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
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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
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A loan of money for the purchase of property, real or personal.
Credit is either secured by an asset, such as a home, or unsecured.
CREDIT HISTORY Back
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A record of debt payments, past and present. Used by mortgage
lenders in determining credit worthiness of individuals.
CREDITOR Back
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A person to whom money is owed.
CREDIT REPORT Back
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A detailed report of an individuals credit, employment and
residence history prepared by a credit bureau. Used by lenders
to determine credit worthiness of individuals.
CREDIT REPOSITORY Back
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Large companies that gather and store financial and credit
information about individuals who apply for credit.
CUL-DE-SAC Back
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A dead-end street. One with only one entrance/exit.
DATE OF APPRAISAL Back
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The specific point in time as of which an appraiser designates
the value of a home. Often stipulated as the date of inspection.
DEBT Back
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An obligation to repay some amount owed. This may or may not
be monetary.
DEBT EQUITY RATIO Back
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The ratio of the amount a mortgagor still owes on a property
to the amount of equity they have in the home. Equity is calculated
at the fair-market value of the home, less any outstanding
mortgage debt.
DEED Back
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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
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The condition in which a borrower has failed to meet the obligations
of a loan or mortgage.
DELINQUENCY Back
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The state in which a borrow has failed to meet payment obligations
on time.
DEPOSIT Back
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Cash given along with an offer to purchase property, Also
called EARNEST MONEY.
DEPRECIATION Back
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The natural decline in property value due to market forces
or depletion of resources.
DETACHED SINGLE-FAMILY HOME Back
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A single building improvement intended to serve as a home
for one family.
DISCOUNT POINTS Back
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Points paid in addition to the loan origination fee to get
a lower interest rate. One point is equal to one percent of
the loan amount.
DISTRESSED PROPERTY Back
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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
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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
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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
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The difference between the fair market value of a property
and that amount an owner owes on any mortgages or loans secured
by the property.
EQUITY BUILDUP Back
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The natural increase in the amount of equity an owner has
in a property, accumulated through market appreciation and
debt repayment.
ERRORS AND OMISSIONS INSURANCE Back
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An insurance policy taken out by appraisers to cover their
liability for any mistakes made during the appraisal process.
ESCROW Back
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An amount retained by a third party in a trust to meet a future
obligation. Often used in the payment of annual taxes or insurance
for real property.
ESCROW ACCOUNT Back
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An account setup by a mortgage servicing company to hold funds
with which to pay expenses such as homeowners insurance and
property taxes. An extra amount is paid with regular principal
and interest payments that 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
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The total of all property and assets owned by an individual.
EXAMINATION OF TITLE Back
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The report on the title of a property from the public records
or an abstract of the title.
EXCLUSIVE LISTING Back
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An agreement between the owner of a property and a real estate
agent giving the agent exclusive right to sell the property.
EXECUTOR Back
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The person named in a will to administer the estate.
FACADE Back
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The front exposure of any building. Often used to describe
an artificial or false front which is not consistent with
the construction of the rest of the building.
FAIR CREDIT REPORTING ACT Back
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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
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The boards that enclose the eaves.
FEDERAL DEPOSIT INSURANCE CORPORATION
(FDIC) Back to top
The U.S. Government agency created in 1933 which maintains
the stability of and public confidence in the nation's financial
system by insuring deposits and promoting safe and sound banking
practices.
FEDERAL HOUSING ADMINISTRATION (FHA) Back
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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
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A certified, professional appraiser who forms an opinion of
the fair market value of property and receives a set fee in
exchange.
FEE SIMPLE Back
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A complete, unencumbered ownership right in a piece of property.
FEE SIMPLE ESTATE Back
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A form or ownership, or holding title to real estate. It is
the most complete form of title, having an unconditional and
unlimited interest of perpetual duration.
FHA MORTGAGE Back
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A mortgage that is insured by the Federal Housing Administration
(FHA).
FINAL VALUE ESTIMATE Back
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The opinion of value of a piece of property resulting from
an appraisal following the USPAP guidelines.
FIRST MORTGAGE Back
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The primary loan or mortgage secured by a piece of property.
FIXED-RATE MORTGAGE (FRM) Back
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A mortgage which has a fixed rate of interest over the life
of the loan.
