Acceptance
 Action of offeree in agreeing to terms of an offer, thereby creating a contract.

Acceleration Clause
 A provision in a mortgage or other contact that gives a party (such as a lender) a right to demand immediate payment of an entire principal balance.

Acknowledgment
 A certification, usually before a notary, that a document is the act and deed of the declarant.

Adjustable-rate mortgage (ARM)
 A mortgage under which the lender may change the interest rate periodically on the basis of changes in a specified index.

Adjustment period
 The length of time between the adjustment dates for an adjustable-rate mortgage (ARM).

Administrator
 Male party responsible for probate of an intestate estate (estate where there is no will).

Administratrix
 Female party responsible for probate of an intestate estate.

Adverse Possession
 Control or occupancy of real property under circumstances that indicate that such use is by right on the part of the possessor.  Adverse possession may establish title if continued a certain period of time, at common law, twenty years.

Amortization
 The gradual repayment of a mortgage loan or other obligation by installments.

Amortization Schedule
 A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.

Annual Percentage Rate (APR)
 The cost of credit expressed as an annual rate. It is defined and calculated by using a formula set by federal law and disclosed to the borrower to aid in comparing different credit plans. All finance charges imposed by a lender are included in this calculation, and an APR is always higher than the simple interest rate when such finance charges such as points, origination fees or mortgage insurance are charged by a lender.

Appraisal
 Process of valuing property, or a real estate professional’s estimate of a  property’s value.

Assessment
 The process of placing a value on property for the purpose of taxation. This  term may also refer to a levy against property for a special purpose, such as a sewer assessment.

Assignment
 A  transfer contract rights to another; for example, assignment of a mortgage or lease.

Assumption
 Taking on a responsibility, such as where a buyer of real property agrees to assume responsibility for payments on an existing mortgage.

Attachment
 A lien or seizure of property created by legal process.

Attorney-in-fact
 A person authorized to act on behalf of another, usually by grant of a written power of attorney. 

B (Top)

Bequest
 A gift of personal property by will.

Beneficiary
 A person designated to receive the income or other proceeds, as from a trust or estate.

Binder
 A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

Bridge Loan
 A form of second mortgage that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on another property before the present home is sold.

Broker
 An agent who negotiates contracts for purchase and sale. In Massachusetts, real estate brokers and salespersons are licensed by the state Real Estate Board.

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Capital Gain
 Profit made from sale of an asset.

Citation (Cite)
 Reference to legal authority, such a case, statute, regulation or ordinance.

Chain of title
 The history of all of the documents affecting title to a parcel of real property, starting with the earliest existing document and ending with the most recent.

Closing
 In a real estate transaction, a meeting in which the deed is delivered to the buyer, payment is made to the seller, title is transferred, and agreed-on costs are paid. Also called "settlement."

Cloud on title
 Any condition which adversely affects a title to real estate.

Commitment
 In real property, a lender’s agreement to provide mortgage funding to a borrower.

Condemnation
 The determination that a building is not fit for use or is dangerous and must be destroyed; or, the taking of private property eminent domain.

Condominium
 A form of real estate ownership in which a property is divided into individually-owned units and common areas, the common areas being owned by the unit owners in undivided shares. 

Consideration
 The price or  thing (tangible or otherwise) given in exchange as part of an agreement or contract. For example, in a purchase and sale of real estate, the considerations are the buyer’s money and the seller’s property. 

Contingency
 A condition that may affect whether a contract is binding. For example, residential purchase and sale agreements often include mortgage commitment or home inspection contingency provisions. 

Conventional Mortgage
 A mortgage that is not insured or guaranteed by the federal government.

Convertible ARM
 An adjustable-rate mortgage (ARM) that can be converted to a fixed-rate mortgage under specified conditions.

Cooperative
 A form of ownership in which the residents of a multiunit housing complex own shares in a cooperative corporation which owns the property and each resident the right to occupy a specific apartment or unit.

Co-ownership
 Ownership of property by more than one person.

Corporation
 A form of business organization in which the business is a legal entity separate from its owners and employees. Corporations can act,  own property, or have claims brought against them in their own name, as compared, for example, to a sole proprietorship, in which all legal benefits and liabilities (even where a business name is used) are personal to the owner. 

Counterclaim
 Claim made by the Defendant against the Plaintiff in a lawsuit.

Covenant
 Promise in a deed that affects or limits the use of the conveyed property.

Curtesy
 Common law rights of a widower in real estate owned by his deceased wife during their marriage. In Massachusetts, common law curtesy has been abolished and replaced with gender-neutral dower rights.

