Definition: The apparent age of a building based on observed condition rather than chronological age. Pronunciation: \i-ˈfek-tiv, e-, ē-, ə-\ Used in a Sentence: Even though the building was 15 years old, the effective age was determined to b..
Definition: The anticipated income stemming from the estimated potential gross income from a rental property, less deductions for vacancy and collection losses. Pronunciation: \i-ˈfek-tiv, e-, ē-, ə-\ Used in a Sentence: After calculating the vacancies and collection losses, the annual effective gross income for the apartment building wa..
Definition: The right of government (both state and federal), public corporations, public utilities and public service corporations to take private property with just compensation for a necessary public use. Pronunciation: \ˈe-mə-nənt\ \dō-ˈmān, də-\ Used in a Sentence: The state took the homes by eminent domain to build the new ro..
Definition: The unauthorized infringement or intrusion of an improvement or other real property onto another’s property. Pronunciation: \in-ˈkrōch-mənt\ Used in a Sentence: It was found that the fence was erected over the property line and therefore, was an encroachment onto the neighbor’s..
Definition: Any lien, claim, or liability attached to or binding on real property that may lessen the value or affect the transfer of title. Pronunciation: \in-ˈkəm-brən(t)s\ Used in a Sentence: The second mortgage was an encumbrance on the property that needed to be settled before the sale could be ..
Definition: A provision in a deed that guarantees there are no encumbrances against the property except those specifically disclosed. Pronunciation: \in-ˈkəm-brən(t)s\ \ˈklȯz\ Used in a Sentence: The encumbrance clause stated the there were no additional liens on the property other than the existing..
Definition: a legally binding contract that is recognized by the law. Pronunciation: \in-ˈfȯr-sə-bəl\ \ˈkän-ˌtrakt\ Used in a Sentence: We had an enforceable contract with the buyer for the purchase of our..
Definition: In a VA-guaranteed loan the maximum amount the government guarantees the lender will be paid in the event the borrower defaults. Pronunciation: \en-ˈtī-təl-mənt\ Used in a Sentence: The certificate of eligibility state the amount of entitlement available to the veteran..
Definition: A document that details the effect proposed development will have on the surroundings. Pronunciation: \in- vī-rə(n)-ˈmen-təl\ \im-ˈpakt\ \ˈstāt-mənt\ Used in a Sentence: The environmental impact statement showed that there would be no effect on the nearby wetlands if the housing development ..
Definition: The beneficial interest in real estate that implies an individual will receive legal title at a future date. Pronunciation: \ˈe-kwə-tə-bəl\ Used in a..