Glossary of Terms - Select Appropriate Category to View Additional Data
Definitions are referenced from various governmental real estate sites,
IAAO
Abandonment
The relinquishing of all rights and
interests in real property, including any fixtures, with no intention to reuse or
reclaim.
Abatement
(1) An official reduction or elimination of one's assessed
valuation after completion of the original assessment. (2) An official reduction
or elimination of one's tax liability after completion of the tax roll.
Abstract of Title
An abstract is a complete summary of all recorded documents
affecting the title to a property. These documents include all conveyances, such
as deeds or wills, and all legal proceedings relating to ownership of the property.
Abstracts are arranged to show the history of ownership, describe the land and improvements,
and give the name(s) of past and present owner(s).
Abstraction Method
Method of land valuation in the absence of vacant land
sales, whereby improvement values obtained from the cost model are subtracted from
sales prices of improved parcels to yield residual land value estimates. Also called
residual land technique.
Acceleration Clause
A condition in a mortgage note or loan contract that
allows the lender to demand immediate repayment of the entire balance if the contract
is breached or other repayment conditions occur.
Access Right
The right of egress from and ingress to a property
from an existing highway or street. See also bundle of rights.
Accuracy
The closeness of a measurement, computation,or estimate to the true, exact, or accepted value. Accuracy also can be expressed
as a range about the true value. See also precision and statistical accuracy.
A land measure equal to 43,560 square feet or 160 square
rods.
Acreage
Un-subdivided land that is customarily measured in
terms of acres rather than front feet or square feet. See property use category. Includes farms, timberland, recreational acreage, idle land, and waste
land in rural locations. Excludes vacant platted lots that lie within or adjacent
to a municipality and that usually carry a lot/block system designation rather than
acreage. Separately assessed timber or mineral rights are omitted from this category.
Actual Age
The actual number of years that have elapsed since the completed construction of an improvement; also referred to as historical age
or chronological age.
Ad Valorem
According to value.
Ad Valorem Tax
A tax levied in proportion to the value of the thing(s)
being taxed. Exclusive of exemptions, use-value assessment provisions, and the like,
the property tax is an ad valorem tax.
ADA
Americans with Disabilities Act (1990).
Adaptive Estimation Procedure (AEP)
A computerized, iterative, self-referential procedure
using properties for which sales prices are known to produce a model that can be
used to value properties for which sales prices are not known. Also called "feedback."
Additive Model
A model in which the dependent variable is estimated
by multiplying each independent variable by its coefficient and adding each product
to a constant.
Adjustments
Modifications in the reported value of a variable,
such as sale price. For example, adjustments can be used to estimate market value
in the sales comparison approach by modifications for differences between comparable
and subject properties. Note: Adjustments are applied to the characteristics of
the comparable properties in a particular sequence that depends on the method of
adjustment selected.
Adverse Land Use
A land use that decreases the value of nearby properties,
usually because the adverse use is incompatible with the uses of the neighboring
properties. A garbage dump near a residential neighborhood is an example of adverse
land use.
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