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ABSORPTION RATE Back
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The ratio of the number of properties in an
area that have been sold against the number
available. Used to show the volatility of a
market.
ABSTRACTION METHOD Back
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market to extract the value of a parcel
of land.
ACCELERATION CLAUSE Back
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A provision in a mortgage that gives the
lender the right to demand immediate payment
of the outstanding loan balance under certain
circumstances. Usually when the borrower
defaults on the loan.
ACCESSORY BUILDING Back
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A building separate from the main structure on
a property. Often used for a specific purpose,
such as a workshop, storage shed or garage.
ACCRETION Back
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The natural growth of a piece of land
resulting from forces of nature
ACRE Back
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43,560 square feet. A measurement of area.
ACTUAL AGE Back
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The amount of time that has passed since a
building or other structure was built. See
also: EFFECTIVE AGE
ADJUSTMENT DATE Back
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The date the interest rate changes on an
adjustable rate mortgage.
AD VAL OREM TAX Back
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Taxes assessed based on the value of the land
and improvements
ADDENDUM Back
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A supplement to any document that contains
additional information pertinent to the
subject. Appraisers use an addendum to further
explain items for which there was inadequate
space on the standard appraisal form.
ADJUSTABLE-RATE
MORTGAGE (ARM) Back
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A type of mortgage where the interest rate
varies based on a particular index, normally
the prime lending rate.
ADJUSTED BASIS Back
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The value of an asset (property or otherwise)
that includes the original price plus the
value of any improvement, and less any
applicable depreciation.
ADJUSTED SALES PRICE Back
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An opinion of a property's sales price, after
adjustments have been made to account for
differences between it and another comparable
property.
AESTHETIC VALUE Back
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The additional value a property enjoys based
on subjective criteria such as look or appeal.
AFFIRMATION Back
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A declaration that a certain set of facts are
truthful.
AFFORDABILITY ANALYSIS Back
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A calculation used to determine an
individual's likelihood of being able to meet
the obligations of a mortgage for a particular
property. Takes into account the down payment,
closing costs and on-going mortgage payments.
AGENT Back
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A person who has been appointed to act on
behalf of another for a particular
transaction.
AMENITY Back
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Any feature of a property that increases its
value or desirability. These might include
natural amenities such as location or
proximity to mountains, or man-made amenities
like swimming pools, parks or other
recreation.
AMERICAN SOCIETY OF
APPRAISERS Back
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An organization of appraisal professionals and
others interested in the appraisal profession.
AMORTIZATION Back
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The repayment of a loan through regular
periodic payment.
AMORTIZATION SCHEDULE Back
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The breakdown of individual payments
throughout the life of an amortized loan,
showing both principal contribution and debt
service (interest) fees.
AMORTIZATION TERM Back
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The length of time over which an amortized
loan is repaid. Mortgages are commonly
amortized over 15 or 30 years.
AMPERAGE Back
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A measure of electric current describing the
magnitude.
ANNUAL PERCENTAGE RATE
(APR) Back
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The rate of annual interest charged on a loan.
ANNUITY Back
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A sum of money paid at regular intervals,
often annually.
APPLICATION Back
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A form used to apply for a mortgage loan that
details a potential borrower's income, debt,
savings and other information used to
determine credit worthiness.
APPRAISAL Back
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A ''defensible'' and carefully documented
opinion of value. Most commonly derived using
recent sales of comparable properties by a
licensed, professional appraiser.
APPRAISAL FOUNDATION Back
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A not-for-profit educational organization
established by the appraisal profession in the
United States in 1987. It is dedicated to the
advancement of professional valuation and
responsible for establishing, improving, and
promoting the Uniform Standards of
Professional Appraisal Practice (USPAP).
APPRAISAL INSTITUTE Back
to top
A world-wide organization dedicated to real
estate appraisal education, publication and
advocacy.
APPRAISAL PRINCIPLES Back
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The basic building blocks of the property
valuation process, including property
inspection, market analysis and basic
economics.
APPRAISAL REPORT Back
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The end result of the appraisal process
usually consists of one major standardized
form such as, the Uniform Residential
Appraisal Report form 1004, as well as all
supporting documentation and additional detail
information. The purpose of the report is to
convey the opinion of value of the subject
property and support that opinion with
corroborating information.
APPRAISAL STANDARDS
BOARD (ASB) Back
to top
An independent board of the APPRAISAL
FOUNDATION, which writes, amends, and
interprets USPAP. The ASB is composed of up to
seven appraisers appointed by the Foundation's
Board of Trustees. The ASB holds public
meetings throughout the year to interpret and
amend USPAP.
APPRAISED VALUE Back
to top
An opinion of the fair market value of a
property as developed by a licensed, certified
appraiser following accepted appraisal
principals.
APPRAISER Back
to top
An educated, certified professional with
extensive knowledge of real estate markets,
values and practices. The appraiser is often
the only independent voice in any real estate
transaction with no vested interest in the
ultimate value or sales price of the property.
APPRECIATION Back
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The natural rise in property value due to
market forces.
ARMS LENGTH TRANSACTION Back
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Any transaction in which the two parties are
unconnected and have no overt common
interests. Such a transaction most often
reflects the true market value of a property.
ASSESSED VALUE Back
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The value of a property according to
jurisdictional tax assessment.
ASSESSMENT Back
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The function of assigning a value to a
property for the purpose of levying taxes.
ASSESSMENT RATIO Back
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The comparative relationship of a property's
assessed value to its market value.
ASSESSOR Back
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The jurisdictional official who performs the
assessment and assigns the value of a
property.
ASSET Back
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Any item of value which a person owns.
ASSIGNMENT Back
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Transfer of ownership of a mortgage usually
when the loan is sold to another company.
ASSUMABLE MORTGAGE Back
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A mortgage that can be taken over by the buyer
when a home is sold.
ASSUMPTION Back
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When a buyer takes over, or
"assumes" the sellers mortgage.
ATTACHED HOUSING Back
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Any number of houses or other dwellings which
are physically attached to one another, but
are occupied by a number of different people.
The individual houses may or may not be owned
by separate people as well.
BACKFILL Back
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The slope of the ground around a house.
BALL COCK VALVE Back
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The valve inside a toilet tank that controls
the filling of the tank.
BALLOON MORTGAGE Back
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A mortgage loan in which the monthly payments
are not large enough to repay the loan by the
end of the term. So at the end of the term,
the remaining balance comes due in a single
large payment.
BALLOON PAYMENT Back
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The final large payment at the end of a
balloon mortgage term.
BANKRUPTCY Back
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When a person or business is unable to pay
their debts and seeks protection of the state
against creditors. Bankruptcies remain on
credit records for up to ten years and can
prevent a person from being able to get a
loan.
BEAM Back
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A structural supporting member.
BILL OF SALE Back
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A physical receipt indicating the sale of
property.