FIXTURE Back
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Any piece of personal property which becomes permanently affixed
to a piece of real property.
FLASHING Back
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The metal used around the base of roof mounted equipment,
or at the junction of angles used to prevent leaking.
FLOOD INSURANCE Back
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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
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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
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The furnace exhaust pipe, usually going through the roof.
FLUSH VALVE Back
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The valve between the toilet bowl and the tank.
FOOTING Back
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The partially buried support for a vertical structural member
such as a post.
FORECLOSURE Back
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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
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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
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The solid structural element upon which a structure is built.
FRONTAGE Back
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The segment of a property that runs along a point of access,
such as a street or water front.
FUNCTIONAL OBSOLESCENCE Back
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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
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A steeply angled, triangular roof.
GALVANIZED PIPE Back
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Iron pipe with a galvanized (zinc) coating.
GAMBREL ROOF Back
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A ''barn-like'' roof, where the upper portion of the roof
is less-steeply angled than the lower part.
GENERAL LIEN Back
to top
A broad-based claim against several properties owned by a
defaulting party.
GEORGIAN Back
to top
A classic, English-style hose characterized by simple rectangular
shape and multiple stories.
GFI Back
to top
Ground Fault Interrupter. A type of circuit breaker required
in areas where water is present.
GINNIE MAE Back
to top
A wholly owned corporation created in 1968 within the U.S.
Department of Housing and Urban Development to serve low-to
moderate-income homebuyers.
GIRDER Back
to top
A main supporting beam.
GOVERNMENT MORTGAGE Back
to top
Any mortgage insured by a government agency, such as the FHA
or VA.
GRADE Back
to top
The slope of land around a building. Also ground level.
GRANTEE Back
to top
Any person who is given ownership of a piece of property.
GRANTOR Back
to top
Any person who gives away ownership of a piece of property.
GROSS AREA Back
to top
The sum total of all floor space, including areas such as
stairways and closet space. Often measured based on external
wall lengths.
GROUTING Back
to top
Material used around ceramic tile.
GUTTER Back
to top
The trough around the edge of the roof that catches and diverts
rain.
HALF-SECTION Back
to top
320 acres.
HAZARD INSURANCE Back
to top
Insurance covering damage to a property caused by hazards
such as fire, wind and accident.
HEADER Back
to top
The framing elements above an opening such as a window or
door.
HEARTH Back
to top
The floor of a fireplace or the area immediately in front
of it.
HEIGHT ZONING Back
to top
A municipal restriction on the maximum height of any building
or other structure.
HIDDEN AMENITIES Back
to top
Assets of a property which contribute to its value, but are
not readily apparent. Examples might include upgraded or premium
building materials.
HIGHEST AND BEST USE Back
to top
The most profitable and likely use of a property. Selected
from reasonably probable and legal alternative uses, which
are found to be physically possible, appropriately supported
and financially feasible to result in the highest possible
land value.
HOME EQUITY CONVERSION MORTGAGE (HECM) Back
to top
Also known as a reverse annuity mortgage. It allows home owners
(usually older) to convert equity in the home into cash. Normally
paid by the lender in monthly payments. HECM's typically don't
have to be repaid until the borrower is no longer occupying
the home.
HOME EQUITY LINE OF CREDIT Back
to top
A type of mortgage loan that allows the borrower to draw cash
against the equity in his home.
HOME INSPECTION Back
to top
A complete examination of a building to determine its structural
integrity and uncover any defects in materials or workmanship
which may adversely affect the property or decrease its value.
HOME INSPECTOR Back
to top
A person who performs professional home inspections. Usually,
with an extensive knowledge of house construction methods,
common house problems, how to identify those problems and
how to correct them.
HOMEOWNER'S ASSOCIATION Back
to top
An organization of home owners in a particular neighborhood
or development formed to facilitate the maintenance of common
areas and to enforce any building restrictions or covenants.
HOMEOWNER'S INSURANCE Back
to top
A policy which covers a home owner for any loss of property
due to accident, intrusion or hazard.
HOMEOWNER'S WARRANTY Back
to top
An insurance policy covering the repair of systems and appliances
within the home for the coverage period.
HUD MEDIAN INCOME Back
to top
Median family income for a particular county or metropolitan
statistical area (MSA), as estimated by the Department of
Housing and Urban Development (HUD).
