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This alphabetical guide contains all the terms you'd likely to encounter in your transactions—real estate, mortgages, financing, brokerage law, contract law, federal institutions, appraisal, planning, architecture and structure.
Click on the letter to go to that alphabet section.
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| A-frame Design |
| An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters. |
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| Abstract Of Judgment |
| The summary of a court judgment that creates a lien against a property when filed with the county recorder. |
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| Abstract Of Title |
| A condensed, chronological history of the title to a particular piece of real estate consisting of a summary of the various documents that have been recorded in the office of Register of Deeds and certain other public offices constituting the various links in the chain of statement of all liens, judgments, taxes, or encumbrances that title. |
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| Accelerated Cost Recovery System |
| A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property. |
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| Accelerated Depreciation |
| A bookkeeping method that depreciates property faster in the early years of ownership. |
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| Acceleration Clause |
| A clause in a mortgage note or contract stating that upon default of a payment due, the balance of the debt or obligation should at once become due and payable. Basically, a provision that gives a lender the right to collect the balance of a loan if a borrower misses a payment. |
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| Acceptance |
| The seller's written approval of a buyer's offer. In contract law, a promise by the offeree to be bound by the terms of an offer. An acceptance must be absolutely identical with the terms of the offer and must be communicated to the offeror in the manner indicated or implied in the offer. |
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| 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. |
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| Accord And Satisfaction |
| A settlement or compromise of a dispute between parties to a contract with the rendering of some different performance by one of the parties which is accepted by the other. |
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| Accretion |
| The gradual and imperceptible deposit of additional soil to land by natural causes, usually the flow of water. The gradual addition to the shore or bank of a waterway by deposits of sand or silt. See Alluvion. |
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| Accrued Interest |
| The amount of interest due for the period of time that has passed since interest was last paid. |
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| Acknowledgment |
| A written declaration affirming that a person acted voluntarily. The act of one who has executed a deed or other written instrument when he/she goes before a notary public or other competent officer and declares the instrument that he/she has executed to be his/her voluntary act and deed. An acknowledgment is sometimes referred to as the written certification of the officer itself. |
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| Acre |
| A measure of land equaling 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square. |
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| Acre Foot |
| The volume of material needed to cover an acre of land one foot deep. |
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| Active Solar System |
| A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use. |
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| Actual Age |
| The number of years a structure has been standing. |
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| Ad Valorem |
| Designates an assessment of taxes against property; literally, according to value. |
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| Add-on Interest |
| The interest a borrower pays on the principal for the duration of the loan. |
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| Addendum |
| An addition or change to a contract. |
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| Additional Principal Payment |
| Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan. |
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| Adjustable Rate Mortgage (ARM) |
| A mortgage loan involving a payment plan that allows the lender to periodically (e.g. annually) adjust the interest rate (and usually the monthly principal and interest payment as well) in accordance with certain indices which normally reflect trends in general market interest rates. You may also see ARMs referred to as AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages). See also Variable Rate Mortgage (VRM). |
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| Adjusted Cost Basis |
| For income tax purposes, the original cost (adjusted purchase price) of a property, referred to as its basis, less the amount of allowable depreciation taken, plus the cost of capital improvements. (Note: A depreciation deduction is not allowed for a personal residence.) |
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| Adjustment Period |
| The amount of time between interest rate adjustments in an adjustable-rate mortgage. |
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| Administrator |
| A person appointed by the court to manage and settle the estate of a deceased person who died intestate, that is, died without leaving a will. (Technically, the term administrator is now obsolete and the term personal representative is the proper statutory title. The old terminology remains in popular use, however.) |
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| Administrator's Deed |
| A legal document that an administrator of an estate uses to transfer property. |
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| Adverse Possession |
| The acquisition of title to property through possession without the owner's consent for a certain period of time. Adverse possession is the actual, open, notorious, exclusive, continuous, and hostile occupation and possession of the land of another under a claim of right or under color of title. If adverse possession is maintained for the period prescribed by statute, a new title is created in the adverse possessor and the title of the record owner is extinguished. |
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| 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. |
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| Aesthetic Zoning |
| Zoning laws designed to regulate the physical appearance of property. Such zoning might require, for example, that junkyards be screened from public view by a fence or shrub-line. |
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| Affiant |
| A person who makes a sworn statement. |
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| Affidavit |
| A statement or declaration reduced to writing, and sworn or affirmed to before some officer who has authority to administer oaths or affirmations. |
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| Affidavit As To Mechanics' Liens |
| An affidavit provided by a seller to a buyer assuring the buyer that no work has been done on the subject property that might give rise to the filing of a mechanic's lien. |
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| Affirmation |
| A substitution for an oath granted to people who have religious scruples against taking oaths. |
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| Agency |
| The relationship that exists by contract between a principal and an agent, whereby the agent is authorized to represent and act on behalf of the principal in certain business transactions. See Agent and Principal. |
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| 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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| Agency Disclosure |
| Laws in most states requiring agents who act for buyers or sellers to disclose who represents whom in a real estate transaction. Laws vary widely by state. |
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| Agency Listing Contract |
| A contract in which a property owner appoints one real estate broker as the sole agent for the sale of a property for a designated period of time. Under such contract the owner, herself/himself, may sell the property without a obligation to pay the agent a commission. |
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| Agent |
| A person who represents and acts on behalf of another person, called the principal, in dealing with a third party or parties pursuant to a contract of agency. |
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| Agreed Boundary |
| A compromise boundary to which property owners agree in order to resolve a dispute. |
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| Agreement Of Sale |
| A document the buyer initiates and the seller approves that details the price and terms of the transaction. See Purchase Contract and Sales Contract. |
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| Air Rights |
| The right vested by a grant (deed, lease agreement, or other conveyance) on an estate in real property to build upon, occupy, or use, in the manner and degree permitted, all of any portion of space above the ground or any other stated elevation within vertical planes, the basis of which corresponds with the boundaries of the real estate described in the grant. |
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| Alcove |
| A recessed section of a room, such as a breakfast nook. |
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| 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. See Due-on-Sale Clause. |
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| Alkali |
| Mineral salt found in soil. |
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| Alkaline Soil |
| Soil that contains a higher concentration of mineral salt than natural acid. |
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| Alley |
| A lane behind a row of buildings or between two rows of buildings. |
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| Allowances |
| Budgets offered by builders of new homes for the purchase of carpeting and fixtures. |
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| Alluvion |
| Soil deposited on existing land by accretion; increase in land on the shore or bank of a river due to change in flow of stream. See Accretion. |
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| Alternative Mortgage |
| Any home loan that does not conform to a standard fixed-rate mortgage. |
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| Aluminum Siding |
| A metal covering that provides an alternative to paint for owners of wood homes. |
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| Aluminum-clad Windows |
| Wooden windows with aluminum covering the exterior. |
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| Amenities |
| In appraising, those qualities that attach to property in the form of benefits derived from ownership other than monetary. Satisfactions of possession and use arising from architectural excellence, scenic beauty, and social environment. Parks, swimming pools, health-club facilities, party rooms, bike paths, community centers and other enticements offered by builders of planned developments. |
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| American Society Of Home Inspectors (ASHI) |
| Professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 743-2744 for list of ASHI-certified inspectors in your area. |
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| 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. |
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| Amortization |
| The process of paying the principal and interest on a loan through regularly scheduled installments. |
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| 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. |
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| Anchor Bolt |
| A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving. |
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| Annexation |
| (a) The permanent attachment of an item of personal property to real property, thus creating a fixture; (b) The addition of real property to its corporate limits by a city or town. |
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| Annual |
| Any kind of plant that must be planted every year. |
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| Annual Mortgagor Statement |
| A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest. |
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| Annual Percentage Rate (APR) |
| A measure of the cost of credit, expressed as a yearly rate. It is the relationship, expressed as a percentage, of the total finance charges associated with a loan to the amount of the loan. It includes interest as well as other charges. This rate must be disclosed by lenders to borrowers under the Truth-in-Lending Act. Because all lenders follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans. |
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| 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. |
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| Application |
| A document that details a potential borrower's income, debt and other obligations to determine credit worthiness. |