BIWEEKLY MORTGAGE Back
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A mortgage where you make "half
payments" every two weeks, rather than
one payment per month. This results in making
the equivalent of 13 monthly payments per
year, rather than 12, significantly reducing
the time it takes to pay off a thirty year
mortgage.
BLIGHTED AREA Back
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Any region of a city or town that has fallen
into disrepair or otherwise has become
undesirable.
BONA FIDE Back
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Any genuine offer, made without intent to
defraud or deceive.
BRIDGE FINANCING Back
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An interim loan made to facilitate the
purchase of a new home before the buyer's
current residence sells and its equity is
available to fund the new purchase.
BRIDGING Back
to top
Structural members used between beams to
strengthen the structure.
BROKER Back
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An individual who facilitates the purchase of
property by bringing together a buyer and a
seller.
BTU Back
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British Thermal Unit. A unit of measurement
used to describe heating or cooling capacity.
BUFFER ZONE Back
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A segment of land between two disparate
municipal zones which acts as a shield to keep
one zone from encroaching upon the other.
Often used to separate residential districts
from commercial areas.
BUILDING CODE Back
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Regulations that ensure the safety and
material compliance of new construction within
a municipality. Building codes are localized
to ensure they are adequate to meet the risk
of common hazards.
BUILDING LINE OR
SETBACK Back
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The statutory distance between buildings and
the property line, imposed by municipalities,
home associations, or other agreements.
BUILT-INS Back
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Specific items of personal property which are
installed in a real estate improvement such
that they become part of the building.
Built-in microwave ovens and dishwashers are
common examples.
BUNGALOW Back
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A one-story, home-style dating from the early
twentieth century. Often characterized by a
low-pitched roof.
BUY DOWN Back
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Extra money paid in a lump sum to reduce the
interest rate of a fixed rate mortgage for a
period of time. The extra money may be paid by
the borrower, in order to have a lower payment
at the beginning of the mortgage. Or paid by
the seller, or lender, as incentive to buy the
property or take on the mortgage.
BX CABLE Back
to top
Electrical cable shrouded in a galvanized
steel outer cover.
CALL OPTION Back
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A clause in a mortgage which allows the lender
to demand payment of the outstanding balance
at a specific time.
CAP Back
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Associated with Adjustable Rate Mortgages. A
limit on how high monthly payments or how much
interest rates may change within a certain
time period or the life of the mortgage.
CAPE COD COLONIAL Back
to top
A single-story house style made popular in New
England. Often characterized by a steep roof
with gables.
CAPITAL Back
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Accumulated goods and money which is most
often used to generate additional income.
CAPITAL EXPENDITURE Back
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An outlay of funds designed to improve the
income-producing capabilities of an asset or
to extend its economic life.
CASH-OUT REFINANCE Back
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Refinancing a mortgage at a higher amount than
the current balance in order to transform a
portion of the equity into cash.
CAULKING Back
to top
A pliable material used to seal cracks or
openings such as around windows.
CAVEAT EMPTOR Back
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Literally translated: ''Let the buyer
beware.'' A common business tenet whereby the
buyer is responsible for verifying any and all
claims by the seller of property.
CERTIFICATE OF DEPOSIT Back
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A document showing that the bearer has a
certain amount of money, at a particular
amount interest, on deposit with a financial
institution.
CERTIFICATE OF DEPOSIT
INDEX Back
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An index based on the interest rate of six
month CD's. Used to set interest rates on some
Adjustable Rate Mortgages.
CERTIFICATE OF
ELIGIBILITY Back
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A document issued by the Veterans
Administration that certifies eligibility for
a VA loan.
CERTIFICATE OF
OCCUPANCY Back
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Issued by an appropriate jurisdictional
entity, this document certifies that a
building complies with all building codes and
is safe for use or habitation.
CERTIFICATE OF
REASONABLE VALUE (CRV) Back
to top
Usually based on an independent appraisal, a
CRV for a particular property establishes the
maximum amount which can be secured by a VA
mortgage.
CERTIFICATE OF TITLE Back
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A document designating the legal owner of a
parcel of real estate. Usually provided by a
title or abstract company.
CERTIFIED GENERAL
APPRAISER Back
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Generally, any professional who has met the
local or state requirements, and passed the
appropriate certification exam, and is capable
of appraising any type of property.
CERTIFIED RESIDENTIAL
APPRAISER Back
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A sub-classification of appraiser who is only
licensed to appraise residential property,
usually up to four units.
CHAIN OF TITLE Back
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The complete history of ownership of a piece
of property.
CHATTEL Back
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Any personal property which is not attached to
or an integral part of a property. Chattel is
not commonly taken into consideration when
appraising the value of real property.
CIRCUIT BREAKERS Back
to top
Electrical devices which automatically open
electrical circuits if they are overloaded.
CLEAR TITLE Back
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Ownership of property that is not encumbered
by any counter-claim or lien.
CLOSING Back
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A torturous process designed to induce
cramping in a home buyer's hands by requiring
signature on countless pieces of documentation
that nobody has ever read. Or, the process
whereby the sale of a property is consummated
with the buyer completing all applicable
documentation, including signing the mortgage
obligation and paying all appropriate costs
associated with the sale (CLOSING COSTS).
CLOSING COSTS Back
to top
All appropriate costs generated by the sale of
property which the parties must pay to
complete the transaction. Costs may include
appraisal fees, origination fees, title
insurance, taxes and any points negotiated in
the deal.
CLOSING STATEMENT Back
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The document detailing the final financial
arrangement between a buyer and seller and the
costs paid by each.
CO-BORROWER Back
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A second person sharing obligation on the loan
and title on the property.
COLLATERAL Back
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An asset which is placed at risk to secure the
repayment of a loan.
COLLECTION Back
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The process a lender takes to pursue a
borrower who is delinquent on his payments in
order to bring the mortgage current again.
Includes documentation that may be used in
foreclosure.
CO-MAKER Back
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A second party who signs a loan, along with
the borrower, and becomes liable for the debt
should the borrower default.
COMMON LAW Back
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As opposed to statute law. Laws that have been
established by custom, usage and courts over
many years.
COMMISSION Back
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A percentage of the sales price or a fixed fee
negotiated by an agent to compensate for the
effort expended to sell or purchase property.
COMMON AREA ASSESSMENTS Back
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Fees which are charged to the tenets or owners
of properties to cover the costs of
maintaining areas shared with other tenets or
owners. Commonly found in condominium, PUD or
office spaces.
COMMON AREAS Back
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Any areas, such as entryways, foyers, pools,
recreational facilities or the like, which are
shared by the tenets or owners of property
near by. Commonly found in condominium, PUD or
office spaces.
COMMUNITY PROPERTY Back
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In many jurisdictions, any property which has
been acquired by a married couple. The
ownership of the property is considered equal
unless stipulated otherwise by both parties.
COMPARABLES Back
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An abbreviated term used by appraisers to
describe properties which are similar in size,
condition, location and amenities to a subject
property whose value is being determined.
