Abstract
of judgment,law
-
The
summary of a court judgment that creates a lien against a
property when filed with the county recorder.
- Accelerated
cost recovery system
-
A
tax calculation that provides greater depreciation in the
early years of ownership of real estate or personal
property.
- Acceleration
clause
-
A
provision that gives a lender the right to collect the
balance of a loan if a borrower misses a payment.
- Accelerated
depreciation
-
A
bookkeeping method that depreciates property faster in the
early years of ownership.
- Acceptance
-
The
seller's written approval of a buyer's offer.
- Access
-
Any
means by which a person can enter property.
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- Accessibility
-
The
degree to which a building or site allows access to people
with disabilities.
- Accretion
-
The
gradual addition to the shore or bank of a waterway by
deposits of sand or silt.
- Acknowledgment
-
A
written declaration affirming that a person acted
voluntarily.
- Acre
-
A
measurement of land equal to 43,560 square feet.
- Acre
foot
-
The
volume of material needed to cover an acre of land one
foot deep.
- Active
solar system
-
A
system that utilizes electric pumps or fans to transfer
solar energy for storage or direct use.
- Actual
age
-
The
number of years a structure has been standing.
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- Addendum
-
An
addition or change to a contract.
- Additional
principal payment
-
Extra
money included in the monthly payment to help reduce the
principal and shorten the term of the loan.
- Add-on
interest
-
The
interest a borrower pays on the principal for the duration
of the loan.
- Adjustable-rate
mortgage (ARM)
-
A
loan with an interest rate that is periodically adjusted
to reflect changes in a specified financial index.
- Adjusted
cost basis
-
The
cost of any improvements the seller makes to the property.
Deducting the cost from the original sales price provides
the profit or loss of a home when it is sold.
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- Adjustment
period
-
The
amount of time between interest rate adjustments in an
adjustable-rate mortgage.
- Administrator
-
A
person given authority to manage and distribute the estate
of someone who died without leaving a will.
- Administrator's
deed
-
A
legal document that an administrator of an estate uses to
transfer property.
- Adverse
possession
-
The
acquisition of title to property through possession
without the owner's consent for a certain period of time.
- Adverse
use
-
The
access and use of property without the owner's consent.
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- Aeolian
soil
-
Soil
that is composed of materials deposited by the wind.
- Affiant
-
A
person who makes a sworn statement.
- Affirmation
-
A
substitution for an oath granted to people based on
religious reasons.
- A-frame
design
-
An
interior style that features a steeply peaked roofline and
a ceiling that is open to the top rafters.
- Agency
-
The
relationship of trust that exists between sellers and
buyers and their agents. The agency is formed through a
written contract.
- Agency
closing
-
The
process by which a lender uses a title company or other
firm as an agent to complete a loan.
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- Agent
-
A
person licensed by the state to conduct real estate
transactions.
- Agreed
boundary
-
A
compromise boundary to which property owners agree in
order to resolve a dispute.
- Agreement
of sale
-
A
document the buyer initiates and the seller approves that
details the price and terms of the transaction.
- Alcove
-
A
recessed section of a room, such as a breakfast nook.
- Alienation
clause
-
A
provision that requires the borrower to pay the balance of
the loan in a lump sum after the property is sold or
transferred.
- Alkali
-
Mineral
salt found in soil.
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- Alkaline
soil
-
Soil
that contains a higher concentration of mineral salt than
natural acid.
- Alley
-
A
lane behind a row of buildings or between two rows of
buildings.
- Allowances
-
Budgets
offered by builders of new homes for the purchase of
carpeting and fixtures.
- Alternative
mortgage
-
Any
home loan that does not conform to a standard fixed-rate
mortgage.
- Aluminum-clad
windows
-
Wooden
windows with aluminum covering the exterior.
- Aluminum
siding
-
A
metal covering that provides an alternative to paint for
owners of wood homes.
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- Amenities
-
Parks,
swimming pools, health-club facilities, party rooms, bike
paths, community centers and other enticements offered by
builders of planned developments.
