a lease, or partial interests like easements.
The record owner is the individual or entity whose name is listed on the public records as the current legal owner of a property or asset.
Redeemable rent refers to a lease arrangement where the rent paid can be applied toward the purchase price of the property. This type of arrangement is often seen in lease-to-own agreements, offering tenants the possibility of becoming property owners.
A situation in real estate where financial benefits from ownership accrue at a lower rate than the mortgage interest rate, leading to negative financial implications for the property owner.
The Right of Survivorship is a legal provision whereby property co-owners hold the right to automatically inherit the interest of a deceased co-owner. This provision is prominently featured in Joint Tenancy and Tenancy by the Entirety arrangements, facilitating smoother transfer of property ownership upon death without the need for probate.
Strict liability is a legal doctrine that holds an owner responsible for the cleanup of a contaminated site, regardless of whether the owner was negligent. This implies that any property involvement with contaminants could entail cleanup costs even if the current owner did not cause the contamination.
Subsurface rights refer to the rights to extract minerals, oil, and gas from beneath a property's surface. Owning these rights can be valuable and is often separated from surface rights in real estate transactions.
Surface rights refer to the legal rights associated with the surface area of a piece of real estate. These rights are often distinct from underground (mineral rights) or above-ground (air rights) entitlements.
A tax deed is a legal document transferring ownership of a property to a purchaser following a public auction for unpaid property taxes.
A form of property ownership under which a property is held by a number of people, each with the right of possession for a specified time interval. Time-sharing is most commonly applied to resort and vacation properties.
Title in real estate is a legal document or designation that denotes ownership and interest in a property. It is evidence that the owner of land is in lawful possession thereof. Title differs from the right to possession alone, as it signifies both the right to possess and evidence of ownership.
A title guarantee is a type of protection that ensures the title of a property is clear of any claims or encumbrances. It provides assurance to buyers and lenders that they are purchasing a legitimate piece of real estate, free from past issues.
Title insurance is a protective policy that assures the transfer of clear title in real estate transactions. It protects against potential disputes over ownership and ensures that both lenders and buyers have security over any claims that might arise after the property transfer.
A Title Plant is an organized database containing comprehensive information on land parcels and improved real estate properties, maintained by title insurance companies to facilitate the process of title searches and ensure accurate title documentation.
A document that indicates the current state of the title, detailing easements, covenants, liens, and any defects, but not describing the chain of title. It assures the buyer of clear title to a property.
A 'To Have and to Hold Clause,' also known as a Habendum Clause, is an essential part of real estate deeds that defines the extent of ownership and rights transferred in the transaction.
The Torrens System is a land registration system that provides conclusive evidence of land ownership and simplifies the process of verifying property title status, eliminating the need for comprehensive title searches.
A transfer tax is a tax imposed when the title or ownership of property is transferred from one person to another, often seen in real estate transactions.
Four characteristics required to create a Joint Tenancy: unity of interest, unity of possession, unity of time, and unity of title, ensuring equal shared ownership among joint tenants.
An unrecorded deed is an instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of the change in ownership. Recording is essential to protect one’s interest in real estate.
A zoning variance is permission granted by a zoning authority to a property owner to allow for a specified violation of zoning requirements, typically granted when compliance is impossible without rendering the property virtually unusable.
A voluntary lien is a claim on a property that the owner agrees to, commonly seen in the form of a mortgage. Unlike involuntary liens, which are imposed without the owner's consent, voluntary liens are willingly granted by property owners to secure debt.
