Archives: Glossary Terms

A special arrangement under federal and state laws whereby investors may pool funds for investments in real estate and mortgages and be able to avoid corporate taxation by having the profits passed to individual investors who pay taxes.

The land and everything growing on it, attached to it or erected on it but not including anything that may be severed from the land without injuring it.

A term used in some states for an agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract. See Land contract.

The process of revising or updating the value estimate of property for ad valorem taxation purposes.

A process by which an owner can recover money invested by engaging and using an interest rate that provides for the full return of an investment over the investment period. This should not be confused with the interest rate which the earnings on an investment.

The need to pay income taxes on depreciation taken that is excess of the straight line depreciation permitted by the IRS.

The rate of depreciation that needs to be taken to provide for a full recapture. See Recapture.

The transfer of the title of land from one person to the immediately-preceding owner.

A commonly used instrument executed by a trustee reconveying or returning the legal title to real estate secured by a trust deed back to the trustor (borrower) upon full payment of the debt.

A system by which documents concerning title and other legal matters are collected in one convenient, public place, commonly the county recorder’s office and when properly recorded, constitute constructive notice as to their contents.