Glossary
A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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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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
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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
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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
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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
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An opinion of the fair market
value of a property as developed
by a licensed, certified
appraiser following accepted
appraisal principals.
APPRAISER Back
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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
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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
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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
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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
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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
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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
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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
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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
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
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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 to
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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 the
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
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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 to
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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 to
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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
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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,
who's 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
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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 to
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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 to
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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
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A mortgaged property which has
been foreclosed on.
DOWNSPOUT Back
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The pipe that water moves
through to reach the ground from
the rain gutter.
DUE-ON-SALE PROVISION Back
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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
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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
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The part of the roof that
extends beyond the exterior
wall.
ECONOMIC DEPRECIATION Back
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The decline in property value
caused by external forces, such
as neighborhood blight or
adverse development.
ECONOMIC LIFE Back
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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
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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
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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
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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
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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 to
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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 goes
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 to
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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 to
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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
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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
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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
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The boards that enclose the
eaves.
FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC) Back
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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
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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
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The structural member of a roof
where the rafters join at the
top.
RIGHT OF FIRST REFUSAL Back
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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
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The degree of slope in a roof.
RURAL Back to
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An area outside of an
established urban area or
metropolitan district.
SALE PRICE Back
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The actual price a property
sells for, exclusive of any
special financing concessions.
SALES COMPARISON APPROACH Back
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An appraisal practice which
estimates the value of a
property by comparing it to
comparable properties which have
sold recently.
SCARCITY Back
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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
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A loan secured by the equity in
a home, when a primary mortgage
already exists.
SECONDARY MORTGAGE MARKET Back
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An economic marketplace where
mortgage bankers buy and sell
existing mortgages.
SECURED LOAN Back
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A loan that is backed by
collateral. In the case of a
mortgage loan, the collateral is
the house.
SECURITY Back
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The property used as collateral
for a loan.
SEMIDETACHED HOUSING Back
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Two residences which share a
common wall.
SERVICER Back
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A financial institution which
collects mortgage payments from
borrowers and applies the
appropriate portions to
principal, interest and any
escrow accounts.
SERVICING Back
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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
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The covering on outside walls
beneath the siding or exterior
finish such as stucco.
SHEETROCK Back
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Also called drywall, the gypsum
board commonly used on interior
walls.
SILL PLATE Back
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The lumber used around the
foundation to support exterior
wall framing.
SILL COCK Back
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Garden hose pipe connection.
SINGLE-FAMILY PROPERTY Back
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A property designed and built to
support the habitation of one
family.
SOFFIT Back to
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The underside of a cornice at
the eaves.
STUCCO Back to
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A textured plaster exterior (and
occasionally interior) wall
finish.
STUD Back to
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A vertical framing piece in a
wall, generally 2x4 lumber in
interior walls.
SUBDIVISION Back
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A residential development that
is created from a piece of land
which has been subdivided into
individual lots.
SUBJECT PROPERTY Back
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A term which indicates a
property which is being
appraised.
SUMP Back to
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A basin into which water drains
and from which the water is
pumped out.
SURVEY Back to
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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
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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 to
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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 to
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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 to
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A bend in water pipe.
TRUSTEE Back to
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A fiduciary who 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 to
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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 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
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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 to
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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 to
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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 to
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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 to
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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 to
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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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