- American
Society of Home Inspectors
-
The
American Society of Home Inspectors is a professional
association of independent home inspectors. Phone: (800)
743-2744.
- Americans
with Disabilities Act
-
A
law passed in 1990 that outlaws discrimination against a
person with a disability in housing, public
accommodations, employment, government services,
transportation and telecommunications.
- Amortization
-
The
process of paying the principal and interest on a loan
through regularly scheduled installments.
- Amortization
tables
-
Mathematical
tables that lenders use to calculate a borrower's monthly
payment.
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- Amperage
-
The
strength of an electrical current.
- Anchor
bolt
-
A
large steel bolt anchored in concrete and attached to a
building to prevent the structure from moving.
- Annual
-
Any
kind of plant that must be planted every year.
- Annual
mortgagor statement
-
A
yearly statement to borrowers that details the remaining
principal and amounts paid for taxes and interest.
- Annual
Percentage Rate (APR)
-
The
cost of the loan expressed as a yearly rate on the balance
of the loan.
- Annuity
-
The
payment of a fixed sum to an investor at regular
intervals.
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- Anticipatory
breach
-
A
communication that informs a party that the obligations of
the original contract will not be fulfilled.
- Application
-
A
document that details a potential borrower's income, debt
and other obligations to determine credit worthiness.
- Application
fee
-
The
fee that a lender charges to process a loan application.
- Appraisal
-
An
opinion of the value of a property at a given point in
time.
- Appraisal
fee
-
The
fee that an appraiser charges to estimate the market value
of the property.
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- Appraisal
report
-
A
detailed written report on the value of a property based
on recent sales of comparable sites in the area.
- Appraised
value
-
An
opinion of the current market value of a property.
- Appreciation
-
An
increase in the value of a home or other property..
- Arbitration
-
A
method of resolving a dispute in which a third party
renders a decision.
- Arbor
-
An
area shaded by trees, shrubs or vines on a latticework
structure.
- Arch
-
A
curved structure that supports weight over an area, such
as a doorway.
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- Architect
-
A
licensed professional who designs homes, buildings and
other structures.
- Architectural
fees
-
The
fee an architect charges for services. In general,
architects charge for their services by the hour, by the
square foot, or by a percentage of the project budget.
- Arpent
-
A
French measurement of land equal to .84625 acres.
- Asbestos
-
A
fire-resistant mineral used for insulation and home
products that has been found to pose a health hazard.
- As-is
condition
-
The
purchase or sale of a property in its existing condition.
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- Asking
price
-
A
seller's initial price for a property.
- Assessed
value
-
A
tax assessor's determination of the value of a home in
order to calculate a tax base.
- Assessment
-
The
estimated value of a piece of real estate or a levy placed
on property in addition to taxes.
- Assessment
rolls
-
A
list of taxable property compiled by the assessor.
- Assets
-
Items
of value which include cash, real estate, securities and
investments.
- Assignor
-
A
person who transfers rights and interests of a property.
- Assumable
mortgage
-
A
mortgage that can be transferred to another borrower.
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- Assumption
clause
-
A
provision that allows a buyer to take responsibility for
the mortgage from a seller.
- Assumption
fee
-
A
fee the lender charges to process new records for a buyer
who assumes an existing loan.
- Average
price
-
The
price of a home determined by totaling the sales prices of
all houses sold in an area and dividing that number by the
number of homes.
- Avigation
easement
-
An
easement over private property near an airport that limits
the height of structures and trees.
- Awning
windows
-
Single-sash
windows that tilt outward and up.
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- Back
fill
-
Soil
used to solidify the foundation of a structure.
- Back
title letter
-
A
letter that a title insurance company gives to an attorney
who then examines the title for insurance purposes.
- Back-to-back
escrow
-
Arrangements
that an owner makes to oversee the sale of one property
and the purchase of another at the same time.
- Backup
offer
-
A
secondary bid for a property that the seller will accept
if the first offer fails.
