Terminologies-Real Estate

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Aimee
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311991
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Terminologies-Real Estate
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2015-11-23 23:03:49
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Terminologies of Real Estate in the Philippines
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  1. A condensed history of the title, consisting of a various links in the chain of title, together with a statement of all liens, charges or encumbrances affecting a particular property.
    ABSTRACT OF TITLE
  2. A clause in contact stating that upon the happening of a certain event, like failure to pay any installment due shall make all the balance immediately due and payable.
    ACCELERATION CLAUSE
  3. When the seller or agent’s principal agrees to the terms of the contract of sales approves the negotiation on the part of the agent and acknowledge receipt of the deposit in subscribing to the agreement of sale.
    ACCEPTANCE
  4. An addition to land from natural causes as, for example from the gradual action of the ocean or the river waters.
    ACCRETION
  5. A formal declaration before duly authorized officer by a person who has executed an instrument that such execution is his act of deed.
    ACKNOWLEDGEMENT
  6. Usually refer to real estate properties that were previously mortgaged to the   bank, by which because the owner failed to pay the mortgage, the ownership of the property transferred to the bank through a judicial Foreclose Properties
    ACQUIRED ASSET
  7. The act or process by which a person procures property.
    ACQUISITION
  8. According to valuation
    AD VALOREM
  9. A person appointed by the probate court to administer the estate of a deceased person.
    ADMINISTRATOR
  10. A claim of a person on property owned by another (Good only for 30 days no second adverse claim is allowed).
    ADVERSE CLAIM
  11. Right of an occupant of land to acquire title against the real estate owner, where possession has been actual, continuous, hostile, visible distinct and the concept of owner for the statutory period. (Note: Statutory period is 30 years: adverse possession does not apply on lands titled under the Torrens System.
    ADVERSE POSSESION
  12. A system or a declaration reduced in writing sworn to affirmed before some officer who has authority to administer an oath or affirmation.
    AFFIDAVIT
  13. One who acts for and has the authority to represent another who is known as the principal.
    AGENT
  14. A written agreement or conduct between seller and purchaser which they reach a meeting of the minds on the terms and condition of the sale.
    AGREEMENT OF SALE
  15. The right of the property owner to use, control, or occupy the air space over his property, subject to the requirements of air navigations and government regulation.
    AIR RIGHT
  16. The transferring of property to another; the transfer property and possession of lands, or other things, from one person to another.
    ALIENATION
  17. Staggered payment of the things purchased. Also known as INSTALLMENT. It refers at the process of paying off debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. An amortization could be in Equal Payment which fix amounts throughout the loan period. It could also be Ballooning Payment wherein the monthly due increases through time. Given number of pay-periods and interest rate, the amortization amount is calculated using Amortization Factor Table.
    AMORTIZATION
  18. The liquidation of a financial obligation on installment basis. (A periodic payment which includes interest and principal necessary to liquidate a financial obligation.
    AMORTIZATION
  19. is one way of how an agency relationship is created. It means that the principal gives express authorization to the agent. Under both common and statutory law, this request writing when the sale of real estate is involved.
    APPOINTMENT
  20. is duly registered and licensed natural person who, for a fee, compensations or other valuable consideration, performs or renders or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally rendered by the preparation of the report in acceptable written form. Also known as valuer, refers to a person who conducts valuation/appraisal; specifically, one who possesses the necessary qualifications, ability and experience to execute or direct the valuation/appraisal of real or personal property.
    APPRAISER or Real Estate Appraiser
  21. A rise in value or price due to such factors as inflation or market conditions.
    APPRECIATION
  22. Something annexed to another thing which may be transferred incident to it. That which belongs to a thing as a barn, dwelling, garage, orchard, is an incident to a land to which it is attached.
    APPURTENANCE
  23. refers to a government official who conducts appraisal and assessment of real properties for taxation purposes.
    ASSESSOR
  24. The transfer of property or right and obligations over it in favor of another. (The one who assigns or transfers a property is called ASSIGNOR while those who whom property is assigned are called ASSIGNS or ASSIGNEES).
    ASSIGNMENT
  25. A stipulation in a mortgage of several properties price, a portion of the payments shall correspondingly release said lot from the mortgage.
    AUTOMATIC REDEMPTION CLAUSE
  26. Where the final installment payment on a note is greater than the preceding installment payments and the payer pays the note in full, such a final installment is termed a balloon payment.(Payment in lump sum although not yet due).