D (Top)

DBA
 Doing Business As.

Declaration of Condominium
 Master Deed creating a condominium.

Deed
 Instrument used to convey title to real property.

Deed in Lieu of Foreclosure
 Deed used by a borrower surrendering title to his/her property to prevent lender foreclosure.

Deed of Trust
 Document creating security interest in real property in which title is held by a trustee until the borrower repays the beneficiary (lender) in the amount of the loan. Used in some states for the essentially the same purposes as a mortgage.

Default
 Failure to comply with a contractual obligation or another duty.

Devise
 Gift of real property by will.

DOR
 Massachusetts Department of Revenue.

Dower
 At common law, rights of a widow in real estate owned by her deceased husband during their marriage. Under Massachusetts statute, dower rights are gender neutral.

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Easement
 The right to use the land of another for a specific purpose. Easements may be temporary or permanent. Example: A utility company easement across a property to run electric lines.

Easement Appurtenant
 Easement that benefits a particular tract of land; generally an access easement or right of way.

Easement in Gross
 An easement that does not benefit a particular tract of land; e.g. utility easements that run through all parcels of land in an area.

Eminent Domain
 Process of governmental entity taking title to private property for public purposes.

Environmental Protection Agency (EPA)
 Governmental agency responsible for the enforcement of environmental laws.

Escheat
 Process whereby property of a decedent is given to the state because of no available heirs.

Escrow
 Process whereby details of property transfer, payments, and deed conveyance are handled by a third party.

Executor
 Male party responsible for the probate of a decedent’s estate pursuant to the decedent’s will.

Executory Interest
 Future interest that is not a remainder and not an interest in the grantor.

Executrix
 Female party responsible for the probate of a decedent’s estate pursuant to the decedent’s will.  

Fee
 Term to refer to an inheritable interest in land.

Fee simple
 Highest land interest; full title; right to convey or transfer by will or mortgage without restriction.

Fee simple absolute
 Another term for fee simple.

Fee simple defeasible
 A fee simple estate that can be lost by violation of a condition or use restriction placed in the transfer by the grantor.

Fee simple determinable
 Full title to land so long as certain conduct is avoided; e.g., "To A so long as the premises are never used for a bar."

Fee simple subject to a condition subsequent
 Full title provided that there is compliance with a condition; e.g., "To A upon the condition that the property is used for school purposes."

Fee tail
 Full title restricted in its passage to direct descendants of the owner.

Fiduciary
 Party in position of trust and confidence with another; an agent or trustee.

Financing Statement
 Document filed to protect a security interest; must contain information about the parties and description of the collateral.

Fixtures
 Personal property that becomes attached to and is so closely associated with real property that it becomes a part of the real property.

Foreclosure
 Process of selling mortgaged property to satisfy the debt owed by the defaulting mortgagor.

Forfeiture
 Loss of rights; in a contact for deed, the loss of all interest in the property for nonpayment.

Freehold
 Estates uncertain or unlimited in their duration.

G (Top)

Gift
 At law, a transfer of property without consideration with donative intent by actual or constructive delivery. 

Grantee
 Person to whom an interest in land is conveyed. 

Grantor
 Person who conveys an interest in land.  


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Hazardous Substance Response Trust Fund
 Fund created under federal environmental laws; known as the Superfund for use in clean-up of toxic waste.

Heirs
 Persons entitled to a portion of a decedent’s estate.

Homestead
 Debtor protection that entitles the debtor to a certain amount in real property that is exempt from attachment by creditors.

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Injunction
 Equitable remedy; court order requiring a party to perform an act or cease certain conduct; e.g. to stop trespassing.

Installment Land Contract
 A contract for deed; method of selling property in which the seller serves as the financier for the buyer and the purchase; seller holds onto the title until there has been payment in full under an installment payment plan.

Interstate Land Sales Full Disclosure Act (ILSFDA)
 Federal law regulating the sale of property across state lines; requires advance filing of sales of minerals, mandatory disclosure of certain information, and prohibitions on promises about the land’s future development.

Inter Vivos
 During the life; while alive; e.g., an inter vivos gift.

Intestate
 Death without a will.

Intestate succession
 Statutory method for distributing the property of those who die without a will (intestate).

Involuntary lien
 Lien that does not result from a contractual arrangement; e.g., a tax lien or a judicial lien.


J (Top)


Joint tenancy
 Ownership of property by two or more people in which the survivors automatically gain ownership of a descendant's  interest.

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Lease
 Agreement between the owner of land and another for the use and occupation of the land.

