# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Abandonment	The voluntary surrender or relinquishment of possession of real property with the intention of terminating one's possession or interest, but without vesting this interest in any other person.
Abatement	Often and commonly referred to as free rent or early occupancy and may occur outside or in addition to the primary term of the lease.
Above Building Standard	Upgraded finishes and specialized designs necessary to accommodate a tenant’s requirements.
Absorption	The rate, expressed as a percentage, at which available space in the marketplace is leased during a predetermined period of time. Also referred to as "Market Absorption".
Abstract of Title	A concise, summarized history of the title to a specific parcel of real property, together with a statement of all liens and encumbrances affecting the property. The abstract of title does not guarantee or assure the validity of the title of the property. It merely discloses those items about the property which are of public record, and thus does not reveal such things as encroachments, forgeries, and the like.
Accelerated Depreciation	A method of calculating the depreciation of certain property (that property which is used in a trade or business, or which is held for the production of income) at a faster rate than would be achieved from using the straight line method of depreciation.
Acceleration Clause	A clause in a promissory note, agreement of sale, or mortgage which gives the lender the right to call all sums due and payable in advance of the fixed payment date upon the occurrence of a specified event, such as a sale, default, assignment or further encumbrance of the property.
Acceptance	The expression of the intention of the person receiving an offer (offeree, usually the seller) to be bound by the terms of the offer.
Access	A general or specific right of ingress and egress to a particular property.
Accretion	The gradual and imperceptible addition to land by alluvial deposits of soil through natural causes, such as shoreline movement caused by streams or rivers.
Accrued	That which has accumulated over a period of time such as accrued depreciation, accrued interest or accrued expenses.
Acknowledgement	A formal declaration made before a duly authorized officer, usually a Notary Public, by a person who has signed a document.
Acre	A measure of land equaling 43,560 square feet; 4,840 square yards; 160 square rods.
Ad Valorem	According to value. This is a tax imposed on the value of property (references a general property tax), which is typically based on the local government’s valuation of the property.
Add-On Factor	Often referred to as the Loss Factor or Rentable/Usable (R/U) Factor, it represents the tenant’s pro-rata share of the Building Common Areas, such as lobbies, public corridors and restrooms. It is usually expressed as a percentage which can then be applied to the usable square footage to determine the rentable square footage upon which the tenant will pay rent.
Adhesion Contract	A contract which is very one-sided and favors the party who drafted the document.
Adjoining	In actual contact with another object (i.e., attached). Same as "Contiguous".
Adverse Possession	The acquiring of title to real property owned by someone else, by means of open, notorious and continuous possession for the statutory period of time (20 years in Hawaii).
Affidavit	A sworn statement reduced to writing and made under oath before a Notary Public or other official authorized by law to administer an oath.
Agency	A relationship created when one person, the "principal," delegates to another, the "agent," the right to act on the principal's behalf in business transactions and to exercise some degree of discretion while so acting. An agency gives rise to a fiduciary relationship and imposes on the agent, as the fiduciary of the principal, certain duties, obligations and high standards of good faith and loyalty.
Agent	An individual/entity who transacts, represents, or manages business for another individual/entity. Permission is provided by the individual/entity being represented.
Agreement of Sale	An agreement between the seller (vendor) and buyer (vendee) for the purchase of real property.
Air Rights	The rights to the use of the open space or vertical plane above a property. Ownership of the land includes the right to all air above the property.
Alienation Clause	A clause in a promissory note or mortgage which provides that the balance of the secured debt becomes immediately due and payable at the option of the mortgagee upon the alienation of the property by the mortgagor.
Allodial System	The free ownership of land by individuals.
Allowance Over Building Shell	Most often used in a yet-to-be constructed property, the tenant has a blank canvas upon which to customize the interior finishes to their specifications. This arrangement caps the landlord’s expenditure at a fixed dollar amount over the negotiated price of the base building shell. This arrangement is most successful when both parties agree on a detailed definition of what construction is included and at what price.