- Backwater
valve
-
A
valve in a sewer line that prevents sewage from flowing
back into a house.
- Balance
sheet
-
A
statement that shows the assets, liabilities and net worth
of an individual.
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- Balloon-frame
construction
-
A
type of framing used in two-story homes in which studs
extend from the ground to the ceiling of the second floor.
- Balloon
loan
-
A
mortgage in which monthly installments are not large
enough to repay the loan by the end of the term. As a
result, the final payment due is the lump sum of the
remaining principal.
- Balloon
payment
-
The
final lump sum payment due at the end of a balloon
mortgage.
- Balustrade
-
Railing
held up by a set of posts on a porch or stairway.
- Bankruptcy
-
A
proceeding in which an insolvent debtor can obtain relief
from payment of certain obligations. Bankruptcies remain
on a credit record for seven years and can severely limit
a person's ability to borrow.
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- Bargain
sale
-
The
sale of a piece of property for less than market value.
- Baseboard
-
Any
board or molding found at the bottom of an interior wall.
- Baseboard
electric heat
-
Heating
units installed in the floor that can be controlled by a
central thermostat.
- Basement
-
The
area of a home below ground level.
- Basis
Point
-
A
basis point is one one-hundredth of one percentage point.
For example, the difference between a loan at 8.25 percent
and a mortgage at 8.37 percent is 12 basis points.
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- Bay
-
The
opening between two columns or walls that forms a space.
- Bay
window
-
A
window that projects outward in a curve.
- Bearing
wall
-
A
wall that supports its own weight in addition to other
parts of a structure.
- Beneficiary
-
The
lender who makes a loan, also called a mortgagee. The
person borrowing money is the mortgagor.
- Before-tax
income
-
Total
income before taxes are deducted.
- Bequest
-
Personal
property given to a person through a will.
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- Betterment
-
An
improvement that increases a property's value as opposed
to repairs that maintain the value.
- Bidding
war
-
Offers
from multiple buyers for a piece of property. Agents also
sometimes compete to list a house for sale.
- Bilateral
contract
-
A
contract in which the parties involved give mutual
promises. Also called "reciprocal" contracts.
- Bill
of sale
-
A
document that transfers ownership of personal property.
- Binder
-
A
report issued by a title insurance company that details
the condition of a home's title. and provides guidelines
for a title insurance policy.
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- Biweekly
mortgage
-
A
mortgage that requires payments every two weeks and helps
repay the loan over a shorter term.
- Blanket
insurance policy
-
A
policy that covers more than one person or piece of
property.
- Blanket
mortgage
-
A
mortgage that covers more than one property owned by the
same borrower.
- Blighted
area
-
A
neighborhood that has deteriorated.
- Blind
nailing
-
Nails
driven into a wall and concealed with putty.
- Blueprint
- Blue-ribbon
condition
-
A
house maintained close to its original condition. Also
called mint condition.
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- Blue
sky laws
-
Regulations
on the sale of securities to prevent consumers from
investing in fraudulent or high-risk companies without
being informed of the risks.
- Board-and-batten
siding
-
Siding
is composed of 8- to 12-inch wide wooden boards nailed
vertically to create a barn-like exterior.
- Board
foot
-
Measurement
of lumber that is the equivalent of 144 cubic inches.
- Board
of Equalization
-
A
state board charged with ensuring that local property
taxes are assessed in a uniform manner.
- Boilerplate
-
Form
language used in deeds, mortgages and other documents.
Details can be added by individual parties.
- Bona
fide
-
A
legal term that refers to actions or persons that are
honest and in good faith.
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- Bond
-
An
agreement that insures one party against loss by acts or
defaults of another party.
- Book
value
-
The
value of a property as a capital asset based on its cost
plus any additions, minus depreciation.
- Boring
test
-
An
analysis of soil in which holes are bored into the ground
and samples are removed.
- Borough
-
A
section of a city that has authority over local matters.
- Borrow
-
Sand,
gravel or other material used for grading.