The Uniform Standards of Professional
Appraisal Practice (USPAP) establish clear
guidelines for determining a comparable
property.
COMPOUND INTEREST Back
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Interest paid on the principal amount, as well
as any accumulated interest.
CONCESSIONS Back
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Additional value granted by a buyer or seller
to entice another party to complete a deal.
CONDEMNATION Back
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The official process by which a property is
deemed to be uninhabitable or unusable due to
internal damage or other external conditions.
CONDENSATION Back
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The transition of water vapor to liquid.
Typically forms in areas of high humidity.
CONDOMINIUM Back
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A development where individual units are
owned, but common areas and amenities are
shared equally by all owners.
CONDOMINIUM CONVERSION Back
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Commonly, the conversion of a rental property
such as an apartment complex into a
CONDOMINIUM-style complex where each unit is
owned rather than leased.
CONDUIT Back
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The pipe through which electric wiring is run.
CONSTRUCTION LOAN Back
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A loan made to a builder or home owner that
finances the initial construction of a
property, but is replaced by a traditional
mortgage one the property is completed.
CONTIGUOUS Back
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Connected to or touching along an unbroken
boundary.
CONTINGENCY Back
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Something that must occur before something
else happens. Often used in real estate sales
when a buyer must sell a current home before
purchasing a new one. Or, when a buyer makes
an offer that requires a complete home
inspection before it becomes official.
CONTRACT Back
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A legally binding agreement, oral or written,
between two parties.
CONVENTIONAL MORTGAGE Back
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A traditional, real estate financing mechanism
that is not backed by any government or other
agency (FHA, VA, etc.).
CONVERTIBLE ARM Back
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A mortgage that begins as and adjustable, that
allows the borrower to convert the loan to a
fixed rate within a specific timeframe.
COOPERATIVE (CO-OP) Back
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A form of ownership where each resident of a
multiunit property owns a share in a
cooperative corporation that owns the
building. With each resident having rights to
a specific unit within the building.
CORPORATE RELOCATION Back
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A situation where a person's employer pays all
or some of the expenses associated with moving
from one location to another, usually over a
substantial distance. Relocation expenses
often include the amounts, such as brokerage
fees, incurred in the selling and buying of
the employee's primary residence.
COST OF FUNDS INDEX
(COFI) Back
to top
An index of financial institutions costs used
to set interest rates for some Adjustable Rate
Mortgages.
COVENANT Back
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A stipulation in any mortgage that, if not
met, can be cause for the lender to foreclose.
CREDIT Back
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A loan of money for the purchase of property,
real or personal. Credit is either secured by
an asset, such as a home, or unsecured.
CREDIT HISTORY Back
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A record of debt payments, past and present.
Used by mortgage lenders in determining credit
worthiness of individuals.
CREDITOR Back
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A person to whom money is owed.
CREDIT REPORT Back
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A detailed report of an individuals credit,
employment and residence history prepared by a
credit bureau. Used by lenders to determine
credit worthiness of individuals.
CREDIT REPOSITORY Back
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Large companies that gather and store
financial and credit information about
individuals who apply for credit.
CUL-DE-SAC Back
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A dead-end street. One with only one
entrance/exit.
DATE OF APPRAISAL Back
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The specific point in time as of which an
appraiser designates the value of a home.
Often stipulated as the date of inspection.
DEBT Back
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An obligation to repay some amount owed. This
may or may not be monetary.
DEBT EQUITY RATIO Back
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The ratio of the amount a mortgagor still owes
on a property to the amount of equity they
have in the home. Equity is calculated at the
fair-market value of the home, less any
outstanding mortgage debt.
DEED Back
to top
A document indicating the ownership of a
property.
DEED-IN-LIEU (OF
FORECLOSURE) Back
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A document given by a borrower to a lender,
transferring title of the property. Often used
to avoid credit-damaging foreclosure
procedures.
DEED OF TRUST Back
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A document which transfers title in a property
to a trustee, whose obligations and
powers are stipulated. Often used in mortgage
transactions.
DEED OF RECONVEYANCE Back
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A document which transfers ownership of a
property from a Trustee back to a borrower who
has fulfilled the obligations of a mortgage.
DEED OF RELEASE Back
to top
A document which dismisses a lien or other
claim on a property.
DEED OF SURRENDER Back
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A document used to surrender any claim a
person has to a property.
DEFAULT Back
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The condition in which a borrower has failed
to meet the obligations of a loan or mortgage.
DELINQUENCY Back
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The state in which a borrow has failed to meet
payment obligations on time.
DEPOSIT Back
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Cash given along with an offer to purchase
property, Also called EARNEST MONEY.
DEPRECIATION Back
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The natural decline in property value due to
market forces or depletion of resources.
DETACHED SINGLE-FAMILY
HOME Back
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A single building improvement intended to
serve as a home for one family.
DISCOUNT POINTS Back
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Points paid in addition to the loan
origination fee to get a lower interest rate.
One point is equal to one percent of the loan
amount.
DISTRESSED PROPERTY Back
to top
A mortgaged property which has been foreclosed
on.
DOWNSPOUT Back
to top
The pipe that water moves through to reach the
ground from the rain gutter.
DUE-ON-SALE PROVISION Back
to top
A clause in a mortgage giving the lender the
right to demand payment of the full balance
when the borrower sells the property.
DUPLEX Back
to top
A single-building improvement which is divided
and provides two units which serve as homes to
two families.
DWELLING Back
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A house or other building which serves as a
home.
DOWN PAYMENT Back
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An amount paid in cash for a property, with
the intent to mortgage the remaining amount
due.
EARNEST MONEY DEPOSIT Back
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A cash deposit made to a home seller to secure
an offer to buy the property. This amount is
often forfeited if the buyer decides to
withdraw his offer.
EASEMENT Back
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The right of a non-owner of property to exert
control over a portion or all of the property.
For example, power companies often own an
easement over residential properties for
access to their power lines.
EAVE Back
to top
The part of the roof that extends beyond the
exterior wall.
ECONOMIC DEPRECIATION Back
to top
The decline in property value caused by
external forces, such as neighborhood blight
or adverse development.
ECONOMIC LIFE Back
to top
The amount of time which any income-producing
property is able to provide benefits to its
owner.
EFFECTIVE AGE Back
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The subjective, estimated age of a property
based on its condition, rather than the actual
time since it was built. Excessive wear and
tear can cause a property's effective age to
be greater than its actual age.
EMINENT DOMAIN Back
to top
The legal process whereby a government can
take ownership of a piece of property in order
to convert it to public use. Often, the
property owner is paid fair-market value for
the property.
ENCROACHMENT Back
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A building or other improvement on one
property which invades another property or
restricts its usage.
ENCUMBRANCE Back
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A claim against a property. Examples are
mortgages, liens and easements.
ENERGY EFFICIENCY RATIO Back
to top
An efficiency rating system for air
conditioning units that corresponds to the
number of BTU's output per watt of electricity
used.
