| A | B |
|---|
| assignment | States whether the tenant’s rights in the lease can be assigned (transferred) by the tenant to a third party. |
| abstract of title | A condensed history of title to land; a summary of all transactions pertaining to the parcel from the time of government entry. |
| action to quiet title | Legal action taken by a property owner to have a court declare him the owner of a particular parcel. This action is usually taken when the merchantability of a land title has been questioned. |
| adverse possession | A method of acquiring title to real property under certain conditions by possession for a statutory period. |
| appurtenance | That which belongs to something else; an adjunct; an appendage. Something annexed to another thing more worthy as principal, and which passes as incident to it, as a right of way or other easement to land. |
| chattel or personal property | Any property that is not real estate; movable property such as furniture, jewelry, and automobiles. |
| clear and merchantable title | The term used to indicate that there are no outstanding liens or encumbrances of record against the property excepting only those of the type normally associated with the property to which most lawyers would not object. |
| closing costs | Fees for services provided by the lender, the escrow agent, and the title company. |
| closing instructions | Instructions supplied by a mortgage company, bank, or other lender listing in detail the procedures required in closing a real estate transaction, including a loan. |
| closing statement | A detailed statement given to a seller and a purchaser showing all moneys received, expended, and due by either party. |
| community property | Property acquired during a marriage that is owned by husband and wife, each having an undivided one-half interest, except gifts of inheritances. |
| concurrent ownership | Persons who share the bundle of ownership rights to either real or personal property are said to be concurrent owners. |
| contract formation | The common law contractual requirements of agreement (offer and acceptance), consideration, contractual capacity, and legality all apply to real estate contracts. |
| conveyance | Transfer of title to land from one person or entity or group of persons or entitles to another by deed. |
| deed | A document by which title to property is transferred from one party to another. |
| deed of trust | An instrument or document given to a lending institution to secure a loan whereby the institution holds title to the property in trust until the debt has been paid; it is similar to a mortgage, but the lender holds title to the property rather than the property owner holding title outright. |
| earnest money | Deposit made by a buyer that indicates the buyer is entering into a contract in good faith. |
| easement | The right of a person to make limited use of another person’s real property without taking anything from the property. |
| eminent domain | The power of a government to take land for public use from private citizens for just compensation. |
| encroachment | An intrusion on the property of another. |
| encumbrance | A claim or lien on real property. |
| escrow | A neutral third party (title company, bank, or special escrow company) facilitates the sale by allowing the buyer and seller to complete the transaction without having to exchange documents and funds directly with each other. |
| fee simple | Ownership rights entitling the holder to use, possess, or dispose of the property however he or she chooses during his or her lifetime. |
| FHA | Federal Housing Administration |
| VA | Veterans Administration. |
| HUD | Housing and Urban Development; the federal department responsible for the major housing programs in the United States |
| fixture | An article of personal property permanently attached to real estate. |
| foreclosure | To shut out; A termination of all rights of the mortgagor or his grantee in the property covered by the mortgage. |
| future interest | When someone who owns real property in fee simple conveys the property to another conditionally or for a limited period of time, the original owner still retains an interest in the land. |
| habendum clause | The “to have and to hold” clause is written into deeds and mortgages to define the transfer of the subject property. |
| improvements | Such items as curbs, gutters, sidewalks, street lights, and sewer systems constructed to enhance development of real estate. Items of a permanent nature, such as buildings, fences, and certain fixtures, attached to the land are often referred to as improvements. |
| instrument of conveyance | Legal documents such as warranty deeds, quit claim deeds, etc., that convey title from one property owner to a new owner. |
| joint tenancy | A form of ownership in which property is held by two or more persons, each with the same undivided interest, with the right of survivorship. Upon the death of one of the joint tenants, the property immediately belongs to the other without the necessity of probate proceedings. |
| judgment | A court order or decree which represents the decision of the court. When such judgment involves the recognition of a debt and is properly filed, it creates an interest by the judgment creditor in property owned by the debtor in the jurisdiction where filed. |
| lease | In real property law, a contract by which the owner of real property (the landlord) grants to a person (the tenant) an exclusive right to use and possess the property, usually for a specified period of time, in return for rent or some other form of payment. |