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| Application Fee |
| The fee that a lender charges to process a loan application. |
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| Appraisal |
| As applied to real property, it is a documented opinion as to a property's value, marketability, usefulness, or suitability at a given point in time. Also, the process of deriving a conclusion as to value, and the report setting forth such conclusion. See Valuation. |
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| 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. |
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| Appraised Value |
| An opinion of the current market value of a property. |
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| Appreciation |
| Generally, an increase in the value of a home or other property. Specifically, an increased conversion value of property or mediums of exchange due to economic or related causes that may prove to be either temporary or permanent. |
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| Approval |
| When you get approved for a loan, the lender completes a thorough assessment of your ability to pay for a home, and confirms the amount you can borrow on a particular home. |
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| Appurtenance |
| That which belongs to something else. In real estate law an appurtenance is a right, privilege, or improvement that passes as an incident to the land, such as a right of way. |
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| Appurtenant Easement |
| An easement over one parcel, the servient estate, which benefits (is appurtenant to) another parcel, the dominant estate. According to property law, whoever owns the dominant estate has the right to use the easement over the servient estate. (See Easement for a full definition of that term.) |
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| APR (annual Percentage Rate) |
| The cost of the loan expressed as a yearly rate on the balance of the loan. |
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| Arbitration |
| A method of resolving a dispute in which a third party renders a decision. |
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| Arbor |
| An area shaded by trees, shrubs or vines on a latticework structure. |
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| 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. |
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| 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. |
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| ARM (Adjustable-Rate Mortgage) |
| A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index. |
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| Arpent |
| A French measurement of land equal to .84625 acres. |
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| As-is Condition |
| The purchase or sale of a property in its existing condition. |
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| Asbestos |
| A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard. |
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| ASHI (American Society Of Home Inspectors) |
| Professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 743-2744 for list of ASHI-certified inspectors in your area. |
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| Asking Price |
| A seller's initial price for a property. |
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| Assessed Value |
| The official appraised value of property for ad valorem property tax purposes. |
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| Assessment |
| The estimated value of a piece of real estate or a levy placed on property in addition to taxes. See Special Assessment. |
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| Assessment Rolls |
| A list of taxable property compiled by the assessor. |
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| Assets |
| Items of value which include cash, real estate, securities and investments. |
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| Assignee |
| The person to whom an agreement or contract is assigned. |
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| Assignment |
| The method or manner by which a right, a specialty, or a contract is transferred from one person to another. |
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| Assignment Of Lease |
| Transfer by a lessee (tenant) of all his/her interest under a lease for the entire balance of the term of the lease. |
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| Assignor |
| One who makes an assignment. A person who transfers rights and interests of a property. |
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| Assumability |
| When a home is sold, the seller may be able to transfer the mortgage to the new buyer. This means the mortgage is assumable. Lenders generally require a credit review of the new borrower and may charge a fee for the assumption. Some mortgages contain a due-on-sale clause, which means that the mortgage may not be transferable to a new buyer. Instead, the lender may make you pay the entire balance that is due when you sell the home. Assumability can help you attract buyers if you sell your home. |
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| 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. |
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| Assumption Fee |
| Fee charged by a mortgage lender when a new buyer of property assumes an existing mortgage. |
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| Assumption Of Mortgage |
| The taking of title to property by a grantee, wherein the grantee assumes liability for payment of an existing indebtedness secured by a mortgage or deed of trust against the property. He/she becomes a co-guarantor for the payment of said mortgage or deed of trust indebtedness along with the original obliger (maker of the note) unless the latter is released from the debt obligation by the mortgagee (lender). One who assumes a mortgage indebtedness becomes the primary obliger thereon, and is personally liable for its payment. |
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| Attachment Of Property |
| A writ issued at the institution or during the progress of an action that commands the sheriff or other proper officer to take possession of the property, right, credit, or effects of the defendant in order to secure it for the purpose of satisfying the demands of the plaintiff in the action. An attachment is used principally against absconding, concealed, or fraudulent debtors. |
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| Attorney At Law |
| A lawyer; a licensed attorney; an officer of the courts who is employed by a party in a case to manage the cause for him/her. |
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| Attorney In Fact |
| One who is authorized to perform certain legal acts for another under a power of attorney; the power of attorney may be a general power or it may be limited to authorize the performance of a specific act or acts. See also Power of Attorney. |
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| 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. |
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| Avigation Easement |
| An easement over private property near an airport that limits the height of structures and trees. |
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| Avulsion |
| The removal of a considerable quantity of soil from the land of one person, and its deposit upon or annexation to the land of another, suddenly and by the perceptible action of water. |
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| 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. |
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| Back Title Letter |
| A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes. |
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| Back-end Ratio |
| A back-end ratio is a lender calculation that compares a borrower's total debt (principal, interest, property taxes and insurance plus other monthly debt payments) to gross monthly income. |
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| 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. |
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| Backup Offer |
| An offer to purchase a parcel of real estate on which there already exists a valid sales contract. Acceptance of a backup offer by a seller must be made contingent upon failure by the purchaser under the first contract to honor that contract; otherwise, the seller may have serious legal problems. |
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| Backup Offer |
| A secondary bid for a property that the seller will accept if the first offer fails. |
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| Backwater Valve |
| A valve in a sewer line that prevents sewage from flowing back into a house. |
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| Balance Sheet |
| A statement that shows the assets, liabilities and net worth of an individual. |
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| Balloon Payment |
| The final lump sum payment due at the end of a balloon mortgage. |
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| Balloon Payment Loan |
| A loan payment plan 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. |
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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. |
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| Balustrade |
| Railing held up by a set of posts on a porch or stairway. |
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| Banker's Year |
| A 360-day year utilized in one method of proration. |
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| Bankruptcy |
| A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven to 10 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. |
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| Baseboard |
| Any board or molding found at the bottom of an interior wall. |
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| Baseboard Electric Heat |
| Heating units installed in the floor that can be controlled by a central thermostat. |
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| Basement |
| The area of a home below ground level. |
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| Basis |
| For income tax purposes, the original cost (purchase price) of a property. |
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| 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. |
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| Bay Window |
| A window that projects outward in a curve. |
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| Bearing Wall |
| A wall that supports its own weight in addition to other parts of a structure. |
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| Before-tax Income |
| Total income before taxes are deducted. |
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| Bench Marks |
| Identification symbols on stone, metal, or other durable matter permanently fixed in the ground from which differences of elevation are measured. |
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| Beneficiary |
| A person for whose benefit property or funds are placed in trust or the recipient of funds from an insurance fund or annuity contract. The lender under a deed of trust, also called a mortgagee. The person borrowing money is the mortgagor. See Mortgagee. |
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| 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. |
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| Bidding War |
| Offers from multiple buyers for a piece of property. Agents also sometimes compete to list a house for sale. |
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| Bilateral Contract |
| A contract under which each party promises to perform a specified act in exchange for the other party's promise to perform a specified act. The exchange of promises forms the basis for the contract and binds both parties. Most contracts, including most real estate contracts, are bilateral contracts. Also called reciprocal contracts. |
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| Bill Of Sale |
| A written instrument that evidences the transfer of right, title, and interest in personal property from one person to another. binder |
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| Biweekly Mortgage |
| A mortgage that requires payments every two weeks and helps repay the loan over a shorter term. |
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| Blanket Insurance Policy |
| A policy that covers more than one person or piece of property. |
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| Blanket Mortgage |
| A single mortgage that covers more than one piece of real estate owned by the same borrower. |
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| Blighted Area |
| A declining area in which real property values are seriously affected by destructive economic forces, such as encroaching inharmonious property usages and/or rapidly deteriorating buildings. |
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| Blind Nailing |
| Nails driven into a wall and concealed with putty. |
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| Blockbusting |
| Persuading or trying to persuade persons to sell or move out by creating or exploiting fears of racial change in a neighborhood. An illegal practice under the Federal Fair Housing Act of 1968 and the State Fair Housing Act. Also known as panic peddling. |
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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. |