ALTA Survey	This is a document prepared under the direct supervision of a licensed Land Surveyor. This is dictated not only by state code as directed by the Board of Technical Registration, but is also a requirement of the current 1999 ALTA/ACSM Standards for Land Title Surveys. ALTA surveys are required anytime that "extended coverage" is requested from the title company. An ALTA survey is a boundary survey, but will also locate all observable improvements on the property and locate, where possible, all encumbrances of record (easements, setbacks, and flood zones). ALTA surveys are performed to a higher standard than a typical boundary survey. Property corners may or may not be set, as requested in the optional Table A. In Arizona, if property corners are set, a Record of Survey must also be prepared and recorded with the County Clerk's office. By a certified Civil Engineer that details where all the easements, right-of-ways, and property lines are. It is usually required by a Title Company to confirm the accuracy of the title policy they are issuing in a purchase. Within an ALTA Survey, there are various items that may be required. Ask about the Table A requirements. ALTA stands for American Land Title Association, a coordinating body.
Amenities	Features, both tangible and intangible, which enhance and add to the desirability of real estate.
American with Disabilities Act (ADA)	Federal regulations intended to equalize access for people with disabilities in buildings. New buildings must comply in order to obtain their building permits. Lease spaces being substantially remodeled need to comply in order to obtain permits. Older buildings not being remodeled have not normally been required to change. Changes can include wider restroom stalls, ramps, and handrails.
Amortization	The gradual repayment of a debt by means of systematic payments of principal and interest over a set period, where at the end of the period there is a zero balance.
Amortizing payment	Refers to spreading the payment out over the life of the lease or other time frame. An example might be a Landlord who spreads out the cost of tenant improvements over three years and adds the amount to your monthly rent. The Landlord pays for the work up-front, but is being reimbursed over lease term.
Anchor Tenant	Major department or chain stores which are strategically located at shopping centers so as to give maximum exposure to smaller satellite stores.
Annual Percentage Rate (APR)	The actual cost of borrowing money, expressed in the form of an annual interest rate. It may be higher than the note rate because it represents full disclosure of the interest rate, loan origination fees, loan discount points, and other credit costs paid to the lender.
Appraisal	The process of estimating, fixing, or setting the market value of real property. An appraisal may take the form of a lengthy report, a completed form, a simple letter, or even an oral report.
Appreciation	An increase in the worth or value of property due to economic or related causes, which may prove to be either temporary or permanent.
Appurtenant	Belonging to; adjunct; appended or annexed.
Arbitration	The non-judicial submission of a controversy to selected third parties for their determination in the manner provided by agreement or by law.
Assessed Valuation	The value of real property as established by the state government for purposes of computing real property taxes.
Assessment	A specific levy for a definite purpose, such as adding curbs or sewers in a neighborhood. Individual condominium owners are subject to special assessments benefiting the project as a whole and not funded through regular maintenance charges.
Assignee	Individual to whom a contract is assigned.
Assignment	The transfer of the right, title and interest in the property of one person, the assignor, to another, the assignee. In real estate, there are assignments of mortgages, contracts, agreements of sale, leases, and options, among others.
Assignor	An individual who transfers a contract to another individual.
Assumption of Mortgage	The act of acquiring title to property which has an existing mortgage on it and agreeing to be personally liable for the terms and conditions of the mortgage, including payments.
Attachment	The legal process of seizing the real or personal property of a defendant in a lawsuit, by levy or judicial order, and holding it in the custody of the courts as security for satisfaction of the judgment which the plaintiff may recover in any action upon a contract, express or implied.
Attorn	To turn over or transfer to another money or goods. To agree to recognize a new owner of a property and to pay him/her rent. In a lease, when the tenant agrees to attorn to the purchaser, the landlord is given the power to subordinate tenant's interest to any first mortgage or deed of trust lien subsequently placed upon the leased premises.
Attorney-In-Fact	One who is authorized by another to act in his place under a power of attorney.
Attornment	The act of a tenant formally agreeing to become the tenant of a successor landlord; as in attorning to a mortgagee who has foreclosed on the leased premises.
Attornment Provisions	Lease provision in which the tenant agrees, in advance, to accept or pay rent to a new landlord or new owner. This is important if the current landlord defaults on their mortgage.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z