United Country Guardian Real Estate - Dillon, Beaverhead Madison County Southwest Montana Real Estate for sale

Dictionary / Glossary / Directory
of Real Estate Terminology
Definitions & Commonly Used
Real Estate Terms

Confused & overwhelmed by the overwhelming number of real estate terms and words? Every person working in real estate or planning to buy or sell real estate can benefit by using this dictionary directory glossary of real estate terminology, definitions and commonly used terms.

Real Estate Terminology Definitions & Commonly Used Terms
In Alphabetical Order

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

    Panalized Home:

  • A home in which major components, such as the floor, walls, and roof, are constructed or assembled in a factory and then shipped to a permanent lot or site for final assembly.
    • Parole Evidence Rule:

    • The rule that when contracting parties have put their complete agreement into writing, no prior or contemporaneous oral or written terms may be unilaterally added later to change the written contact, absent proof of fraud, mistake, or illegality.
      • Partial Performance:

      • A legal rule that an oral contract that is unenforceable because of the Statute of Frauds, is nonetheless enforceable under certain circumstances. For example, an oral agreement to sell an interest in real property ordinarily is not enforceable. However, if the doctrine of partial performance is applicable, such an agreement is enforceable. In general, for such an oral agreement to be enforceable by a person claiming an interest in real property, there must be other evidence to substantiate the oral agreement, such as when possession has changed hands, and improvements have been made or part of the price paid. This rule is important to alert managers to guard against partial performance of an oral agreement by another person who might attempt to use “flexible” facts while “testilying” to obtain an undeserved property interest.
        • Partial Release Clause:

        • A provision in a deed of trust permitting the release of portions of the encumbered property from the lien of the mortgage when certain conditions have been met, such as payments of specified amounts of the underlying debt. The clause most typically is found in blanket mortgages encumbering subdivision land.
          • Partial Release Clause:

          • A legal action by a co-owner of an undivided interest in real property, (for example, a joint tenant) for the purpose of having a court divide the property and award a particular piece to each co-owner. If the property cannot rationally be divided, the court can order a sale. The proceeds then can be divided in accordance with the respective ownership interests. Partition is an expensive and usually unsatisfactory experience for co-owners.
            • Plat:

            • A map showing the dimensions of a subdivision together with the location of numbered lots, easements and streets. Official Plats are recorded with the County Clerk and Recorder and also become known as a Certificate of Survey or COS.
              • Plot Map:

              • A map of a property showing all the structures currently on the site and all the proposed structures and major improvements the owner or developer intends to develop. A plat plan is part of the documentation submitted to obtain a building permit.
                • Plottage Value:

                • Increase in property value created by a change in the highest and best use when two or more parcels are assembled.
                  • Possession:

                    • The legal right to occupy or to receive the rent from real property. In residential property, the occupant who resides there has physical possession. The owner who has the right to collect rent, has legal possession. If the owner resides on the property, he has physical possession as well.

                    Power of Attorney:

                  • A document in writing whereby one person, the principal, authorizes another, called the attorney-in-fact, to act for him. The power of the attorney-in-fact is are determined by the express terms of the document; they are not implied except insofar as may be necessary to carry out the expressly granted powers. In real estate, a power of attorney may be useful for an absentee owner or an investor who lives abroad. A special power of attorney limits the authority of the attorney-in-fact to certain enumerated tasks. A general power of attorney delegates all powers of the principal except the power to vote and the power to make a Last Will.
                    • Power of Sale:

                    • A clause found in a mortgage or deed of trust that, upon a default in monthly payments, authorizes the creditor (mortgagee or beneficiary) to cause the collateral for the loan (i.e., the debtor’s home) to be sold to the highest bidder a a private sale. Without a power of sale clause, foreclosing creditors would be required to file a court action for foreclosure, a time-consuming and costly process, before the collateral could be sold.
                      • Prepayment Penalty:

                      • The cash penalty for the payment of a mortgage debt prior to its due date. It is a lender’s charge to compensate for anticipated money losses due to the early payoff. The penalty is illegal if it is excessive or confiscatory. Prospective borrowers can attempt to negotiate for the right to prepay a mortgage loan without any penalty.
                        • Prescriptive Easement:

                        • Easements, usually of access, over the land of another person, created by a continuous, open (visible), hostile, use without the consent of the landowner for a specified period of time, usually five years or more in most states. Different than a "license" - which is by permission, and therefore revokable.
                          • Price Allocation:

                          • An agreement by a seller and buyer in a real estate transaction as to what portion of the price is allocable to the land, to personal property, and to depreciable buildings and or intangible assets. If the allocation is within reason, it will be accepted by the IRS.
                            • Priority of Leins:

                            • The preferential sequence of liens and encumbrances, which in property law is based on time. That is, the first lien or encumbrance to be recorded has priority over all subsequently recorded liens and encumbrances. The law of priority applies to almost all liens and encumbrances, such as mortgages, judgment liens, mechanic’s liens and homestead laws. Certain governmental liens and encumbrances, such as property tax liens, are not governed by the law of priority. Under the law of priority, all of the value of the secured real estate must first be applied to satisfy the lien with highest, or first, priority. If any value remains, it is applied then to satisfy the lien with second highest, or second, priority. Any remaining value is applied to any other junior liens in the same manner. After all recorded liens are satisfied, any additional value from the property belongs to the earliest unrecorded lienholder.
                              • Procuring Cause:

                              • The efforts of a real estate agent that result in an offer to purchase real estate made by a ready, willing, and able buyer who completes the transaction. The concept of a procuring cause is applicable when the seller of real estate chooses to use an open variety of listing agreement. Under such circumstances, only the agent that is the procuring cause is entitled to the commission.
                                • Promissory Note:

                                • The written evidence of a debt. A promissory note may be negotiable and is always assignable. A note should contain the name and signature of its maker/debtor, the name of its creditor/payee, the amount of the debt, an express promise to pay money, words of negotiability when appropriate, the due date and/or amortization terms, the interest rate and payment schedule, the date drawn, whether it is prepayable or locked-in, whether or not it is secured, any penalty for tardy installments, any acceleration clause, and a provision concerning the reimbursement of legal fees and court costs (if any). A note is not a recordable document because it does not affect real property. If it is secured by a mortgage or deed of trust, the note cannot be negotiated, assigned, or transferred independent of the security, that is, the debt follows the security and vice versa, as a matter of law.
                                  • Purchase and Leaseback:

                                  • A sale of property, instantly following which the seller immediately leases back the entire property at a stipulated rent. The buyer obtains a certainty of income from the seller/lessee plus the tax advantages of ownership, which forms the basis for the transaction. The seller obtains cash from an immediate sale, hopefully favorable terms, and continues to occupy the property pending termination of the lease.

                                  • Real Estate Terminology Definitions & Commonly Used Terms
                                    In Alphabetical Order

                                    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

                                    While great care has been undertaken to provide accurate explanations and definitions for real estate terms and words in our real estate terms dictionary glossary dirctory, no real estate vocabulary dictionary cannot be completely accurate in all jurisdictions. Any / all definitions are for general purposes only and should not be used for any legal purpose. By use of this dictionary glossary directory of real estate terms, you agree to hold United Country - Guardian Real Estate harmless for any responsibility for any liability, loss or risk that may be claimed or incurred as a consequence of using this information.