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| Blue-ribbon Condition |
| A house maintained close to its original condition. Also called mint condition. |
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| Blueprint |
| The plan for a home or other structure. |
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| Board Foot |
| Measurement of lumber that is the equivalent of 144 cubic inches. |
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| Board Of Equalization |
| A state board charged with ensuring that local property taxes are assessed in a uniform manner. |
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| Board-and-batten Siding |
| Siding is composed of 8- to 12-inch wide wooden boards nailed vertically to create a barn-like exterior. |
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| Boilerplate |
| Form language used in deeds, mortgages and other documents. Details can be added by individual parties. |
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| Bona Fide |
| A legal term that refers to actions without fraud. or persons that are honest and in good faith. |
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| Bond |
| Any obligation under seal. A real estate bond is a written obligation, usually issued on security of a mortgage or deed of trust. An agreement that insures one party against loss by acts or defaults of another party. |
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| Bonus Room |
| Bonus room is typically used as a marketing term for a room with no specifically designated function, unlike a living room, bedroom or kitchen. |
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| Book Value |
| The value of a property as a capital asset based on its cost plus any additions, minus depreciation. |
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| Boring Test |
| An analysis of soil in which holes are bored into the ground and samples are removed. |
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| Borough |
| A section of a city that has authority over local matters. |
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| Borrow |
| Sand, gravel or other material used for grading. |
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| 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. |
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| Boundary |
| The dividing line between two adjacent properties. |
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| Braced Framing |
| A construction method in two-story homes in which the frame is reinforced with posts and braces. |
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| Breach |
| The breaking of a law, or failure of a duty, either by omission or commission; the failure to perform, without legal excuse, any promise that forms a part or the whole of a contract. |
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| Breach Of Contract |
| The failure to perform provisions of a contract without a legal excuse. |
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| Breach Of Covenant |
| The failure to obey a legal agreement. |
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| Breach Of Warranty |
| A seller's inability to pass clear title to a buyer. |
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| Break-even Point |
| The point in which the owner's rental income matches expenses and debt. |
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| Breezeway |
| A roofed passageway with open sides. |
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| Brick |
| Building material made from clay molded into oblong blocks and fired in a kiln. |
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| Bridge Loan |
| A short-term loan for borrowers who need more time to find permanent financing. |
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| Broker |
| A broker is any one who acts as a go-between. A real estate broker is licensed to handle property transactions and operate a brokerage firm. A mortgage broker is an individual or firm that matches borrowers to lenders and loan programs for a fee. |
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| Brokerage |
| The field of the real estate business which involves the bringing together of parties for the purpose of selling, renting, or exchanging property for a fee or commission. Real estate brokerages are firms or companies that are licensed to conduct real estate transactions. |
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| Broom Clean |
| The ideal condition of a building when it is turned over to an owner or tenant. |
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| Brownstone |
| A vintage row house constructed of red sandstone. |
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| Budget Mortgage |
| Any mortgage where the monthly payments are set up to include not only principal and interest, but also deposits to an escrow (reserve or impound) account that is maintained by the lender and used to pay property taxes and insurance charges when they become due. Most single-family residence mortgages are budget mortgages. |
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| Buffer Strip |
| A parcel of land that separates two or more properties. |
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| Builder Upgrades |
| Extra house features or better finishing materials that a builder offers. |
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| Building And Loan Association |
| An organization that raises money to helps its members purchase real estate or construct a building. |
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| Building Code |
| A comprehensive set of regulations established by local governments setting forth the structural requirements for construction or remodeling of a home or other structure. |
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| Building Inspector |
| A city or county employee who enforces the building code and ensures that work is correctly performed. |
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| Building Line |
| A line fixed at a certain distance from the front and/or sides of a lot, beyond which no building can project. Guidelines that limit how close an owner can build to the street or an adjacent property. See also Setback. |
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| Building Moratorium |
| A halt on home construction to slow the rate of development. |
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| Building Paper |
| A thick, water-resistant paper that serves as insulation. |
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| Building Permit |
| A permit issued by a local government agency that allows the construction of home or renovation of a house. |
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| Building Restrictions |
| Regulations that limit the manner in which property can be used. |
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| 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. |
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| Bundle Of Rights |
| The various interests or rights an owner has in a property. |
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| Bungalow |
| A small one-story house or cottage. |
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| Butterfly Roof |
| A roof formed by two gables that dip in the middle to resemble a butterfly's wings. |
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| Buy-down Mortgage |
| Any mortgage where the seller pays a sum of money to the lender to either temporarily or permanently buy down the interest rate and/or monthly payments for the buyer-borrower, usually for an early period in an ARM. The seller may increase the sales price to cover the cost of the buy-down. Buy-downs can occur in all types of mortgages, not just ARMs. Often used by developers when selling new residential properties. |
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| Buyer's Agent |
| Represents a buyer in a home purchase, either as a single agent or as an exclusive buyer's broker. |
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| Buyer's Broker |
| A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid directly by the buyer, or through the seller or listing broker at closing. |
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| Buyer's Market |
| A slow real estate market in which buyers have the advantage. |
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| Buyer's Remorse |
| An emotion felt by first-time homebuyers after signing a sales contract or closing the purchase of a house. |
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| Buyers' Home Finding Network |
| National referral service for buyer's brokers only. Call (800) 500-3569 for information and referrals. |
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| Bylaws |
| The rules and regulations that a homeowners association or corporation adopts to govern activities. |
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| California Real Estate Inspection Association (CREIA) |
| Trade organization of home inspectors whose members must meet the group's education and performance requirements. Call (916) 973-1462 for list of CREIA-certified inspectors in your area. |
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| Call |
| Under a metes and bounds property description, a reference to a course, distance, or monument used in describing a boundary. |
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| Call Option |
| A clause in a loan agreement that allows a lender to ask for the balance at any time. |
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| Can Lights |
| Cylindrical chambers with bulbs recessed into the ceiling. |
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| Cancellation Clause |
| A clause that details the conditions under which each party may terminate the agreement. |
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| Cantilever |
| A projecting structure supported on one end, such as a balcony. |
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| Cap |
| A limit on how much the interest rate or the monthly payment in an adjustable-rate mortgage can change, either at each adjustment or during the life of the mortgage. Payment caps don't limit the amount of interest the lender is earning, so they may cause negative amortization. |
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| Cape Cod Style |
| A wood-frame or shingled house with a steep roof and several windows projecting from the second floor. |
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| Capital |
| Accumulated wealth; a portion of wealth set aside for the production of additional wealth; specifically, the funds belonging to the partners or shareholders of a business, invested with the expressed intention of their remaining permanently in the business. Money used to create income, such as funds invested in rental property. |
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| Capital Assets |
| Assets that are permanent or have a long life expectancy (e.g. land, buildings, heavy equipment). |
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| Capital Expenditures |
| The cost of making improvements on a property. Expenditures made for the acquisition of capital assets (assets that are permanent or have a long life expectancy) or for capital improvements (permanent or long-term improvements). See also Capital Assets and Capital Improvements. |
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| Capital Gain/loss |
| For income tax purposes, the profit/loss realized upon the sale of a capital asset; the difference between the amount realized (sale price less closing expenses) and the adjusted basis of real property. |
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| Capital Gains Tax |
| A tax placed on the profits from the sale of real estate or investments. |
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| Capital Improvement |
| Any improvement that extends the life or increases the value of a piece of property. |
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| Capitalization |
| A mathematical formula used by appraisers to compute the value of a property based on net income. This is accomplished by dividing net operating income by a capitalization rate. See Capitalization Rate and Income Approach. |
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| Capitalization Rate |
| The percentage rate of return estimated from the net income of a piece of property. A ratio of income to value; a rate which will enable an investor to recapture their capital investment and realize a reasonable return (yield or profit) on such investment. See Capitalization and Income Approach. |
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| Caravan |
| A group of real estate agents who tour a house that has been recently listed for sale. |
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| Carport |
| A roof that covers a driveway or other parking area. |
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| Carryback Financing |
| When a seller agrees to finance part of the sale of a home by taking back a note for a set amount, this is called carryback financing. |
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| Casement Window |
| A window hinged on its sides to allow it to swing open vertically. |
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| Cash Flow (after Taxes) |
| The net income produced from an income-producing property after deducting operating expenses, loan payments, depreciation and income taxes from gross income or from the before tax cash flow. See also Cash Flow (before Taxes). |
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| Cash Flow (before Taxes) |
