| Term | Definition |
|---|
| abstract of title | A condensed version of the history of title to a piece of land that lists any transfers in ownership, as well as any liabilities attached to it, such as mortgages. |
| abutting | The joining, reaching, or touching of adjoining land. Abutting pieces of land have a common boundary. |
| acceleration clause | A provision in a written mortgage, note, bond or conditional sales contract that, in the event of default, the whole amount of principal and interest may be declared to be due and payable at once. |
| acceptance | An offerees consent to enter into a contract and be bound by the terms of the offer. |
| accretion | An addition to land through natural causes. |
| acknowledgment | A declaration made by a person to a notary public, or other public official authorized to take acknowledgments, that the instrument was executed by him and that it was his free and voluntary act. |
| acre | A measure of land equal to 43,560 square feet. |
| ad valorem | Designates an assessment of taxes against property. Literally, according to value. |
| additional principal payment | A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan. |
| adjustable rate mortgage (ARM) | A mortgage loan whose interest rate fluctuates according to the movements of an assigned index or a designated market indicator--such as the weekly average of one-year U.S. Treasury Bills--over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary. |
