A HORIZON - Surface horizon (layer) of soil, the composition of which is effected by water which percolates through it.

A-FRAME - A type of construction usually found in resort areas. The exterior framing of the building is shaped like the letter A.

A.B.A. (AMERICAN BAR ASSOCIATION) - A national organization composed of member state and local bar associations, which control the licensing of attorneys.

A.I.R. (AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION) - A specialized association of real estate brokers and salesmen who deal primarily in industrial properties. The goal of the association is to further the knowledge and effectiveness of its members.

A.L.T.A. (AMERICAN LAND TITLE ASSOCIATION) - An organization, composed of title insurance companies, which has adopted certain insurance policy forms to standardize coverage on a national basis.

ABA NUMBER - Originated by the American Bankers Association, it is the number (usually in the upper right hand portion of the check) which identifies the bank upon which the check is drawn.

ABANDONMENT - The voluntary relinquishment of rights of ownership or another interest (such as an easement) by failure to use the property, coupled with an intent to abandon (give up the interest).

ABANDONMENT OF HOMESTEAD - A recorded document, executed by those claiming a homestead exemption, giving up said homestead. Not applicable to all states and procedure must be according to local statutes.

ABATEMENT - A reduction or decrease. Commonly used to describe a decrease of assessed valuation of property for ad valorem taxes. When used regarding wills, it refers to a reduction of gifts to one or more beneficiaries when the assets left in the will are insufficient to pay all creditors and beneficiaries. There is usually a different formula used for debts than for priorities of gifts. See also: Contribution.

ABC SOIL - Soil having distinct A (upper), B (middle), and C (lower) horizons (layers of soil).

ABSCISSA - The horizontal axis of a curve; the vertical axis being the ordinate. The terms are used in connection with charts and graphs.

ABSENTEE LANDLORD - A lessor of real property (usually the owner) that does not occupy all or a portion of the property.

ABSENTEE OWNER - An owner of property who does not occupy said property.

ABSORPTION - The filling of space, such as the rental of units or sale of a tract. The time or rate must be estimated and considered as part of the owner's (usually the builder) costs.

ABSTRACT - A summary; an abridgement. Before the use of photostatic copying, public records were kept by abstracts of recorded documents.

ABSTRACT OF JUDGEMENT - A summary of the essential provisions of a court judgement, which when recorded in the county recorder's office, creates a lien upon the property of the defendant in that county, both presently owned or after acquired.

ABSTRACT OF TITLE - A compilation of the recorded documents relating to a parcel of land, from which an attorney may give an opinion as to the condition of title. Still in use in some states, but giving way to the use of title insurance.

ABSTRACTER'S CERTIFICATE - A certificate contained in an abstract which shows the time period and scope of the search of public records done by the abstracter.

ABSTRACTION - A method for appraising a site (land) by estimating the depreciated value of the improvements and deducting that amount from the total value (improved value) of the property. See: Allocation.

ABUT - To touch, border on, or be contiguous to.

ABUTMENTS - The vertical members (walls or heavy columns) which bear the load or pressure of the cross member, such as an arch, pier, or similar structure.

ABUTTING OWNER - One whose land is contiguous to (abuts) a public right of way.

ACCELERATED COST RECOVERY SYSTEM (ACRS) - A portion of the Economic Recovery Act of 1981 which allowed shorter depreciation of both real and personal property, did not distinguish between new and used property, and disregarded salvage value.

ACCELERATED DEPRECIATION - A general term including any method of depreciation greater than straight line depreciation (see which).

ACCELERATION - The immediate right to possession of a remainder interest upon the failure of a life estate.

ACCELERATION CLAUSE - Clause used in an installment note and mortgage (or deed of trust), which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender's consent, destruction of the property (see Waste), or other event which endangers the security of the loan. See also: Alienation Clause.

ACCEPTANCE - Voluntary agreement to an offer. (1) Real property acceptance must be unequivocal See: Mirror Image Rule. (2) Acceptance for goods, according to the Uniform Commercial Code, need not be unequivocal. Offer, acceptance, and consideration form a contact.

ACCESS RIGHT - A right to ingress and egress to and from one's property. May be express or implied.

ACCESSIBILITY - The location of a site in terms of how easily it may be reached by customers, employees, carriers, and others necessary to the intended use of the property.

ACCESSIBLE - A residential building of more than one unit that can be entered and used by people who are physically handicapped.