| The net income produced from an income-producing property after deducting operating expenses and debt service from gross income received. See also Cash Flow (after Taxes). |
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| 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. |
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| Cashier's Check |
| A check the bank draws on itself rather than on a depositor's account. |
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| Cathedral Ceiling |
| A high open ceiling formed by finishing exposed roof rafters. |
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| Caulk |
| An acrylic or silicon sealant used to fill cracks, crevices and holes in a home. |
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| Caveat |
| A formal notice, that asks a court to suspend action until the party which filed the challenge can be heard. |
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| Caveat Emptor |
| A literal translation of this term is let the buyer beware. Under this old legal doctrine, a buyer of real estate has the duty to inspect the property she/he is purchasing and will be held to have accepted any defects or conditions that are discoverable by a reasonably diligent inspection. Under a strict application of this doctrine, the buyer is considered to take the property as is. This doctrine has been substantially eroded by modern court decisions so that sellers of real estate today generally have an affirmative duty to disclose most property defects, especially latent (hidden) defects, about which she/he has knowledge. (See also Implied Warranty of Fitness dealing with the sale of new dwellings.) The doctrine has little, if any, application to actions of real estate agents, who have extensive duties to both buyers and sellers under various state real estate license laws. |
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| Cavedium |
| A courtyard or atrium. |
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| CD (certificate Of Deposit) |
| 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. |
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| Ceiling Height |
| The standard height of a ceiling is eight feet. |
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| Central Air Conditioning |
| A device that generates cold air through an outside unit that is connected to ductwork inside the house. |
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| Central Business District |
| The area of a city where most large businesses are located. |
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| Certificate Of Deposit |
| See CD |
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| 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. |
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| Certificate Of Eligibility |
| A document issued by the Veterans Administration that verifies the eligibility of a veteran for a loan program. |
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| Certificate Of Occupancy |
| A document which states that a home or other building has met all building codes and is suitable for habitation. |
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| Certificate Of Reasonable Value (CRV) |
| A form on which is reported the appraised value of a property that is to be security for a VA mortgage loan. |
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| 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 |
| An attorney's report or opinion of title based upon her/his examination of applicable public records. In it, the attorney reports that record title to certain real property has been examined and that marketable fee simple title does or does not exist. The certificate also contains standard and special exceptions relating to matters affecting title. |
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| Certified International Property Specialist (CIPS) |
| An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling international real estate transactions. |
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| Certified Real Estate Brokerage Manager (CRB) |
| An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for real estate office management. |
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| Certified Residential Specialist (CRS) |
| An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling residential real estate transactions. |
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| Chain |
| Unit of land measurement equal to 66 feet. |
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| Chain Of Title |
| A history of conveyances and encumbrances affecting the title to particular real property. The official record that details the ownership history of a piece of property. |
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| Chair Railing |
| Decorative trim installed on a wall about 32 inches above the floor, which protects against scuffs from furniture. |
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| Change Frequency |
| The adjustment schedule on an adjustable-rate mortgage. |
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| 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. |
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| Chattel Mortgage |
| A lien on personal property used as collateral for a loan. |
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| Chattels |
| Items of movable Personal Property, such as animals, household furnishings money, jewels, motor vehicles, and all other items that can be transferred from one place to another. |
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| Chimney Back |
| The back wall or lining of a fireplace or furnace chimney. |
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| Chimney Flue |
| The passage inside a chimney that channels smoke and heat to the outside. |
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| Chimney Pot |
| A short pipe at the top of a chimney that increases ventilation to the fireplace and reduces smoke. |
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| Cinder Block |
| A block made of ash and cement that is used in construction. |
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| Cinder Fill |
| Cinders used below a basement or around a foundation to promote drainage. |
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| Circuit Breaker |
| An electric fuse that activates or deactivates a circuit. |
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| Cistern |
| A tank used to store rainwater. |
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| Civil Rights Act Of 1866 |
| An act of Congress that generally prohibits racial discrimination and that has been interpreted to allow a citizen to sue for racial discrimination in the sale or rental of housing. |
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| Classified Property Tax |
| A tax that varies in rate depending on the use of the property. |
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| Clear Title |
| Title to property that is free and clear of all legal encumbrances, liens or defects. |
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| Closing |
| The consummation or completion of a transaction involving the sale or exchange of real estate; may be accomplished either at a closing meeting attended by the various parties (or their agents) or by way of an escrow closing. At closing, title to the property is formally transferred to the purchaser and all financial matters relevant to the transaction are settled. |
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| Closing Costs |
| Expenses incidental to the sale of real estate, including loan, title and appraisal fees. |
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| Closing Statement |
| A detailed accounting of all receipts and disbursements in connection with a real estate sale which is provided to the seller and purchaser at the time of closing. |
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| Cloud On Title |
| An outstanding claim or encumbrance, which, if valid, would affect or impair the owner's title. |
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| Cluster Development |
| A method of squeezing more homes into less space. |
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| Co-housing |
| Individual housing units that are clustered around a common building where residents share cooking and other activities. |
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| Co-insurance |
| A clause placed in most property insurance policies requiring the insured to share the loss with the insurer if the property is underinsured. Also, coverage that involves the use of two or more insurers. |
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| Co-maker |
| A person who signs a promissory note with the borrower and assumes responsibility for the loan. |
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| Co-signer |
| A second party who signs a promissory note and takes responsibility for the debt. |
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| Codicil |
| A change to a will that adds or subtracts provisions or clarifies portions of the document. |
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| Coign |
| The cornerstone of a building that differs in shape or color from the rest of the wall. |
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| Collar Beam |
| The structural element that connects roof rafters. |
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| Collateral |
| Something of value which is pledged or provided as security (to guarantee performance) for a contractual obligation such as obtaining a loan. The real estate which is mortgaged to secure the repayment of a debt evidenced by a promissory note. |
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| Collection |
| The series of steps a lender takes to bring a delinquent mortgage up to date. |
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| Collusion |
| The action of two or more people to break the law. |
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| Color Of Title |
| An apparent title founded upon a written instrument, a deed, will, or Judicial decree that purports to convey and apparently passes title to land but fails to do so, either because of a defect in its execution or a want of title in the person executing the instrument. |
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| Column |
| A slender upright structure that consists of a base, a round or square shaft and a capital. |
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| Column Footing |
| The support base for a load-bearing column. The footing is usually made of reinforced concrete. |
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| Combination Door |
| An outer door with interchangeable screen and glass panels. |
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| Combination Window |
| A window with interchangeable screen and glass panels. |
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| Commercial Bank |
| A financial institution that provides a broad range of services, from checking and savings accounts to business loans and credit cards. |
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| Commercial Property |
| An area that is zoned for businesses. |
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| Commingling |
| The illegal practice by a real estate broker of maintaining personal or business funds in the same account with trust funds held for others. |
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| Commission |
| Compensation earned by a broker for the performance of specific duties in connection with the sale or leasing of a property. The amount of payment is usually measured by a percentage of another sum and is usually paid by the seller (if a sale is involved) or owner (if a lease is involved). |
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| Commissioner's Deed |
| In certain court actions or special proceedings, a commissioner is appointed to sell real or personal property and is empowered to give a commissioner's deed to the purchaser. Specific statutory procedures must be carefully followed by the commissioner. |
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| Commitment |
| A pledge, a promise, or a firm agreement by a lender to make a loan with specific terms for a specified period. See Loan Commitment. |
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| Commitment Fee |
| The fee a lender charges for promising to make a loan. |
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| Common Areas (elements) |
| Those portions of a property owned or rented by multiple parties (such as a condominium complex, apartment complex, or shopping mall) that are designated or reserved for shared use by all the owners or tenants. |
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| Common Law |
| A body of law that grew up from custom and cases decided in the courts, as distinguished from codified statutory law. |
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| Common-area Assessments |
| Fees paid by the owners of a condominium project or planned-unit development to maintain, repair, improve or operate common areas. |
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| Common-interest Development |
| A project composed of individually owned units that share usage and financial responsibility for common areas. |
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| Community Property |
| Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states. |
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| Community Reinvestment Act |
| A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live. |