EQUAL CREDIT
OPPORTUNITY ACT (ECOA) Back
to top
U.S. federal law requiring that lenders afford
people equal chance of getting credit without
discrimination based on race, religion, age,
sex etc
EQUITY Back
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The difference between the fair market value
of a property and that amount an owner owes on
any mortgages or loans secured by the
property.
EQUITY BUILDUP Back
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The natural increase in the amount of equity
an owner has in a property, accumulated
through market appreciation and debt
repayment.
ERRORS AND OMISSIONS
INSURANCE Back
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An insurance policy taken out by appraisers to
cover their liability for any mistakes made
during the appraisal process.
ESCROW Back
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An amount retained by a third party in a trust
to meet a future obligation. Often used in the
payment of annual taxes or insurance for real
property.
ESCROW ACCOUNT Back
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An account setup by a mortgage servicing
company to hold funds with which to pay
expenses such as homeowners insurance and
property taxes. An extra amount is paid with
regular principal and interest payments that
go into the escrow account each month.
ESCROW ANALYSIS Back
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An analysis performed by the lender usually
once each year to see that the amount of money
going into the escrow account each month is
correct for the forecasted expenses.
ESCROW DISBURSEMENTS Back
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The payout of funds from an escrow account to
pay property expenses such as taxes and
insurance.
ESTATE Back
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The total of all property and assets owned by
an individual.
EXAMINATION OF TITLE Back
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The report on the title of a property from the
public records or an abstract of the title.
EXCLUSIVE LISTING Back
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An agreement between the owner of a property
and a real estate agent giving the agent
exclusive right to sell the property.
EXECUTOR Back
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The person named in a will to administer the
estate.
FACADE Back
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The front exposure of any building. Often used
to describe an artificial or false front which
is not consistent with the construction of the
rest of the building.
FAIR CREDIT REPORTING
ACT Back
to top
A federal law regulating the way credit
agencies disclose consumer credit reports and
the remedies available to consumers for
disputing and correcting mistakes on their
credit history.
FAIR MARKET VALUE Back
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The price at which two unrelated parties,
under no duress, are willing to transact
business.
FANNIE MAE Back
to top
A private, shareholder-owned company that
works to make sure mortgage money is available
for people to purchase homes. Created by
Congress in 1938, Fannie Mae is the nation's
largest source of financing for home
mortgages.
FASCIA Back
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The boards that enclose the eaves.
FEDERAL DEPOSIT
INSURANCE CORPORATION (FDIC) Back
to top
The U.S. Government agency created in 1933
which maintains the stability of and public
confidence in the nation's financial system by
insuring deposits and promoting safe and sound
banking practices.
FEDERAL HOUSING
ADMINISTRATION (FHA) Back
to top
A sub-agency of the U.S. Department of Housing
and Urban Development created in the 1930's to
facilitate the purchase of homes by
low-income, first-time home buyers. It
currently provides federally-subsidized
mortgage insurance for private lenders.
FEE APPRAISER Back
to top
A certified, professional appraiser who forms
an opinion of the fair market value of
property and receives a set fee in exchange.
FEE SIMPLE Back
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A complete, unencumbered ownership right in a
piece of property.
FEE SIMPLE ESTATE Back
to top
A form or ownership, or holding title to real
estate. It is the most complete form of title,
having an unconditional and unlimited interest
of perpetual duration.
FHA MORTGAGE Back
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A mortgage that is insured by the Federal
Housing Administration (FHA).
FINAL VALUE ESTIMATE Back
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The opinion of value of a piece of property
resulting from an appraisal following the
USPAP guidelines.
FIRST MORTGAGE Back
to top
The primary loan or mortgage secured by a
piece of property.
FIXED-RATE MORTGAGE
(FRM) Back
to top
A mortgage which has a fixed rate of interest
over the life of the loan.
FIXTURE Back
to top
Any piece of personal property which becomes
permanently affixed to a piece of real
property.
FLASHING Back
to top
The metal used around the base of roof mounted
equipment, or at the junction of angles used
to prevent leaking.
FLOOD INSURANCE Back
to top
Supplemental insurance which covers a home
owner for any loss due to water damage from a
flood. Often required by lenders for homes
located in FEMA-designated flood zones.
FLOOR PLAN Back
to top
The representation of a building which shows
the basic outline of the structure, as well as
detailed information about the positioning of
rooms, hallways, doors, stairs and other
features. Often includes detailed information
about other fixtures and amenities.
FLUE Back
to top
The furnace exhaust pipe, usually going
through the roof.
FLUSH VALVE Back
to top
The valve between the toilet bowl and the
tank.
FOOTING Back
to top
The partially buried support for a vertical
structural member such as a post.
FORECLOSURE Back
to top
The process whereby a lender can claim the
property used by a borrower to secure a
mortgage and sell the property to meet the
obligations of the loan.
FORFEITURE Back
to top
The loss of property or money due to the
failure to meet the obligations of a mortgage
or loan secured by that property.
FOUNDATION Back
to top
The solid structural element upon which a
structure is built.
FRONTAGE Back
to top
The segment of a property that runs along a
point of access, such as a street or water
front.
FUNCTIONAL OBSOLESCENCE Back
to top
A decrease in the value of property due to a
feature or lack thereof which renders the
property undesirable. Functional obsolescence
can also occur when the surrounding area
changes, rendering the property unusable for
its originally intended purpose.
GABLE ROOF Back
to top
A steeply angled, triangular roof.
GALVANIZED PIPE Back
to top
Iron pipe with a galvanized (zinc) coating.
GAMBREL ROOF Back
to top
A ''barn-like'' roof, where the upper portion
of the roof is less-steeply angled than the
lower part.
GENERAL LIEN Back
to top
A broad-based claim against several properties
owned by a defaulting party.
GEORGIAN Back
to top
A classic, English-style hose characterized by
simple rectangular shape and multiple stories.
GFI Back
to top
Ground Fault Interrupter. A type of circuit
breaker required in areas where water is
present.
GINNIE MAE Back
to top
A wholly owned corporation created in 1968
within the U.S. Department of Housing and
Urban Development to serve low-to
moderate-income homebuyers.
GIRDER Back
to top
A main supporting beam.
GOVERNMENT MORTGAGE Back
to top
Any mortgage insured by a government agency,
such as the FHA or VA.
GRADE Back
to top
The slope of land around a building. Also
ground level.
GRANTEE Back
to top
Any person who is given ownership of a piece
of property.
GRANTOR Back
to top
Any person who gives away ownership of a piece
of property.
GROSS AREA Back
to top
The sum total of all floor space, including
areas such as stairways and closet space.
Often measured based on external wall lengths.
GROUTING Back
to top
Material used around ceramic tile.
GUTTER Back
to top
The trough around the edge of the roof that
catches and diverts rain.
HALF-SECTION Back
to top
320 acres.
