Common Real Estate Terms

Abut - To be next to or touch another property or body of water.

Acceptance - An express or implied indication of willingness to be bound to the terms of an offer to contract.

Access - The right of a property owner to have a means of entry and exit from his property to a public street.

Accretion - Addition to land by deposit of soil or sand as a result of natural action by stream, lake, river, or sea.

Acknowledgment - The process whereby a person goes before a notary public or other recognized officer and executes a legal document and at the same time declares that he is executing the document as a free and voluntary act.

Acre - A measure of land equal to 43,560 square feet.

Agency - The relationship between a principal and agent whereby the agent represents the principal in dealing with third parties.

Agent - A person who has authority to act for another.

ALTA - American Land Title Association.

ALTA title insurance policy - A form of title insurance which insures against defects to title for a specifically described parcel of real estate.

Amenities - Those qualities which are pleasing and agreeable; intangible benefits of property ownership such as pride of ownership or scenic beauty.

Common elements - Those areas within a condominium or land development in which each owner has the right to use in common with each other.

Conditional - Depends upon the occurrence of certain terms or events.

Condominium - A unit in an apartment, multifamily structure or land development which is owned by an individual in the same way an individual can own other real property.

Consideration - Anything of value, whether tangible or not, given by one party in a contractual agreement.

Contiguous - Next to and in actual contact.

Contingent - Dependent upon a future event which is uncertain.

Contract - A legally enforceable agreement.

Conventional mortgage - A mortgage other than one guaranteed by FHA or VA.

Conveyance - The transfer of title to real estate from one party to another by written instrument.

Co-owners - Two or more persons who possess simultaneous estates in the same property.

Cost approach - A property appraisal process in which the appraiser estimates building value as replacement cost minus depreciation.

Cul de sac - A circular turn-around street in a property development.

Datum - A plan of elevation from which heights and depths are measured.

Declaration of restrictions - An instrument other than a deed containing restrictive covenants which is incorporated by reference and made part of a deed.

Dedication - A voluntary giving of property by the owner for use by authorized public officials on behalf of the public.

Deed - A written instrument by which title to real property is conveyed from one person to another.

Default - The failure to fulfill a contractual obligation.

Exception - A right or portion of property reserved in the grantor in a conveyance by deed.

Execute - To sign and deliver an instrument, such as a deed.

Fee simple - The highest interest a person may have in real property.

Fiduciary - A relationship of trust and confidence as between a principal and agent.

Fixture - An item that was originally personal property but is so attached to the property that it becomes part of the real estate.

Frontage - The portion of property that adjoins on a street, highway, lake, river or stream.

Front foot - A measure of property value where the distance is measured along the street, highway, stream, or other body of water.

Grade - The level of the ground at the structure foundation.

Grantor - A person who transfers property, such as a seller.

Grantee - A person who receives ownership of property, such as a buyer.

Highest and best use - The use of a property, which will yield the greatest return on the property.

Homestead - Any real estate where the owner resides and which is exempt from creditor's claims to an amount specified by state law.

HUD - Federal Department of Housing and Urban Development.

Littoral - Concerning the shore of lakes and oceans.

Littoral Rights - Rights concerning properties abutting an ocean or lake; usually concerned with the use and enjoyment of the shore.

Market approach - The process of property appraisal by comparing it to sales of equivalent properties.

Market value - The highest price which property would be expected to bring in the open market under normal conditions.

Meander - To follow a winding course, usually referring to a lake, river or stream.

Meander line - Line run in surveying land which borders navigable rivers and lakes.

Mechanic's lien - A lien which can be filed by mechanics or material men who supply labor or materials for property improvement to secure payment.

Meridian - Map lines running north and south to locate land under the governmental survey system.

Metes and bounds - A method of legal description by use of measurements, boundaries and directions.

Mineral rights - A legal interest in minerals in land, which includes the right to take minerals from land.

Monument - A fixed object, either natural or artificial, which surveyors use to measure land.

Mortgage - A written instrument in which real estate is used as security for repayment of a debt or obligation.

Mortgagee - The party who lends money for a mortgage.

Mortgager - The party who borrows money with his property as security.

Multiple Listing - A listing agreement whereby other brokers in an organization are allowed to sell a listed property.

NAR - National Association of Realtors.

Navigable water - A waterway capable of passage by watercraft.

Note - A written instrument promising payment.

Ordinance - A law passed by the legislative body by a municipal corporation.

Ordinary High Water Mark - The line on the shore to which the water rises under normal weather conditions.

Rescind - To declare a contract void in its inception and put an end to it as though it never existed.

Reservation - A right kept by a grantor when conveying property.

Restriction - An encumbrance created by deed or special agreement which limits use of the property.

Right of way - The right to cross over or under another person's property for ingress, egress, utility lines, sewers, etc.

Riparian - Belonging to or relating to the bank of a river or stream.

Riparian Owner - One who owns land along the bank of a river or stream.

Riparian Rights - Rights of an owner to riparian lands and water.

Rod - A measure of length equal to 161/2 ft.

Rural - Pertaining to the country; rather than urban.

Satisfaction - Discharge of lien upon payment of debt.

Section - A unit of land measure one-mile square containing 640 acres.

Security Deposit - Earnest money.

Septic Tank - An underground tank used where city sewage is not available.

Setback - A distance from the street, adjoining lot lines or waterway to the building.

Settlement - The process of completing the sale of real property; same as closing.

Severalty - Sole ownership; by one person.

Site - A plot of ground upon which anything is, has been, or will be located.

Special assessment - An assessment against real estate to pay for improvements such as sidewalks, curbs, streetlights, or other things which benefit certain property owners.

Specific performance - A legal action to compel the performance of the terms of an agreement, such as the sale of a property.

Specific Lien - A lien which affects only a single parcel of property.

Statute - State or federal law.

Statute of frauds - The state law which requires that certain contracts, including those for the sale of real property, must by in writing.

Subdivision - A tract of land divided into lots suitable for residential purposes.

Survey - The process of measuring land; the resulting map of the property.

Tangible - Existing physically; that which can be touched.

Michigan & Upper Peninsula Property Information