ABATEMENT - 1.) A reduction or decrease, 2) The removal of a nuisance.

BALANCE - The appraisal principle that states that the greatest value in a property will occur when the type and size of the improvements are proportional to each other as well as the land.

CAPITAL - (1) Money used to create income, either as an investment in a business or an income property, (2) The money or property comprising the wealth owned or used by a person or business enterprise, (3) The accumulated wealth of a person or business, (4) The net worth of a business represented by the amount by which its assets exceed liabilities.

DEED - 1) The legal document conveying title to a property, 2) a written instrument, when executed and delivered, conveys Title to or an interest in real estate.

EASEMENT - 1) A right of way giving persons other than the owner access to or over a property, 2) The right to a specific use of or right to travel over Land owned by another.

FORBEARANCE - The act of refraining from taking legal action despite the fact that payment of a promissory note in a mortgage or deed of trust is in arrears. It is usually granted only when a borrower makes a satisfactory arrangement by which the arrears will be paid at a future date.

GRANTEE - The person who receives an interest in (a conveyance) of real property from a grantor. The grantee must be a person, either natural or otherwise (e.g. corporation, public agency, partnership, etc.) existing at the time of the conveyance and is capable of taking title.

HYPOTHECATE - To pledge real or personal property as Security for a loan or other obligation without surrendering possession of the property. The borrower retains the rights of control and possession, and the lender secures an underlying equitable right in the pledged property.

INGRESS - A way to enter a property - access. The opposite of egress.

JUDICIAL FORECLOSURE - A method of foreclosing on real property, used in some states, by means of a court-supervised sale that is handled as a civil lawsuit and conducted entirely under the auspices of a court . in a judicial foreclosure, there is an appraisal, after which the court determines an upset price below which no bids to purchase will be accepted.

KEY LOT - A lot having a number of other lots abutting a side line (undesirable for residential use).

LEVY - To assess, seize or collect. To Levy a tax is to assess a property and set the rate of taxation. To Levy an execution is to officially seize the property of a person in order to satisfy an obligation.

MECHANIC’S LIEN - A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land, and which attaches to the land as well as the improvements.

NEGATIVE AMORTIZATION - A gradual increase in mortgage debt that occurs when the monthly payment is not large enough to cover the entire principal and interest due. The amount of the shortfall is added to the remaining balance to create “negative” amortization.

OBSOLESCENCE - Loss in value due to reduced desirability and usefulness of a structure because it has become old fashioned and not in keeping with modern needs or because of adverse social or economic influences.

PLAT - A map or plan of a certain parcel of land.

QUITCLAIM DEED - A deed used to remove clouds on title by relinquishing any right, title or interest that the grantor may have.

RIGHT OF WAY - A privilege operating as an easement upon land, whereby the owner does, by grant or by agreement, give to another the right to pass over his land.

SITUS - Location.

TITLE - The rights of ownership.

UNDERWRITING - The process of evaluating a loan application to determine the risk involved for the lender. Underwriting involves an analysis of the borrower’s creditworthiness and the quality of the property itself.

VESTED - Having the right to use a portion of a fund such as an individual retirement fund. For example, individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a retirement fund. However, taxes may be due on any funds that are actually withdrawn.

WARRANTY DEED - A deed used to convey real property which contains warranties of title and quiet possession and the grantor thus agrees to defend the premises against the lawful claims of third persons. It is used commonly in other states but not in California where it has been supplanted by the grant deed. The modern practice of securing title insurance has reduced the importance of express and implied warranty in deeds.

ZONING - Act of city or county authorities specifying type of use to which property may be put in specific areas.