Lease-purchase
 Financing method that permits potential buyers to lease property for a period with an option to buy.

Legacy
 Gift of money by will.

License
 Revocable right to enter another’s property.

Lien
 Interest in real property that serves as security for repayment of debt.

Life Estate
 Interest in land that lasts for the life of the grantee.

Life tenants
 Those who hold a life estate in property.

Limited partnership
 A partnership with at least one general partner in which limited partners can purchase interest and be held liable only to the extent of their interest and not risk personal liability.

Lis pendens
 "Suit or action pending"; document recorded with the land records to indicate a suit involving the land is pending.


M (Top)

Marketable Title
 Form of title generally required to be delivered at the sale of property; property is free from liens and no defects in title other than those noted or agreed to.

Master Deed
 In a condominium development, the document recorded to reflect the location of the project and the individual units.

Master Plan
 General plan for zoning.

Mechanic’s liens
 Liens placed on real property to secure the amount due to those who performed the work or supplied materials for improvements or other projects on the land.

Metes and bounds
 Method of land description that begins with a permanent object and then through distances and directions describes the parcel of land.

Mortgage
 Lien on real property used to secure a debt.

Mortgagee
 Lender, or party who holds the mortgage lien.

Mortgagor
 Borrower, or party occupying land that is mortgaged.

Mutual will
 Wills of parties that are reciprocal in their distribution; usually based on a contract to make a will; generally enforceable.

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National Pollution Discharge Elimination System
 Permit system that requires EPA approval for water discharges.

Negative easement
 An easement that prohibits a property owner from doing something that affects the property of another.

Nonconforming use
 In zoned areas, a use that does not comply with the area’s zoning but that existed prior to the time the zoning was effective.

Noncumulative classifications
 Method of zoning in which use in a particular area is limited to the zoned use; e.g., industrial zones cannot include residential buildings and apartment areas cannot include single-family dwellings.

Nonfreehold estates
 Land interests that are limited and certain in their duration.

Notice statute
 Form of recording statute that gives later bona fide purchasers priority in the case of multiple purchases for the previous purchaser’s failure to give notice by recording their transactions.

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Offer
 Initial communication in contract formation that, if accepted, results in the formation of a contract.

Open listing
 Listing that pays commission to whichever broker or salesperson sells the property; permits the owner to list with more that one broker and be liable for only one commission.

Option
 Right to purchase property during a certain period of time. This right is paid for with consideration.

Ordinances
 Laws passed on a local level of county, state or city governments.

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Per stirpes
 Method of distributing property to heirs whereby those closer in relation to the decedent receive greater shares.

Plat map
 Method of land description that relies on a recorded map of a subdivision, with each deed making reference to the map and the particular lot being conveyed.

Posthumous heirs
 Heirs born after the death of the decedent.

Premises
 The words of conveyance in a deed; e.g., "do hereby grant and convey."

Prepayment penalty
 Clause in mortgage or promissory note that requires the mortgagor to pay an additional charge for paying off the loan early.

Prescription
 Process of acquiring an easement through adverse use of the easement over a required period of time.

Probate
 Process of collecting the assets of a decedent; paying the decedent’s debts, determining the decedent’s heirs, and distributing the property to the heirs.

Promissory note
 Two-party debt instrument that, in real estate, is generally secured by a mortgage or a deed of trust or some other interest in real estate.

Purchase money mortgage
 A mortgage used to secure a debt for the funds used to buy the mortgaged property.

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Quasi-easement
 A right-of-way as it existed when there was unity of ownership in a parcel of land.

Quiet title action
 Court action brought to determine the true owner of a piece of land.

Quitclaim deed
 Deed that serves to transfer title if the grantor has any such title; there are no guarantees that the grantor has any title or good title.

R (Top)

REIT
 Real estate investment trust - form of real estate syndication in which investors hold trust estates and enjoy profits of trust’s real estate holdings.

RESPA
 Real Estate Settlement Procedures Act - federal statute regulating disclosure of closing costs in advance and prohibiting kickbacks for referring customers to title companies.

Recording
 Process of placing a deed or other document on the public records to give notice of a transaction or interest in land.

Refinancing
 Negotiating a new loan for real estate; generally done to obtain a lower rate or in the case of a sale to allow the buyer to purchase the property.

Regulation Z
 Truth in Lending - The Federal Reserve Board’s regulations on disclosures in all types of credit transactions.

Remainder 
  A future interest in someone other that the grantor; a remainder follows a life estate.