HUD-1 STATEMENT Back
to top
A standardized, itemized list, published by the U.S. Department
of Housing and Urban Development (HUD), of all anticipated
CLOSING COSTS connected with a particular property purchase.
IMPROVED LAND Back
to top
Any parcel of land which has been changed from its natural
state through the creation of roads, buildings or other structures.
IMPROVEMENTS Back
to top
Any item added to vacant land with the intent of increasing
its value or usability.
IMPROVEMENT RATIO Back
to top
The comparative value of a improved piece of land to its natural,
unaltered state.
INCOME APPROACH Back
to top
The process of estimating the value of property by considering
the present value of a stream of income generated by the property.
INCOME PROPERTY Back
to top
A piece of property whose highest and best use is the generation
of income through rents or other sources.
INDEPENDENT APPRAISAL Back
to top
An estimation of value created by a professional, certified
appraiser with no vested interest in the value of the property.
INSPECTION Back
to top
The examination of a piece of property, its buildings or other
amenities.
INSURABLE TITLE Back
to top
The title to property which has been sufficiently reviewed
by a title insurance company, such that they are willing to
insure it as free and clear.
INTEREST RATE Back
to top
A percentage of a loan or mortgage value that is paid to the
lender as compensation for loaning funds.
INVESTMENT PROPERTY Back
to top
Any piece of property that is expected to generate a financial
return. This may come as the result of periodic rents or through
appreciation of the property value over time.
JAMB Back
to top
The side of a door frame.
JOINT TENANCY Back
to top
A situation where two or more parties own a piece of property
together. Each of the owners has an equal share, and may not
dispose of or alter that share without the consent of the
other owners.
JOISTS Back
to top
Horizontal beams laid on edge to support flooring or a ceiling.
JUDGMENT Back
to top
An official court decision. If the judgment requires payment
from one party to another, the court may put a lien against
the payees property as collateral.
JUDICIAL FORECLOSURE Back
to top
A type of foreclosure conducted as a civil suit in a court
of law.
JUMBO LOAN Back
to top
A mortgage loan for an amount greater than the limits set
by Fannie Mae and Freddie Mac. Often called non-conforming
loans.
LALLY COLUMN Back
to top
A concrete filled steel pipe used to support beams.
LATE CHARGE Back
to top
An extra charge, or penalty added to a regular mortgage payment
when the payment is made late by an amount of time specified
in the original loan document.
LATENT DEFECTS Back
to top
Any defect in a piece of property which is not readily apparent,
but which has an impact of the value. Structural damage or
termite infestation would be examples of latent defects.
LEASE Back
to top
A contract between a property owner and a tenant specifying
the payment amount, terms and conditions, as well as the length
of time the contract will be in force.
LEASEHOLD ESTATE Back
to top
A type of property ''ownership'' where the buyer actually
has a long-term lease on the property.
LEASE OPTION Back
to top
A lease agreement that gives the tenant an option to buy the
property. Usually, a portion of the regular monthly rent payment
will be applied towards the down payment.
LEGAL DESCRIPTION Back
to top
The description of a piece of property, identifying its specific
location in terms established by the municipality or other
jurisdiction in which the property resides. Often related
in specific distances from a known landmark or intersection.
LENDER Back
to top
The person or entity who loans funds to a buyer. In return,
the lender will receive periodic payments, including principal
and interest amounts.
LIABILITIES Back
to top
A person's outstanding debt obligations.
LIABILITY INSURANCE Back
to top
Insurance that covers against potential lawsuit brought against
a property owner for alleged negligence resulting in damage
to another party.
LIEN Back
to top
Any claim against a piece of property resulting from a debt
or other obligation.
LIFE CAP Back
to top
A limit on how far the interest rate can move for an Adjustable
Rate Mortgage.
LIKE-KIND PROPERTY Back
to top
Any property which is substantially similar to another property.
LINE OF CREDIT Back
to top
An extension of credit for a certain amount for a specific
amount of time. To be used by the borrower at his discretion.
LIQUID ASSET Back
to top
Any asset which can be quickly converted into cash at little
or no cost, or cash itself.
LOAN Back
to top
Money borrowed, to be repaid with interest, according to the
specific terms and conditions of the loan.
