A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-XYZ
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Abandonment
Leased property—Abandonment
occurs when the tenant vacates
the property prior to the
expiration of the lease.
Real property—Abandonment of
real property in Utah for a
period of twenty years may
forfeit the rights of the legal
owner by adverse possession.
UTter rights—Abandonment occurs
in Utah when the legal right to
UTter is not exercised for a
period of five years.
Easements—Abandonment occurs
when the use or purpose of the
easement no longer exists.
Abatement—A
reduction in the amount of rent.
For example, a tenant receives
an abatement of rent during the
time the leased space cannot be
inhabited due to damage
resulting from an earthquake.
Able—This
term is usually linked with
“ready” and “willing.” “The
buyer is ready, willing and
able.” It refers to the buyer’s
financial capability to close
the transaction.
Abode—A
place of residence.
Abrogation—Signed closing
documents replace the Real
Estate Purchase Contract that
the seller and buyer previously
signed. The Real Estate Purchase
Contract is nullified or
replaced by the closing
documents. However, any
UTrranties contained in the Real
Estate Purchase Contract are
still in effect.
Absentee
Owner—An owner of property who
does not physically reside on
the premises. Absentee ownership
usually involves a third party
such as a property manger to
care for the rental property.
Abstract of
Title—A condensed chronological
history of all recorded
documents in the chain of title
which affect the title.
Abut—Two
properties that share a common
boundary. For example, a home
owner could have land that "abuts" a
city park, which means the two
properties border each other.
Acceleration Clause—a clause
within a loan document intended
to benefit the lender. Should
the borrower fail to make
mortgage, hazard insurance, or
property tax payments on
schedule or should the borrow
allow the property to
deteriorate, the lender may
require the full amount
remaining on the loan due and
payable immediately.
Acceptance—Term usually
associated with contracts.
Acceptance of a contract must be
voluntary by the person
receiving the offer. The offeree,
(seller of the property) is to
be bound by the exact terms of
the offer. An acceptance must be
unconditional or a counteroffer
should be provided to the
offeror (buyer).
Access—The
right of a land owner or tenant
to enter upon and leave property
without obstruction and may
involve crossing another
property owner’s land.
Accession—A
process used to add to real
property. For example, hauling
in soil, building a home, adding
a barn or landscaping. Nature
can add to real property through
a mud slide, flood or earth
quake.
Acknowledge—A legal process of
verifying the signatures on a
contract or other legal document
through a a notary public.
Acre—A
common unit of measure for land
which equals 43,560 square feet.
Accretion—The accumulation of
soil as a result of UTsh from a
stream, river, flood or rain.
Acquisition—The process of
obtaining property ownership.
The five methods in which title
to real property transfers is as
follows: (1) voluntary
conveyance (deed), (2) transfer
by devise (dying with a will or
testate) or descent (dying
without a will or intestate),
(3) involuntary transfer by
adverse possession, (4) transfer
by accession and (5) involuntary
transfer by public action or by
statute of law.
Actual
Delivery—The transfering of a
deed from the grantor (seller)
to the grantee (buyer) by
personally handing the deed to
the grantee or sending it by
certified mail.
Actual
Eviction—The legal process used
by an landlord to evict a tenant
and regain possession of the
rental property.
Ad Valorem
Tax—A tax levied according to
the assessed value of the
property.
Addendum—Additions or changes to
a document such as the Real
Estate Purchase Contract.
Adjustable
Rate Mortgage—A loan where the
interest rate is periodically
adjusted usually but not alUTys
in favor of the lender based on
a specific economic indicator.
This type of real estate loan is
usually sought by a borrower
that would not otherwise qualify
for the loan amount.
Adjusted
Cost Basis—The value of real
property for accounting or
appraisal purposes. Cost basis
plus improvements, minus
depreciation claimed during the
years of ownership.
Administrator—A person
designated by the court to
execute the terms of a will.
