Oregon Real Estate Dictionary
Here are some common terms that you may come across in your real estate transaction. If you are looking for a word or phrase that is not included in this dictionary, try The Real Estate and Mortgage Glossary at RealEstateABC . You may also contact your escrow officer, title officer or sales representative with any questions.
Spanish speakers may find English translations of real estate terms at Vocabulario de Bienes Raíces.
Los locutores españoles pueden encontrar traducciones inglesas de los términos de las propiedades inmobiliarias en Vocabulario de Bienes Raíces.
A.L.T.A.: American Land Title Association
An organization, composed of title insurance companies, which has adopted certain insurance policy forms to standardize coverage on a national basis. Also known as the A.L.T.A. or ALTA.
Business Opportunity
The sale of a business (may or may not include the sale of real estate). Some states require a real estate license for these sales even with real estate is not involved. The Uniform Commercial Code , state statutes, other applicable special laws, and licensing regulations should be studied by the business opportunities broker. (Sometimes referred to as a "Biz Op" or "Biz Opp".) Pacific Northwest Title has an expert escrow officer experienced in the closing of business opportunity transactions.
CC&Rs: Covenants, Conditions & Restrictions
A term used to describe the restrictive limitations which may be placed on property. Also known as CC&Rs.
Closing
The final procedure in which documents are recorded ; and the sale or loan is completed. In Oregon, the signing of the final documents is often casually referred to as "closing". In reality, the closing takes place a day or two after the signing. See What happens during an escrow closing?(pdf) or ¿Qué sucede durante el cierre de escrow?(pdf)
Condition
Some limiting restriction to a conveyance of property, stating that upon the happening or not happening of a stated event, the estate shall be changed in some manner.
Conveyance
Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged or assigned.
Covenant
Generally, almost any written agreement. Most commonly in real estate, assurances set forth (expressed) in a deed, or separate document by the grantor or implied by law.
Deed
A conveyancing , instrument, given to pass fee title to property upon sale. Usually signed by the "grantor" who sells or gives the property or property rights to the "grantee".
Deed of Trust
An instrument recorded in many states (such as Oregon) in place of a mortgage,. The "trustor" or "grantor" (borrower) transfers to the "trustee" (a third party) in favor of the "beneficiary" (lender) and reconveyed upon payment in full.
Easement
A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another. It is either for the benefit of land (appurtenant), such as right to cross parcel A to get to parcel B, or "in gross", such as a public utility easement.
Encumbrance
A claim, lien, charge, or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title. Encumbrances may be financial such as trust deeds, or covenants, conditions and restrictions on the property.
Endorsement
A "rider" to the title insurance policy that either expands or limits the coverage provided by the policy. Lenders often have specific risk concerns for which they require certain endorsements. In most residential real estate loan transactions, lenders require endorsements that provide coverage against violations of covenants, conditions and restrictions; identify the address of the insured property by street and mailbox number; and assure the priority of the trust deed over environmental lien filed under either federal or state statutes.
Escrow
- An account held by an neutral third party (escrow agent) where documents and funds are deposited in accordance with written instructions to be disbursed and delivered upon the happening of a contingent event. Most often used in Oregon to finalize a real estate transaction. Escrow agents in Oregon are unable to give advice or negotiate any terms or disputes. See Definition of Escrow (pdf).
- Term used by some lenders to identify their impound or reserve accounts . This is entirely separate from the escrow account held by the escrow agent for the closing of a real estate transaction.
Estate
The interest or nature of the interest which one has in property, such as a life estate, the estate of the deceased, real estate, etc.
Extended Coverage
With reference to title insurance , coverage beyond the normal (standard ) policy. Coverage against additional risks not covered by the standard policy.
Impounds
Account held by a lender for payment of taxes, insurance, or other periodic debts against real property. The mortgagor or trustor pays a portion of, for example, the yearly taxes, with each monthly payment. The lender pays the tax bill from the accumulated funds.
