Defeasance Clause
Clause requiring lender to release lien once loan is repaid.
Deed
Legal document transferring title from grantor to grantee.
Conveyance
The act of transferring real property (via deed).
Contingency
Condition in a contract (e.g., financing, inspection) that must be met.
Constructive Eviction
Tenant leaves because landlord fails to maintain habitable conditions.
Consideration
Something of value exchanged in a contract (money, services, promises).
Cloud on Title
Defect or claim affecting clear title (e.g., lien, judgment).
Closing Disclosure (CD)
TRID-required form given 3 days before closing; shows final loan terms.
CMA (Comparative Market Analysis)
Agent’s estimate of probable price using comps; not an appraisal.
Cap Rate
Rate of return used in income approach (NOI Ă· Value).
Bundle of Rights
Ownership rights: Possession, Control, Enjoyment, Exclusion, Disposition.
Broker Price Opinion (BPO)
Estimate of price by a broker/agent, often for lenders.
Beneficiary
Lender under a deed of trust.
Assessed Value
Value assigned by tax assessor for property tax purposes.
Appurtenance
A right or privilege that goes with the land (e.g., easement, water rights).
Appraisal
Formal opinion of value by a licensed/certified appraiser, following USPAP.
Amortization
Gradual repayment of loan principal + interest through regular payments.
Alienation Clause
Loan clause requiring full payoff when property is sold/transferred (due-on-sale).
Agency
Legal relationship where broker represents a client (principal).
Ad Valorem Tax
DEFINITION
Metes and Bounds
Legal description using distance, direction, and landmarks.
Market Value
Most probable price a property would sell for in open market.
Loan Estimate (LE)
TRID form disclosing loan terms within 3 days of application.
Littoral Rights
Water rights along large lakes/oceans (navigable waters).
Lien
Legal claim against property as security for debt.
Joint Tenancy
Co-ownership with right of survivorship (interest passes to other owners).
Habendum Clause
“To have and to hold” clause in deed describing ownership rights.
Ground Lease
Long-term land lease where tenant builds improvements.
Gross Lease
Tenant pays fixed rent; landlord covers expenses.
General Warranty Deed
Strongest deed; grantor promises clear title and defends it.
Foreclosure
Legal process to recover property when borrower defaults.
Fiduciary Duties (OLD CAR)
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.
FHA Loan
Government-insured loan with low down payment, requires MIP.
Exclusive Right-to-Sell
Listing where broker earns commission no matter who sells.
Estate for Years
Lease with definite start and end dates (no notice required).
Escheat
Government’s right to take property if owner dies without heirs/will.
Equitable Title
Buyer’s right to obtain ownership when under contract.
Encumbrance
Claim or liability affecting title (e.g., lien, easement, restriction).
Eminent Domain
Government power to take private land for public use, with just compensation.
Easement
Legal right to use another’s land for a specific purpose.
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