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