HAZARD INSURANCE Back
to top
Insurance covering damage to a property caused
by hazards such as fire, wind and accident.
HEADER Back
to top
The framing elements above an opening such as
a window or door.
HEARTH Back
to top
The floor of a fireplace or the area
immediately in front of it.
HEIGHT ZONING Back
to top
A municipal restriction on the maximum height
of any building or other structure.
HIDDEN AMENITIES Back
to top
Assets of a property which contribute to its
value, but are not readily apparent. Examples
might include upgraded or premium building
materials.
HIGHEST AND BEST USE Back
to top
The most profitable and likely use of a
property. Selected from reasonably probable
and legal alternative uses, which are found to
be physically possible, appropriately
supported and financially feasible to result
in the highest possible land value.
HOME EQUITY CONVERSION
MORTGAGE (HECM) Back
to top
Also known as a reverse annuity mortgage. It
allows home owners (usually older) to convert
equity in the home into cash. Normally paid by
the lender in monthly payments. HECM's
typically do not have to be repaid until
the borrower is no longer occupying the home.
HOME EQUITY LINE OF
CREDIT Back
to top
A type of mortgage loan that allows the
borrower to draw cash against the equity in
his home.
HOME INSPECTION Back
to top
A complete examination of a building to
determine its structural integrity and uncover
any defects in materials or workmanship which
may adversely affect the property or decrease
its value.
HOME INSPECTOR Back
to top
A person who performs professional home
inspections. Usually, with an extensive
knowledge of house construction methods,
common house problems, how to identify those
problems and how to correct them.
HOMEOWNER'S ASSOCIATION Back
to top
An organization of home owners in a particular
neighborhood or development formed to
facilitate the maintenance of common areas and
to enforce any building restrictions or
covenants.
HOMEOWNER'S INSURANCE Back
to top
A policy which covers a home owner for any
loss of property due to accident, intrusion or
hazard.
HOMEOWNER'S WARRANTY Back
to top
An insurance policy covering the repair of
systems and appliances within the home for the
coverage period.
HUD MEDIAN INCOME Back
to top
Median family income for a particular county
or metropolitan statistical area (MSA), as
estimated by the Department of Housing and
Urban Development (HUD).
HUD-1 STATEMENT Back
to top
A standardized, itemized list, published by
the U.S. Department of Housing and Urban
Development (HUD), of all anticipated CLOSING
COSTS connected with a particular property
purchase.
IMPROVED LAND Back
to top
Any parcel of land which has been changed from
its natural state through the creation of
roads, buildings or other structures.
IMPROVEMENTS Back
to top
Any item added to vacant land with the intent
of increasing its value or usability.
IMPROVEMENT RATIO Back
to top
The comparative value of an improved piece of
land to its natural, unaltered state.
INCOME APPROACH Back
to top
The process of estimating the value of
property by considering the present value of a
stream of income generated by the property.
INCOME PROPERTY Back
to top
A piece of property whose highest and best use
is the generation of income through rents or
other sources.
INDEPENDENT APPRAISAL Back
to top
An estimation of value created by a
professional, certified appraiser with no
vested interest in the value of the property.
INSPECTION Back
to top
The examination of a piece of property, its
buildings or other amenities.
INSURABLE TITLE Back
to top
The title to property which has been
sufficiently reviewed by a title insurance
company, such that they are willing to insure
it as free and clear.
INTEREST RATE Back
to top
A percentage of a loan or mortgage value that
is paid to the lender as compensation for
loaning funds.
INVESTMENT PROPERTY Back
to top
Any piece of property that is expected to
generate a financial return. This may come as
the result of periodic rents or through
appreciation of the property value over time.
JAMB Back
to top
The side of a door frame.
JOINT TENANCY Back
to top
A situation where two or more parties own a
piece of property together. Each of the owners
has an equal share, and may not dispose of or
alter that share without the consent of the
other owners.
JOISTS Back
to top
Horizontal beams laid on edge to support
flooring or a ceiling.
JUDGMENT Back
to top
An official court decision. If the judgment
requires payment from one party to another,
the court may put a lien against the payee's
property as collateral.
JUDICIAL FORECLOSURE Back
to top
A type of foreclosure conducted as a civil
suit in a court of law.
JUMBO LOAN Back
to top
A mortgage loan for an amount greater than the
limits set by Fannie Mae and Freddie Mac.
Often called non-conforming loans.
LALLY COLUMN Back
to top
A concrete filled steel pipe used to support
beams.
LATE CHARGE Back
to top
An extra charge, or penalty added to a regular
mortgage payment when the payment is made late
by an amount of time specified in the original
loan document.
LATENT DEFECTS Back
to top
Any defect in a piece of property which is not
readily apparent, but which has an impact of
the value. Structural damage or termite
infestation would be examples of latent
defects.
LEASE Back
to top
A contract between a property owner and a
tenant specifying the payment amount, terms
and conditions, as well as the length of time
the contract will be in force.
LEASEHOLD ESTATE Back
to top
A type of property ''ownership'' where the
buyer actually has a long-term lease on the
property.
LEASE OPTION Back
to top
A lease agreement that gives the tenant an
option to buy the property. Usually, a portion
of the regular monthly rent payment will be
applied towards the down payment.
LEGAL DESCRIPTION Back
to top
The description of a piece of property,
identifying its specific location in terms
established by the municipality or other
jurisdiction in which the property resides.
Often related in specific distances from a
known landmark or intersection.
LENDER Back
to top
The person or entity who loans funds to a
buyer. In return, the lender will receive
periodic payments, including principal and
interest amounts.
LIABILITIES
Back
to top
A person's outstanding debt obligations.
LIABILITY INSURANCE Back
to top
Insurance that covers against potential
lawsuit brought against a property owner for
alleged negligence resulting in damage to
another party.
LIEN Back
to top
Any claim against a piece of property
resulting from a debt or other obligation.
LIFE CAP Back
to top
A limit on how far the interest rate can move
for an Adjustable Rate Mortgage.
LIKE-KIND PROPERTY Back
to top
Any property which is substantially similar to
another property.
LINE OF CREDIT Back
to top
An extension of credit for a certain amount
for a specific amount of time. To be used by
the borrower at his discretion.
LIQUID ASSET Back
to top
Any asset which can be quickly converted into
cash at little or no cost, or cash itself.
LOAN Back
to top
Money borrowed, to be repaid with interest,
according to the specific terms and conditions
of the loan.
LOAN OFFICER Back
to top
A person that "sells" loans,
representing the lender to the borrower, and
the borrower to the lender.
LOAN ORIGINATION Back
to top
How a lender refers to the process of writing
new loans.
LOAN SERVICING Back
to top
The processing of payments, mailing of monthly
statements, management and disbursement of
escrow funds etc Typically carried out by the
company you make payments to.
LOAN-TO-VALUE RATIO
(LTV) Back
to top
The comparison of the amount owed on a
mortgaged property to its fair market value.