LOAN OFFICER Back
to top
A person that "sells" loans, representing the lender to the
borrower, and the borrower to the lender.
LOAN ORIGINATION Back
to top
How a lender refers to the process of writing new loans.
LOAN SERVICING Back
to top
The processing of payments, mailing of monthly statements,
management and disbursement of escrow funds etc Typically
carried out by the company you make payments to.
LOAN-TO-VALUE RATIO (LTV) Back
to top
The comparison of the amount owed on a mortgaged property
to its fair market value.
LOCK-IN Back
to top
An agreement between a lender and a borrower, guaranteeing
an interest rate for a loan if the loan is closed within a
certain amount of time.
LOCK-IN PERIOD Back
to top
The amount of time the lender has guaranteed an interest rate
to a borrower.
MAJOR DEFICIENCY Back
to top
A deficiency that strongly impacts the usability and habitability
of a house. Or a deficiency that may be very expensive to
repair.
MANUFACTURED HOUSING Back
to top
Once known as ''mobile homes,'' manufactured housing is any
building which has been constructed off site, then moved onto
a piece of real property.
MARGIN Back
to top
The difference between the interest rate and the index on
an adjustable rate mortgage.
MARGINAL LAND Back
to top
Land whose value has been diminished due to some internal
defect or external condition. In most cases, the cost to correct
the flaw or condition is as much or more than the expected
return from the property.
MASTER ASSOCIATION Back
to top
An umbrella organization that is made up of multiple, smaller
home owner's associations. Often found in very large developments
or condominium projects.
MATURITY Back
to top
The date on which the principal balance of a financial instrument
becomes due and payable.
MERGED CREDIT REPORT Back
to top
A credit report derived from data obtained from multiple credit
agencies.
METES AND BOUNDS Back
to top
A traditional way of describing property, generally expressed
in terms of distance from a known landmark or intersection,
and then following the boundaries of the property back to
its origin.
METROPOLITAN AREA Back
to top
The accumulated land in and around a city or other municipality
which falls under the political and economic influence of
that entity.
MINERAL RIGHTS Back
to top
The legal right to exploit and enjoy the benefits of any minerals
located below the surface of a parcel of land.
MISREPRESENTATION Back
to top
A statement by one party in a transaction that is incorrect
or misleading. Most misrepresentations are deemed to be intentional
and thus may constitute fraud. Others, however, some are rendered
through simple mistakes, oversights or negligence.
MORTGAGE Back
to top
A financial arrangement wherein an individual borrows money
to purchase real property and secures the loan with the property
as collateral.
MORTGAGE BANKER Back
to top
A financial institution that provides primary and secondary
mortgages to home buyers.
MORTGAGE BROKER Back
to top
A person or organization that serves as a middleman to facilitate
the mortgage process. Brokers often represent multiple mortgage
bankers and offer the most appropriate deal to each buyer.
MORTGAGEE Back
to top
The entity that lends money in a real estate transaction.
MORTGAGE INSURANCE Back
to top
A policy that fulfills that obligations of a mortgage when
the policy holder defaults or is no longer able to make payments.
MORTGAGE INSURANCE PREMIUM (MIP) Back
to top
An fee that is often included in mortgage payments that pays
for mortgage insurance coverage.
MORTGAGE LIFE INSURANCE Back
to top
A policy that fulfills the obligations of a mortgage when
the policy holder dies.
MORTGAGOR Back
to top
The entity that borrows money in a real estate transaction.
MULTI-FAMILY PROPERTIES Back
to top
Any collection of buildings that are designed and built to
support the habitation of more than four families.
NATIONAL ASSOCIATION OF
MASTER APPRAISERS (NAMA) Back
to top
A non profit professional association organized in 1982, dedicated
to the advancement of professionalism in real estate appraisal.
NATIONAL SOCIETY OF REAL ESTATE APPRAISERS Back
to top
An organization founded in 1956 which promotes standards of
professionalism in its members.
NATURAL VACANCY RATE Back
to top
The percentage of vacant properties in a given area that is
the result of natural turnover and market forces.
NEGATIVE AMORTIZATION Back
to top
When the balance of a loan increases instead of decreases.
Usually due to a borrower making a minimum payment on an Adjustable
Rate Mortgage during a period when the rate fluctuates to
a high enough point that the minimum payment does not cover
all of the interest.