ACCESSION - The right of an owner to an increase in his property by natural means (such as a riparian owner's right to an abandoned river bed, rights of alluvion and reliction, etc.) or artificially, by improvements.

ACCESSORY BUILDINGS - Structures used for the benefit of a central or main building, such as a tool shed, garage, or similar structure.

ACCOMMODATED ROOM NIGHT DEMAND - The annual number of hotel (or motel) rooms occupied in a given market area.

ACCOMMODATION PARTY - Person who lends his name to help secure credit for another, by signing a note or other obligation without receiving consideration.

ACCOMMODATION RECORDING - The recording of documents with the county recorder by a title insurance company, without liability (no insurance) on the part of the company, but merely as a convenience to a customer.

ACCOMMODATOR - One who acts to facilitate an exchange under the rules of Section 1031 of the Internal Revenue Service Code. The proper terminology is a Qualified Intermediary, but accommodator, facilitator or intermediary are the common terms used.

ACCORD - An agreement by which one accepts something different (usually less) from what is owed as full satisfaction. The amount owed may be in dispute or simply accepted as full satisfaction by the creditor or claimant. The agreement and acceptance is called "Accord and Satisfaction".

ACCORD AND SATISFACTION - The agreement (accord) and acceptance (satisfaction) by creditors of less than the full amount owing on a debt.

ACCOUNTS PAYABLE - Money owing. The term is generally used in business rather than personal finances. Usually represents services or materials, such as wood, bricks, payment of subcontractors, etc., to a builder.

ACCOUNTS RECEIVABLE - Money owed to a business for goods or services. Accounts receivable may be sold or borrowed against. Many times the sale of accounts receivable is for less than face value (discounted).

ACCREDITED LAND CONSULTANT - A designation conferred by the REALTORS Land Institute. See: REALTORS LAND INSTITUTE.

ACCRETION - The gradual addition to the shore or bank of a waterway. The land generally becomes the property of the owner of the shore or bank, except where statutes specify otherwise.

ACCRUAL ACCOUNTING - An accounting method under which income and expenses are charged to the periods for which they are applicable, rather than when payment is received or made. The method calling for income and expenses to be based on payment being received or made is cash accounting.

ACCRUE - To grow or mature.

ACCRUED INTEREST - Interest on a note, bond, etc. which has been earned but not yet paid. Since interest is usually paid in arrears, accrued interest does not necessarily indicate a delinquency in payment. See also: Accumulated Interest.

ACCRUED ITEMS - Expenses owing but not yet payable. An example is mortgage interest which is paid at the end of the month or property taxes which may be paid after the tax year begins. On a closing statement for a sale, the buyer would be credited with these amounts and would be responsible for their payment.

ACCUMULATED INTEREST - Unpaid interest which is past due. See also: Accrued Interest.

ACID SOIL - A soil with an acid rather than an alkaline base. This can determine its suitability for farming.

ACID TEST RATIO - A formula used by lending institutions to determine if a business can meet its current obligations. The formula adds cash plus receivables plus marketable securities and then divides by liabilities. A ratio of one to one is considered acceptable.

ACKNOWLEDGEMENT - A written declaration by a person executing an instrument, given before an officer authorized to give an oath (usually a notary public), stating that the execution is of his own volition.

ACOUSTICAL MATERIALS - Materials which absorb sound. Usually installed in walls and ceilings and composed of fiberglass, cork, special plaster, or similar materials.

ACOUSTICAL TILE - Tile which absorbs sound.

ACQUISITION AND IMPROVEMENT LOAN - A loan for the dual purpose of purchasing and improving or repairing property.

ACQUISITION APPRAISAL - An appraisal to determine market value of a property to be taken by eminent domain, in order to justly compensate the owner.

ACQUISITION COSTS - Costs of acquiring property other than purchase price: escrow fees, title insurance, lenders fees, etc.

ACRE - A measure, usually of land, equal to 160 sq. rods (43,560 sq. ft.) in any shape.

ACRE FOOT - A volume of water, sand, coal, etc., equal to an area of one acre with a depth of one foot (43,560 cubic ft.). If a liquid, 325,850 gallons.

ACRE-INCH - A cubic measure of one acre in area with a depth of one inch.

ACREAGE - Most commonly refers to vacant land, but may refer to any parcel which may be measured in acres. The term is also used to describe land which has not been subdivided.

ACREAGE CONTROL - Federal control setting the number of acres which may be planted with crops which have federal price supports.