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| Comparable |
| A recently sold property that has similar characteristics to a property being appraised (the subject property) and that is used for comparative purposes when estimating the value of the subject property. |
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| Comparative Market Analysis |
| An estimate of the value of a property based on an analysis of sales of properties with similar characteristics. |
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| Competent |
| A term for a buyer who is legally fit to enter into a sales contract. |
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| Compound Interest |
| The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan. |
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| Concrete Tilt-up |
| The process of pouring concrete into forms on the ground, allowing the forms to harden and then raising the material to a vertical position to form walls. |
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| Concurrent Ownership |
| The ownership of the same parcel of property by two or more persons. Concurrent ownership is also generally referred to as cotenancy or co-ownership. The three principal types of concurrent ownership are: Joint Tenancy, Tenancy in Common, and Tenancy by the Entirety. |
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| Condemnation |
| The taking of private property for a public purpose with compensation to the owner, by the state, other body politic, or public service corporation authorized to exercise the power of eminent domain (without the consent of the owner); also, a declaration that a structure is unfit for use. See also Eminent Domain. |
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| Conditional Commitment |
| A promise by a lender to make a loan if the borrower meets certain conditions. |
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| Conditional Use Permit |
| In zoning law, a permit that is issued authorizing a certain use to be made of property only after certain stated prerequisites have been met. |
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| Condominium |
| Individual units in a building or development in which owners hold title to the interior space while common areas such as parking lots, community rooms and recreational areas are owned by all the residents. (For clarity see also Townhouse.) |
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| Condominium Conversion |
| The change in title from a single owner of an entire project or building to multiple owners of individual units. |
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| Conduit |
| A metal pipe that houses electrical wiring. |
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| Conforming Loan |
| A conforming loan is any loan that meets the qualifications to be purchased by Fannie Mae or Freddie Mac. The current conforming loan limit is $240,000. |
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| Consent Judgment |
| A binding written agreement between two parties to have a judgment entered and recorded. |
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| Conservator |
| A court-appointed guardian. |
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| Consideration |
| Something of value, usually money, that is the inducement of a contract. Any right, interest, property, benefit accruing to one party, any forbearance, detriment, loss or responsibility given, suffered or undertaken, may constitute a consideration that will sustain a contract. |
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| Construction Budget |
| The funding that an owner arranges for the construction of a project. |
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| Construction Documents |
| Drawings and specifications from an architect that provide detailed requirements for the construction of a project. |
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| Construction Lien |
| See Mechanic's Lien. |
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| Construction Loan |
| Short-term loans or deed of trust securing a loan a lender makes for the construction of homes and buildings. The lender disburses the funds in stages. |
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| Construction To Permanent Loan |
| The conversion of a construction loan to a longer-term traditional mortgage after construction has been completed. |
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| Constructive Eviction |
| A situation which arises when a landlord, either by her/his affirmative act or by her/his failure to perform some required act, prevents a tenant from enjoying the use of a leased premises in the manner contracted for in a lease. In such situation, the tenant is said to be constructively evicted from the premises even though she/he has not actually been denied possession of the premises. See also Eviction. |
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| Constructive Notice |
| Notice given by the public records. Persons with a duty to search are bound by whatever information they would find by a reasonable search of the public land records whether or not they in fact make the search. |
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| Consumer Credit Counseling Service (CCCS) |
| A nationwide, nonprofit organization that helps consumers get out of debt and improve their credit profile. National headquarters: 8701 Georgia Avenue., Suite 507, Silver Springs, MD 20910. Phone: (800) 388-2227. |
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| Contemporary Style |
| A design that features streamlined shapes, large unadorned windows and industrial materials. |
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| Contiguous Lots |
| Pieces of property that are adjoined. |
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| Contingency Listing |
| A property listing with a special condition attached. |
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| Contingency Provision |
| A provision in an offer or contract that makes validity of the offer or contract dependent or contingent upon the occurrence of some act, such as a satisfactory home inspection. |
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| Contingent Fee |
| A fee that must be paid if a certain event occurs. |
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| Contingent Offer |
| An offer containing a contingency provision. |
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| Contract |
| A legally enforceable agreement between two or more competent parties, based on legal consideration, to do or to abstain from doing some act. |
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| Contract For Deed |
| A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time. See Installment Land Contract. |
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| Contract To Purchase |
| A contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller. Also known as an agreement of sale. |
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| Contractor |
| The individual who contracts for the construction of a home or project. |
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| Contractual Lien |
| A voluntary obligation such as a mortgage or trust deed. |
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| Controlled Growth |
| Any restrictions imposed on the amount or type of new development in an area. |
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| Conventional Loan |
| A long-term loan a lender makes for the purchase of a home and that is not insured or guaranteed under any government program. |
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| Conversion Clause |
| A provision in some ARMs that allows you to change the ARM to a fixed-rate loan at some point during the term. Usually conversion is allowed at the end of the first adjustment period. At the time of the conversion the new fixed rate is generally set at one of the rates then prevailing for fixed-rate mortgages. The conversion feature may be available at extra cost. |
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| Convertible Adjustable-rate Mortgage |
| A mortgage which starts as an adjustable-rate loan, but allows the borrower to convert the loan to a fixed-rate mortgage during a specified period of time. |
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| Conveyance |
| A general term for any document that transfers title to real property. The word is also a verb describing the act of transferring title to real property. |
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| Conveyance Tax |
| A tax imposed on the transfer of real property. |
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| Cooperating Broker |
| A real estate broker who finds a buyer for a property that another broker has listed. |
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| Cooperative |
| A multiunit development in which a purchaser obtains a stock certificate representing part ownership of the building and a lease to a specific apartment or unit within the development. |
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| Cooperative Corporation |
| A business trust that holds the title to a cooperative residential building and grants occupancy rights to shareholders in the corporation. |
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| Cooperative Mortgages |
| Any loans related to a cooperative residential project. |
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| Cooperative Project |
| A project in which a corporation holds title and sells shares representing individual units to buyers who then receive a proprietary lease as their title. |
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| Corner Bead |
| A reinforcement placed in the corner where two walls intersect. |
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| Corner Influence |
| The effect on the value of a property because it is situated on a corner or near a corner. |
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| Cornice |
| A horizontal molding that projects from the top of a structure or wall. |
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| Corporate Relocation |
| An arrangement by which employers pay to transfer and move employees. |
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| Correction Deed |
| A type of deed often used to remedy defects in title to property. For example, a title examiner might discover that a deed in the chain of title has been improperly acknowledged. A correction deed, properly executed and acknowledged by the same grantors who executed the defective deed, might be required to clear the title defect. |
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| Corrective Work |
| Necessary or desired repairs to remedy problems uncovered by a home or specialized inspection. |
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| Correlation |
| The process of deriving a final estimate of value from the adjusted values of various comparable properties under the market data approach to appraisal. |
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| Cost Approach |
| An appraisal method or procedure used to estimate the value, usually the market value, of an improved property by summation of the land value and the value of improvements, each of which has been estimated independently. The estimated value of the land, considered as though vacant, is added to the estimated replacement or reproduction cost of the improvements, less estimated depreciation, to derive an estimate of the property's market value. |
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| Cost-plus Contract |
| A construction contract that determines the builder's profit based on a percentage of the cost of labor and materials. |
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| Cotenant |
| Any one of two or more parties who share an undivided ownership interest in real property. |
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| Cottage |
| A small, one-story house. |
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| Counteroffer |
| An offer made in reply to an original offer that contains new or different terms or conditions not included in the original offer. The offer made in reply (counteroffer), once communicated, has the effect of rejecting the original offer and the latter cannot be subsequently accepted unless renewed by the original offeror. |
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| Courier Fee |
| Fee charged at closing to cover the delivery of documents between lenders, escrow companies and other parties during a real estate transaction. |
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| Covenant |
| An agreement between two or more persons entered into by deed, whereby one of the parties promises the performance of certain acts, or that a given state does or shall, or does not/or shall not, exist. Simply put, a covenant is a legal assurance or promise in a deed or other document, or implied by the law. |
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| Covenant Of Title |
| A promise (covenant) placed in a deed whereby the grantor agrees to indemnify the grantee against certain defects in title or a total failure of title. |
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| Covenants, Conditions And Restrictions (CC&RS) |
| Rules and regulations for a development, such as acceptable landscaping or improvements that can be made to individual units. |
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| Craftsman Style |
| An architectural style that evolved as part of the Arts and Craft movement near the turn of the century. |