    BALLOON PAYMENT
  27. Imaginary lines used by the surveyors to find and describe the location and boundaries of real property.
    BASE AND MERIDIAN
  28. A agreement to cover a down payment for the purchase of real as evidence of good faith of the part purchaser.
    BINDER
  29. A mortgage that has two or more properties pledged as security for a debt.
    BLANKET MORTGAGE
  30. The breaking of law, or failure to perform a duty or obligations specified in a contract or agreement or revelation of secret, either by omission or commission.
    BREACH
  31. is duly registered and licensed natural person who, for a fee, commission or other valuable consideration acts as an agent of a party in real estate transaction to offer, advertise, solicit, list, promote mediate, negotiate, or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.
    BROKER or Real Estate Broker
  32. The rights of ownership whereby the owner has the right to enjoy, dispose, exclude others and to recover.
    BUNDLE OF RIGHTS
  33. means property held by the taxpayer (whether or not connected with his trade or business), but does not include – (a) Stock in trade of the taxpayer or other property of kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year; or (b) Property held on the taxpayer primarily for sale to customer in the ordinary course of his trade or business ; or (c)Property used in the trade or business of a character which is a subject to the allowance for the depreciation provided in subsection (F) of Sec.34 of the Code; or (d) Real property used trade or business of the taxpayer.
    CAPITAL ASSET
  34. Capital Gains tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.
    CAPITAL GAINS TAX
  35. Property you own that could give you a capital gains if you sell it. Can include investments, a property other than your home and money from a trust account. A property that is acquired for investment purposes, or use in a business that will give rise to a capital gain, and not an income gain, if it is sold at a profit. Land, Buildings machinery, shares in a farm corporation and an interest in a farm partnership will usually be capital property to the farmer.
    CAPITAL PROPERTY or ASSET
  36. Means “Let the buyer beware” (The buyer is duty-bound to examine the property he is purchasing and he assumes conditions which are readily ascertainable on the face of the title).
    CAVEAT EMPTOR
  37. CENRO
    Community Environment and Natural Resources Officer of the DENR.
  38. is a person who empowers another to act as his or her representative or agent. Client-Agent relationship is equal to fiduciary relationship.
    CLIENT
  39. A mortgage which can be paid off on its maturity.
    CLOSED MORTGAGE
  40. Any conditions revealed by a title search which affect the title to property; usually relatively unimportant items but which cannot be removed without a quitclaim deed or court action.
    CLOUD ON THE TITLE
  41. An agent’s compensation for performing the duties of his agency; in real estate practice, a percentage of the selling price of property , percentage of rentals, etc.
    COMMISSION
  42. the taking of public property for public use with fair compensation to the owner. An exercise of the Right of Eminent Domain.
    CODEMNATION
  43. property owned in common by the husband and wife.
    CONJUGAL PROPERTY
  44. is a duly registered and licensed natural person who, for a free, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.
    CONSULTANT or Real Estate Consultant
  45. An agreement between a buyer and a seller whereby there is transmission of ownership on the object of the contract
    CONTRACT OF SALE
  46. An agreement whereby by the seller promises to sell a thing in consideration of the buyer’s compliance to the terms and conditions of the contract and that only after the buyer’s compliance will the seller be obligated to transfer or convey the ownership of the thing subject of the contract.
    CONTRACT TO SELL
  47. This means by which title to real estate is transferred.
    CONVEYANCE
  48. The added desirability or utility of a property due to its frontage to two streets, which for residential use provides better ventilation and as to commercial or industrial use, it provides better access, display and transportation convenience.
    CORNER INFLUENCE
  49. It is a qualified or conditional acceptance.
    COUNTER OFFER
  50. A passageway with one outlet; a blind alley.
    CUL DE SAC
  51. A customer generally refers to person without representation involved in the transaction involved in the transaction. All agents and brokers have a duty to treat customers fairly.
    CUSTOMER
  52. Payment in kind. Payment of the debt or obligation with a property
    DACION EN PAGO
  53. A written instrument which, when properly executed and delivered, conveys title.
    DEED
  54. The failure to fulfil a duty or promise or to discharge an obligation; an omission or failure to perform any act.
    DEFAULT
  55. The clause in a mortgage that gives the mortgagor the right to redeem his property upon the payment of his obligations to the mortgagee.
    DEFEASANCE CLAUSE
  56. it is a judgment for the mortgagor to pay the balance of the obligation if the proceeds of the foreclosure.
    DEFICIENCY JUDGMENT
  57. Loss in value brought about by deterioration functional or economic obsolescence.
    DEPRECIATION
  58. A sum of money tendered by a buyer to the seller which if accepted by the seller shall form part of the purchase price and as proof of the perfection of the contract. It is a sign of good faith on the part of the buyer. Actually, it is a partial payment of the purchase and it must be deducted therefrom.