ACT OF GOD - Damage caused by nature (floods, winds, etc.) rather than by people.

ACTION TO QUIET TITLE - Modernly used to describe any court action to establish ownership or remove a cloud on title. See also: Cloud on Titlel.

ACTIVE CAPITAL - Capital used on a regular basis for profit-making activities.

ACTUAL AGE - The chronological age of a structure as opposed to its effective or economic age.

ACTUAL EVICTION - The removal of an occupant or real property through legal action. See also: Constructive Eviction

ACTUAL NOTICE - Notice actually and expressly, or by implication, given and received. See also: Constructive Notice; Statutory Notice.

ACTUAL RECEIPT - Direct receipt of funds from the sale of a relinquished property in a 1031 exchange. The taxpayer will lose the tax free benefit if the funds are received rather than directly reinvested in the replacement property.

AD - By, for, relating to, concerning.

AD HOC - Latin meaning "for this". For a single purpose only.

AD LITUM - For the suit. Example: A guardian "Ad Litum" is one who is appointed to prosecute or defend a suit on behalf of a minor or one who is otherwise incapacitated.

AD VALOREM - "According to value". A method of taxation using the value of the thing taxed to determine the amount of tax. Taxes can be either "Ad Valorem" or "Specific". Example: A tax of $5.00 per $1000.00 of value per house is "Ad Valorem". A tax of $5.00 per house (irrespective of value) is "Specific".

ADD-ON INTEREST - A method of computing interest by adding the total interest for the life of the loan to the amount borrowed (principal) and then deducting the full amount of each payment as made. This method creates a higher yield than computing interest on the declining balance of principal.

ADDENDUM - Something added. A list or other material added to a document, letter, contractual agreement, escrow instructions, etc. See also: Amendment.

ADDITION - (1) A portion of a building added to the original structure. (2) A synonym for subdivision in certain legal descriptions.

ADDITIONAL DEPOSIT - A buyer of real property will generally give a small deposit with an offer, and a more substantial deposit after the offer has been accepted. The second deposit is the "additional deposit".

ADDITIONAL PRINCIPAL PAYMENT - A payment of principal above the required amount. Some loans limit the amount that a borrower may pay and impose a penalty for reducing the principal balance in too short a time.

ADJACENT - Close to. May or may not be contiguous (touching).

ADJOINING - Touching or contiguous to.

ADJUDICATION - A judgement or decision by a court.

ADJUSTABLE MORTGAGE LOANS (AML'S) - Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM's), Flexible Rate Loans, Variable Rate Loans. See also: Indexing, Rate Index.

ADJUSTABLE RATE LOANS - See: Adjustable Mortgage Loans.

ADJUSTABLE RATE MORTGAGE (ARM) - See: Adjustable Mortgage Loan's (ARL'S).

ADJUSTED GROSS INCOME - Total income of property if fully rented, less an adjustment for estimated vacancies and uncollectible rent.

ADJUSTED MORTGAGE - A mortgage released after a company has undergone reorganization.

ADJUSTED SALE PRICE - An appraisal term used when a comparable property's sale price is adjusted to reflect the value of the subject property. The adjustment is made based on the differences between the subject property and comparable property in time of sale, terms of sale, location, and physical characteristics.

ADJUSTMENT DATE - The date for changing the interest on an Adjust-able Rate Mortgage.

ADJUSTMENT PERIOD - The time between adjustment dates for an adjustable rate mortgage. If the rate adjusted monthly, for example, one month would be the adjustment period.

ADMINISTRATOR - A person given authority by a proper court to manage and distribute the estate of a deceased person when there is no will. See also: Administrator C.T.A..

ADMINISTRATOR C.T.A. - Administrator when there is a will but no executor is named or the executor named is unable or unwilling to serve. The C.T.A. stands for Cum Testamento Annexo (with the will attached).

ADMINISTRATOR'S DEED - A conveyancing instrument used by an Administrator to transfer property from an estate. See: Administrator.

ADOBE CONSTRUCTION - A structure built of adobe blocks. Adobe blocks are made from adobe mud mixed with straw or a straw-like substance, and then baked. Considered a very good but expensive material.

ADR (THE CLASS LIFE ASSET DEPRECIATION RANGE SYSTEM) - A flexible set of guide lines for depreciation which sets up an "asset depreciation period", rather than using the "useful life" of an asset.

ADULT - A person old enough to vote and to make contracts. The age in most states is 18, except for contracts to purchase alcohol, for which all states classify an adult as a person over the age of 21.

