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ABSORPTION RATE Back to top
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
to top
This method of estimating the value of property uses similar
properties available in the same market to extract the value of a parcel of
land.
ACCELERATION CLAUSE Back
to top
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
to top
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
to top
The natural growth of a piece of land resulting from forces of
nature
ACRE Back
to top
43,560 square feet. A measurement of area.
ACTUAL AGE Back
to top
The amount of time that has passed since a building or other
structure was built. See also: EFFECTIVE AGE
ADJUSTMENT DATE Back
to top
The date the interest rate changes on an adjustable rate mortgage.
AD VAL OREM TAX Back to top
Taxes
assessed based on the value of the land and improvements
ADDENDUM Back to top
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 to top
A type of mortgage where the interest rate varies based on a particular index,
normally the prime lending rate.
ADJUSTED BASIS Back to top
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 to top
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 to top
The
additional value a property enjoys based on subjective criteria such as look or
appeal.
AFFIRMATION Back to top
A
declaration that a certain set of facts are truthful.
AFFORDABILITY ANALYSIS Back to top
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 to top
A person who has
been appointed to act on behalf of another for a particular transaction.
AMENITY Back to top
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 to top
An organization of appraisal professionals and others interested in the
appraisal profession.
AMORTIZATION Back to top
The
repayment of a loan through regular periodic payment.
AMORTIZATION SCHEDULE Back to top
The breakdown of individual payments throughout the life of an amortized loan,
showing both principal contribution and debt service (interest) fees.
AMORTIZATION TERM Back to top
The
length of time over which an amortized loan is repaid. Mortgages are commonly
amortized over 15 or 30 years.
AMPERAGE Back to top
A measure of
electric current describing the magnitude.
ANNUAL PERCENTAGE RATE (APR) Back to top
The rate of annual interest charged on a loan.
ANNUITY Back to top
A sum of money
paid at regular intervals, often annually.
APPLICATION Back to top
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 to top
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 to top
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 to top
The basic building blocks of the property valuation process, including property
inspection, market analysis and basic economics.
APPRAISAL REPORT Back to top
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 to top
The
natural rise in property value due to market forces.
ARMS LENGTH TRANSACTION Back to top
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 to top
The
value of a property according to jurisdictional tax assessment.
ASSESSMENT Back to top
The function
of assigning a value to a property for the purpose of levying taxes.
ASSESSMENT RATIO Back to top
The
comparative relationship of a property's assessed value to its market value.
ASSESSOR Back to top
The
jurisdictional official who performs the assessment and assigns the value of a
property.
ASSET Back to top
Any item of value
which a person owns.
ASSIGNMENT Back to top
Transfer of
ownership of a mortgage - usually when the loan is sold to another company.
ASSUMABLE MORTGAGE Back to top
A
mortgage that can be taken over by the buyer when a home is sold.
ASSUMPTION Back to top
When a buyer
takes over, or "assumes" the sellers mortgage.
ATTACHED HOUSING Back to top
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 to top
The slope of
the ground around a house.
BALL COCK VALVE Back to top
The
valve inside a toilet tank that controls the filling of the tank.
BALLOON MORTGAGE Back to top
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 to top
The
final large payment at the end of a balloon mortgage term.
BANKRUPTCY Back to top
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 to top
A structural
supporting member.
BILL OF SALE Back to top
A physical
receipt indicating the sale of property.
BIWEEKLY MORTGAGE Back to top
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 to top
Any
region of a city or town that has fallen into disrepair or otherwise has become
undesirable.
BONA FIDE Back to top
Any genuine
offer, made without intent to defraud or deceive.
BRIDGE FINANCING Back to top
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 to top
An individual
who facilitates the purchase of property by bringing together a buyer and a
seller.
BTU Back to top
British Thermal
Unit. A unit of measurement used to describe heating or cooling capacity.
BUFFER ZONE Back to top
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 to top
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 to top
The statutory distance between buildings and the property line, imposed by
municipalities, home associations, or other agreements.
BUILT-INS Back to top
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 to top
A one-story,
home-style dating from the early twentieth century. Often characterized by a
low-pitched roof.