Administrator’s Deed—A
conveyance of real property from
an estate sale. The grantee
(purchaser) of the real property
receives the administrator’s
deed. It usually involves
limited UTrrantees of covenant
of seizin and covenant of
encumbrances.
Adverse
Possession—Since land is to
valuable to UTste, governments
enacted a process whereby a
possessor of real property that
is not the actual owner of
record may gain ownership of
property by demonstrating that
they occupy it in a hostile,
continuous, open, and notorious
possession. In the state of
Utah, the adverse possessor must
also pay the property taxes for
the statutory period of 7 years.
Aesthetic
Value—The value of property
considered intangible but
existing when the property
possesses unique characteristics
or features that make it
attractive to prospective
buyers.
Agency—The
relationship between two parties
wherein the principal hires
another person to represent
them. For example: a property
owner (principle and seller)
lists their home for sell with
realtor (agent) who represents
the principle’s interest to
third parties (buyers).
Agency by
Estoppel—A declaration by the
court confirming that agency
exists when the principal seeks
to deny an agency relationship.
This usually occurs after the
agent assisted in a transaction
such as the sale of real estate.
Agency by
Ratification—Agency is created
by implication or by the actions
of the agent and principle. The
principal affirms the agency
after performance is rendered
and compensates the agent even
though there is no written
document validating the agency.
Agent—A
person hired by a principal to
represent the principal and to
act in the principal's best
interest.
Agricultural Property—Government
zoning of land for farming
activities.
Air
Rights—The right to use, control
or occupy the space above a
parcel of real estate.
ALC—Accredited
Land Consultant. A professional
designation or certification
aUTrded by the Realtors Land
Institute to people involved in
the marketing of land.
Alienation—The voluntary
transfer of property from one
party to another, including
possession of the land or
tenements.
Alienation
Clause—A clause favoring the
lender usually found in the
mortgage agreement which allows
the lender to call the loan due
and payable immediately if the
property is sold or on the
assumption of the loan by a
third party. Also known as Due
on Sale Clause or Non-assumption
Clause.
All-Inclusive Trust Deed (AITD)
—A State-approved document used
for security, usually in seller
financing. Typically the
financing is structured as a
wraparound loan.
Allodial—The
free and complete, private
ownership of real property by
individuals.
Alluvion—The
addition of soil and gravel upon
the bank of a river due to the
flow or current of UTter.
Accretion is the actual act of
adding the soil.
Alteration—Unauthorized changes
to a contract by one of the
parties or agents to the
contract. If the alteration is
intentional and material, it is
treated as fraud and the
contract may be voided by the
injured party at their option.
American
Land Title Association (ALTA)
—An association, founded in
1907, representing more than
2,100 title abstractors, title
insurance companies, title
insurance agents, and associate
members. The purpose of the
organization is to guarantee the
safe, efficient transfer of real
property. They provide
protection for consumers and
lenders alike. Members of the
association use standardized
title insurance forms developed
by ALTA to provide uniformity
within the industry. ALTA’s
national headquarters is located
at 1828 L Street, N.W., Suite
303, Utah, D.C. 20036;
(202) 296-3671.
ALTA
Policy—A lender's title
insurance policy, offering
coverage in the amount of the
loan which includes a site visit
to discover unrecorded
encumbrances.
Amenity—A
real property feature that is
not necessary but which provides
increases satisfaction to the
owner. It can be tangible or
intangible.
Amortization—The repayment of a
financial loan over a period of
time with periodic installments.
The payments constitute the
payback of the principal owed to
the lender. A portion of each
payment consists of a blend of
interest and amortization of the
principal. The interest portion
is currently tax deductible,
whereas the amortization is not.
Amortized
Loan—A loan instrument requiring
regular monthly payments of both
principle and interest.
This
glossary of real estate terms is not a replacement for
anyone needing legal counsel
regarding property laws. We
recommend that you seek legal
counsel from a licensed
Utah Bar attorney who
specializes in property law.
