REAL ESTATE TERMINOLOGY

The added desirability or utility of property due to ist frontage to two streets, which provides better ventilation for residential purposes, easier accessibility and more commercial displays for commercial and industrial utilization

CORNER INFLUENCE

The appraiser obtains a preliminary indication of value by adding to his estimate the land value, estimate of depreciated reproduction cost of the building and other improvements

COST APPROACH

This refers conveyance of real estate in favor of creditor in payment of the transferor' obligation or debt

DACION EN PAGO

A contract whereby the Vendee pays a certain amount to the Vendor and assumes as well an existing obligation which is secured by a mortgage over the property

DEED OF SALE

The failure to fulfill a duty or promise or to discharge an obligation and omission or failure to perform any act

DEFAULT

The clause in mortgage that gives the mortgagor the right to redeem his property upon payment of his obligations to the mortgage

DEFEASANCE CLAUSE

Government agency that is responsible for implementing the Environmental Impact System or (EIS)

DEPARTMENT ENVIRONMENT AND NATURAL RESOURCES (DENR)

The loss of value in real property brought about by age, physical deterioration, for functional or economic obsolescence. Broadly, a loss in value from any cause

DEPRECIATION

One who receives bequest made by will

DEVISEE

One who bequeaths by a will

DEVISOR

Is found by compass or more precisely by astronomical observation. Once the surveyor finds whether a point is to the North or East or somewhere between, he can measure the angles to other points and so compute the direction to them

DIRECTION OR BEARING

Are usually found by using a measuring length of tape and placing end to end along line

DISTANCE

Amount accompanying an offer to purchase to show good faith or genuine desire of buyer and is considered part of the price if the offer is accepted, but otherwise returnable if the offer is not accepted

EARNEST MONEY

Open space imposed on any land use/activities located along waterways, road rights-of-way, cemeteries/memorial parks and utilities

EASEMENT

The period over which a property will yield a return on the investment, over and above the economic

ECONOMIC LIFE

The right of the government to acquire property for necessary public use or quasi-public use by condemnation

EMINENT DOMAIN

Trespass and the building of a structure or construction if any improvements, partly or wholly, on the property of another

ENCROACHMENT

Anything which affects or limits the fee simple title to property, such as mortgages, easements, or restrictions or any kind. Liens are money encumbrances which make property such as mortgages and taxes

ENCUMBRANCES

Refers to documents of studies on environmental effects of a projects, including the discussions on direct and indirect consequences on human welfare and ecological and environmental integrity

ENVIRONMENT IMPACT STATEMENT

A document issued by the DENR Secretary that the proposed project will not cause a significant negative environment impact

ENVIRONMENTAL COMPLIANCE CERTIFICATE

The process of predicting the likely environmental consequences of implementing projects, and designing appropriate preventive, mitigating and enhancement measures

ENVIRONMENTAL IMPACT ASSESSMENT

The wearing away of land by the action of water, wind or glacial ice

EROSION

The reverting of property to the state when heirs capable of inheriting are lacking

ESCHEAT

The deposit of instrument and funds with the instructions to a third neutral party to carry out the provisions of an agreement or contract, when everything is deposited to enable carrying out the instructions

ESCROW

That branch of moral science, idealism, justness, and fairness, which treats of the duties that a member of a profession or craft owes to the public, to his clients or patron, and to his professional brethren on members

ETHICS

A written instrument giving one agent the right to sell property for a specified time reserving the right of the owner to sell the property himself without the payment of a commission

EXCLUSIVE AGENCY

A written agreement between an owner and an agent giving the agent the right to collect a commission if the property is sold by anyone during the term of his agreement

EXCLUSIVE RIGHT TO SELL

The procedure for enforcing the eminent domain powers of the State

EXPROPRIATION

The highest monetary price which a property, if offered for sale for a reasonable period of time in competitive market, would bring to a seller who is willing, but not compelled to sell, from a buyer who is willing, but not compelled to buy, both parties being fully informed of all the purposes to which the property is best adapted and ways it is capable of being used. It is used as a basis for determining property taxes

FAIR MARKET VALUE

In modern use, it expressly establishes the title of real property in the owner, without limitations or and he may dispose of it by sale, or trade, or will, as he chooses

FEE SIMPLE

A person in a position of trust and confidence, as between a principal and a broker and the broker owes certain loyalty which cannot be breached under Rules of an Agency

FIDUCIARY

Ratio between the gross floor area of a building and the area of The lot on which it stands, determined by dividing the gross floor are of the building and the area of the lot