    EARNEST MONEY may also be referred to as BINDER
  59. the right, advantage or privilege which an individual has in land of another, such as a right of way.
    EASEMENT
  60. ECA
    Environmentally Critical Area is an area that is environmentally sensitive.
  61. is the document issued by the DENR Secretary or the Regional Executive Director certifying that based on the representation of the proponent and the prepares, as reviewed and validated by the EIARC, the proposed project or undertaking will not cause a significant negative environmental impacts; that the proponent has complied with all the requirements of the EIS System, and that the proponent is committed to implement its approved EMP in the EIS or mitigation measures in IEE.
    ECC (Environment Compliance Certificate)
  62. The period over which a property will yield a return on the investment, over and above the economic or ground rent to land.
    ECONOMIC LIFE
  63. The potential rent which a property can command, considering rental of similar or comparable properties in the neighbourhood.
    ECONOMIC RENT
  64. is a project that has a high potential for significant negative environmental impact.
    ECP (Environmentally Critical Project)
  65. refers to the documents or studies on the environmental impacts of a project including the discussions on direct and indirect consequences upon human welfare and ecological and environmental integrity.
    EIS (Environment Impact Statement)
  66. EMB
    (Environmental Management Bureau )- Environmental Management and Protected Area Sector of the DENR.
  67. The right of the government to acquire property for necessary public or quasi-public use.
    EMINENT DOMAIN
  68. Environmental Management Plan is a section of the EIS that details the prevention, mitigation, contingency and monitoring measures to enhance positive impacts and minimize negative impacts of a proposed project impacts of a proposed project or undertaking.
    EMP
  69. A building, part of building, or obstruction which intrudes upon or invades a highway or sidewalk or trespasses upon property of another.
    ENCROACHMENT
  70. Anything which affects or limits the fee simple title to property, such as mortgages, easements, or restrictions of any kind. Liars are money encumbrances which make the property security for the payment of a debt of obligations, such as mortgages and taxes.
    ENCUMBRANCE
  71. It is the reservation or automatic conveyance of real property to the State upon the owner’s death due to the absence of will heirs or other legal claimants, to the title, or when the owner fails to pay the real estate taxes.
    ESCHAT
  72. in one way of how an agency relationship is created. It means that if the principal makes third persons to believe that someone in his agent and that third party deals with even though it did not exist in fact
    ESTOPPEL
  73. Right of the original owner to reclaim property sold thought judicial foreclosure proceedings by payment of debt, interest, and cost.
    EQUITY OF REDEMPTION
  74. The interest or value which an owner has in real estate over and above the mortgage against it.
    EQUITY
  75. A provision in a contract providing for periodic proportional upward or downward adjustment of price or consideration.
    ESCALATION CLAUSE
  76. Reversion of property to the state owning to lack of any heirs capable of inheriting; or due to other causes provided by low.
    ESCHEAT
  77. An agreement entrusted to a third person to be held by him until the performance or fulfilment of some act or condition.
    ESCROW
  78. That branch of moral science, idealism, justness, and fairness, which treats of the duties that a member of a profession or professional brethren or members.
    ETHICS
  79. The price which a willing seller will sell and a willing buyer will buy, neither being under abnormal pressure.
    FAIR MARKET VALUE
  80. Largest estate of ownership in real property in which the owner holds all rights not reversed by society. Absolute ownership.
    FEE SIMPLE
  81. A person in a position of trust and confidence, as between a principal and a broker; the broker as fiduciary owes certain loyalty which cannot breached under rules of agency.
    FIDUCIARY
  82. A procedure where by property pledged as security for debt is sold to pay the debt in the event of default in payments or terms. It is a process instituted by a   mortgagee by which the mortgaged property is sold at public auction to satisfy the principal obligation which the debtor failed to fulfil. The property that has been transferred to the bank through a Foreclose Property, which is also known as Bank Acquired Asset.
    FORCLOSURE
  83. The loss of money or anything of value, due to failure to perform, such as under an agreement to purchase.
    FORFEITURE
  84. The use of property which will bring the optimum or highest returns or advantage as of a certain time.
    HIGHEST AND BEST USE PRINCIPLE
  85. A provision in a listing agreement which entitles the broker to commission even when the sale was closed after the period of authority provided that the buyer was registered by him with the seller and with whom he has negotiated during the period of his authority. It may also be applied in lease with contracts wherein this provision determines what happens when the tenant remains beyond the expiration of the lease; example: after the expiration of lease, the land lord serves an eviction notice to the tenant, rent the tenant was given an option to remain upon payment of P3000 per day additional rent, according to the holdover clause.