LOCK-IN
Back
to top
An agreement between a lender and a borrower,
guaranteeing an interest rate for a loan if
the loan is closed within a certain amount of
time.
LOCK-IN PERIOD Back
to top
The amount of time the lender has guaranteed
an interest rate to a borrower.
MAJOR DEFICIENCY Back
to top
A deficiency that strongly impacts the
usability and habitability of a house. Or a
deficiency that may be very expensive to
repair.
MANUFACTURED HOUSING Back
to top
Once known as ''mobile homes,'' manufactured
housing is any building which has been
constructed off site, then moved onto a piece
of real property.
MARGIN Back
to top
The difference between the interest rate and
the index on an adjustable rate mortgage.
MARGINAL LAND Back
to top
Land whose value has been diminished due to
some internal defect or external condition. In
most cases, the cost to correct the flaw or
condition is as much or more than the expected
return from the property.
MASTER ASSOCIATION Back
to top
An umbrella organization that is made up of
multiple, smaller home owner's associations.
Often found in very large developments or
condominium projects.
MATURITY Back
to top
The date on which the principal balance of a
financial instrument becomes due and payable.
MERGED CREDIT REPORT Back
to top
A credit report derived from data obtained
from multiple credit agencies.
METES AND BOUNDS Back
to top
A traditional way of describing property,
generally expressed in terms of distance from
a known landmark or intersection, and then
following the boundaries of the property back
to its origin.
METROPOLITAN AREA Back
to top
The accumulated land in and around a city or
other municipality which falls under the
political and economic influence of that
entity.
MINERAL RIGHTS Back
to top
The legal right to exploit and enjoy the
benefits of any minerals located below the
surface of a parcel of land.
MISREPRESENTATION Back
to top
A statement by one party in a transaction that
is incorrect or misleading. Most
misrepresentations are deemed to be
intentional and thus may constitute fraud.
Others, however, some are rendered through
simple mistakes, oversights or negligence.
MORTGAGE Back
to top
A financial arrangement wherein an individual
borrows money to purchase real property and
secures the loan with the property as
collateral.
MORTGAGE BANKER Back
to top
A financial institution that provides primary
and secondary mortgages to home buyers.
MORTGAGE BROKER Back
to top
A person or organization that serves as a
middleman to facilitate the mortgage process.
Brokers often represent multiple mortgage
bankers and offer the most appropriate deal to
each buyer.
MORTGAGEE Back
to top
The entity that lends money in a real estate
transaction.
MORTGAGE INSURANCE Back
to top
A policy that fulfills those obligations
of a mortgage when the policy holder defaults
or is no longer able to make payments.
MORTGAGE INSURANCE
PREMIUM (MIP) Back
to top
A fee that is often included in mortgage
payments that pays for mortgage insurance
coverage.
MORTGAGE LIFE INSURANCE Back
to top
A policy that fulfills the obligations of a
mortgage when the policy holder dies.
MORTGAGOR Back
to top
The entity that borrows money in a real estate
transaction.
MULTI-FAMILY PROPERTIES Back
to top
Any collection of buildings that are designed
and built to support the habitation of more
than four families.
NATIONAL ASSOCIATION OF
MASTER APPRAISERS (NAMA) Back
to top
A non profit professional association
organized in 1982, dedicated to the
advancement of professionalism in real estate
appraisal.
NATIONAL SOCIETY OF
REAL ESTATE APPRAISERS Back
to top
An organization founded in 1956 which promotes
standards of professionalism in its members.
NATURAL VACANCY RATE Back
to top
The percentage of vacant properties in a given
area that is the result of natural turnover
and market forces.
NEGATIVE AMORTIZATION Back
to top
When the balance of a loan increases instead
of decreases. Usually due to a borrower making
a minimum payment on an Adjustable Rate
Mortgage during a period when the rate
fluctuates to a high enough point that the
minimum payment does not cover all of the
interest.
NEIGHBORHOOD LIFE-CYCLE Back
to top
The evolution of neighborhood use and
demographics over time. Economic fluctuations,
municipal zoning changes and population shifts
can effect the life cycle.
NEIGHBORHOOD Back
to top
A subsection of a municipality that has been
designated by a developer, economic forces or
physical formations.
NET LEASABLE AREA Back
to top
The space in a development, outside of the
common areas, that can be rented to tenants.
NEW ENGLAND COLONIAL Back
to top
An architectural style dating from early
American history typified by a two-story
building with clapboard siding.
NO-COST LOAN Back
to top
Many lenders offer loans that you can obtain
at "no cost." You should inquire
whether this means there are no
"lender" costs associated with the
loan, or if it also covers the other costs you
would normally have in a purchase or refinance
transactions, such as title insurance, escrow
fees, settlement fees, appraisal, recording
fees, notary fees, and others. These are fees
and costs which may be associated with buying
a home or obtaining a loan, but not charged
directly by the lender. Keep in mind that,
like a "no-point" loan, the interest
rate will be higher than if you obtain a loan
that has costs associated with it.
NO-POINT LOAN Back
to top
A loan with no "points". The
interest rate on such a loan will be higher
than a loan with points paid. Also sometimes
refers to a refinance loan where closing costs
are included in the loan.
NON-CONFORMING USE Back
to top
The use of land for purposes contrary to the
applicable municipal zoning specifications.
Often occurs when zoning changes after a
property is in use.
NONLIQUID ASSET Back
to top
Any asset which can not be quickly converted
into cash at little or no cost.
NOTE Back
to top
A legal document that obligates a borrower to
repay a mortgage loan at a stated interest
rate during a specified period of time.
NOTE RATE Back
to top
The interest rate stated on a mortgage note.
NOTICE OF DEFAULT Back
to top
Formal written notice from a lender to a
borrower that default has occurred.
OBSOLESCENCE Back
to top
The process of an assets value diminishing due
to the development of more desirable
alternatives or because of the degradation of
its capabilities.
OCCUPANCY Back
to top
A physical presence within and control of a
property.
OCCUPANCY RATE Back
to top
The percentage of properties in a given area
that are occupied.
OCTOPUS RECEPTACLE Back
to top
An outlet with too many devices plugged into
it, using a power strip or other device to
multiply the outlets.
OFF-SITE IMPROVEMENTS Back
to top
Buildings, structures or other amenities which
are not located on a piece of property, but
are necessary to maximize the use of the
property or in some way contribute to the
value of the property.
OFF-STREET PARKING Back
to top
Designated parking spaces associated with a
particular building or other structure which
are not located on public streets.
OLD TERMITE ACTIVITY Back
to top
Where no termites are currently active, but
indications of past activity can be seen.
ON-SITE IMPROVEMENTS Back
to top
Buildings, structures or other amenities that
are erected on a piece of property and
contribute to its value.
OPEN SPACE Back
to top
Any land which has not had any significant
buildings or structures erected on it. Most
often used to describe desirable neighborhood
features like parks.