Judgment Lien
A lien against the property of a judgment debtor pursuant to a judgment rendered by a court of law. An involuntary lien.
Lien
An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances, but not all encumbrances are liens
Life Estate
An estate (or interest) in real property for the life of a living person. The estate then reverts back to the other property owners upon the death of the holder of the life estate.
Listing Packet
See Trio.
Mortgage
To pledge real property as security for the payment of a debt; the instrument recorded as evidence of the security pledge. The "mortgagor" (borrower) executes the mortgage in favor of the "mortgagee" (lender). Nationwide, most real estate loans are casually referred to as "mortgages". However, a trust deed is usually used in place of a mortgage in Oregon.
Payoff Statement
Written demand statement from lien holder (lender) itemizing the amounts due on the debt to release the property from the lien.
Personal Property
Any property that is not designated by law as real property (i.e. any property or assets not attached to land, such as automobiles, boats, businesses, floating homes, jewelry, stock certificates, etc.)
Preliminary Commitment
Preliminary Title Report
A report showing the condition of title before a sale or loan transaction. Also known as "title report", "PTR" or "prelim". After completion of the transaction, a title insurance policy is issued based on the preliminary title report, together with any changes that occurred during the real estate transaction. See What is the Purpose of a Preliminary Title Report? (pdf).
Prelim
PTR
Real Property (Real Estate)
Lands and anything permanently affixed to the land, such as buildings, fences and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other such items which would be personal property if not attached.
Reconveyance
The instrument recorded to remove and release the lien of a trust deed (a loan). More formally known as a Deed of Reconveyance.
Recording (Recordation)
Filing documents for public record (and notice) with the county recorder.
Reserves
See Impounds .
Restriction
Most commonly used to describe a use or uses prohibited to the owner of land. Restrictions are set forth by former owners in deeds. In the case of a subdivision, a declaration of restrictions is recorded by the developer.
Satisfaction
The instrument recorded to remove and release the lien of a mortgage (a loan), or filed in a court of law to remove and release a judgment lien .
Standard Coverage Policy
A title insurance policy used in several states, not having as broad a coverage as the nationally recognized A.L.T.A. policies.
Tenants by the entirety
A form of ownership by husband and wife whereby each owns the entire property. In the event of the death of one, the survivor owns the property without probate. See Vesting: Ownership of Property (pdf).
Tenants in common
An undivided ownership in real estate by two or more persons. The interest need not be equal, and, in the event of the death of one of the owners, no right of survivorship in the other owners exists. See Vesting: Ownership of Property (pdf).
Title Insurance
Insurance against financial loss resulting from defects of title to a specifically described parcel of real property. See Title Insurance Key Concepts (pdf).
Title Report
Title
The evidence one has of right to possession (or ownership) of land. The abstract assortment of rights, responsibilities and restrictions that attach to that right of ownership.
Trio
A packet of information provided by a title company's Customer Service Department on a specific parcel of property that usually includes tax and assessment information, a tax assessor's map of the property and the last deed See Preliminary Title Report of record. Commonly used by real estate brokers while preparing to sell a property. Also known as a Listing Packet.
Trust Deed
See Deed of Trust .
Uniform Commercial Code (UCC):
A set of laws written to make it easier to do business between states by making the law the same for each state that adopted the code. The UCC covers many aspects of business such as transactions involving personal property (Article 2) and Negotiable Instruments (Article 3).
Vesting (Vested)
Present ownership rights, absolute and fixed. See Vesting: Ownership of Property (pdf) for more detailed information.
With right of survivorship
A form of ownership by multiple individuals whereby each owns the entire property. In the event of the death of one, the survivor owns the property without probate. See Vesting: Ownership of Property (pdf).
Above definitions excerpted from The Real Estate Dictionary, Sixth Edition, (1998) published by the Financial Publishing Company, a division of Carleton, Inc. of Boston, MA < >, with clarifications and amendments specific to Oregon and additional terms supplied by Pacific Northwest Title of Oregon, Inc.