BUY DOWN Back to top
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 to top
A clause in
a mortgage which allows the lender to demand payment of the outstanding balance
at a specific time.
CAP Back to top
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 to top
Accumulated
goods and money which is most often used to generate additional income.
CAPITAL EXPENDITURE Back to top
An
outlay of funds designed to improve the income-producing capabilities of an
asset or to extend its economic life.
CASH-OUT REFINANCE Back to top
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 to top
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 to top
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 to top
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 to top
A document issued by the Veterans Administration that certifies eligibility for
a VA loan.
CERTIFICATE OF OCCUPANCY Back to top
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 to top
A
document designating the legal owner of a parcel of real estate. Usually
provided by a title or abstract company.
CERTIFIED GENERAL APPRAISER Back to top
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 to
top
A sub-classification of appraiser who is only licensed to appraise
residential property, usually up to four units.
CHAIN OF TITLE Back to top
The
complete history of ownership of a piece of property.
CHATTEL Back to top
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 to top
Ownership
of property that is not encumbered by any counter-claim or lien.
CLOSING Back to top
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 to top
The
document detailing the final financial arrangement between a buyer and seller
and the costs paid by each.
CO-BORROWER Back to top
A second
person sharing obligation on the loan and title on the property.
COLLATERAL Back to top
An asset
which is placed at risk to secure the repayment of a loan.
COLLECTION Back to top
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 to top
A second party
who signs a loan, along with the borrower, and becomes liable for the debt
should the borrower default.
COMMON LAW Back to top
As opposed
to statute law. Laws that have been established by custom, usage and courts over
many years.
COMMISSION Back to top
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 to top
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 to top
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 to top
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 to top
An
abbreviated term used by appraisers to describe properties which are similar in
size, condition, location and amenities to a subject property who's value is
being determined. The Uniform Standards of Professional Appraisal Practice (USPAP)
establish clear guidelines for determining a comparable property.
COMPOUND INTEREST Back to top
Interest paid on the principal amount, as well as any accumulated interest.
CONCESSIONS Back to top
Additional
value granted by a buyer or seller to entice another party to complete a deal.
CONDEMNATION Back to top
The
official process by which a property is deemed to be uninhabitable or unusable
due to internal damage or other external conditions.
CONDENSATION Back to top
The
transition of water vapor to liquid. Typically forms in areas of high humidity.
CONDOMINIUM Back to top
A
development where individual units are owned, but common areas and amenities are
shared equally by all owners.
CONDOMINIUM CONVERSION Back to top
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 to top
The pipe
through which electric wiring is run.
CONSTRUCTION LOAN Back to top
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 to top
Connected to
or touching along an unbroken boundary.
CONTINGENCY Back to top
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 the requires a complete home inspection before it becomes
official.
CONTRACT Back to top
A legally
binding agreement, oral or written, between two parties.
CONVENTIONAL MORTGAGE Back to top
A
traditional, real estate financing mechanism that is not backed by any
government or other agency (FHA, VA, etc.).
CONVERTIBLE ARM Back to top
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 to top
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 to top
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 to top
A stipulation
in any mortgage that, if not met, can be cause for the lender to foreclose.
CREDIT Back to top
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 to top
A record
of debt payments, past and present. Used by mortgage lenders in determining
credit worthiness of individuals.
CREDITOR Back to top
A person to
whom money is owed.
CREDIT REPORT Back to top
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 to top
Large
companies that gather and store financial and credit information about
individuals who apply for credit.
CUL-DE-SAC Back to top
A dead-end
street. One with only one entrance/exit.
DATE OF APPRAISAL Back to top
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 to top
An obligation to
repay some amount owed. This may or may not be monetary.
DEBT EQUITY RATIO Back to top
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 to top
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 to top
A
document which transfers title in a property to a trustee, who's obligations and
powers are stipulated. Often used in mortgage transactions.
DEED OF RECONVEYANCE Back to top
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 to top
A
document used to surrender any claim a person has to a property.
DEFAULT Back to top
The condition
in which a borrower has failed to meet the obligations of a loan or mortgage.
DELINQUENCY Back to top
The state
in which a borrow has failed to meet payment obligations on time.
