Real Estate Glossary A

Real Estate Glossary A's

Abstract of Title
This is the condensed history of ownership of a parcel of real estate, beginning with a synopsis of the original grant, then all the conveyances and encumbrances affecting the property, with a certificate by the abstractor verifying the accuracy and comprehensiveness of the history.

Acceleration Clause
This is a clause that allows an entire debt to be due immediately, should the borrower default in some specified manner.

Accretion
The increase of a section of land by the natural deposits of soil from a river, lake or the sea.

Accrued Items
Expenses that have incurred, yet are not yet payable, that appear on a closing statement. This might include property tax or mortgage interest.

Adjustable Rate Mortgage (ARM)
Loan with a fluctuating interest rate, which is normally tied to the cost-of-funds index of a bank or savings and loan.

Adverse Possession
This is the open, actual, hostile, notorious, and continuous possession of someone else’s land, under a claim of title. This can be a way of acquiring title.

Alienation Clause
This is a clause that specifies the borrower must fully repay the lender if the property securing the debt is sold.

American Land Title Association (ALTA) Policy
This is a title insurance policy that protects the lender who secures a new loan on a piece of real estate.

Amortized loan
This is a loan where both the principle and interest is due in regular payments (such as monthly) during the life of the loan.

Appurtenance
This is a right, improvement, or privilege that is attached to the land, and passes with it to the new owner.

Appurtenance Easement
This allows the easement a property owner has on their neighbor’s land, to pass to the new owner, should the property owner sell his land, thus allowing the new owner the same easement on the neighbor’s property.

Assumption of Mortgage
When a buyer of a property agrees to be personally liable for the seller’s loan on the property, assuming the terms and conditions of the loan.

Attachment
Taking legal custody of a debtor’s property, making it available for application to the creditor.

Attorney’s opinion of title
A abstract of title that has been reviewed and certified by an attorney, stating that the attorney believes it is an accurate statement of facts and ownership.

Avulsion
The loss of a portion of a parcel of land by earthquake, flood, volcanic action or changing course of a waterway.