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| Crawl Space |
| The space between the ground and the first floor of a home, usually no higher than four feet. |
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| Creative Financing |
| Innovative home-financing arrangements that help sell a property. |
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| Credit |
| A sum entered in favor of either the seller or purchaser on a closing statement. A credit indicates an amount that a party is to receive or be reimbursed for at closing, as well as the amount of any loan or deposit that is to serve as part of the purchase price. Also, the money a lender extends to a buyer for a commitment to repay the loan within a certain time frame. |
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| Credit History |
| A record of an individual's current and past debt payments. |
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| Credit Life Insurance |
| Insurance that pays off a mortgage in the event of the borrower's death. |
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| Credit Rating |
| The degree of credit worthiness assigned to a person based on credit history and financial status. |
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| Credit Report |
| A credit bureau report that shows a loan applicant's history of payments made on previous debts. Several companies issue credit reports, but the three largest are Trans Union Corp., Equifax and Experian (formerly TRW). |
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| Credit Repository |
| Large companies that gather financial and credit information from various sources about individuals who have applied for credit. |
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| Credit Union |
| Nonprofit cooperative organizations that provide banking and financial services, including mortgages, home improvement loans and home equity loans, to their members. |
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| Creditor |
| An individual or institution to whom a debt is owed. |
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| CREIA (California Real Estate Inspection Association) |
| Trade organization of home inspectors whose members must meet the group's education and performance requirements. Call (916) 973-1462 for list of CREIA-certified inspectors in your area. |
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| Cross-bridging |
| The strengthening of a structure by bracing cross members between beams. |
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| Cul De Sac |
| A street or alley that is closed at one end. |
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| Cupola |
| A dome-like structure that sits on top of a roof. |
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| Curable Defect |
| A deficiency in a property that is easy or inexpensive to fix, such as chipping paint. |
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| Curb Appeal |
| The first impression of a house as seen from the street. |
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| Curtain Wall |
| An exterior wall that encloses a yard or other area but does not provide any structural support to a home. |
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| Custom Builder |
| A builder who constructs a home or building based on plans created by the owner. |
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| Custom Home |
| A structure designed by an architect hired by the owner. |
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| Damages |
| The indemnity recoverable by a person who has sustained an injury, either to her/his person, her/his property, or her/his rights, through the act or default of another. |
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| Damper |
| A movable plate in a fireplace that allows smoke and fumes to travel up the chimney's flue. |
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| Days On The Market |
| The period of time a property is listed for sale until it is sold or taken off the market |
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| Deadbolt Lock |
| Locks that require a key to open from the outside and a turn button from the inside. |
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| Debit |
| A charge against either the seller or purchaser on a closing statement. A debit indicates an amount that a party is responsible for at closing. |
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| Debt |
| Any amount one person owes to another. |
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| Debt Service |
| Periodic payments of principal and accrued interest made toward the liquidation (amortization) of a debt. |
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| Debtor |
| The party who owes a debt. |
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| Decedent |
| A deceased person. |
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| Deck |
| A roofless, floored area that adjoins a house. |
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| Decree |
| A judgment of a court of equity. |
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| Dedication |
| A form of transfer, either formal or informal, whereby an individual grants title to an interest in land for some public use and such grant is accepted by or on behalf of the public in some recognized legal manner. |
| |
| Deed |
| A writing, signed and sealed, under which an interest in real property is transferred from a grantor to a grantee upon delivery of the writing to the grantee. Simply put, the legal document that transfers ownership of a piece of property. |
| |
| Deed In Lieu Of Foreclosure |
| A deed given by a mortgagor, who is in default under the terms of the mortgage, to the mortgagee in order to avoid foreclosure of the property. The courts frown on this type of deed because of the potential for undue influence by the mortgagee on the mortgagor in default. |
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| Deed Of Gift |
| The transfer of real property by a deed not supported by any consideration. |
| |
| Deed Of Trust |
| A document that gives a lender the right to foreclose on a piece of property if the borrower defaults on the loan. Under a deed of trust, the borrower conveys the land to a third-party trustee to hold for the mortgage lender to secure a debt, subject to the condition that the conveyance shall be void and terminated on payment of the debt at maturity. Most deeds of trust contain a power of sale giving the trustee the power to sell the land in case of default and to apply the proceeds from the sale toward payment of the debt. Also called a Trust Deed. See also Mortgage. |
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| Deep-seal Floor Drain |
| A drain used to dispose of water from the basement floor to a sewer line. |
| |
| Default |
| Failure to comply with an agreement to meet an obligation when due, such as making monthly mortgage payments. defendant |
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| Deferred Maintenance |
| Any repair or maintenance of a piece of property that has been postponed, resulting in a decline in property value. |
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| Deferred Payments |
| Money payments to be made at some future date. |
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| Deficiency Judgment |
| A judgment for the balance owing on a debt after the security given has been resorted to and applied toward payment of the indebtedness. |
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| Delinquent Mortgage |
| A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings. |
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| Demise |
| The conveyance of an estate; usually a lease. |
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| Density Test |
| An analysis of soil to determine if the surface can support the foundation of a house. |
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| Dentils |
| Small rectangular blocks that project from a building, usually under cornices or along rooflines. |
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| Deposit |
| Money given by the buyer with an offer to purchase property. Also called earnest money. |
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| Depreciation |
| (a) In appraisal, a decrease in property value brought about by ordinary wear and tear (physical deterioration), functional or economic obsolescence, or any other cause; (b) For income tax purposes, a deduction from the income of eligible income-producing properties allowed for a presumed loss in value of property over its useful life. |
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| Descent |
| The transfer of property ownership to the heirs of a deceased person by operation of law where the property owner dies intestate (without a will). |
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| Design/build |
| A project in which the owner contracts directly with an individual or company to perform design and construction. |
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| Designer |
| Unlike architects, designers are limited to drawing blueprints. |
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| Devise |
| A gift of real estate by the last will and testament of a decedent. |
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| Digital Images |
| Images that are incorporated into house listings to give potential buyers a view of the property. |
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| Dimension Plans |
| Plans which show the layout of a house but are less detailed than full blueprints. |
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| Disability Insurance |
| An insurance policy which covers an individual's ability to produce income. |
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| Discharge Of A Contract |
| Performance under a valid and binding contract may be legally discharged by a number of events, including: full and complete performance, a substantial breach by one of the parties, impossibility of performance, and by operation of law. |
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| Disclosure |
| A statement to a potential buyer listing information relevant to a piece of property, such as the presence of radon or lead paint. |
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| Discount |
| In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to give you a lower rate and lower payments for part of the mortgage term (usually for one year or less). After the discount period, the ARM rate will probably go up depending on the index rate. With regard to the sale of mortgage loans in the secondary mortgage market, the amount by which the sale price of the note is less than the note's face value. In either case, the discount has the effect of increasing the yield on the loan. |
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| Discount Points |
| A fee charged by a lender (usually paid by the borrower) to increase the yield on mortgage loans with below-market interest rates. A point equals 1 percent of the total loan amount. The fee is stated in terms of points. See also Points. |
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| Discrimination In Housing |
| Segregating, separating, excluding, or treating unequally any person because of race, color, religion, national origin, ancestry, or sex in the furnishing of housing or facilities or services related to obtaining or occupying housing. Largely prohibited by federal and state law. |
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| Dispossess |
| To oust or deprive a person of possession and use of real property. |
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| Distressed Property |
| Property that is in poor physical or financial condition. |
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| Document Needs List |
| A list of documents a lender requires when a potential submits a loan application.. The required documents range from paycheck stubs to credit card statements. |
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| Documentary Stamp |
| A revenue stamp for payment of a tax on documents. See Excise Tax on Real Property Transfers. |
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| Domed Ceiling |
| A hemispherical ceiling that projects upward without support. |
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| Domicile |
| The place where a person has their true, fixed, and permanent home and principal establishment, and to which, whenever she/he is absent, she/he has the intention of returning. |
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| Dominant Estate |
| A parcel of land that is benefited by an easement on another parcel of land (the servient estate). |
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| Dormer |
| A window set upright in a sloping roof. |
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| Double-hung Window |
| A window that consists of two sashes that slide up and down. |
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| Dovetail Joints |
| Joints that lock two pieces of wood together with meshed teeth. |
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| Dower |
| A life estate that existed at the common law whereby a widow was entitled to one-third of the lands that her deceased husband was seized of during their marriage. Under the current statute, N.C. Gen. Stat. §29-30, a widow is still entitled to a life estate in one-third in value of the real property owned by the husband during their marriage. |
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| Down Payment |
