Property Legal Terms

Property Legal Terms, like most legal fields, has terms that may not be familiar to people outside of the field. If we have used a word you don't understand, please do ask what it means. If you are looking for information about Thailand property, use this glossary to find the meaning of any unfamiliar property terms.

abandonment

The act of voluntarily giving up a right (of ownership or lease or any other right) over a property.

absentee landlord/owner

Owner of a property who resides elsewhere (usually in another city or country)

absolute title

The right of ownership of legal estate in registered land; a title that is guaranteed by the state that no one has a better title that is subject to any minor interests or overriding interests.

abut

Adjacent or contiguous to. For example, if a property is adjacent or next to another, it can be said to abut each other.

acceleration clause

A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

accessory buildings

Annexes to a building such as servants' quarters, sheds, garages, etc.

accrued interest

The unpaid interest accumulated from an investment or a loan

acquisition costs

The cost of acquiring a property; includes purchase price and all other allied cost like insurance and legal fees, brokerage, charges, etc.

acre

An area of land of any shape containing 43,560 squares feet or 4,840 square yards or approximately 4,047 square meters.

act of god

Damage caused by nature. Examples: floods, hurricanes, tsunamis, etc. Also known as force majeure. An unexpected event that prevents one from complying with certain terms and conditions in a contract.

actual cash value

The price at which property can be sold at a given point of time

ad valorem

Literally, according to the value. Applied, for instance, to a scale of stamp duty, inheritance tax and fees.

addendum

Something that is added to an existing document. Example: supplementary to an agreement

adjustable-rate mortgage (ARM)

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARM's are tied to indexes.

adjustment date

The date the interest rate changes on an adjustable-rate mortgage

administrator

A person appointed by a court to manage an estate while testamentary proceedings are on. This person also distributes the estate of a deceased person in accordance with the orders of the court.

aerial survey

A survey of an area made by taking sequential photographs from an aircraft; plans are then drawn from photographs.

aesthetic value

The value of a property deriving from its architectural beauty or natural or man-made surroundings.

affidavit

A statement or declaration made in writing and under oath before a competent (usually court) official

affirmation

Substitute for an oath

agency

Person or body corporate acting under the orders and authority of another The scope of such authority is usually specified in the agreement between the two parties.

agency agreement (agency listing)

The term describing a listing under which the broker's commission is protected against a sale by other agents and often by the principal.

agent

One who acts on behalf of a principal

agent's commission

The fee payable for services rendered by real estate professional

agreement for lease/sale

It is a contract by which land or property is leased or sold by one party to another.

air rights

This is the right to use the space above a property. It does not include the right to use the land surface which the property is located.

alley

A narrow path

alterations

Modifications in a building without changes to its dimensions

amendment

A change or alteration in agreement or court document

amenities

Those facilities, like swimming pools, jogging tracks, health clubs, etc.

amortization

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

amortization schedule

A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

ancillary use

A planning term describing the use of a property in a manner different from, but functionally related to, its main use.

annual percentage rate (APR)

This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.

annual sinking funds

A sinking fund where payments and interest accumulated are calculated yearly.

apartment

A form of property ownership in which each owner holds title to his/her individual unit, similar to western definition of condominium

apartment hotel

A property offering guests a complete self-contained sole occupancy unit consisting of bedrooms, a living room, a kitchen with full cooking facilities and dining area. Usually requires a hotel license to operate as such. Serviced apartment which are let on a daily basis function like apartment hotel.

application

The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.

appraisal

A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

appraised value

An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

appraiser

An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

appreciation

The increase in the value of a property due to changes in market conditions, inflation, or other causes.

arbitration

A method of resolving a disagreement between two parties by presenting their different views to an independent arbitrator. The award is binding on the parties but an arbitrator's decision can be challenged in a court of law under certain circumstances.

arbitration clause

A clause in a contract providing for disputes arising from the contract to be referred for the decision of a third party (arbitrator). Common examples are disputes over rent review clauses in leases or the terms of buildings contracts.