Documente Academic
Documente Profesional
Documente Cultură
TERMINOLOGIES
Realtor Arturo M. Lawa, CPV
REB PRC Licensed No. 0002007
REA PRC Licensed No. 0000248
REAL ESTATE
TERMINOLOGIES
ABSTRACT OF TITLE - 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.
REAL ESTATE
TERMINOLOGIES
ACCEPTANCE - When the seller or agents 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.
REAL ESTATE
TERMINOLOGIES
ACKNOWLEDGEMENT - A formal declaration before
duly authorized officer by a person who has executed an
instrument that such execution is his act of deed.
REAL ESTATE
TERMINOLOGIES
ACQUISITION - The act or process by which a person
procures property.
REAL ESTATE
TERMINOLOGIES
ADVERSE CLAIM - A claim of a person on property
owned by another (Good only for 30 days no second
adverse claim is allowed).
REAL ESTATE
TERMINOLOGIES
AFFIDAVIT A system or a declaration reduced in
writing sworn to affirmed before some officer who has
authority to administer an oath or affirmation.
REAL ESTATE
TERMINOLOGIES
AGREEMENT OF SALE 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.
REAL ESTATE
TERMINOLOGIES
AMORTIZATION 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
REAL ESTATE
TERMINOLOGIES
AMORTIZATION The liquidation of a financial
obligation on installment basis. (A periodic payment
which includes interest and principal necessary to
liquidate a financial obligation.
REAL ESTATE
TERMINOLOGIES
APPRAISER A Real Estate Appraiser 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
REAL ESTATE
TERMINOLOGIES
APPRECIATION A rise in value or price due to such
factors as inflation or market conditions.
REAL ESTATE
TERMINOLOGIES
ASSIGNMENT - 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).
REAL ESTATE
TERMINOLOGIES
BALLOON PAYMENT 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).
REAL ESTATE
TERMINOLOGIES
BINDER A agreement to cover a down payment for
the purchase of real as evidence of good faith of the
part purchaser.
REAL ESTATE
TERMINOLOGIES
BROKER A Real Estate Broker 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.
REAL ESTATE
TERMINOLOGIES
CAPITAL ASSET Capital asset 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
REAL ESTATE
TERMINOLOGIES
REAL ESTATE
TERMINOLOGIES
CAVEAT EMPTOR 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).
REAL ESTATE
TERMINOLOGIES
CLIENT A client is a person who empowers another
to act as his or her representative or agent. ClientAgent relationship is equal to fiduciary relationship.
REAL ESTATE
TERMINOLOGIES
CLOUD ON THE TITLE- Any conditions revealed by a
title search which affect the title to property; usually
relatively unimportant items but which items but which
cannot be removed without a quit claim dead or court
action.
REAL ESTATE
TERMINOLOGIES
CODEMNATION- the taking of public property for
public use with fair compensation to the owner. An
exercise of the Right of Eminent Domain.
REAL ESTATE
TERMINOLOGIES
CONSULTANT- A Real Estate Consultant 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.
REAL ESTATE
TERMINOLOGIES
CONTRACT OF SALE- An agreement between a buyer
and a seller whereby there is transmission of ownership
on the object of the contract
REAL ESTATE
TERMINOLOGIES
CONVEYANCE- This means by which title to real
estate is transferred.
REAL ESTATE
TERMINOLOGIES
COUNTER OFFER- It is a qualified or
conditional acceptance.
REAL ESTATE
TERMINOLOGIES
DACION EN PAGO- Payment in kind. Payment of
the debt or obligation with a property
REAL ESTATE
TERMINOLOGIES
DEFEASANCE CLAUSE- The clause in a
mortgage that gives the mortgagor the right to
redeem his property upon the payment of his
obligations to the mortgagee.
REAL ESTATE
TERMINOLOGIES
DEPRECIATION- Loss in value brought about by
deterioration functional or economic obsolescence.
EARNEST MONEY- 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. (See also BINDER)
REAL ESTATE
TERMINOLOGIES
EASEMENT- he right, advantage or privilege
which an individual has in land of another, such as
a right of way.
REAL ESTATE
TERMINOLOGIES
ECC- Environment Compliance Certificate 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.
REAL ESTATE
TERMINOLOGIES
ECONOMIC LIFE- The period over which a property
will yield a return on the investment, over and above
the economic or ground rent to land.
REAL ESTATE
TERMINOLOGIES
EIS- Environment Impact Statement 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.
REAL ESTATE
TERMINOLOGIES
EMP- 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.
REAL ESTATE
TERMINOLOGIES
ENCUMBRANCE- 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.
REAL ESTATE
TERMINOLOGIES
ESTOPPEL- Estoppel 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
REAL ESTATE
TERMINOLOGIES
ESCALATION CLAUSE- A provision in a contract
providing for periodic proportional upward or
downward adjustment of price or consideration.
