Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Glossary

Real estate investors, counties, and lenders have a language all their own. In this glossary, we present and decipher the most cryptic jargon and acronyms you are likely to encounter.

1031 See Tax-deferred exchange.

Abatement The reduction, decrease, or elimination of a tax previously assessed.

Absentee Bidding A process by which a bid may be submitted without the presence of the person submitting it, such as: by mail, by phone, by an assistant, etc.

Abstract (aka Abstract of Title) 1. A condensed history of the chain of title to land, including, but not limited to, a statement of all liens, charges, encumbrances, and liabilities the land is subject to. May also include maps and plats. 2. In Texas, the book or volume of plat maps is sometimes known as an Abstract.

Acre A measurement of land in any shape equivalent to 43,560 square feet (160 sq. rods). 640 acres make up a section, 36 sections make up a township.

Adjusted Basis Value used in calculating the taxable gain on the sale of a property. The adjusted basis is the original cost of the property plus capital improvements, minus accumulated depreciation and the cost of selling it.

Adjustment Period The length of time that determines how often the interest rate can change on an adjustable rate mortgage. See also Index, Cap, and Margin.

Ad Valorem Taxes imposed at a rate set by law or as a percentage of value.

Amortization Creative process of retiring debt through predetermined periodic payments.

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