| The amount of money a buyer agrees to give the seller when a sales agreement is signed. Complete financing is later secured with a lender. |
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| Down Spouts |
| A vertical gutter that empties water from the roof to the ground. |
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| Drainage |
| A system of gutters and drainpipes that carry water away from the foundation of a house. |
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| Draw |
| A payment made to subcontractors or suppliers from a construction loan. |
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| Dropped Ceiling |
| A flat ceiling built lower than the original ceiling. |
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| Dry Rot |
| A fungal decay that causes wood to become brittle and crumble. |
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| Drywall |
| A construction material composed of gypsum or plaster wrapped in paper and produced in large sheets that can be nailed to wall studs. |
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| Dual Agency |
| A relationship in which a real estate agent or broker represents both parties in a transaction. |
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| Dual Agent |
| An agent who represents both buyer and the seller in a transaction. Both parties must be informed of and consent to the dual agency. |
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| Duct |
| Any kind of pipe or channel that carries water, wiring or conditioned air through a house. |
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| Due-on-sale Clause |
| A provision in a mortgage or deed of trust or promissory note stating that the entire balance of the mortgage loan will become due if the borrower transfers the mortgage property without the prior consent of the lender. Also called Alienation clause. |
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| Duplex |
| A single structure designed for two-family occupancy. |
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| Duress |
| The unlawful constraint or threatening of a person, whereby she/he is forced to perform some act, or to sign an instrument against her/his will. |
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| Dutch Colonial Style |
| A design that features barn-like gambrel roof, a ground-level front porch, and dormers. |
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| Early Occupancy |
| The condition in which buyers can occupy the property before the sale is completed. |
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| Earnest Money |
| A sum paid by a prospective purchaser of real estate as evidence of good faith; usually paid to the broker at the time an offer is made. Also called a deposit. |
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| Earthquake Insurance |
| A policy that provides coverage against damage to a home from an earthquake. |
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| Easement |
| A right given to a third party to use a portion of the property for certain purposes, such as power lines or water mains. |
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| Easement By Condemnation |
| An easement created in favor of a government agency or public authority that has exercised the power of eminent domain. |
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| Easement By Dedication |
| An easement, usually for the benefit of the public, that may be created under a number of express and implied circumstances. |
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| Easement By Express Grant Or Reservation |
| An easement that is expressly granted or expressly reserved by the grantor in a deed. |
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| Easement By Implication |
| An easement that is implied from prior circumstances. There is nothing in writing that expressly creates the easement. |
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| Easement By Necessity |
| An easement that is implicitly created when a grantor of property landlocks the grantee. |
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| Easement By Prescription |
| An easement that is created by operation of law because of the long-continued, adverse use by the party claiming the easement. |
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| Easement In Gross |
| A general category of easements that refers to all easements that are for the personal benefit of a specified individual rather than for the benefit of a parcel of land. Distinguish from Appurtenant Easement. |
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| Eaves |
| The projecting overhang at the lower edge of a roof. |
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| Economic Life |
| The period over which an improvement on real property may be profitably utilized or the period over which the improvement will yield a return on the investment in the property. |
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| Economic Obsolescence |
| Impairment of desirability or useful life arising from economic forces, such as changes in optimum land use, legislative enactments that restrict or impair property rights, and changes in supply-demand relationships. |
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| Effective Age |
| In appraisal, the age assigned to a property at a given point in time based on its condition. The effective age may be more or less than the actual age. |
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| Effective Gross Income |
| Additional income that a lender considers when assessing the loan application of a potential borrower. Also, on an operating budget for an income-producing property, the gross (maximum possible) income less projected vacancy and rent collection losses. |
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| Ejectment |
| A form of legal action taken by a landlord to regain the possession of real property. |
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| Electric Service Panel |
| A panel that transfers power from the utility line into a house to be distributed through fuses or circuit breakers. |
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| Electronic Transfer |
| Electronic transfer is the process of having a mortgage payment automatically deducted from a borrower's checking or savings account. Many lenders offer this service. |
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| Elevations |
| The exterior view of a home design that shows the position of the house relative to the grade of the land. |
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| Ell |
| An extension or wing of a house that is at right angles to the main structure. |
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| Emblements |
| Things that grow on the land and require annual planting and cultivation. |
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| Eminent Domain |
| The superior right of property subsisting in every sovereign state to take private property for public use upon the payment of a compensation. This power is often conferred upon public service corporations that perform quasi-public functions, such as providing public utilities or the routing of a public highway. In every case, the owner whose property is taken must be fairly compensated. |
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| Employer-assisted Housing |
| Programs which help employees purchase homes through special plans developed with lenders. |
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| Empty Nesters |
| Potential buyers who have raised their families and want to move into a smaller home. |
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| Encroachment |
| A building, part of a building, or other improvement, such as fences, that intrudes or trespasses upon the property of another. |
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| Encumbrance |
| Any right to, or interest in, land which diminishes the value of the estate although it does not prevent conveyance of the estate by the owner thereof. For instance, mortgages, unpaid taxes, and judgments are encumbrances known as liens. Restrictive covenants restricting the use of lands to certain purposes and easements are encumbrances although they are not liens. |
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| End Loan |
| The conversion from a construction loan to permanent financing a condominium buyer secures after all units in a project have been completed. |
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| Endorsement: Insurance Policy |
| Language in a property insurance policy that adds perils to be covered by insurance. |
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| Endorser |
| A person who signs over ownership of property to another party. |
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| English Tudor Style |
| An architectural design that features stone or brick exterior walls and exposed beams. |
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| Environmental Impact Statement |
| A government-mandated evaluation of all aspects and effects a development will have on the environment of a proposed site. |
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| Environmentally Friendly Home Construction |
| A method of construction that utilizes recycled materials. |
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| Equal Credit Opportunity Act |
| The federal law that prohibits lenders or other creditors from discriminating in the extension of credit on the basis of age, race, color, religion, national origin, sex, or marital status, or because the applicant receives public assistance. |
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| Equifax |
| Equifax Credit Information Services, Inc., is one of the Big Three credit-reporting bureaus that operate nationwide. Address: P.O. Box 740249, Atlanta, GA 30374. URL: http://www.equifax.com. Phone: (800) 685-1111 |
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| Equitable Conversion |
| An equitable doctrine stating that, as soon as a valid sales contract has been entered into by a seller and buyer, the buyer is treated as having equitable title to the land (and therefore owner of the land for certain purposes), and the seller as having bare legal title with her/his main interest being the payment of the purchase money by the buyer. |
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| Equitable Title |
| The interest in real property that is held by (a) the grantor (borrower) under a deed of trust, (b) the buyer under a valid interim real estate sales contract pending closing, and (c) the buyer under an installment land contract. See also Equitable Conversion. Distinguish from Legal Title. (Note: The owner of real estate that is not encumbered by a deed of trust and is not the subject of a real estate sales contract holds both legal and equitable title to her/his property.) |
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| Equity |
| (a) The financial interest or value an owner has in real estate over and above the debts against it; simply put, a determination of the value of a property after existing liens are deducted. (b) A system of jurisprudence or a body of doctrines and rules developed in England and followed in the United States, serving to supplement and remedy the limitations and the inflexibility of the common law. |
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| Equity Of Redemption |
| The right of an original owner who has mortgaged her/his property by mortgage or deed of trust to reclaim and recover her/his title to real property, even after the mortgage debt is past due, by paying to the obligee the principal of the debt, accrued interest, and costs incurred up to the time of redemption. Also called Right of Redemption. See also Statutory Redemption Period. |
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| Erosion |
| The wearing away of land through natural causes, such as running water or winds. |
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| Errors And Omissions Insurance |
| A policy that pays for any mistakes a builder or architect makes in a project. |
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| Escheat |
| The reverting of property to the state when there are no persons legally entitled to hold title or when heirs capable of inheriting the property are lacking. |
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| Escrow |
| An arrangement by which one deposits a thing of value with a neutral third person (called an escrow agent) who will make delivery to another person when specified conditions are fulfilled. For instance, a contract, deed, bond, or other written instrument may be deposited with a third person, by whom it is to be delivered to the grantee or promisee upon the performance of some act. Also refers to a special account that a lender uses to hold a borrower's monthly payments on property taxes and insurance. |
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| Escrow Account |
| (a) With regard to real estate brokerage, a special demand account maintained by a broker at an insured bank or savings and loan association for the purpose of holding trust funds on behalf of her/his principal or other parties to a transaction (see also Trust Account); (b) With regard to mortgage lending, a special account maintained by the lender to cover the payment of property taxes and insurance on the mortgaged property. Also known as an impound account. |
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| Escrow Agent |
| A neutral third party who ensures that all conditions of a real estate transaction are met. |
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| Escrow Analysis |
