Abstract of title
A summary listing of the documents registered in the
local land registry office and which affect title (ownership) of a particular
property.
Abut
Adjoin or share a common boundary or share even a
small portion of a boundary.
Acceleration clause
A clause in a mortgage or loan, if the borrower falls
to live up to her obligations under the mortgage, the lender has the legal
right to demand that the full principal of the mortgage may become due and
payable immediately upon the failure.
Acceptance
A positive response to an offer or a counter-offer
that creates a binding agreement between the parties. Acceptance may be
conditional upon the occurrence of certain events.
Access
The right to enter a property. Access may be
restricted to certain times, to certain persons and to certain purposes (i.e.
access for the purpose of inspection)
Accessibility
The ease with which one can reach a certain place,
person or thing. A properly may be inaccessible because it is located far back
along an unpaved road, which can get washed away or flooded dung the rainy
season. A property may also be said to have good accessibility to highways,
shopping, school etc.
Accessory building
A structure on a property that serves a specific
purpose, complementing the home or main building like a garage or storage shed.
Accrued interest
Interest which has already been earned but has not yet
been paid.
Accrued depreciation
From a tax standpoint, the amount of value of a
properly or chattel which has already accumulated (but has not been claimed) as
a result of the decrease in the value of that property due to the passage of
time and the use of the property.
Acquisition
The process of taking title to or ownership of
something.
Acquisition cost
The cost to the purchase of obtaining title to
anything, including real property. Acquisition cost includes the cost of the
transaction of obtaining title, including legal fees and mortgages, land
transfer tax, etc.
Actual age
As opposed to effective age. The objective age in
years of a building measured simply by the passage of time since it was
constructed. Effective age is a subjective measurement of the condition of a
building, influenced mostly by the maintenance and upkeep carried out on the
building over the years.
Actual possession
As opposed to constructive possession. When the owner
of a property occupies the property on a day-to-day basis. Constructive possession
is when the owner takes actions to establish and maintain his ownership of a
property without actually occupying it
himself (i.e. leasing it to tenants, removing squatters, hiring a security
firm).
Addendum
An addition to a document that forms part of it. Similar
to a schedule to an agreement of purchase and sale. May be used to add specific
and detailed information material to the contract or upon which contractual
terms are based.
Additional principal payment
A one-time or lump-sum payment made by a borrower in
addition to the regular payments on a loan or mortgage which reduces the
principal owing on the debt.
Adjacent land
An inexact term used to describe any property which is
situated near or abutting a certain piece of property. Note, an abutting
property will always be adjacent but an adjacent property may not be abutting.
Aesthetic value
A subjective element in the overall market value of a
property created by the physical presentation of the land or buildings.
Agent
A person empowered by a principal to act on behalf of
the principal in dealings with third parties. The third party is entitled to
rely upon the agreement, assurances or statements of the agent as being binding
on the principal.