NEIGHBORHOOD LIFE-CYCLE Back
to top
The evolution of neighborhood use and demographics over time.
Economic fluctuations, municipal zoning changes and population
shifts can effect the life cycle.
NEIGHBORHOOD Back
to top
A subsection of a municipality that has been designated by
a developer, economic forces or physical formations.
NET LEASABLE AREA Back
to top
The space in a development, outside of the common areas, that
can be rented to tenants.
NEW ENGLAND COLONIAL Back
to top
An architectural style dating from early American history
typified by a two-story building with clapboard siding.
NO-COST LOAN Back
to top
Many lenders offer loans that you can obtain at "no cost."
You should inquire whether this means there are no "lender"
costs associated with the loan, or if it also covers the other
costs you would normally have in a purchase or refinance transactions,
such as title insurance, escrow fees, settlement fees, appraisal,
recording fees, notary fees, and others. These are fees and
costs which may be associated with buying a home or obtaining
a loan, but not charged directly by the lender. Keep in mind
that, like a "no-point" loan, the interest rate will be higher
than if you obtain a loan that has costs associated with it.
NO-POINT LOAN Back
to top
A loan with no "points". The interest rate on such a loan
will be higher than a loan with points paid. Also sometimes
refers to a refinance loan where closing costs are included
in the loan.
NON-CONFORMING USE Back
to top
The use of land for purposes contrary to the applicable municipal
zoning specifications. Often occurs when zoning changes after
a property is in use.
NONLIQUID ASSET Back
to top
Any asset which can not be quickly converted into cash at
little or no cost.
NOTE Back
to top
A legal document that obligates a borrower to repay a mortgage
loan at a stated interest rate during a specified period of
time.
NOTE RATE Back
to top
The interest rate stated on a mortgage note.
NOTICE OF DEFAULT Back
to top
Formal written notice from a lender to a borrower that default
has occurred.
OBSOLESCENCE Back
to top
The process of an assets value diminishing due to the development
of more desirable alternatives or because of the degradation
of its capabilities.
OCCUPANCY Back
to top
A physical presence within and control of a property.
OCCUPANCY RATE Back
to top
The percentage of properties in a given area that are occupied.
OCTOPUS RECEPTACLE Back
to top
An outlet with too many devices plugged into it, using a power
strip or other device to multiply the outlets.
OFF-SITE IMPROVEMENTS Back
to top
Buildings, structures or other amenities which are not located
on a piece of property, but are necessary to maximize the
use of the property or in some way contribute to the value
of the property.
OFF-STREET PARKING Back
to top
Designated parking spaces associated with a particular building
or other structure which are not located on public streets.
OLD TERMITE ACTIVITY Back
to top
Where no termites are currently active, but indications of
past activity can be seen.
ON-SITE IMPROVEMENTS Back
to top
Buildings, structures or other amenities that are erected
on a piece of property and contribute to its value.
OPEN SPACE Back
to top
Any land which has not had any significant buildings or structures
erected on it. Most often used to describe desirable neighborhood
features like parks.
OPEN SPLICE Back
to top
An uncovered electrical connection.
ORIGINAL EQUITY Back
to top
The amount of cash a home buyer initially invests in the home.
ORIGINAL PRINCIPAL BALANCE Back
to top
The total amount of principal owed on a mortgage loan at the
time of closing.
ORIGINATION FEE Back
to top
Refers to the total number of points paid by a borrower at
closing.
OWNER FINANCING Back
to top
A transaction where the property owner provides all or part
of the financing.
OWNER OCCUPIED Back
to top
The state of property wherein the owner occupies at least
some portion of the property.
PARGING Back
to top
The cement coat applied to block foundations.
PARTIAL INTEREST Back
to top
A shared ownership in a piece of property. May be divided
among two or more parties.
PARTIAL PAYMENT Back
to top
A payment of less than the regular monthly amount. Usually,
a lender will not accept partial payments.
PERIODIC PAYMENT CAP Back
to top
The limit on how much regular monthly payments on an Adjustable
Rate Mortgage can change during one adjustment period.
PERIODIC RATE CAP Back
to top
The limit on how much the interest rate on an Adjustable Rate
Mortgage can change during any one adjustment period.