OPEN SPLICE Back
to top
An uncovered electrical connection.
ORIGINAL EQUITY Back
to top
The amount of cash a home buyer initially
invests in the home.
ORIGINAL PRINCIPAL
BALANCE Back
to top
The total amount of principal owed on a
mortgage loan at the time of closing.
ORIGINATION FEE Back
to top
Refers to the total number of points paid by a
borrower at closing.
OWNER FINANCING Back
to top
A transaction where the property owner
provides all or part of the financing.
OWNER OCCUPIED Back
to top
The state of property wherein the owner
occupies at least some portion of the
property.
PARGING Back
to top
The cement coat applied to block foundations.
PARTIAL INTEREST Back
to top
A shared ownership in a piece of property. May
be divided among two or more parties.
PARTIAL PAYMENT Back
to top
A payment of less than the regular monthly
amount. Usually, a lender will not accept
partial payments.
PERIODIC PAYMENT CAP Back
to top
The limit on how much regular monthly payments
on an Adjustable Rate Mortgage can change
during one adjustment period.
PERIODIC RATE CAP Back
to top
The limit on how much the interest rate on an
Adjustable Rate Mortgage can change during any
one adjustment period.
PERSONAL PROPERTY Back
to top
Owned items which are not permanently affixed
to the land.
PERSONAL RESIDENCE Back
to top
The primary domicile of a person or family.
PLANNED UNIT
DEVELOPMENT (PUD) Back
to top
A coordinated, real estate development where
common areas are shared and maintained by an
owner's association or other entity.
PLAT Back
to top
A plan or chart of a piece of land which lays
out existing or planned streets, lots or other
improvements.
POINT Back
to top
A percentage of a mortgage amount (one point =
1 percent).
PRE-APPROVAL Back
to top
The process of applying for a mortgage loan
and becoming approved for a certain amount at
a certain interest rate before a property has
been chosen. Pre-approval allows the borrower
greater freedom in negotiations with sellers.
PREFABRICATED Back
to top
Any building or portion thereof which is
manufactured and assembled off site, then
erected on a property.
PREPAYMENT Back
to top
Payment made that reduces the principal
balance of a loan before the due date and
before the loan has become fully amortized.
PREPAYMENT PENALTY Back
to top
A fee that may be charged to a borrower who
pays off a loan before it is due.
PRE-QUALIFICATION Back
to top
Less formal that pre-approval,
pre-qualification usually means a written
statement from a loan officer indicating his
or her opinion that the borrower will be able
to become approved for a mortgage loan.
PRIME RATE Back
to top
The interest rate that banks and other lending
institutions charge other banks or preferred
customers.
PRINCIPAL Back
to top
The amount owed on a mortgage which does not
include interest or other fees.
PRINCIPAL BALANCE Back
to top
The outstanding balance of principal on a
mortgage. Does not included interest due.
PRINCIPAL, INTEREST,
TAXES, AND INSURANCE (PITI) Back
to top
The most common constituents of a monthly
mortgage payment.
PRIVATE MORTGAGE
INSURANCE (PMI) Back
to top
A form of mortgage insurance provided by
private, non-government entities. Normally
required when the LOAN TO VALUE RATIO is less
that 20%.
PROPERTY Back
to top
Any item which is owned or possessed.
PURCHASE AGREEMENT Back
to top
A written contract signed by the buyer and
seller stating the terms and conditions under
which a property will be sold.
QUADRAPLEX Back
to top
Any building designed to accommodate four
families.
QUALIFYING RATIOS Back
to top
Two ratios used in determining credit
worthiness for a mortgage loan. One is the
ratio of a borrower's monthly housing costs to
monthly income. The other is a ratio of all
monthly debt to monthly income.
QUITCLAIM DEED Back
to top
A legal document which transfers any ownership
an individual has in a piece of property.
Often used when the amount of ownership is not
known or is unclear.
RAFTER Back
to top
A structural element of the roof, sloping from
the peak to the outer walls.
RANCH HOUSE Back
to top
An architectural style typified by a
single-story, low-roof construction. Popular
in the western U.S.
RATE LOCK Back
to top
A guarantee from a lender of a specific
interest rate for a period of time.
RAW LAND Back
to top
Any land which has not been developed.
REAL ESTATE Back
to top
A piece of land and any improvements or
fixtures located on that land.
REAL ESTATE AGENT Back
to top
A licensed professional who facilitates the
buying and selling of real estate.
REAL ESTATE SETTLEMENT
PROCEDURES ACT (RESPA) Back
to top
A federal law requiring lenders to give full
disclosure of closing costs to borrowers.
REAL PROPERTY Back
to top
Land, improvements and appurtenances, and the
interest and benefits thereof.
REALTOR® Back
to top
A real estate agent or broker who is a member
of the NATIONAL ASSOCIATION of REALTORS®.
RECEPTACLE Back
to top
An electrical outlet to plug into.
RECORDER Back
to top
A local government employee whose role it is
to keep records of all real estate
transactions within the jurisdiction.
RECORDING Back
to top
The filing of a real estate transaction with
the appropriate government agent (normally the
RECORDER). A real estate transaction is
considered final when it is recorded.
REFINANCE TRANSACTION Back
to top
A new loan to pay off an existing loan.
Typically to gain a lower interest rate or
convert equity into cash.
REGISTER Back
to top
Where air from a furnace or air conditioning
system enters the room.
RELOCATION SERVICE Back
to top
Any company or agency that assists corporate
employees in relocating from one place to
another. Services may include hiring and
coordinating real estate agents, moving
companies, utilizes and the like.
REMAINING BALANCE Back
to top
The amount of principal, interest and other
costs that has not yet been repaid.
REMAINING TERM Back
to top
The amount of time remaining on the original
amortization schedule.
REMODEL Back
to top
An activity designed to improve the value or
desirability of a property through rebuilding,
refurbishing, redecorating or adding on to it.
REPAYMENT PLAN Back
to top
A plan to repay delinquent payments, agreed
upon between a lender and borrower, in an
effort to avoid foreclosure.
REPLACEMENT RESERVE
FUND Back
to top
An account, or fund, setup for the replacement
of short life items, such as carpeting, in the
common areas of a cooperative property.
RESIDENTIAL PROPERTY Back
to top
A piece of property whose highest and best use
is the maintenance of a residence.
REVOLVING DEBT Back
to top
A type of credit that allows the
borrower/customer to make charges against a
predetermined line of credit. The customer
then pays monthly installments on the amount
borrowed, plus interest.
RIDGE BOARD Back
to top
The structural member of a roof where the
rafters join at the top.
RIGHT OF FIRST REFUSAL Back
to top
An agreement giving a person the first
opportunity to buy or lease a property before
the owner offers it for sale to others.
ROOF PITCH Back
to top
The degree of slope in a roof.
RURAL Back
to top
An area outside of an established urban area
or metropolitan district.