ADVANCE FEE - A fee charged by a broker to a seller to cover all or a portion of the broker's costs of promoting the property. The fee is generally credited against commissions but is not refunded if no commissions are received. Most frequently used in connection with large offerings which require a substantial outlay of funds for promotion.

ADVANCE PAYMENTS - Payments made to a contractor before performance. Not the usual method and when made by HUD or GNMA, there must special approval. See also: Progress Payments; Provisional Payments.

ADVANCEMENTS - Gifts made prior to death to one who would inherit the property. The value of the gifts is deducted from the donee's (recipient's) inheritance upon the death of the donor.

ADVANCES - Money advanced by a lender (mortgagee or beneficiary under a deed of trust) to pay the borrower's (mortgagor's or trustor's) obligations of taxes, insurance, or other items necessary to protect the secured property. The amounts advanced are then added to the balance owing on the mortgage or trust deed.

ADVERSE LAND USE - A use which causes surrounding property to lose value, such as an industrial development in a residential area.

ADVERSE POSSESSION - A method of obtaining ownership rights by the open, notorious, exclusive, and hostile possession of private real property for a statutory period which varies from state to state (from 5 to 30 years). Some states have additional requirements, such as payment of property taxes by the adverse possessor. The true owner is then barred (statute of limitations) from asserting his/her rights. The adverse possessor has no evidence of title without court action.

ADVERTISING - Usually done by signs on the property and newspaper ads. Ads for the sale of real estate have modernly been required to conform to certain standards regarding disclosure of complete financing information if any financing information is contained in the ad.

AEOLIAN SOIL - Soil composed of materials deposited by the wind.

AERATION ZONE - The surface soil to a depth from which plants draw moisture.

AESTHETIC VALUE - The value of a property attributable to the beauty of the improvements or surroundings.

AFFIANT - One who makes an affidavit. Also called a deponent, although technically not the same.

AFFIDAVIT - A written statement or declaration, sworn to before an officer who has authority to administer an oath.

AFFIDAVIT OF ALIMONY AND CHILD SUPPORT - A sworn statement of a separated or divorced person showing the amount (if any) of alimony or child support.

AFFIDAVIT OF TITLE - An affidavit by a seller of real property that, as of a certain date, no defects of title exist except those which have been disclosed in the sales contract or deed.

AFFINITY - (1) Relationship not of the blood. Related by marriage. (2) Any group for a specific purpose is called an affinity group, such as clubs, people in the same school, etc.

AFFIRMATION - A substitution for an oath when a person objects to taking an oath (Quakers, atheists, etc.). A lie after an affirmation is still perjury.

AFFIRMATIVE EASEMENT - An easement described from the benefited estate (dominant tenement). Also called a parcel 2 easement. The same easement described from the burdened estate (servient tenement) would be a negative easement.

AFFORDABILITY ANALYSIS - A method to determine the right purchase price and mortgage for a potential home buyer. The price of the home and its future expense, cost to obtain the loan and its future expense, as well as buyers income, expenses and assets are used to determine the financial feasibility of the purchase.

AFFORESTATION - The growing of a forest where none previously existed, as opposed to reforestation (the replanting of a harvested or destroyed forest).

AFTER ACQUIRED PROPERTY - As applied to a judgement lien, it means that the lien will attach to property of the debtor acquired after the judgement. See also: After Acquired Title.

AFTER ACQUIRED TITLE - Legal doctrine by which property automatically vests in a grantee when the grantor acquires title to the property after the deed has been executed and delivered.

AGE-LIFE METHOD OF DEPRECIATION - Estimating depreciation by using the ratio of the effective age of improvements to the Economic Life (Economic Age-Life Method) or Physical Life (Physical Age-Life Method).

AGENCY - Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter. Agency involving real property should be in writing, such as listings, trusts, powers of attorney, etc.

AGENCY AGREEMENT (AGENCY LISTING) - In some states, the term describing a listing under which the broker's commission is protected against a sale by other agents but not by a sale by the principal. Called a "non-exclusive" listing in some states.

AGENCY BY ESTOPPEL - An agency created by operation of law when one who is not an agent acts as an agent or an agent oversteps his/her authority, but action (or failure to act) by the principal leads one to believe that the authority exists. See also: Apparent Authority; Ostensible Agency.

AGENCY COUPLED WITH INTEREST - A contractual relationship with consideration going from agent to principal; the