PERSONAL PROPERTY Back
to top
Owned items which are not permanently affixed to the land.
PERSONAL RESIDENCE Back
to top
The primary domicile of a person or family.
PLANNED UNIT DEVELOPMENT (PUD) Back
to top
A coordinated, real estate development where common areas
are shared and maintained by an owner's association or other
entity.
PLAT Back
to top
A plan or chart of a piece of land which lays out existing
or planned streets, lots or other improvements.
POINT Back
to top
A percentage of a mortgage amount (one point = 1 percent).
PRE-APPROVAL Back
to top
The process of applying for a mortgage loan and becoming approved
for a certain amount at a certain interest rate before a property
has been chosen. Pre-approval allows the borrower greater
freedom in negotiations with sellers.
PREFABRICATED Back
to top
Any building or portion thereof which is manufactured and
assembled off site, then erected on a property.
PREPAYMENT Back
to top
Payment made that reduces the principal balance of a loan
before the due date and before the loan has become fully amortized.
PREPAYMENT PENALTY Back
to top
A fee that may be charged to a borrower who pays off a loan
before it is due.
PRE-QUALIFICATION Back
to top
Less formal that pre-approval, pre-qualification usually means
a written statement from a loan officer indicating his or
her opinion that the borrower will be able to become approved
for a mortgage loan.
PRIME RATE Back
to top
The interest rate that banks and other lending institutions
charge other banks or preferred customers.
PRINCIPAL Back
to top
The amount owed on a mortgage which does not include interest
or other fees.
PRINCIPAL BALANCE Back
to top
The outstanding balance of principal on a mortgage. Does not
included interest due.
PRINCIPAL, INTEREST, TAXES, AND INSURANCE
(PITI) Back to top
The most common constituents of a monthly mortgage payment.
PRIVATE MORTGAGE INSURANCE (PMI) Back
to top
A form of mortgage insurance provided by private, non-government
entities. Normally required when the LOAN TO VALUE RATIO is
less that 20%.
PROPERTY Back
to top
Any item which is owned or possessed.
PURCHASE AGREEMENT Back
to top
A written contract signed by the buyer and seller stating
the terms and conditions under which a property will be sold.
QUADRAPLEX Back
to top
Any building designed to accommodate four families.
QUALIFYING RATIOS Back
to top
Two ratios used in determining credit worthiness for a mortgage
loan. One is the ratio of a borrower's monthly housing costs
to monthly income. The other is a ratio of all monthly debt
to monthly income.
QUITCLAIM DEED Back
to top
A legal document which transfers any ownership an individual
has in a piece of property. Often used when the amount of
ownership is not known or is unclear.
RAFTER Back
to top
A structural element of the roof, sloping from the peak to
the outer walls.
RANCH HOUSE Back
to top
An architectural style typified by a single-story, low-roof
construction. Popular in the western U.S.
RATE LOCK Back
to top
A guarantee from a lender of a specific interest rate for
a period of time.
RAW LAND Back
to top
Any land which has not been developed.
REAL ESTATE Back
to top
A piece of land and any improvements or fixtures located on
that land.
REAL ESTATE AGENT Back
to top
A licensed professional who facilitates the buying and selling
of real estate.
REAL ESTATE SETTLEMENT PROCEDURES ACT
(RESPA) Back to top
A federal law requiring lenders to give full disclosure of
closing costs to borrowers.
REAL PROPERTY Back
to top
Land, improvements and appurtenances, and the interest and
benefits thereof.
REALTOR Back
to top
A real estate agent or broker who is a member of the National
Association of Realtors.
RECEPTACLE Back
to top
An electrical outlet to plug into.
RECORDER Back
to top
A local government employee whose role it is to keep records
of all real estate transactions within the jurisdiction.
RECORDING Back
to top
The filing of a real estate transaction with the appropriate
government agent (normally the RECORDER). A real estate transaction
is considered final when it is recorded.
REFINANCE TRANSACTION Back
to top
A new loan to pay off an existing loan. Typically to gain
a lower interest rate or convert equity into cash.
REGISTER Back
to top
Where air from a furnace or air conditioning system enters
the room.
RELOCATION SERVICE Back
to top
Any company or agency that assists corporate employees in
relocating from one place to another. Services may include
hiring and coordinating real estate agents, moving companies,
utilizes and the like.
