Abstract of Title - A history of a title and the current status of a title based on a title examination.

Acceleration Clause - A provision in a mortgage or deed of trust that permits the lender to declare the entire
principle balance of the debt immediately due and payable if the borrower is in default.

Amortized Loan - A loan in which the principle as well as the interest is payable in monthly or other periodic installments over the term of the loan.

Appraisal - An estimated value of property obtained from an analysis of property.

Appreciation - An increase in the worth or value of a property due to economic or related causes.

Assumption of Mortgage - Acquiring title to property which has an existing mortgage on it and agreeing to be personally liable for the terms and conditions of the mortgage, including payments.

Building Code - An ordinance specifying minimum standards of construction of buildings for the protection of public safety and health.

Commission - Payment to a Broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.

Condemnation - A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner.

Contract for Deed - A contract for the sale of real estate wherein the purchase price is paid in periodic
installments by the purchaser who is in possession although title is retained by the seller until final payment.
Also called installment or land contract.

Conventional Loan - Any real estate loan made which is not under a government finance program such as
FHA or VA.

Counteroffer - A new offer made as a reply to an offer received, having the effect of rejecting the original offer,
which cannot be accepted thereafter unless revived by the offeror's repeating it.

Deed - A written instrument that, when executed and delivered, conveys title to or an interest in real estate.

Deed Restrictions - Limitations placed upon the use of real property in the deed to that property.

Earnest Money Deposit - An amount of money deposited by a buyer under the terms of the contract, which is to be forfeited if the buyer defaults, but applied on the purchase priced if the sale is closed.

Easement - A right to use the land of another for a specific purpose, such as for right-of-way or utilities.

Eminent Domain - The right of a government of municipality quasi-public body to acquire property for public use through a court action called condemnation, in which the court determines that the use is a public use and determines the price or compensation to be paid the owner.

Encroachment - A building or some portion of it - a wall or a fence - that extends beyond the land of the owner and illegally intrudes upon some land of an adjoining owner or a street or alley.

Encumbrance - Any lien, such as a mortgage, tax, or judgment lien, an easement, a restriction on the use of the land.

Equity - The interest or value, which an owner has in his or her property over an above any mortgage indebtedness.

FHA Loan - A loan insured by the Federal Housing Administration and made by an approved lender in accordance with the FHA's regulations.

Foreclosure - A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.

Joint Tenancy - Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, his or her interest passes to the surviving joint tenant or tenants by the right of survivorship.

Judgment - The formal decision of a court upon the respective rights and claims of the parties to an action or suit. After a judgment has been entered and recorded, it usually becomes a general lien on the property of the defendant.

Lease - A transfer of possession and the right to use property to a tenant for a stipulated period, during which the tenant pays rent to the owner.

Lien - A right given by law to certain creditors to have their debt paid out of the property of a defaulting debtor, usually by means of a court sale.

Listing Agreement - A contract between landowner (as principle) and a licensed real estate broker (as agent) by which the broker is employed as agent to sell real estate on the owner's terms within a given time, for which service the landowner agrees to pay a commission.

Marketable Title - Good or salable title, reasonable free from risk of litigation over possible defects.

Mortgage - A conditional transfer or pledge of real estate as security for payment of the debt. Also, the document creating a mortgage lien.

Multiple Listing - An exclusive (generally, an exclusive right to sell) with the additional authority and obligation on the part of the listing broker to distribute the listing to other brokers in the multiple listing organization.

Net Listing - An employment contract in which the broker receives, as his his or her commission, all excess moneys over and above the minimum sales price agreed upon by broker and seller. Because of the danger of unethical practices in such a listing, its use is prohibited in South Dakota.

Option - An agreement to keep open for a set period an offer to sell or purchase property.

Personal Property - All moveable property and anything not permanently attached to the land. Any thing which is not real property.

Prepayment Penalty - A charge imposed on a borrower by a lender for early payment of the loan principle to compensate the lender for for interest and other charges that would otherwise be lost.

Real Property - The land and anything that is affixed to the land or is incidental or appurtenant to the land.

REALTOR® - The term 'REALTOR' designates a professional who subscribes to the strict code of ethics promulgated by the National Association of REALTORS and adopted by the state association of REALTORS to govern real estate practices of members of the board.

Special Assessment - A legal charge against real estate levied by a public authority to fund the cost of public improvements such as street, lights, sidewalks, street improvements, etc.

Subdivision - A tract of land divided by the owner known as a subdivider, into blocks, building lots, and streets according to a recorded subdivision plat, which must comply with local ordinances and regulations.

Tax Lien - A claim against property arising out of non-payment of the taxes; the claim may be sold by the taxing authority.

Tenancy in Common - A form of co-ownership by which each holds an undivided interest in real property as if he or she were sole owner. Each individual owner has the right to partition. Unlike a joint tenancy, there is no right of survivorship between tenants in common.

Title - Evidence of a person's right or interest in property.

Title Insurance - Insurance that a title is clear or clear except for defects noted; a policy of insurance that indemnifies the insured for loss occasioned by unknown defects or recorded title.

VA Loan - A loan guaranteed by the Veterans Administration and made by an approved lender in accordance with the VA's regulations.

Warranty Deed - A deed in which the grantor full warrants good clear title to the premises. Used in most real estate deed transfers, a warrant deed offers the greatest protection of any deed.

Zoning Ordinance - The use of police powers by the governing body to regulate and control the use of real estate for the health, morals, safety and welfare of the general public.