GA Real Estate Vocabulary Deck

Unlilateral contract

A contract in which one party promises to pay or perform something in exchange for another party completing a specific action

Bilateral contract

A contract in which both parties exchange promises to perform certain actions

Bundle of rights

Possession, control, enjoyment, exclusion, and disposition

Accretion

Gradual buildup of land from natural deposits

Reliction

Land exposed when water gradually recedes

Littoral rights

Water rights involving lakes, seas, or oceans.

Riparian rights

Water rights involving rivers or streams

Real property

Land plus permanent improvements and attached rights.

Personal property

Movable property not permanently attached to land.

Fixture

Personal property attached to real estate that usually becomes real property.

Trade fixture

A tenant's business item attached to property that is generally removable by the tenant.

Emblements

Annual crops produced by a tenant; treated as personal property.

Bundle of rights

The rights of possession, control, enjoyment, exclusion, and disposition.

Accession

Adding value to property through natural or human means.

Alluvion

Land gradually deposited by water.

Avulsion

Sudden loss or addition of land caused by water.

Accretion

Gradual buildup of land from natural deposits.

Reliction

Land exposed when water gradually recedes.

Littoral rights

Water rights involving lakes, seas, or oceans.

Riparian rights

Water rights involving rivers or streams.

Easement

A right to use another person's land for a specific purpose.

Easement appurtenant

An easement that benefits one parcel and burdens another; it runs with the land.

Easement in gross

An easement that benefits a person or entity rather than another parcel.

Easement by necessity

An easement created when access is necessary, often for landlocked property.

Easement by prescription

An easement that may arise from qualifying use of another's land for the statutory period.

License

Temporary personal permission to use another's land; generally revocable.

Encroachment

An unauthorized physical intrusion onto another person's property.

Lien

A claim against property used as security for a debt.

Voluntary lien

A lien intentionally created by agreement, such as a mortgage.

Involuntary lien

A lien imposed by law, such as a tax lien.

Specific lien

A lien against a particular property.

General lien

A lien that can attach to all qualifying property of a debtor.

Mechanic's lien

A lien securing payment for labor or materials used to improve property.

Lis pendens

Notice that a lawsuit affecting property title is pending.

Adverse possession

Acquiring title through qualifying possession for the statutory period.

Severalty

Ownership by one person or legal entity.

Tenancy in common

Co-ownership with separate interests and no automatic right of survivorship.

Joint tenancy

Co-ownership that includes a right of survivorship when properly created.

Right of survivorship

A deceased co-owner's interest passes automatically to surviving co-owners.

Four unities of joint tenancy

Possession, interest, time, and title (PITT).

Life estate

An ownership interest that lasts for someone's lifetime.

Remainderman

The person who receives the property after a life estate ends.

Reversion

A future interest in which property returns to the grantor after a limited estate ends.

Fee simple absolute

The broadest private ownership interest, potentially lasting indefinitely.

Condominium

Individual ownership of a unit plus shared ownership of common areas.

Cooperative

A corporation owns the property; residents own shares and receive occupancy rights.

Timeshare

A right to use or occupy a property during specified recurring periods.

Deed

A written instrument used to transfer title to real property.

Grantor

The person transferring an interest in real property.

Grantee

The person receiving an interest in real property.

Warranty deed

A deed offering broad title warranties and strong protection to the grantee.

Special warranty deed

A deed in which the grantor warrants against title defects arising during their ownership.

Quitclaim deed

A deed transferring whatever interest the grantor has, if any, without title warranties.

Habendum clause

A deed clause describing the extent of the ownership interest conveyed.

Legal description

A precise description sufficient to identify a parcel of land.

Metes and bounds

A legal description using directions, distances, and boundary markers.

Lot and block

A legal description based on a recorded subdivision plat.

Rectangular survey system

A land-description system using principal meridians, base lines, townships, and sections.

Market value

The most probable price a property should bring under typical, informed market conditions.

Appraisal

A professional opinion of a property's value.

Sales comparison approach

Estimates value by comparing the subject property with similar properties that recently sold.

Cost approach

Estimates value using land value plus improvement cost new minus depreciation.

Income capitalization approach

Estimates value based on a property's income-producing ability.

Depreciation

A loss in property value caused by physical, functional, or external factors.

Physical deterioration

Value loss from wear, age, or physical damage to the property.

Functional obsolescence

Value loss from outdated design, layout, or features within the property.

External obsolescence

Value loss caused by factors outside the property, such as neighborhood or economic changes.

Gross rent multiplier (GRM)

Property price divided by gross rental income; used to compare income properties.

Capitalization rate (cap rate)

Net operating income divided by property value; indicates a property's income return rate.

Net operating income (NOI)

Property income after operating expenses, before debt service and income taxes.

Equity

Property value minus the debt secured by the property.

Leverage

Using borrowed money to finance a real estate investment.

Loan-to-value ratio (LTV)

The loan amount divided by the property's value, expressed as a percentage.

Amortization

Repayment of a loan through scheduled payments over time.

Principal

The amount borrowed or the remaining unpaid loan balance, excluding interest.

Interest

The cost charged for borrowing money.

Discount point

A fee equal to 1% of the loan amount, often paid to reduce the interest rate.

Loan origination fee

A lender's fee for processing or making a loan.

PITI

Principal, interest, taxes, and insurance.

TILA

Truth in Lending Act; requires disclosure of credit costs, including APR.

RESPA

Real Estate Settlement Procedures Act; regulates settlement services and prohibits certain kickbacks.

TRID

Mortgage disclosure rules requiring the Loan Estimate and Closing Disclosure for covered loans.

Loan Estimate

A disclosure estimating mortgage terms and closing costs.

Closing Disclosure

A disclosure showing final mortgage terms and closing costs for a covered loan.

Short sale

A sale for less than the mortgage balance that requires lender approval to accept less than owed.

Foreclosure

A legal process for enforcing a mortgage or other security interest after default.

Equity of redemption

A borrower's right, under applicable law, to cure the default and reclaim property before foreclosure is completed.

Deed of trust

A security instrument involving a borrower, lender, and trustee.

Promissory note

The borrower's written promise to repay a debt.

Mortgage

A loan secured by real property; the term can also refer to the security instrument.

Alienation

The transfer of ownership or an interest in property.

Encumbrance

A claim, restriction, or right that affects property use or title.

Police power

Government authority to regulate property to protect public health, safety, and welfare.

Eminent domain

Government power to take private property for public use with just compensation.

Escheat

Property passing to the state when someone dies without a valid will or heirs entitled to inherit.

Taxation

Government power to impose taxes, including property taxes.

Zoning

Local regulation controlling permitted land uses and development.

Variance

Permission to deviate from a zoning requirement.

Nonconforming use

A lawful existing use that does not comply with a later zoning change.

Building code

Rules setting construction, safety, and building standards.