Recission
 Right to treat a contract as if it never existed; rescind contract rights; generally appropriate in cases of fraud and misrepresentation.

Reversion
 Future interest in grantor that results after life estate terminates and no remainder interest was given.

Right of entry
 Future interest in grantor that results after the life estate terminates and no remainder interest was given.

Right of redemption
In mortgage foreclosures, the right of the mortgagor to redeem his or her property for six months after the foreclosure sale by paying off the debts and costs of the foreclosure.

Rule against perpetuities
 Rule that prohibits the control of estates from the grave; provides a cap on use restrictions on contingent remainders and executory interests.

S (Top)

Security deposit
 In a lease, the amount of money prepaid by the tenant to secure performance of a lease and often provides the amount of liquidated damages if the tenant does not perform.

Self-proving will
 A will that is acknowledged or notarized and thereby enjoys the presumption of validity.

Servient estate or tenement
 Land through which an easement runs or which is subject to the easement.

Sheriff’s Deed
 Form of title given to a buyer at a mortgage foreclosure sale; carries no warranties.

Soldier’s and Sailor’s Civil Relief Act
 A Federal law that provided time limitations on foreclosures involving those in active military service.

Special Warranty Deed
 Deed that provides warranty of title only for the period during which the grantor owned the property.

Specific performance
 Equitable remedy that requires a party to a contract to perform the contract promise or promises.

Statute of Frauds
 Statue dictating what types of contracts must be in writing to be enforceable. Contracts concerning real estate must comply with the statute of frauds.

Subdivision
 Parcel of land developed with building lots, streets, homes, parks, etc...

Sublease
 Arrangement in which a tenant leases rental property to another, and the tenant becomes the landlord to the subtenant.

Subordinate mortgage
 Mortgage with a lesser priority than a preexisting mortgage.

Surety
 One who stands as a guarantor for an obligation; as in payment or performance bond.

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Taking
 Term used to describe the government action of using private property for public purposes.

Tax Deed
 Form of title given in the event property is sold to satisfy taxes; carries no warranties.

Tax lien
 Lien placed on property for amount of unpaid taxes.

Tax sale
 Foreclosure sale on property for nonpayment of taxes.

Tenancy by the entirety
 A type of joint tenancy of property that provides right of survivorship and is available only to a married couple.

Tenancy in common
 A type of joint tenancy of property without right of survivorship; each tenant's portion of ownership is distributable under will.

Testamentary
 Disposition by will.

Time-sharing properties
 Form of multiunit housing in which owners own the unit for a limited period of time during each year.

Title abstract
 Summary of the history of title to a parcel of land.

Title Insurance
 Insurance that pays the buyer of property in the event certain title defects arise.

Title Theory
 Theory of mortgage law that puts title in the mortgagee and possession in the mortgagor.

Torrens system
 System for recording land titles designed to prevent the selling of the same parcel of land to more that one person.

Tract Index
 Form of land record that keeps history of title through identifications within the particular tract.

Trustee
 Third party responsible for handling the property of another; as in deed of trust or real estate investment trust.

U (Top)

UCC
 Uniform commercial code - uniform statute adopted in most states that governs commercial transactions; Article IX deals with security interests and fixtures.

Usury
 Charging interest rates in excess of the statutory allowed maximums.

V (Top)

Variances
 Approved uses of land outside the scope of an area’s zoning.

Vested remainder
 A remainder that will automatically take effect when the life estate ends.

Voluntary lien
 A lien created because of a contract as opposed to a tax lien, which is involuntary.

W (Top)

Waiver
 An intentional or voluntary relinquishment of a known right.

Warranty
 A promise that a proposition or fact is true.

Warranty deed
 Deed that conveys title and carries warranties that the title is good, that the transfer is proper, and there are no liens and encumbrances other than as disclosed in the deed.

Way
 A passage, path, road, or street, or a right of passage over land.

Wetlands
 Lands on which water covers the soil or is present either at or near the surface of the soil all year or much of the year, such as swamps and marshes. Wetlands are subject to extensive government regulation, and there are variations among legal definitions in use.

Will
 Document by which a person (testator) makes a disposition of property to take effect after his/her death.

Wrap-around mortgage
 A form of loan transaction, sometimes used in seller-financing, in which the lender assumes (or continues to have) responsibility for a preexisting mortgage (i.e., the new mortgage “wraps around” the first).

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Z (Top)

Zoning  
Local government land use regulations, including provisions permitting or prohibiting particular uses (such as business or residential) in defined areas.

Registry of Deeds
90 Front St
Worcester, MA
01608