DEPOSIT Back to top
Cash given
along with an offer to purchase property, Also called EARNEST MONEY.
DEPRECIATION Back to top
The
natural decline in property value due to market forces or depletion of
resources.
DETACHED SINGLE-FAMILY HOME Back to top
A single building improvement intended to serve as a home for one family.
DISCOUNT POINTS Back to top
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 to top
A house or
other building which serves as a home.
DOWN PAYMENT Back to top
An amount
paid in cash for a property, with the intent to mortgage the remaining amount
due.
EARNEST MONEY DEPOSIT Back to top
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 to top
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 to top
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 to top
A building
or other improvement on one property which invades another property or restricts
its usage.
ENCUMBRANCE Back to top
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 to top
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 to top
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 to top
An insurance policy taken out by appraisers to cover their liability for any
mistakes made during the appraisal process.
ESCROW Back to top
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 to top
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 goes into the escrow
account each month.
ESCROW ANALYSIS Back to top
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 to top
The payout of funds from an escrow account to pay property expenses such as
taxes and insurance.
ESTATE Back to top
The total of all
property and assets owned by an individual.
EXAMINATION OF TITLE Back to top
The report on the title of a property from the public records or an abstract of
the title.
EXCLUSIVE LISTING Back to top
An
agreement between the owner of a property and a real estate agent giving the
agent exclusive right to sell the property.
EXECUTOR Back to top
The person
named in a will to administer the estate.
FACADE Back to top
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 to top
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 to top
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 to top
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 to top
A mortgage
that is insured by the Federal Housing Administration (FHA).
FINAL VALUE ESTIMATE Back to top
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 don't 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 a 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 payees 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 that obligations of a mortgage when the policy holder
defaults or is no longer able to make payments.
MORTGAGE INSURANCE PREMIUM (MIP) Back to
top
An 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 to top
Any
property which is not taxed.
TENANCY Back to top
The right to
occupy a building or unit.
TENANCY IN COMMON Back to top
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 to top
When a lender uses a third party to originate and package loans for sale to the
secondary market (Fannie Mae, Freddie Mac).
TITLE Back to top
A specific
document which serves as proof of ownership.
TITLE COMPANY Back to top
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 to top
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 to top
The
process whereby the TITLE COMPANY researches a properties title history and
ensures that no outstanding claims exist.
TRANSFER OF OWNERSHIP Back to top
Any means by which the ownership of a property changes hands.
TRANSFER OF TAX Back to top
Taxes
payable when title passes from one owner to another.
TRAP Back to top
A bend in water
pipe.
TRUSTEE Back to top
A fiduciary who
holds or controls property for the benefit of another.
TRUTH IN LENDING Back to top
A
federal law requiring full disclosure by lenders to borrowers of all terms,
conditions and costs of a mortgage.
TUDOR Back to top
A style of
architecture typified by exposed stone, wood and brick construction. Similar in
style to English manor homes.
UNDER IMPROVED LAND Back to top
A
piece of land which has been improved, but not to the full extent of its
potential.
UNENCUMBERED PROPERTY Back to top
Any property which has no outstanding claims or liens against it.
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE
(USPAP) Back to top
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 to top
The span of
time over which a property can be used or can provide benefits to its owner.
VACANCY RATE Back to top
The
current percentage of vacant properties in a given area, regardless of why they
are vacant.
VA MORTGAGE Back to top
A mortgage
that is guaranteed by the Department of Veterans Affairs (VA).
VARIANCE Back to top
An exception
to municipal zoning regulations granted for a specific time period to allow for
non-conforming use of the land.
VENT PIPE Back to top
A pipe
allowing gas to escape.
VESTED Back to top
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
to top
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 to top
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 to top
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 to top
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 to top
An expression of
amount of electrical power. Volt times amps equals watts.
WEAR AND TEAR Back to top
A term
used to indicate the normal damage inflicted on a property through every-day
use.
WEATHER STRIPPING Back to top
Material used around windows and doors to prevent drafts.
WEEP HOLE Back to top
Drainage hole
that allows water to escape.
ZERO LOT LINE Back to top
A
municipal zoning category wherein a building or other fixture may abut the
property line.
ZONE Back to top
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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