| Negotiable - |
Capable of being negotiated; assignable or
transferable in the ordinary course of business. |
| Net Listing - |
A listing which provides that the agent may retain, as
compensation for his services all sums received over and above a net price to the owner. |
| Net Worth - |
Value remaining after subtracting the liabilities from
the assets of a company or an individual. |
| Nonconforming Use - |
A use that was lawfully established and maintained,
but no longer conforms to the use regulations of the zone in which it is located because
of a subsequent change in a zoning ordinance. |
| Notary Public - |
An official authorized by law to witness or attest to
an acknowledgment by a person who has executed an instrument. |
| Note - |
A signed written instrument acknowledging a debt and
promising payment. |
| Notice of Default - |
A notice filed to show that the borrower under a
mortgage or deed of trust is in default (behind on the payments). |
| Notice of Non-Responsibility - |
A notice provided by law designed to relieve a
property owner from responsibility for the cost of improvements
ordered by another person |
| Notice of Rescission - |
A recorded notice to rescind a notice of default of a
mortgage or deed of trust. |
| Obsolescence - |
Loss in value due to reduced desirability and
usefulness of a structure because it has become old fashioned and not in keeping with
modern needs or because of adverse social or economic influences. |
| Offer and Acceptance - |
A contract used in the sale of real property; a
deposit receipt or exchange agreement. |
| Offer to Buy - |
An agreement between owner and purchaser as to the
price, terms, conditions and date of occupancy. Usually prepared by a Realtor or attorney. |
| Open-End Mortgage - |
One which provides that the outstanding balance can be
increased in order to advance additional loan funds to the borrower, up to the original
sum of the note. |
| Open Listing - |
An authorization given by a property owner to a real
estate agent wherein said agent is given the non-exclusive right to secure a purchaser;
open listings may be given to any number of agents without liability to compensate any
except the one who first secures a buyer ready, willing and able to meet the terms of the
listing, or secures the acceptance by the seller of a satisfactory offer. |
| Option - |
A right given for a consideration to purchase or lease
a property upon specified terms within a specified time. |
| Oral Contract - |
A verbal agreement; one which is not reduced to
writing. |
| Percolation - |
The seepage of water through soil; the soil's ability
to absorb to water or other liquid. |
| Personal Property - |
Any property which is not real property. |
| Planned Development - |
Five or more individually owned lots where one or more
other
parcels are owned in common or there are reciprocal rights in one or more other parcels. A
subdivision. |
| Plat - |
A map or plan of a certain parcel of land. |
| Plat Book - |
A book showing the lots and legal subdivisions of an
area. |
| Pocket Listing - |
A trade term. An open listing that a real estate
salesperson "pockets" or keeps hidden from his/her associates. |
| Possessory Interest - |
Right to possess. |
| Power of Attorney - |
An instrument authorizing a person to act as the agent
of the person granting it. |
| Preliminary Title Report - |
A report showing the condition of title before a sale
or loan
transaction. After completion of the transaction, a title insurance policy is issued. |
| Prepayment Penalty - |
The percentage a lender may require to be paid in
addition to the unpaid principal balance when a loan is paid off ahead of schedule. |
| Prescription - |
Obtaining title to property by adverse possession by
occupying it for the period determined by law to bar action for recovery. |
| Prima Facie - |
Presumptive on its face; true, valid, or sufficient at
first impression. |
| Principal - |
The employer of an agent. |
| Promissory Note - |
The document signed by the borrower promising
repayment of the loan showing the amount of monthly payments, interest rate, first payment
date, last payment date, and the late charge and prepayment provisions. |
| Proration of Taxes - |
To divide or prorate the taxes equally or
proportionately to time of use. |
| Puffing - |
The sometimes exaggerated buildup a salesperson or the
seller may give to property. It is recognized in law as an opinion and not necessarily
representing the facts |
| Purchase Money Encumbrance - |
(1) A trust deed or mortgage given by the buyer to the
seller as part or all of the purchase price of the property. (2) A trust deed or mortgage
given to a third party as security for the borrowing of money used to purchase less than
five residential units, one of which is to be occupied by the purchaser. |
| Quiet Title - |
A court action brought to establish title; to remove a
cloud on title. |
| Quitclaim Deed - |
A deed used to remove clouds on title by relinquishing
any right, title or interest that the grantor may have. |
| Ratification - |
The adoption or approval of an act performed on behalf
of a person without previous authorization. |
| Real Estate Investment Trust - |
A special arrangement under Federal and State law
whereby
investors may pool funds for investments in real estate and mortgages and yet escape
corporation taxes; requires one hundred persons or more. |
| Realtor - |
A real estate broker holding active membership in a
real estate board affiliated with the National Association of Realtors. |
| Reconveyance - |
The transfer of the title of land from one person to
the immediately preceding owner. This instrument is commonly used in California when the
performance or debt is satisfied under a deed of trust and the trustee conveys the title
he has held back to the owner. |
| Redemption - |
The buying back of one's property after it has been
lost through foreclosure. Payment of delinquent taxes after sale to the State. |
| Refinance - |
The process of taking out a new loan on a property
already owned, paying off existing financing and possibly obtaining additional cash from
the transaction. |
| Rescission of Contract - |
The annulling, revocation or repealing of a contract
by mutual
consent of the parties to the contract or for cause by either party to the contract. |
| Restriction - |
The term, as used in relation to real property, means
that the owner of real property is restricted or prohibited from doing certain things
relating to the property or using the property for certain purposes. |
| Reversion - |
The right to future possession or enjoyment by the
person or his heirs, creating the preceding estate. |
| Reversionary Interest - |
A type of interest a person may have in lands or other
property upon the termination of the preceding estate. |
| Right of Survivorship - |
Right to acquire the interest of a deceased joint
owner. Distinguishing characteristic of a Joint Tenancy Deed. |
| Right-of-Way - |
A privilege operating as an easement upon land,
whereby the owner does, by grant or by agreement, give to another the right to pass over
his land. |
