Archives: Glossary Terms

An agency relationship where the agent holds an estate or interest in the property that is the subject of the agency relationship.

A written declaration signed by a prospective buyer or seller informing that party of the role that the broker is playing in a specific transaction. The purpose of disclosure is to explain whether the broker represents the buyer or seller or is a dual agent (representing both) or a subagent (an agent of the seller’s broker). This allows the customer to understand to which party the broker owes loyalty.

An understanding between two or more parties that is often embodied in a legally binding, written contract.

A written agreement or contract between a buyere and a seller in which they reach a “meeting of minds” whereby the purchaser agrees to buy specific real estate and the seller agrees to sell upon specific terms and conditions set forth in the contract.

A purchase money mortgage that is subordinate to, but also including, the original loan.

Land held in absolute independence without being subject to any rent, service or acknowledgment to a superior. See opposite Feudal land.

A real property ownership system where ownership may be absolute except for those governmentally-held rights and which is the opposite of feudal tenure.

Satisfaction of enjoyable living to be derived from a home; conditions of agreeable living or a beneficial influence from the location of the improvements that are not measured in monetary considerations but rather as tangible and intangible benefits of the property which often result in greater pride of ownership. Sometime referred to as amenity return.

The benfits a property offers such as a good neighborhood, schools, parks, a view or other tangible or intangible assets.

The gradual elimination of a liability, such as a mortgage through regular payments over a specified period of time which must be sufficient to cover both the principal and the interest.