FLOOR AREA

A procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default in payments or terms

FORECLOSURE

The loss of money or anything of value, due to failure to perform, such as under an agreement to purchase

FORFEITURE

Are used to map large area of the earth surface and must take into account, the curvature of the Earth's surface

GEODETIC SURVEY

The primary provider of funds for long-term housing mortgages for low and middle-income government employees. But there are also funds for the upper income government executives

GOVERNMENT SERVICE INSURANCE SYSTEM

Is the total value of all properties, whether real or personal, tangible or intangible, belonging to the decedent at the time of his death, situated within or outside the Philippines, where such decedent was a resident or citizen of the Philippines

GROSS ESTATE

The clause "to have and to hold" which defines or limits the quantity of the estate granted in the premised of the deed

HABENDUM CLAUSE

A provision in a listing agreement which entitles the broker to commission even when he closed the sale 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

HOLD OVER CLAUSE

Administers provident fund contributions collected from member employees and employers, utilizing funds not required for provident employees and employers, utilizing funds not required for provident benefits for housing loans for members, and in addition, will be charged with the development of saving schemes for home acquisition by private and government employees

HOME DEVELOPMENT MUTUAL FUND OR PAG-IBIG

Assesses loan applications and approves the release of money to applicants. Assists and encourage private developers and commercial lenders to develop and finace low and middle income mass housing through a viable system of guarantees, loan, insurance and other incentives

HOME GUARANTY CORPORATION (HGC)

The sole regulatory body for housing an urban development. It performs three functions-rule making, enforcement and adjudication. These functions cut across three programs, namely real estate management, town planning and zoning assistance and review, and urban land reform

HOUSING AND LAND USE REGULATORY BOARD

To give a thing as security without the necessity of giving up possession of it

HYPOTHECATE

Predecessor of the HLURB

Human Settlement Regulatory Commission

The value based on the present worth of the further benefits of the property

INCOME APPROACH

States that the application of more factors or production will tend to increase net income up to a certain point beyond which the application of more factors of production will tend to diminish net income

INCREASING AND DIMINISHING RETURN

A subdivision of an area principally for light/non-pollutive/non-hazardous industries

INDUSTRIAL LOW INTENSITY (I-1)

A subdivision of an area principally for pollutive /non-hazardous and pollutive/hazardous industries

INDUSTRIAL MEDIUM INTENSITY (I-2)

Is the displacement of the present residents by people of lower economic status and different social and cultural background

INFIILTRATION

A writ or order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding

INJUNCTION

A division of an area principally for institutional establishments and characterized by governmental and protective uses as well as institutional and social services for the entire community and shall be characterized further by specialized government agencies providing institutional protective, security and social services for the region or the whole country and which are governed by specialized regulations including mental hospitals, rehabilitation and training centers, military and security services

INSTITUTIONAL ZONE

A person who dies having made no will, on having made a will which is defective in form, in which case his estate descends to his heirs at law or next kin

INTERSTATE

The land owner is divested of ownership against his will or consent, e.g., tax sale, expropriation and foreclosure

INVOLUNTARY TRANSFER

In land subdivision development project, a partnership agreement wherein the landowner contributes his raw land as his investment in the project while the developer undertakes the finances and development

JOINT VENTURE

A mortgage subordinate to an earlier mortgage on teh same property whereby the subsequent lender's claim against the owner's right must respect the claims of the first mortgage

JUNIOR MORTGAGE

Delay or negligence in asserting one's legal rights

LACHES

One who represents another from whom he has derived authority. A representative of a principal

REAL ESTATE AGENT

A summary of digest of the conveyance, transfer and any othe facts elide on as evidence of title, together with any other elements of record which may impair the title

ABSTRACT OF TITLE

A clause in a trust deed or mortgage giving the lender the right to call all sums owing him to be immediately due andpayable upon the happening of a certain event

ACCELERATION CLAUSE

The right of the owner to everything produced, incorporated or attached thereto naturally or physically to his property

ACCESSION

Process by which soil is deposited to the lands adjoining rivers

ACCRETION

A formal declaration before duly authorized officer by a person who has executed on instrument that such execution is his act and deed

ACKNOWLEDGMENT

Refers to the purpose for which property is principally or predominantly utilized by the person in possession of the property

ACTUAL USE

A claim of a person on a property owned by another (Good only for 30 days)

ADVERSE CLAIM

The open notorious possession and occupancy under an evident claim or right in denial or opposition to the title of another claimant

ADVERSE POSSESSION

The right of the property owner to use control or occupy the air space over his property, subject to the requirements of aerial navigation and government regulations

