As an industrial term, everything necessary to produce a product, such as land, improvements, machinery, etc.

A legal fiction applied to a land contract which treats the vendee’s (buyer’s) interest as a real property interest even though the seller holds legal title, and the seller’s interest as a security interest (personal property). This enables the buyer to act as the “owner” of the property without having “legal” title.

A lien enforceable in a court of equity, based on evidence of an intent between debtor and creditor to create a lien on specific property of the debtor, but a failure to legally create said lien.

(1) A lien against real property (mortgage) which is enforceable in a court of equity, but does not legally constitute a mortgage. (2) A deed given as security for a debt will be held to be a mortgage rather than a transfer of title. Also called a constructive mortgage.

Ownership by one who does not have legal title, such as a vendee under a land contract or, technically, a trustor under a deed of trust (legal title being in the trustee). Also called equitable title.

See: Equity of Redemption.

See: Equitable Ownership.

(1) A legal doctrine based on fairness, rather than strict interpretation of the letter of the law. (2) The market value of real property, less the amount of existing liens. (3) Any ownership investment (stocks, real estate, etc.) as opposed to investing as a lender (bonds, mortgages, etc.).

The reduction of principal on a mortgage or deed of trust by periodic payments, which increases (builds-up) the difference (equity) between the property value and amount of the lien.

See: Cash-On-Cash.

See: Cash-On-Cash.

A loan based upon the equity in a property. The credit of the borrower is not a major factor. See also: Personal Property Loan.

Properly, the right to pay off the lien of a mortgage which is in default by payment of the principal, interest, and costs which are due. Often confused with the redemption period after the foreclosure sale, which is a right established by statute.

See: Participation.

One who purchases the equity of another in real property, either assuming or taking subject to existing mortgages or deeds of trust.

A method of borrowing by giving the lender an ownership interest in the property. When the property is sold, the lender receives a portion of the profit in addition to repayment.

A scam where a “buyer” approaches a homeowner who is behind on his/her mortgage payments. The owner moves out of the property based on the promise to bring the mortgage current and give the owner money when the property is sold. After getting a deed from the homeowner, the con artist rents out the property until the foreclosure is final. Also known as milking.

See: Shared Appreciation Mortgage.

The wearing away, over a prolonged period, of rock, earth, or other portions of land.

Insurance covering losses caused by errors and omissions of professions other than medicine. Used by banks, real estate companies, escrow companies, etc.