Real Estate Keywords

One whose land adjoins another parcel of property (including a road or another private parcel)

The Agreement of one party to a set of terms offered by a second party

An area of measurement equal to 43560 square feet

The process of gaining a title to real property by open, continuous, and notorious occupancy (for twenty years in Massachusetts); known as “Squatter’s Rights”. Similar to establishing an easement by prescription

The relationship between one person (Principal) and another (Agent) who is authorized to act int the first person’s behalf.

The rights to the space above a piece of property

The Process of repaying a loan by making systematic payments of principal and interest over time until the balance is zero

An estimate of value

An estimate of what a parcel of property will sell for. An estimate of market value.

A mortgage where one final payment, larger than any preceding payment, pays off the debt

A written contract between two parties for the sale of personal property.

A mortgage secured by two or more parcels of property

An individual who for consideration sells, rents, exchanges, or negotiates options of real property

A real estate broker who represents the buyer not the seller and therefore has a fiduciary responsibility to the buyer.

Comparison of value to net income, used by an appraiser in estimating value of income property (net income divided by value).

An article of tangible personal property

The one who has hired an agent to perform a service for a fee

Detailed itemization of all borrower costs the lender must provide the borrower three days prior to closing.

In a condominium; all areas not owed as individual units and therefore for the use and ownership of all owners and tenants

A type of easement where each of the two abutters have the right to cross over the property of the other to gain access to their property (usually a garage).

An opinion of value derived by a market analysis by a licensed salesperson or broker.

The administration or judicial procedure used when taking land by local, state, or federal government for the public good called eminent domain.

The part of the responsibility of loyalty in agency law that deals with matters of disclosure. The broker must disclose material facts about the property but not personal facts about the principal that may not be in the principal’s interest.

An individual appointed by the court to act as a guardian

A mortgage designed to finance the building of a new house or other building.

A legally enforceable agreement between competent parties to perform a certain act for consideration.

A mortgage that is not insured (FHA Loan) or guaranteed (V.A. Loan) by the federal government. Includes loans backed by Private Mortgage Companies (PMI)

The one receiving an offer (offeree) responds by offering a new set of terms as a new offer. The original offeree then becomes the new offeror.

The right of the husband to a share of his wife’s estate at the time of her death. (In Massachusetts, curtesy rights are one-third of the wife’s estate at the time of her death).

The third party in law of agency between a principal and an agent for whom some service is performed. When a seller (principal) hires a broker (agent) to sell a house; the buyer is the customer

Written instrument that transfers ownership of real property from one party to another.

A reduction in value due to any cause. In appraisal of real estate it includes physical deterioration, functional obsolescence and economic obsolescence.

A mortgage where the monthly payment remains the same. The amount that goes towards interest decreases and the amount that goes towards principal increases over the life of the mortgage.

An agent of both parties to a transaction who represents each one and has informed each of this relationship.

One of the duties of agency (also known as duty of notice) that requires an agent to keep his/her principal informed of any matter that is in the principal’s interest.

Agency where the real estate broker or sales person represents both the buyer and the seller. The law requires this dual agency to include informed consent and to be in writing.

An agent of both parties to a transaction who represents each one

An interest that one party (Dominant Estate) has to use the property of another (Servient Estate) as in a right of way

Process by which property reverts to the state when no will or heirs exist or when the property is abandoned.

Process where money and/or documents are held by a third party for two parties in a transaction.

Owner gives one broker the right to sell a parcel of property but remains the right to sell himself without paying a commission.

Owner gives one broker the right to sell a parcel of property and agrees to pay a commission when sold by anyone including the owner.

The most likely price a property will bring in a competitive and open market

The interest rate the Federal Reserve Bank charges it’s member banks

Federal law known as Title VIII that addresses discrimination in matters of housing including protected classes, prohibited practices, new construction, financing, providing brokerage services and appraisal reports.

A mortgage where the Federal Housing Administration (FHA) insures the bank against loss.

The Highest form of estate-the holder possesses all of the rights possible-limited by government rights and the rights of others. Also known as fee or fee simple.

An article of personal property that become real property by being attached to the realty

The forced sale of a piece of real property by the lien holder when the perms of the contract have not been met.

One who is authorized to act or another in all matters (A.K.A a universal power of Attorney)

An act that is done honestly

One who is receiving title to real property from a grantor

One who is giving tidal to real property to a grantee

Additions to real property that are intended to increase value (more than maintenance or repair).