SALE PRICE Back
to top
The actual price a property sells for,
exclusive of any special financing
concessions.
SALES COMPARISON
APPROACH Back
to top
An appraisal practice which estimates the
value of a property by comparing it to
comparable properties which have sold
recently.
SCARCITY Back
to top
An economic principal that dictates the price
of a good or service through the interaction
of supply and demand. When an item is scarce,
its price tends to rise, given a constant
demand. Real Estate is a classic example of
scarcity.
SECOND MORTGAGE Back
to top
A loan secured by the equity in a home, when a
primary mortgage already exists.
SECONDARY MORTGAGE
MARKET Back
to top
An economic marketplace where mortgage bankers
buy and sell existing mortgages.
SECURED LOAN Back
to top
A loan that is backed by collateral. In the
case of a mortgage loan, the collateral is the
house.
SECURITY Back
to top
The property used as collateral for a loan.
SEMIDETACHED HOUSING Back
to top
Two residences which share a common wall.
SERVICER Back
to top
A financial institution which collects
mortgage payments from borrowers and applies
the appropriate portions to principal,
interest and any escrow accounts.
SERVICING Back
to top
The processing of payments, mailing of monthly
statements, management and disbursement of
escrow funds etc Typically carried out by the
company you make payments to.
SHEATHING Back
to top
The covering on outside walls beneath the
siding or exterior finish such as stucco.
SHEETROCK Back
to top
Also called drywall, the gypsum board commonly
used on interior walls.
SILL PLATE Back
to top
The lumber used around the foundation to
support exterior wall framing.
SILL COCK Back
to top
Garden hose pipe connection.
SINGLE-FAMILY PROPERTY Back
to top
A property designed and built to support the
habitation of one family.
SOFFIT Back
to top
The underside of a cornice at the eaves.
STUCCO Back
to top
A textured plaster exterior (and occasionally
interior) wall finish.
STUD Back
to top
A vertical framing piece in a wall, generally
2x4 lumber in interior walls.
SUBDIVISION Back
to top
A residential development that is created from
a piece of land which has been subdivided into
individual lots.
SUBJECT PROPERTY Back
to top
A term which indicates a property which is
being appraised.
SUMP Back
to top
A basin into which water drains and from which
the water is pumped out.
SURVEY Back
to top
A specific map of a piece of property which
includes the legal boundaries and any
improvements or features of the land. Surveys
also depict any rights-of-way, encroachments
or easements.
SWEAT EQUITY Back
to top
The method whereby a home owner develops
equity in a property, either during the
purchase or throughout its life, by personally
constructing improvements rather than paying
to have them built.
TAX-EXEMPT PROPERTY Back
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Any property which is not taxed.
TENANCY Back
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The right to occupy a building or unit.
TENANCY IN COMMON Back
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A form of holding title, whereby there are two
or more people on title to a property,
ownership does not pass on to the others upon
the death of one individual.
THIRD PARTY ORIGINATION Back
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When a lender uses a third party to originate
and package loans for sale to the secondary
market (Fannie Mae, Freddie Mac).
TITLE Back
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A specific document which serves as proof of
ownership.
TITLE COMPANY Back
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An organization which researches and certifies
ownership of real estate before it is bought
or sold. Title companies also act at the
facilitator ensures all parties are paid
during the real estate transaction.
TITLE INSURANCE Back
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A policy which insures a property owner should
a prior claim arise against the property after
the purchase has been completed. This also
covers a lender should a question of ownership
arise.
TITLE SEARCH Back
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The process whereby the TITLE COMPANY
researches a properties title history and
ensures that no outstanding claims exist.
TRANSFER OF OWNERSHIP Back
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Any means by which the ownership of a property
changes hands.
TRANSFER OF TAX Back
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Taxes payable when title passes from one owner
to another.
TRAP Back
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A bend in water pipe.
TRUSTEE Back
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A fiduciary that holds or controls
property for the benefit of another.
TRUTH IN LENDING Back
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A federal law requiring full disclosure by
lenders to borrowers of all terms, conditions
and costs of a mortgage.
TUDOR Back
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A style of architecture typified by exposed
stone, wood and brick construction. Similar in
style to English manor homes.
UNDER IMPROVED LAND Back
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A piece of land which has been improved, but
not to the full extent of its potential.
UNENCUMBERED PROPERTY Back
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Any property which has no outstanding claims
or liens against it.
UNIFORM STANDARDS OF
PROFESSIONAL APPRAISAL PRACTICE (USPAP) Back
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Developed in 1986 by the Ad Hoc Committee on
Uniform Standards and copyrighted in 1987 by
The Appraisal Foundation, USPAP forms the
guidelines followed by every licensed and
certified real estate appraiser in the United
States. The purpose of these Standards is to
establish requirements for professional
appraisal practice, which includes appraisal,
appraisal review, and appraisal consulting.
The intent of these Standards is to promote
and maintain a high level of public trust in
professional appraisal practice.
USEFUL LIFE Back
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The span of time over which a property can be
used or can provide benefits to its owner.
VACANCY RATE Back
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The current percentage of vacant properties in
a given area, regardless of why they are
vacant.
VA MORTGAGE Back
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A mortgage that is guaranteed by the
Department of Veterans Affairs (VA).
VARIANCE Back
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An exception to municipal zoning regulations
granted for a specific time period to allow
for non-conforming use of the land.
VENT PIPE Back
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A pipe allowing gas to escape.
VESTED Back
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Having the right to use a portion of a fund
such as an IRA. Typically vesting occurs over
time. If you are 100% vested, you have a right
to 100% of the fund.
VETERANS AFFAIRS,
DEPARTMENT OF (VA) Back
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The successor to the Veteran's Administration,
this government agency is responsible for
ensuring the rights and welfare of our
nation's veterans and their dependents. Among
other duties, the VA insures home loans made
to veterans.
VOLTAGE Back
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An expression of electric force, or pressure.
One volt being the force needed to move one
amp against one ohm resistance.
WALK-THROUGH INSPECTION Back
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A process whereby an appraiser examines a
property in preparation for estimating its
value. Also, the process of inspecting a
property for any damage prior to that property
being bought or sold.
WARRANTY Back
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An affidavit given to stipulate the condition
of a property. The person giving the warranty
assumes liability if the condition turns out
to be untrue.
WATT Back
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An expression of amount of electrical power.
Volt times amps equals watts.
WEAR AND TEAR Back
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A term used to indicate the normal damage
inflicted on a property through every-day use.
WEATHER STRIPPING Back
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Material used around windows and doors to
prevent drafts.
WEEP HOLE Back
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Drainage hole that allows water to escape.
ZERO LOT LINE Back
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A municipal zoning category wherein a building
or other fixture may abut the property line.
ZONE Back
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A specific area within a municipality or other
jurisdiction which conforms to certain
guidelines regarding the use of property in
the zone. Typical zones include single-family,
multi-family, industrial, commercial and
mixed-use.
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