1. ACCEPTANCE: An act to show that Seller and Buyer are bound by the terms when Seller and Buyer agree in writing.
2. ACKNOWLEDGMENT: An act signifying that signing is a voluntary act and genuine signature of specific person.
3. ADDENDUM/ADDENDA (singular/plural): Additional material attached to and made a part of the transaction.
4. AGENCY: The relationship created establishing a fiduciary or statutory relationship and imposes certain duties, obligations and high standards of good faith and loyalty.
5. ARBITRATION: A process where Seller and Buyer select a third party to resolve a dispute between them. The third party, called an arbitrator, conducts a hearing and renders a decision in favor of one party and against the other.
6. ASSESSMENTS: An official valuation of real property for tax purposes based on appraisals by local government.
7. ASSUMED OBLIGATIONS: Debts which Buyer takes over from another party and for which Buyer is responsible to repay.
8. ASSUMPTION OF MORTGAGE: Agreeing to be liable for terms and conditions of existing mortgage.
9. BREACH OF CONTRACT: When one breaks an agreement or refuses to do what was promised.
10. BUILT-IN FURNITURE: Fixtures such as bookcases, shelving, cabinets, or furniture permanently affixed to real property.
11. By-Laws: Document that establishes the rules for the operation of a common interest community.
12. CC & R’s: Document outlining the conditions covenants and restrictions of Property.
13. CODE OF ETHICS: Written standard of ethical conduct. Members of the National Association of REALTORS® subscribe to a Code of Ethics.
14. COMMON ELEMENT: Property that is necessary or convenient for existence, maintenance or safety of a planned development.
15. COMMON INTEREST COMMUNITY: Refers to condominium, cooperative and planned unit development projects.
16. CONVEY: To sell or transfer ownership of Property to another party.
17. CONVEYANCE DOCUMENTS: Documents that transfer title or interest in real property.
18. COVENANTS: An agreement with another party promising to do or not to do something.
19. DECLARATION: Controlling document, which creates and defines a condominium project or planned unit development.
20. DEFAULT: Nonperformance of a duty or obligation that is part of a contract.
21. DISCLOSURE STATEMENT: An information report on Property.
22. DROA: Deposit Receipt Offer Acceptance form used to purchase real property.
23. EASEMENT: A limited right one has in lands owned by someone else or rights owned by someone else on one’s land. For example, a right for you to cross over someone else’s land to get to your own Property.
24. ENCROACHMENT: An intrusion of an improvement on another’s real property.
25. ESCROW: An objective third person who holds money and/or documents until satisfaction of the terms of the contract are completed.
26. EXTENSION: An agreement to continue the performance period beyond a specific date.
27. FEE SIMPLE: An interest in land which gives you full right of ownership and which does not end by the passage of time. You can freely transfer this right or leave Property to be inherited.
28. FIDUCIARY: A person, such as an agent, placed in a position of trust. A fiduciary owes his/her client a duty of loyalty and obedience; a duty of exercising due care; and must act in good faith.
29. FIXTURE: An article that was once personal property that has been affixed to real estate.
30. IMPROVEMENTS: Additions of value made to Property.
31. LAND COURT: (Torrans System): A system of recordation of documents affecting land.
32. LEASEHOLD: An interest in land, which is less, that fee simple and which allows one defined use for a stated period of time.
33. LESSEE: A tenant under a lease.
34. LESSOR: The landlord under a lease.
35. LIENS AND ENCUMBRANCES: Claims against the title or right of ownership to one’s Property held by another party.
36. LIMITED COMMON ELEMENT: A common element which use is restricted to a specific owner or owners.
37. LIQUIDATED DAMAGES: An agreed upon reasonable amount of money which is paid to the party injured by the other party.
38. LITIGATION: The formal court process started by filing a lawsuit.
39. MARKETABLE TITLE: Title or right of ownership to Property, which is free of any claims or reasonable doubts which would affect one’s ability to sell Property.

(Terms defined as set forth in the Hawaii Association of Realtors® Plain Language Addendum Standard Form)