    HOLDOVER CLAUSE
  86. is a real estate buying act instalment basis wherein the mortgage agreement is between the property developer and the buyer. When the buyer fails to fulfil the obligation to pay, the ownership of the property reverts back to the developer. In-house financing usually have higher interest rates compared to the back loan. What is bad in-house financing is that the seller only issues a Contract-To-Sell. In Bank Financing, the seller issues an Absolute Deed of Sale to the name of the buyer, and then automatically mortgage the property to the bank.
    IN-HOUSE FINANCING  also known as VENDOR FINANCING
  87. A business alliance of two or more parties to undertake a specific project. When the project completed, the joint venture self-destructs itself.
    JOINT VENTURE
  88. A lot adjoining a comer, at right angle to it and fronting an intersecting street. (Commonly referred to as a “Tumbok” Lot.)
    KEY LOT
  89. The earth’s surface, the beneath which extends to the center of the earth, and the space above which extend to the sky.
    LAND
  90. Delay or an negligence in asserting one’s legal right.
    LATCHES
  91. An agreement or contract, whereby the owner/lessor of the property transfer to the lessee/tenant the right of possession of the subject property, subject to payment of specific consideration (rent) and other terms and conditions as contained in the lease contract.
    LEASE
  92. Refers to the right of the owners \lessor to receive contract rent, repossess the subject property upon termination of the lease, and any adjustments in the improvement as contained in the lease agreement.
    LEASED-FEE INTEREST/LEASE-FEE ESTATE
  93. Refers to the right of the lessee/tenant to use and occupy the property subject to terms and conditions of the lease contract.
    LEASEHOLD INTEREST/LEASEHOLD ESTATE
  94. The life of the intangible asset allowed by law.
    LEGAL LIFE
  95. A person is to whom property rented lease. Commonly called a tenant.
    LESSEE
  96. One who the property and whose rights to use an asset, which is transferred to another (lessee) under the lease contract. Commonly referred to as landlord.
    LESSOR
  97. A hold or claim which one person has upon a property of another ass security for, a debt or charge, judgment, mortgages.
    LIEN
  98. An annotation in the title which serves as notice that the property is subject to a pending litigation. Lis pendes is Latin for “suit pending.” This may refer to any pending lawsuit or to a specific situation with a public notice of litigation that has been recorded in the same location where the title of real property has been recorded.
    LIS PENDENS
  99. The brokers “stock in trade” or the property being handled by the broker: it can be referred to also as the conduct between the owner and broker: or the authority of the broker to negotiate the transaction of property for a commission.
    LISTING
  100. The practice of appraising multiple properties as of a given date by the a systematic and uniform application of appraisal methods and techniques.
    MASS APPRAISAL
  101. A document executed by property owners which creates or converts his properly into a condominium a pursuant to Rep. Act. 4726.
    MASTER DEED
  102. A lien created by the law which exist in favor of persons who have performed or furnished materials in the erection or repair of the building.
    MECHANICS LIEN
  103. Measurements and boundaries. A term used in describing the boundary lines, together with their terminal points and angles.
    METES AND BOUNDS
  104. A pledge of an interest in property as security or collateral for repayment of a loan with provision for redemption on repayment. In case of borrower’s default, the lender can foreclose the collateral.
    MORTGAGE
  105. An arrangement among a group of real estate brokers to share its listing with a pre-arrange agreement especially on commission sharing.
    MULTIPLE LISTING
  106. Impairment of desirability and usefulness brought by physical, economic, functional deterioration, or other causes. Loss in a value due to reduced desirability and usefulness of a structure because of becoming old-fashioned and not in keeping with modern needs with consequent loss of income.
    OBSOLESCENCE
  107. A mortgage which can be paid off at any time even before its maturity.
    OPEN MORTGAGE
  108. A mortgage containing a clause which permits the mortgagor to borrow additional money after the loan has been reduced, without re-writing the mortgage.
    OPEN-END MORTGAGE
  109. The right to purchase or lease a property at a certain price for a certain designated period, for which right a consideration is paid.
    OPTION
  110. The amount paid to a property owner in consideration of giving a prospective buyer or lessee the exclusive right to buy or lease his property within a specified period at the agreed price and term.(Within the option period, the owner cannot sell or lease except to the person who paid the option money.)
    OPTION MONEY
  111. refers to all properties specifically excluded from the definition of capital assets under Sec. 39(A)(1) of the NIRC.
    ORDINARY ASSET
  112. The improvement which does not produce an adequate return for the amount invested on a building or property. An improvement which is not suitable to the site on which it is place due to excessive size or cost.