| legal description | A detailed specification of real property that must be located by government survey metes and bounds or by lot numbers on a recorded plat. |
| lien | A legal claim against property that must be satisfied when the property is sold. |
| life estate | Interest in real property that is transferred to another for the life of that individual. |
| listing agreement | Agreement whereby owners of real estate agree to have a broker represent them in the sale of real estate. |
| materialman’s or mechanic’s lien | An instrument filed by a materialman or mechanic who has furnished material or performed labor for improvements to property but has not been paid for that work. Such a lien creates an enforceable right against the property which may be enforced by foreclosure to recover payment. |
| metes and bounds survey | A system of land description that uses natural landscape objects and distance (metes) and angles/compass directions (bounds) beginning and ending at the same point. |
| mortgage | A written instrument that grants an interest in real property to provide security for the repayment of a debt. |
| title policy | A policy of insurance issued by a title insurance company to a seller or buyer insuring against a defect of title. |
| personal property | Any property that is not real property. Generally, any property that is movable or intangible is classified as personal property. |
| probate deed | An instrument by which property is acquired from an estate or guardianship, generally without warranty. |
| promissory note | A written promise to pay a certain sum of money at a future date. |
| purchase agreement | Also sales agreement. A contract whereby an owner of real property offers to sell and a prospective purchaser agrees to purchase real estate on specified terms contained in the agreement. |
| quiet enjoyment | A covenant (promise) by the landlord that the tenant shall possess and enjoy the premises without interference by any third party. |
| quitclaim deed | A deed without warranty of title that passes whatever title the grantor has, if any, to another. |
| real estate | Land and whatever is attached or affixed to it. Generally synonymous with the words “real property” or “immovable property.” |
| recording | The act or process of recording an instrument such as a deed or mortgage in a public registry. |
| recorded plat | A map that is filed with a county recorder’s office showing specific land areas and the boundaries of individual properties. |
| RESPA | The federal Real Estate Procedures Act of 1974 which requires lenders to provide home mortgage borrowers with information about known or estimated settlement costs. |
| restrictive covenant | A regulation of record setting forth those things that are allowed and not allowed affecting property, such as minimum building lines or setback requirements. |
| settlement statements | A document showing the complete breakdown of costs involved in the real estate transaction for both the seller and buyer. |
| statutory warranty deed | A statutory warranty deed provides three assurances: (1) that the seller has good title and they have authority to sell the property; (2) that the title is free from all encumbrances (i.e. liens, claims of adverse possession); and (3) the seller will warrant the peaceful possession to the buyer and defend the title against claims made against it. RCW 64.04.030. |
| subdivision | The division of a tract or parcel of land or lot into two or more tracts, parcels, or lots for sale or development. |
| survey | Actual, on-the-ground measurement of a parcel of property, giving the location of the property as well as its boundary lines. |
| tax lien | Lien filed for nonpayment of property taxes or for nonpayment of federal, state, or local taxes, or items such as income taxes, sales taxes, Social Security and Medicare taxes, etc. |
| tax sale | The sale of property that results when the property owner has failed to pay the property taxes assessed on the property. |
| tenancy by the entirety | A form of ownership by which a husband and wife hold title to the entire property with the right of survivorship should one spouse die. |
| tenancy in common | A form of ownership by which property is held by two or more persons, each with an undivided ownership with no right of survivorship to the parties. The owner’s interest passes to the heirs upon death. |
| term of lease | Duration of the lease, including the beginning and ending dates. |
| testimonium clause | The clause beginning “In Witness Whereof” preceding the signature(s) in a real estate or other type of contract. |
| title examination | A check of the property records in the county recording office to make sure that the seller is actually the owner of the property described in the purchase offer and to determine whether there are no undisclosed claims (liens) against the property. |
| title insurance policy | An insurance policy issued by a title insurance company that insures a title to land against loss resulting from defect in title. |
| transfer or assumption fee | Money paid to a mortgage company or bank as a fee for the transfer and assumption of a mortgage on the mortgage company’s books. |
| warranty deed | A deed that guarantees that the title conveyed is good and nothing has been done to cloud or encumber title beyond the permitted encumbrances specified therein. |