REMAINING BALANCE Back
to top
The amount of principal, interest and other costs that has
not yet been repaid.
REMAINING TERM Back
to top
The amount of time remaining on the original amortization
schedule.
REMODEL Back
to top
An activity designed to improve the value or desirability
of a property through rebuilding, refurbishing, redecorating
or adding on to it.
REPAYMENT PLAN Back
to top
A plan to repay delinquent payments, agreed upon between a
lender and borrower, in an effort to avoid foreclosure.
REPLACEMENT RESERVE FUND Back
to top
An account, or fund, setup for the replacement of short life
items , such as carpeting, in the common areas of a cooperative
property.
RESIDENTIAL PROPERTY Back
to top
A piece of property whose highest and best use is the maintenance
of a residence.
REVOLVING DEBT Back
to top
A type of credit that allows the borrower/customer to make
charges against a predetermined line of credit. The customer
then pays monthly installments on the amount borrowed, plus
interest.
RIDGE BOARD Back
to top
The structural member of a roof where the rafters join at
the top.
RIGHT OF FIRST REFUSAL Back
to top
An agreement giving a person the first opportunity to buy
or lease a property before the owner offers it for sale to
others.
ROOF PITCH Back
to top
The degree of slope in a roof.
RURAL Back
to top
An area outside of an established urban area or metropolitan
district.
SALE PRICE Back
to top
The actual price a property sells for, exclusive of any special
financing concessions.
SALES COMPARISON APPROACH Back
to top
An appraisal practice which estimates the value of a property
by comparing it to comparable properties which have sold recently.
SCARCITY Back
to top
An economic principal that dictates the price of a good or
service through the interaction of supply and demand. When
an item is scarce, its price tends to rise, given a constant
demand. Real Estate is a classic example of scarcity.
SECOND MORTGAGE Back
to top
A loan secured by the equity in a home, when a primary mortgage
already exists.
SECONDARY MORTGAGE MARKET Back
to top
An economic marketplace where mortgage bankers buy and sell
existing mortgages.
SECURED LOAN Back
to top
A loan that is backed by collateral. In the case of a mortgage
loan, the collateral is the house.
SECURITY Back
to top
The property used as collateral for a loan.
SEMIDETACHED HOUSING Back
to top
Two residences which share a common wall.
SERVICER Back
to top
A financial institution which collects mortgage payments from
borrowers and applies the appropriate portions to principal,
interest and any escrow accounts.
SERVICING Back
to top
The processing of payments, mailing of monthly statements,
management and disbursement of escrow funds etc Typically
carried out by the company you make payments to.
SHEATHING Back
to top
The covering on outside walls beneath the siding or exterior
finish such as stucco.
SHEETROCK Back
to top
Also called drywall, the gypsum board commonly used on interior
walls.
SILL PLATE Back
to top
The lumber used around the foundation to support exterior
wall framing.
SILL COCK Back
to top
Garden hose pipe connection.
SINGLE-FAMILY PROPERTY Back
to top
A property designed and built to support the habitation of
one family.
SOFFIT Back
to top
The underside of a cornice at the eaves.
STUCCO Back
to top
A textured plaster exterior (and occasionally interior) wall
finish.
STUD Back
to top
A vertical framing piece in a wall, generally 2x4 lumber in
interior walls.
SUBDIVISION Back
to top
A residential development that is created from a piece of
land which has been subdivided into individual lots.
SUBJECT PROPERTY Back
to top
A term which indicates a property which is being appraised.
SUMP Back
to top
A basin into which water drains and from which the water is
pumped out.
SURVEY Back
to top
A specific map of a piece of property which includes the legal
boundaries and any improvements or features of the land. Surveys
also depict any rights-of-way, encroachments or easements.
SWEAT EQUITY Back
to top
The method whereby a home owner develops equity in a property,
either during the purchase or throughout its life, by personally
constructing improvements rather than paying to have them
built.
TAX-EXEMPT PROPERTY Back
to top
Any property which is not taxed.
TENANCY Back
to top
The right to occupy a building or unit.
TENANCY IN COMMON Back
to top
A form of holding title, whereby there are two or more people
on title to a property, ownership does not pass on to the
others upon the death of one individual.