- Borrow
pit
-
The
hole at a site that has been excavated.
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- Boulevard
-
A
street lined with trees or constructed with a landscaped
median.
- Boundary
-
The
dividing line between two adjacent properties.
- Braced
framing
-
A
construction method in two-story homes in which the frame
is reinforced with posts and braces.
- Breach
of contract
-
The
failure to perform provisions of a contractwithout a legal
excuse.
- Breach
of covenant
-
The
failure to obey a legal agreement.
- Breach
of warranty
-
A
seller's inability to pass clear title to a buyer.
- Break-even
point
-
The
point in which the owner's rental income matches expenses
and debt.
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- Breast
height
-
The
height at which the diameter of a tree is measured: four
feet, six inches above the ground.
- Breezeway
-
A
roofed passageway with open sides.
- Brick
-
Building
material made from clay molded into oblong blocks and
fired in a kiln.
- Bridge
loan
-
A
short-term loan for borrowers who need more time to find
permanent financing.
- Brokerage
-
The
act of bringing together two or more parties in exchange
for a fee or commission.
- Broker
-
A
person licensed by the state to deal in real estate.
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- Broom
clean
-
The
ideal condition of a building when it is turned over to an
owner or tenant.
- Brownstone
-
A
vintage row house constructed of red sandstone.
- Buffer
strip
-
A
parcel of land that separates two or more properties.
- Building
and loan association
-
An
organization that raises money to helps its members
purchase real estate or construct a building.
- Building
code
-
A
comprehensive set of laws that controls the construction
or remodeling of a home or other structure.
- Building
inspector
-
A
city or county employee who enforces the building code and
ensures that work is correctly performed.
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- Building
moratorium
-
A
halt on home construction to slow the rate of development.
- Building
paper
-
A
thick, water-resistant paper that serves as insulation.
- Building
permit
-
A
permit issued by a local government agency that allows the
construction of home or renovation of a house.
- Builder
upgrades
-
Extra
house features or better finishing materials that a
builder offers.
- Building
line or setback
-
Guidelines
that limit how close an owner can build to the street or
an adjacent property.
- Building
restrictions
-
Regulations
that limit the manner in which property can be used.
- Built-ins
-
Appliances
or other items that are framed into a home or permanently
attached.
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- Bulkhead
-
A
retaining wall designed to hold back water from the ocean
or another body of water.
- Bundle
of rights
-
The
various interests or rights an owner has in a property.
- Bungalow
-
A
small one-story house or cottage.
- Butterfly
roof
-
A
roof formed by two gables that dip in the middle to
resemble a butterfly's wings.
- Buy-down
mortgage
-
A
home loan in which the lender receives a premium as an
inducement to reduce the interest rate during the early
years of the mortgage.
- Buyer
broker
-
A
real estate broker who exclusively represents the buyer's
interests in a transaction and whose commission is paid by
the buyer rather than the seller.
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- Buyer's
market
-
A
slow real estate market in which buyers have the
advantage.
- Buyer's
remorse
-
An
emotion felt by first-time homebuyers after signing a
sales contract or closing the purchase of a house.
- Bylaws
-
The
rules and regulations that a homeowners association or
corporation adopts to govern activities.
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- Call
option
-
A
clause in a loan agreement that allows a lender to ask for
the balance at any time.
- Can
lights
-
Cylindrical
chambers with bulbs recessed into the ceiling.
- Cancellation
clause
-
A
clause that details the conditions under which each party
may terminate the agreement.
- Cantilever
-
A
projecting structure supported on one end, such as a
balcony.
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- Cap
-
A
limit on the amount the interest rate or monthly payment
can increase in an adjustable-rate mortgage.
- Cape
Cod style
-
A
wood-frame or shingled house with a steep roof and several
windows projecting from the second floor.
- Capital
-
Money
used to create income, such as funds invested in rental
property.
- Capital
expenditure
-
The
cost of making improvements on a property.
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- Capital
gains
-
Profits
an investor makes from the sale of real estate or
investments.
