Real Estate Glossary
This glossary was created by a team of real estate professionals. It contains terms regarding real estate buying and selling, home finance, home improvement, as well as legal terms. For your convenience, the glossary is searchable alphabetically.
See eminent domain
tenancy in common
A type of ownership in which two or more people have an undivided interest in
property, without the right of survivorship. Upon death of one of the owners,
his/her interest passes to his/her heirs or devises. Contrast with joint tenancy
Anyone, including a corporation, who rents real property, with or without a house
or structure, from the owner (called the landlord). The tenant may also be called
tenants in common
See tenancy in common
Everything that may be occupied under a lease by a tenant.
The actual life of a mortgage, at the end of which the mortgage becomes due and
payable unless the lender renews the mortgage
time is of the essence
A clause, which if included in a contract, makes failure to perform by a specified
date a material breach or violation of the contract.
An arrangement under which a purchaser receives an interest in real property and
the right to use an accommodation or amenities, or both, for a specified period
and on a recurring basis. Used primarily for selling vacation properties
The right of ownership of a property
A company that provides title insurance policies.
Protection for lenders or homeowners against financial loss resulting from legal
defects in the title
Checks all the records relating to the property to determine whether the seller
can sell the property, and can do so free of liens.
title theory state
The system in which the lender has legal title to the mortgaged property and the
borrower has equitable title. Contrast with lien theory state.
A system of land registration (not used in all states) in which clear title is
established with a governmental authority, which issues title certificates to
dwelling unit usually with two,three or four floors, and shared structural walls.
It can be individually owned, a condominium, a cooperative, a planned unit development
or a rental property
A fee which may be charged each time you draw on a home equity credit line
triple net lease
See net lease
The most common method of financing real estate purchases in California (most
other states use mortgages). The trust deed transfers the title to the property
to a trustee--often a title company--who holds it as security for a loan. When
the loan is paid off, the title is transferred to the borrower. The trustee will
not become involved in the arrangement unless the borrower defaults on the loan.
At that point, the trustee can sell the property and pay the lender from the proceeds.
One who as agent for others handles money or holds title to their land.