    OVER-IMPROVEMENT
  113. A contract of sale with the stipulation that the vendor shall have the right to buy back the property within the agreed period.
    PACTO DE RETRO SALE
  114. A stipulation which authorizes the mortgagee to appropriate the property as his own upon failure of the debtor to fulfil the principal obligation.
    PACTUM COMMISSORIUM
  115. A stipulation which prohibits the mortgagor from alienating the property within the period of the mortgage.
    PACTUM DE NON ALIENDO
  116. Property exclusively owned by the wife.
    PARAPHERNAL LEASE
  117. Rights and privileges related to the ownership of a property other realty.
    PERSONAL PROPERTY
  118. PENRO
    Provincial Environment and Natural Resources Officer of DENR.
  119. A lease of property in which the rental is based upon the volume of sales made upon the leased property.
    PERCENTAGE LEASE
  120. The right of the state to enact laws and enforce them for the order, safety, health, morals and general welfare of the public.
    POLICE POWER
  121. is commonly known as the person who engages the agent for representation.
    PRINCIPAL
  122. is proof or act of proving at a court that a last will and testament actually that of the deceased person.
    PROBATE
  123. The act of the broker leading to the meeting of minds between the parties to a transaction or the consummation of a transaction.
    PROCURING CAUSE
  124. A legal concept, pertaining to all the interest rights, and benefits related to ownership.
    PROPERTY
  125. Refer to bundle of rights, subject only to the private and state limitations.
    PROPERTY RIGHTS
  126. This is a contract that authorizes a Broker to offer a property for sale at a premium profiteering price, which is normally a high price above the normal fair market value. When a real estate owner wants to sell his property that is currently under a Professional Real Estate Management Service (PREMS), he will just order a Put Option to the Broker.
    PUT OPTION
  127. A deed of release or renunciation of legal right a deed to relinquish any interest in property which the granter may have had an protest or adverse claim.
    QUITCLAIM
  128. is one way of how an agency relationship is created. It means that if a person having no authority whatsoever purports to act as an agent and the purported principal later adopts the acts of that agent an agency relationship has retroactively been created.
    RATIFICATION
  129. A term used to distinguish either real property or real estate from items or personal property.
    REALTY
  130. Refers to the land and all those items which are attached to the land. It is the physical, tangible entity which can be seen and touched, together with all the addition on, above or below the ground.
    REAL ESTATE
  131. Means the development of land for residential, commercial, industrial, agricultural, institutional and recreational purpose, or any combination of such including, but not limited to, tourist, resorts, reclamation projects, building or housing projects, whether for individual or condominium ownership, memorial parks and others of similar nature.
    REAL ESTATE DEVELOPMENT PROJECT
  132. Includes all the rights and benefits related to the ownership of real estate.
    REAL PROPERTY
  133. Shall refer to and shall consist of Real Estate Broker, Real Estate Appraiser, and Real Estate Consultant, Real Estate Sales Person:
    REAL ESTATE SERVICE PRACTITIONERS
  134. RED
    Regional Executive Director of DENR
  135. REIT
    Real Estate Investment Trust
  136. RESA
    Real Estate Service Act (R.A No.9646)
  137. is duly accredited natural person who performs service for, and in behalf of, a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of the share in the commission, professional fee, compensation or other valuable consideration.
    SALESPERSON or Real Estate Salesperson
  138. It means that if at the end of the period of lease, the lessee continues to enjoy the thing leased with acquiescence of the lessor, it is understood that there is an implied new lease.
    TACITA RECONDUCTA
  139. Is an imaginary line connecting from the known geographic position (tie point) to the corner of the titled property. This term is used in Map Reading.
    TIE LINE
  140. Is a reference point with known geographic position established by the Bureau of Lands. This term is used in Map Reading.
    TIE POINT
  141. That improvement which does not sufficiently improve the land to product he highest and best value of return of which the land is capable.
    UNDER IMPROVEMENT
  142. A value added to land for which the owner is in no way responsible, like the increase of population.
    UNEARNED INCREMENT
  143. Objective value. Property’s value to an impartial buyer who represent the market.
    VALUE IN EXCHANGE
  144. Subject value. The property’s value to its occupants or user.
    VALUE IN USE
  145. A deed used to convey real property which contains warranties of title and quiet possessions. In a warranty deed, the grantor is to defend the premises against the lawful claims of the third person.
    WARRANTY DEED
  146. A writ authorizes and directs the proper officer of the court, usually the sheriff to carry into effect a judgment or decree of the court.
    WRIT OF EXECUTION
  147. The exercise of the police power by the municipality or city and regulating and controlling the character and   use of property.
    ZONING ORDINANCE

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