AIR RIGHTS

Soil deposited by accretion. An increase of earth on a shore or bank of a river

ALLUVIUM

Form of mortgage wherein the mortgagor takes possession of the mortgage property pays the real estate taxes and receives the fruits with an obligation to apply them in payment of the principal and interest

ANTI-CHRESIS

An estimate and opinion of value or a conclusion resulting from the analysis of facts

APPRAISAL

Value place on property as a basis for taxation

ASSESSED VALUE

A percentage of market value prescribed by law at which the assessed value is set

ASSESSMENT LEVEL

The official who has the responsibility of determining assessed values

ASSESSOR

The taking of title to property by a grantee wherein he assumes liability for a payment of an existing note secured by a mortgage or deed of trust note

ASSUMPTION OF MORTGAGE

Seizure of property by court order, usually done to have it available in the event a judgment is obtained in pending unit

ATTACHMENT

A listing contract whereby an agent is employed by a seller to produce a buyer for the property

AUTHORIZATION TO SELL

A stipulation in mortgage of several properties providing that when a buyer of one or more lots pays in full the purchase price a portion of the payment shall be applied to the mortgage obligation and the mortgage shall correspondingly release sold lot or lots from the mortgage

AUTOMATIC REDEMPTION CLAUSE

The sudden tearing away or removal of land by action of water flowing over or through it

AVULSION

A single mortgage which covers more than one place of real estate

BLANKET MORTGAGE

The breaking of law, or failure of duty, either by omission or commission

BREACH

A non-build-able strip established to separate and protect one type of land use from another example, as a screen to objectionable noise, smoke or visual aspects of an industrial zone adjacent to a residential zone

BUFFER STRIP

The rights of ownership whereby the owner has the right to possess, use, enjoy, dispose, abuse, exclude others, to recover and to the fruits

BUNDLE OF RIGHTS

Property not used by the owner as inventory or stock in trade in regular buy and sell business, nor used in connection with trade, business or source of income

CAPITAL ASSETS

Let the buyer beware. The buyer must examine the goods or property and buy at his own risk

CAVEAT EMPTOR

An order from the government authority directing a person violating the law to refrain from continuing to do so

CEASE AND DESIST

A history of conveyance and encumbrances affecting the title from the time and original patent was granted, or as far as records are available

CHAIN OF TITLE

An estate related to real estate, such as lease on real property

CHATTEL

A personal property mortgage

CHATTEL MORTGAGE

A mortgage which cannot be paid off until its maturity, unless the creditor consents to earlier

CLOSED

Any conditions revealed by a title search which affect the title to property, usually relatively unimportant times but which cannot be removed without a quit claim deed or court action

CLOUD

A subdivision area characterized by heavy commercial development and multi-level commercial structures, including trade and may contain the service and entertainment industries such as restaurants, shopping centers sufficient to provide the needs of the district level

COMMERCIAL MAJOR OR C2

A subdivision of an area characterized by commercial development which is a mixture of retail and wholesale trade and may contain the service and entertainment industries such as restaurants, shopping centers sufficient to provide the needs of the district level

COMMERCIAL MINOR OR C1

A subdivision of an area characterized by heavy commercial developments and multi-level commercial structures, including trade, service and entertainment on a metropolitan (regional) scale of operations as well as miscellaneous support services with permitted light industrial activities

COMMERCIAL, METROPOLITAN (C3)

An agent's compensation for performing the duties of his agency. In real estate practice, a percentage of the seller

COMMISSION

This is a type of financing under the United Home Lending Program (UHLP) whereby undivided titles of land are made the subject of housing loans for several beneficiaries, specifically residents of blighted or depressed area

COMMUNITY MORTGAGE

Whenever extra soil is added to a lot to fill in low places or to raise the level of the lot, the added soil is often too loose and soft to sustain in the weight of buildings. Therefore, it is necessary to compact the added soil so that it will carry the weight of buildings without the danger of their titling, settling, or cracking

COMPACTION

It is an interest in real estate consisting of absolute ownership in a unit of residential, commercial or industrial buildings, and common ownership of the land and common areas of the condominium project

CONDOMINIUM

Property accumulated through the joint efforts of a husband and wife living together

CONJUGAL PROPERTY

Title passes to the vendee upon delivery of the thing sold

CONTRACT OF SALE

An agreement whereby 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 and convey the ownership of the thing/subject of the contract

CONTRACT TO SELL

The transfer of the title of land from one to another. It denotes an instrument which carries from one person to another an interest in land

CONVEYANCE