Abstract (of title) - A history of all transactions shown in the public records affecting a particular tract of land.

Acceleration clause - A provision in a promissory note that specifies conditions under which the lender may advance the time when the entire debt, which is secured by the mortgage, becomes due.

Access — The right to enter and leave a tract of land from a public way. Can include the right to enter and leave over the lands of another.

Accommodator - Same as intermediary, accommodator or facilitator. The party who facilitates a tax-deferred exchange by acquiring and selling property in an exchange to aid the taxpayer in complying with Section 1031 and all applicable rules.

Accretion — The slow build-up of lands by natural forces such as wind or water.

Acknowledgment - A formal declaration before an authorized officer (usually a notary public) by a person who has signed an instrument that such signing is the individual’s act.

Acre — A tract of land 208.71 feet square and containing 43,560 square feet of land.

Adjustable Rate Mortgage (ARM) - Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indicator, to more closely coincide with the current rates. See also graduated payment mortgage.

Adjusted Basis - The cost of the property adjusted for any capital improvements or depreciation. To calculate the adjusted basis, take the basis (the cost of the property) and add the cost of any capital improvements made to the property during the taxpayer's ownership, and subtract any depreciation taken on the property during the same period.

Adjustments - Money credited to either/both buyer and seller at closing, including real estate taxes, price adjustments based on disclosures in the inspection, etc.

Administrator - A person appointed by a court to take possession of the property of a person who died without leaving a will, to pay debts and to distribute the property to those entitled to it according to law.

Adverse possession - The possession, by one party, of land belonging to another in a manner deemed adverse to the interest of the record owner.

Affiant - One who swears to or affirms the statement in an affidavit.

Affidavit - A written statement made under oath before a notary public or other judicial officer.

Affirmative coverage - Provisions in title insurance policies by which the insurer agrees to indemnify against loss due to specific risks generally not covered by policies.

Agent — A person or company that has the power to act on behalf of another or to transact business for another, e.g., a title agent under contract with Stewart Title to issue policies of title insurance.

Agreement - A legally binding contract made between two or more persons.

Air Rights — The right to ownership of everything above the physical surface of the land.

All-inclusive rate - A premium for title insurance that includes the cost of title search and title examination, as well as the risk premium. In some localities, title insurance is priced with an all-inclusive rate, in others, the policy is priced with a risk rate, and the cost of search and examination is separately priced.

ALTA (American Land Title Association) - The trade association of the title insurance industry, which has adopted certain insurance policy forms to standardize coverage on a national basis.

Amortization (amortize) - Reduction of the principal of a debt in regular, periodic installments.

Appraisal - A report from an independent third party detailing the estimated value of real estate.

Approved attorney - An attorney approved by a title insurance company as one whose opinions of title will be accepted by the company and relied upon for the preparation of title insurance policies.

Appurtenance - A right or privilege that is attached to another property and is conveyed with it. See also easement and encroachment.

ARM — See "Adjustable Rate Mortgage".

Assessed valuation - The valuation placed upon land for purposes of taxation.

Assessment - The valuation of real estate for the purpose of taxes or special improvement charges. Special improvement charges are usually for the costs of streets, sidewalks, sewers, etc.

Assessor — A public official who evaluates property for the purpose of taxation.

Assignee — One to whom a transfer of interest is made. For example, the assignee of a mortgage or contract.

Assignment - The act of transferring certain interests in real estate from one party to another, like a mortgage or leasehold interest.

Assignor — One who makes an assignment. For example, the assignor of a mortgage or contract.

Assumption of mortgage - An obligation undertaken by a new purchaser of land to be liable for payment of an existing note secured by a mortgage.

Attachment —Legal seizure of property to force payment of a debt.

Attorney in fact - A person who holds a power of attorney from another to execute specified documents on behalf of the seller of the power.

Attorney’s opinion - A statement by an attorney as to the validity of a title, arrived at after investigation of the history of the title as recorded in the public records.