Property owner dies without a will or with a will that is defective. Property changes ownership through the state laws of descent

Any mortgage that takes second priority to another lien on the property

An agreement (written or verbal) between an owner (Lessor) and a tenant (Lessee) to grant the exclusive right of occupancy to real property for a specific period of time

The Tenant in a landlord (Lessor) and Tenant (Lessee) relationship.

The Landlord in the Landlord (Lessor) and Tenant (Lessee) Relationship.

A right or interest that one party has in the property of another as security for a debt (a financial encumbrance; a mortgage)

An interest in real or personal property that is limited to the life of the owner or some other specified individual.

Appraisal technique that compares the subject property to similar properties that have sold recently to establish value.

The most probable price property will bring assuming a knowledgeable seller and buyer and a fair and open market and a reasonable time to market

The state agency responsible for the administration of Massachusetts Fair Housing Law. This includes receiving any complaints in the state regarding fair housing.

Massachusetts state law that addresses discrimination in matters of housing. Covers similar areas as Federal Title VIII but goes much further in who is protected under the law. More protected classes.

The deed recorded when a condominium development is created as required by M.G.L. c. 183A.

A federal law that requires law enforcement authorities to make information available to the public regarding registered sex offenders.

Massachusetts General Law that regulates information, conversion and management of condominiums, both commercial and residential

A conditional conveyance of property as security for a loan

Party lending money with property as security (Ex: Bank)

Party borrowing money with property as security (buyer or borrower)

A listing placed on multiple listing service (MLS) where member brokers agree to share listing with one another.

A lease where the lessee (tenant) pays a fixed rent plus other expenses. (also known as triple net when the tenant pays taxes, insurance and other operating expenses).

That part of the law agency that requires that the agent follow the principal’s direction (Requirement to violate the law is excluded)

A promise by one party to act in a specified manner providing a second party acts in the manner requested.

All property that is not real property (An article that is movable and not attached to the realty) also called personalty.

A written document authorizing one person to act for another to whatever extent specified.

Process whereby a loan originator reviews a buyers’ financial status to determine in advance the amount of mortgage that will be approved.

The rate the banks charge their best customers with the highest credit rating on unsecured and short term loans.

1.One of the main parties in a transaction (as in seller and buyer)

2.In an agency relationship, one who engages another (the agent) to act in his/her behalf

3.In financial matter, the amount of debt owed, which added to interest constitutes the amount paid

That part of the court system that deals with wills and inheritance

Land and whatever is attached to the land. Also known as Real Property or Realty

A registered trademark that may be used only by a licensed broker or salesman who is a member of the state and local real estate board chartered by the National Association of Realtors

The fixed, periodic payment by the lessee to the lessor for the use of the leased property.

Mortgage structured to reverse the standard payment to allow the bank to pay the borrower a fixed amount each month. Designed primarily for the elderly.

A payment by a tenant to a landlord to be held as assurance against default or damage to the property by the tenant

A real estate broker who represents the seller, not the buyer and therefore has a fiduciary responsibility to the seller

Document called for in Massachusetts General Law c.183 section 6 (d) issued by the condominium management association documenting the status of any condo fees or special association documenting the status of any condo fees or special assessment or other charges due by the unit owner. Must be present at transfer of ownership.

See Adverse Possession

A lease given by a lessee for a part of the premises or part of the time where the lessee retains some interest. Transfer of the total lease is an assignment

Rights to real property that are beneath the surface including mineral rights, water rights, and easements such as underground utilities.

The right of the government to levy charges on a piece of property. One of the government limits to rights of ownership

The length of time or duration of a lease

A form of ownership that allows multiple owners of a piece of property each with an undivided interest for a fixed or variable time of a year. Ex. Ownership of week 36.

Lease where the tenant pays rent plus taxes, insurance and other maintenance expenses. Technically redundant as net lease means the same but emphasizes the tenants payment of rent plus all expenses.

A bank account set up by a real estate broker to handle all monies collected as an agent for the seller.

A mortgage loan to an eligible veteran that is guaranteed by the veteran’s Administration (V.A.)

What something is worth. The power of a good or service to command other goods in exchange.

A mortgage where the interest rate changes over time based on some agreed upon index. Also known as an Adjustable Rate Mortgage (ARM)

Permission to build, convert or otherwise use a parcel of property in violation of the zoning ordinances

A written instrument disposing of property after an individuals death (testator).

An exercise of police power whereby a city or town limits property rights by determining what can be built within certain sections of a municipality.