REAL ESTATE
TERMINOLOGIES
ETHICS- 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.
REAL ESTATE
TERMINOLOGIES
FIDUCIARY- 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.
REAL ESTATE
TERMINOLOGIES
FORFEITURE The loss of money or anything of
value, due to failure to perform, such as under an
agreement to purchase.
REAL ESTATE
TERMINOLOGIES
HOLDOVER CLAUSE 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
REAL ESTATE
TERMINOLOGIES
IN-HOUSE FINANCING also known as VENDOR
FINANCING, 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
REAL ESTATE
TERMINOLOGIES
JOINT VENTURE A business alliance of two or more
parties to undertake a specific project. When the project
completed, the joint venture self-destructs itself.
REAL ESTATE
TERMINOLOGIES
LEASE 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.
LEASED-FEE INTEREST/LEASE-FEE ESTATE 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.
LEASEHOLD INTEREST/LEASEHOLD ESTATE Refers to the
right of the lessee/tenant to use and occupy the property subject to
terms and conditions of the lease contract.
REAL ESTATE
TERMINOLOGIES
LEGAL LIFE The life of the intangible asset allowed
by law.
LESSEE A person is to whom property rented lease.
Commonly called a tenant.
LESSOR 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.
LIEN A hold or claim which one person has upon a
property of another ass security for, a debt or charge,
REAL ESTATE
TERMINOLOGIES
LIS PENDENS 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.
REAL ESTATE
TERMINOLOGIES
MASS APPRAISAL The practice of appraising
multiple properties as of a given date by the a
systematic and uniform application of appraisal
methods and techniques.
MASTER DEED A document executed by property
owners which creates or converts his properly into a
condominium a pursuant to Rep. Act. 4726.
MECHANICS LIEN - 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.
REAL ESTATE
TERMINOLOGIES
METES AND BOUNDS Measurements and boundaries. A term
used in describing the boundary lines, together with their terminal
points and angles.
REAL ESTATE
TERMINOLOGIES
OBSOLESCENES - 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.
OPEN MORTGAGE - A mortgage which can be paid off at
any time even before its maturity.
OPEN-END MORTGAGE -A mortgage containing a clause
which permits the mortgagor to borrow additional money
after the loan has been reduced, without re-writing the
REAL ESTATE
TERMINOLOGIES
OPTION - 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 MONEY - 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.)
ORDINARY ASSET - Ordinary asset refers to all properties
specifically excluded from the definition of capital assets
REAL ESTATE
TERMINOLOGIES
OVER-IMPROVEMENT - 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.
PACTO DE RETRO SALE - A contract of sale with the
stipulation that the vendor shall have the right to buy back
the property within the agreed period.
PACTUM COMMISSORIUM - A stipulation which
authorizes the mortgagee to appropriate the property as his
own upon failure of the debtor to fulfil the principal
obligation.
REAL ESTATE
TERMINOLOGIES
PACTUM DE NON ALIENDO - A stipulation which
prohibits the mortgagor from alienating the property
within the period of the mortgage.
PARAPHERNAL LEASE - Property exclusively owned
by the wife.
PERSONAL PROPERTY - Rights and privileges related
to the ownership of a property other realty.
PENRO - Provincial Environment and Natural
Resources Officer of DENR.
REAL ESTATE
TERMINOLOGIES
PERCENTAGE LEASE - A lease of property in which the
rental is based upon the volume of sales made upon the
leased property.
POLICE POWER - The right of the state to enact laws
and enforce them for the order, safety, health, morals and
general welfare of the public.
PRINCIPAL - A principal is commonly known as the
person who engages the agent for representation.
PROBATE -is proof or act of proving at a court that a last
will and testament actually that of the deceased person.
REAL ESTATE
TERMINOLOGIES
PROCURING CAUSE - The act of the broker leading to
the meeting of minds between the parties to a
transaction or the consummation of a transaction.
REAL ESTATE
TERMINOLOGIES
PUT OPTION - 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.
REAL ESTATE
TERMINOLOGIES
RATIFICATION - Ratification 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.
REAL ESTATE
TERMINOLOGIES
REAL ESTATE - 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
TERMINOLOGIES
REAL PROPERTY -Includes all the rights and benefits
related to the ownership of real estate.
REAL ESTATE SERVICE PRACTITIONERS - Shall refer to
and shall consist of Real Estate Broker, Real Estate Appraiser,
and Real Estate Consultant.:
REAL ESTATE
TERMINOLOGIES
SALESPERSON - a Real Estate Salesperson 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.
REAL ESTATE
TERMINOLOGIES
TIE LINE- 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.
REAL ESTATE
TERMINOLOGIES
UNEARNED INCREMENT -A value added to land for
which the owner is in no way responsible, like the
increase of population.
REAL ESTATE
TERMINOLOGIES
WARRANTY DEED - 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.