Adverse Possession to Agency by Estoppel

 

Adverse Possession

Similar to squatter’s rights, adverse possession is a statute of limitation that bars the true owner from asserting his claim to real property. In other words, a property owner can lose their claim against or over a property if they fail to stop someone from taking it over.

However, this is only applicable if that owner has not made any notices or actions to stop the adverse occupant during the legally established statutory period.  Typical statutory periods are seven to thirty years. As long as the true owner makes a notice to the occupant at least once during the statutory period, the statutory term begins anew.

Adverse possession shouldn’t be confused with involuntary alienation, which is more of an active legal maneuver. Also see the Squatters Rights entry.

 

Aeolian Soil

Dirt, dust and other soil deposited by wind-blown material.

 

Aesthetic Zoning

A type of zoning that dictates what can be built and how, with the intention of creating or maintaining visually pleasing (or desired) scenery. Aesthetic zoning can dictate the style of buildings, materials used, color palettes and building heights, among others.

Although condominium associations have rules that govern the general appearance of their communities, those rules aren’t zoning laws. Only a legally authorized zoning authority can enact aesthetic zoning laws. One example of aesthetic zoning can be found in downtown Chicago, where Michigan Avenue buildings must be flushed with neighboring buildings, so as to create an urban canyon effect.

 

Affiant

An individual who makes a legally binding sworn statement.

 

Affirmative Easement

See the Positive Easement entry.

 

Affordability Analysis

Mortgage lenders usually conduct an affordability analysis to determine whether a person can afford a proposed purchase and mortgage loan. Actually, most affordability analyses aim to determine the maximum loan amount that a borrower can afford.

This analysis typically involves calculating the applicant’s debt-to-income (DTI) ratio, to ensure that the applicant will have enough funds (after making allowances for basic necessities, living expenses and personal debt payments) to pay for the proposed mortgage, taxes and insurance.

 

Affordable Housing

Affordable housing is a growing challenge for most communities, as property values, real estate prices and rental rates continue to rise tremendously. It refers to both rental apartment units and starter homes for low- and moderate-income renters and homebuyers.

The affordable housing term actually encompasses several level, including low-cost housing and subsidized housing for individuals with incomes below the federal poverty line. Moreover, because average income and cost-of-living levels vary by region, the price and cost of affordable housing will also vary.

The Department of Housing and Urban Development and its Federal Housing Administration are the federal entities tasked with promoting affordable housing, although they do work with several, state and local institutions.

 

A-Frame Roof

A type of gable roof with high, steep (chalet-like) roofs. It is ideal for areas with regularly heavy snowfall, as it allows gravity to prevent dangerous build-up.

 

After-Acquired Property

An after-acquired property is any personal or real property that the seller acquires – after selling it to the buyer.

For example, Moe sells the Highlake Apartment Building to Curly for $1 million. But Moe doesn’t really own the building yet. Nevertheless, as soon as he receives Curly’s $1 million, Moe buys the apartment building and transfers the title to Curly.

There is quite a bit of debate about the legality of this procedure because it would seem that the seller had no legal authority to transfer ownership of the title to the buyer. Courts have upheld the acceptability of this procedure on the grounds that it would be unfair to the end buyer if the title were not allowed to transfer to the buyer, especially after the buyer had paid for it.

 

After-Tax Cash Flow

The income funds remaining after all operating expenses, including taxes, are paid.

 

After-Tax Rate

The rate of return calculation based on the after-tax income divided by the equity.

 

Agency

An agency is a legal relationship between a principal and an agent created by a contract in which the principal engages the agent to perform certain acts on the principal’s behalf. Agencies are typically created in one of four ways: expressed agency, implied agency, agency by estoppel and agency by necessity.

Real estate listing agreements and mortgage brokerage agreements are the most common type of contracts that create agency relationships. When a property owner lists a property with a broker, they create an agency agreement with the broker—as well as the agents who work for that broker.

However, homeowners and homebuyers who use mortgage brokers may not necessarily be creating an agency relationship with that mortgage broker. Many brokers are, in fact, officially acting as agents for the lender—not the borrower.

 

Agency By Estoppel

A type of agency relationship created when a principal, through statements or actions, leads a third party to believe that someone is his or her agent — and that third party relies on that assumption. Even if no previous agency relationship existed, that someone is now an agent for the principal in the context of this third party.