- Capital
gains tax
-
A
tax placed on the profits from the sale of real estate or
investments.
- Capital
improvement
-
Any
improvement that extends the life or increases the value
of a piece of property.
- Capitalization
-
A
mathematical formula that investors use to compute the
value of a property based on net income.
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- Capitalization
rate
-
The
percentage rate of return estimated from the net income of
a piece of property.
- Caravan
-
A
group of real estate agents who tour a house that has been
recently listed for sale.
- Carport
-
A
roof that covers a driveway or other parking area.
- Casement
window
-
A
window hinged on its sides to allow it to swing open
vertically.
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- Cash
flow
-
The
amount of cash a rental property investor receives after
deducting operating expenses and loan payments from gross
income.
- Cashier's
check
-
A
check the bank draws on itself rather than on a
depositor's account.
- Cash-out
refinance
-
The
refinancing of a mortgage in which the money received from
the new loan is greater than the amount due on the old
loan. The borrower can use the extra funds in any manner.
- Cathedral
ceiling
-
A
high open ceiling formed by finishing exposed roof
rafters.
- Caulk
-
An
acrylic or silicon sealant used to fill cracks, crevices
and holes in a home.
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- Cavedium
-
A
courtyard or atrium.
- Caveat
-
A
formal notice, that asks a court to suspend action until
the party which filed the challenge can be heard.
- Caveat
emptor
-
A
legal principle derived from Latin than means "let
the buyer beware."
- Ceiling
height
-
The
standard height of a ceiling is eight feet.
- Central
air conditioning
-
A
device that generates cold air through an outside unit
that is connected to ductwork inside the house.
- Central
business district
-
The
area of a city where most large businesses are located.
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- Certificate
of Deposit (CD)
-
A
document which shows that the bearer has a specified
amount of money on deposit with a bank, stock-brokerage
firm or other financial institution.
- Certificate
of deposit index
-
An
index based on the interest rates on six-month CDs. It
used to determine the interest rate for some
adjustable-rate mortgages.
- Certificate
of eligibility
-
A
document issued by the Veterans Administration that
verifies the eligibility of a veteran for a loan program.
- Certificate
of occupancy
-
A
document which states that a home or other building has
met all building codes and is suitable for habitation.
- Certificate
of sale
-
A
document issued at a judicial sale, which entitles the
buyer to receive a deed after court confirmation of the
purchase of the property.
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- Certificate
of title
-
A
written opinion on the status of a piece of property based
on an examination of the public record.
- Chain
of title
-
The
official record that details the ownership history of a
piece of property.
- Chair
railing
-
Decorative
trim installed on a wall about 32 inches above the floor,
which protects against scuffs from furniture.
- Change
order
-
A
modification of the construction contract to authorize a
change in the work, an adjustment in the amount of the
contract or a change in the contract time. The owner,
architect and contractor must sign the change.
- Change
frequency
-
The
adjustment schedule on an adjustable-rate mortgage.
- Chattel
-
Personal
property such as furniture, clothing or a car.
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- Chattel
mortgage
-
A
lien on personal property used as collateral for a loan.
- Chimney
back
-
The
back wall or lining of a fireplace or furnace chimney.
- Chimney
flue
-
The
passage inside a chimney that channels smoke and heat to
the outside.
- Chimney
pot
-
A
short pipe at the top of a chimney that increases
ventilation to the fireplace and reduces smoke.
- Cinder
block
-
A
block made of ash and cement that is used in construction.
- Cinder
fill
-
Cinders
used below a basement or around a foundation to promote
drainage.
- Circuit
breaker
-
An
electric fuse that activates or deactivates a circuit.
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- Cistern
-
A
tank used to store rainwater.
- Classified
property tax
-
A
tax that varies in rate depending on the use of the
property.
- Clear
title
-
A
property that does not have liens, defects or other legal
encumbrances.
- Closing
-
The
final procedure in which documents are signed and
recorded, and the property is transferred.
- Closing
costs
-