THIRD PARTY ORIGINATION Back
to top
When a lender uses a third party to originate and package
loans for sale to the secondary market (Fannie Mae, Freddie
Mac).
TITLE Back
to top
A specific document which serves as proof of ownership.
TITLE COMPANY Back
to top
An organization which researches and certifies ownership of
real estate before it is bought or sold. Title companies also
act at the facilitator ensures all parties are paid during
the real estate transaction.
TITLE INSURANCE Back
to top
A policy which insures a property owner should a prior claim
arise against the property after the purchase has been completed.
This also covers a lender should a question of ownership arise.
TITLE SEARCH Back
to top
The process whereby the TITLE COMPANY researches a properties
title history and ensures that no outstanding claims exist.
TRANSFER OF OWNERSHIP Back
to top
Any means by which the ownership of a property changes hands.
TRANSFER OF TAX Back
to top
Taxes payable when title passes from one owner to another.
TRAP Back
to top
A bend in water pipe.
TRUSTEE Back
to top
A fiduciary who holds or controls property for the benefit
of another.
TRUTH IN LENDING Back
to top
A federal law requiring full disclosure by lenders to borrowers
of all terms, conditions and costs of a mortgage.
TUDOR Back
to top
A style of architecture typified by exposed stone, wood and
brick construction. Similar in style to English manor homes.
UNDER IMPROVED LAND Back
to top
A piece of land which has been improved, but not to the full
extent of its potential.
UNENCUMBERED PROPERTY Back
to top
Any property which has no outstanding claims or liens against
it.
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL
PRACTICE (USPAP) Back to top
Developed in 1986 by the Ad Hoc Committee on Uniform Standards
and copyrighted in 1987 by The Appraisal Foundation, USPAP
forms the guidelines followed by every licensed and certified
real estate appraiser in the United States. The purpose of
these Standards is to establish requirements for professional
appraisal practice, which includes appraisal, appraisal review,
and appraisal consulting. The intent of these Standards is
to promote and maintain a high level of public trust in professional
appraisal practice.
USEFUL LIFE Back
to top
The span of time over which a property can be used or can
provide benefits to its owner.
VACANCY RATE Back
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The current percentage of vacant properties in a given area,
regardless of why they are vacant.
VA MORTGAGE Back
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A mortgage that is guaranteed by the Department of Veterans
Affairs (VA).
VARIANCE Back
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An exception to municipal zoning regulations granted for a
specific time period to allow for non-conforming use of the
land.
VENT PIPE Back
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A pipe allowing gas to escape.
VESTED Back
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Having the right to use a portion of a fund such as an IRA.
Typically vesting occurs over time. If you are 100% vested,
you have a right to 100% of the fund.
VETERANS AFFAIRS, DEPARTMENT OF (VA) Back
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The successor to the Veteran's Administration, this government
agency is responsible for ensuring the rights and welfare
of our nation's veterans and their dependents. Among other
duties, the VA insures home loans made to veterans.
VOLTAGE Back
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An expression of electric force, or pressure. One volt being
the force needed to move one amp against one ohm resistance.
WALK-THROUGH INSPECTION Back
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A process whereby an appraiser examines a property in preparation
for estimating its value. Also, the process of inspecting
a property for any damage prior to that property being bought
or sold.
WARRANTY Back
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An affidavit given to stipulate the condition of a property.
The person giving the warranty assumes liability if the condition
turns out to be untrue.
WATT Back
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An expression of amount of electrical power. Volt times amps
equals watts.
WEAR AND TEAR Back
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A term used to indicate the normal damage inflicted on a property
through every-day use.
WEATHER STRIPPING Back
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Material used around windows and doors to prevent drafts.
WEEP HOLE Back
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Drainage hole that allows water to escape.
ZERO
LOT LINE Back to top
A municipal zoning category wherein a building or other fixture
may abut the property line.
ZONE Back
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A specific area within a municipality or other jurisdiction
which conforms to certain guidelines regarding the use of
property in the zone. Typical zones include single-family,
multi-family, industrial, commercial and mixed-use.
F.A.Q
We offer a wide range of services including real estate sales,
financing, and property management. Call us today for a free
consultation @ 916-482-6899 or email us at fay@amerpropmgmt.com.
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