| A lender's periodic examination of an escrow account to determine if the lender is withholding enough funds from a borrower's monthly mortgage payment to pay for expenses such as property taxes and insurance. |
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| Escrow Closing |
| Escrow closes when all conditions of a real estate transaction are met and the title of the property is transferred to the buyer. |
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| Escrow Company |
| Firms that act as neutral third parties to ensure that all conditions that the buyer, seller and lender establish in a real estate transaction are met. |
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| Escrow Payment |
| Funds that a mortgage servicer withdraws from a borrower's escrow account to pay property taxes and insurance. |
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| Estate |
| The total assets of a person, including real property, at the time of death. An estate in real property is either a freehold or a nonfreehold estate. |
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| Estate At Sufferance |
| A less than freehold (nonfreehold) estate created when a tenant who has lawful possession of a property holds over without the consent of the owner; the lowest estate in property. Also called a tenancy at sufferance. |
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| Estate At Will |
| A less than freehold (nonfreehold) estate created when a tenant occupies land with the consent of the owner, but without any agreement for a definite rental period or for the regular payment of rent. Also called a tenancy at will. estate for life |
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| Estate For Years |
| A less than freehold (nonfreehold) estate created by the leasing of property for any fixed, definite period of time, whether such period be one week, one month, one year, ten years, or any other definite period of time. Also called a tenancy for years. |
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| Estate From Year To Year |
| A less than freehold (nonfreehold) estate created by the leasing of property for an indefinite period of time. Such estates, which are also called estates from period to period or periodic tenancies, maybe from year to year, month to month, week to week, etc., depending on the period of time for which rent is regularly paid. Such an estate may also be created when a tenant for years holds over and pays rent for an additional term and the rent is accepted by the lessor-owner. |
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| Estovers |
| The right of a tenant to take wood from the landlord's property to use as fuel or to make necessary property repairs. |
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| Et Ux |
| Abbreviation for et uxor, meaning and wife. |
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| Ethics |
| The principles of conduct established for its members by a profession or professional organization. |
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| Eviction |
| The process instituted to oust a person from possession of real estate. Also the ousting or deprivation of one from the possession of lands or tenements. See also Constructive Eviction. |
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| Examination Of Title |
| An inspection by a title company of public records and other documents to determine the chain of ownership of a property. |
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| Excavation |
| The process of clearing trees, removing topsoil and grading land before the foundation is laid. |
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| Excise Tax On Real Property Transfers |
| A tax imposed on the transfer of real property. The present tax rate is fifty cents for each $500 of consideration or part thereof paid for the real estate, but assumptions of existing loans do not count as new consideration for purposes of computing the tax. Also called revenue stamps. |
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| Exclusion Insurance Policy |
| Language in a property insurance policy that eliminates certain perils or fact situations from coverage under the policy. exclusive |
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| Exclusive Right To Sell Listing Contract |
| A contract between property owner and broker giving the broker the exclusive right to sell the property for a designated period of time. In such a contract, the owner binds himself /herself to pay a full commission to the broker even though the owner, herself/himself, sells the property. The broker has not only an exclusive agency to sell the property, but he/she also has an exclusive right to sell, which gives the broker a right to collect her/his commission no matter who sells the property during the term of his/her agreement. |
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| Execute |
| (a) To perform or carry out a contract; (b) To sign an instrument such as contract or deed. |
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| Executed Contract |
| A contract that has been fully performed by the parties. (Distinguish from executory contract.) |
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| Execution |
| A judicial writ or process issued by the court to the sheriff directing him/her to sell property to satisfy a judgment debt. |
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| Executor |
| A person appointed to carry out the instructions in a will. If there is no will, a probate court will appoint an executor. |
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| Executor's Deed |
| A deed given by a deceased person's executor. |
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| Executory Contract |
| A contract that has not yet been fully performed by the parties. |
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| Executrix |
| A woman appointed by the maker of a will to carry out the execution of the terms of the will. |
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| Exhaust Fan |
| Ventilating devices that remove water vapor, undesired smells or smoke. |
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| Experian |
| Experian, formerly known as TRW Information Systems & Services, is one of the Big Three credit-reporting bureaus.. Address: 505 City Parkway West, Orange, CA 92868. Phone: (800) 392-1122 |
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| Express Easement |
| See Easement by Express Grant or Reservation. |
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| Extender Clause |
| See Override Clause. |
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| Façade |
| The part of a building facing the street or a courtyard. |
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| Fair Credit Billing Act |
| A federal law that governs credit and charge card billing errors. If a credit or charge card company violates any provision, consumers can sue to recover damages. |
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| Fair Credit Reporting Act |
| A federal law designed to prevent old or inaccurate information from staying in consumer credit files, and regulate procedures. Credit bureaus must show you your credit file if you present proper ID, although the bureau may charge a fee. |
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| Fair Debt Collection Practices Act |
| A federal law which outlaws debtor harassment, and regulates collection agencies, original creditors' collection offices (if separate), and creditors' lawyers. The original creditor (that granted credit) may be covered by state law. |
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| Fair Housing Act Of 1968 |
| A federal law prohibiting discrimination on the basis of race, color, religion, sex, or national origin with respect to all significant aspects of the sale or rental of housing, the financing of housing and other related activities. The 1988 amendment expanded the protections to include family status and disability. See also State Fair Housing Act. |
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| Fannie Mae |
| The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market. |
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| Farmers Home Administration (FMHA) |
| An agency of the federal government (U.S. Department of Agriculture) which provides low-interest loans and other services to farmers and other eligible people who are unable to obtain credit from traditional sources. |
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| Fascia |
| A board that connects the ends of the roof rafters and provides a surface to support gutters. |
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| Federal Deposit Insurance Corporation (FDLC) |
| The independent federal agency that insures the deposits of eligible commercial banks. |
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| Federal Home Loan Bank System |
| The federal agency that regulates many of the activities of federally chartered (and some state-chartered) savings and loan associations, primarily through control of the reserve requirements of these institutions. |
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| Federal Home Loan Mortgage Corporation (FHLMC Or Freddie Mac) |
| The company buys conventional mortgages from lending institutions (primarily from savings and loan associations) on the secondary mortgage market, pools them with other loans and then sells shares to investors. |
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| Federal Home Loan Mortgage Disclosure Act (HMDA) |
| A law that assists the federal government in enforcing the requirement that lending institutions not discriminate against minorities by redlining or similar practices. The Act requires lenders to prepare certain information about their loan practices and make that information available for public inspection. |
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| Federal Housing Administration (FHA) |
| An agency of the federal government, operating under the Department of Housing and Urban Development (HUD), that insures mortgage loans made by lenders to certain qualified borrowers. Its most popular is the Sec. 203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent. |
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| Federal National Mortgage Association (FNMA Or Fannie Mae) |
| A quasi-governmental corporation subject to the regulatory authority of HUD that plays an important role in the secondary mortgage market by purchasing mortgage notes from primary lenders. |
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| Federal Reserve Board |
| A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates. |
| |
| Federal Reserve System |
| Commonly referred to as the Fed, the nation's central banking system that, through various actions taken by its governing board, regulates the money supply and interest rates. |
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| Federal Savings And Loan Insurance Corporation (FSLIC) |
| The federal agency that insures the deposits of federally-chartered (and some state-chartered) savings and loan associations. |
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| Federal Style |
| The all-American home architecture style that evolved after the Revolutionary War. Details include bigger windows and a front doorway surrounded by glass and topped with an arched window. |
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| Federal Tax Lien |
| A lien against the property of a taxpayer who is delinquent in the payment of federal income taxes. The tax lien becomes effective when filed in the office of the Clerk of Superior Court in the county in which the property subject to it is located. |
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| Federal Trade Commission |
| The government agency that regulates companies and industries, from credit bureaus and collection agencies to timeshare operators and some creditors. National headquarters: Sixth and Pennsylvania Avenue NW, Washington, D.C. 20580. Phone: (202) 326-2222. |
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| Fee |
| When applied to real property, an inheritable estate in the property. |
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| Fee Simple |
| This type of ownership is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws. |
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| Fee Simple Absolute |
| The highest quality of estate that a person can have in real property. It is of a potentially infinite duration and is transferable, devisable, and inheritable. |
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| Fee Simple Defeasible |
| The owner of the property holds a fee simple title contingent upon certain conditions. |
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| Fee Simple Determinable |
| A fee estate in land that is of potentially infinite duration but that might terminate prematurely and automatically if a condition attached to the estate is breached. fee simple on a condition |
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| Fee Simple On A Condition Subsequent |
| A fee estate in land that is of potentially infinite duration but that might terminate prematurely if a condition attached to the estate is breached. The chief distinction between this estate and the fee simple determinable is that forfeiture of the fee simple on a condition subsequent is not automatic if the condition is breached; i.e., the party who imposed the condition on the estate must step forward and enforce it. |
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| Fee Tail |
| This is an obsolete fee estate that is created by the language to A and the heirs of his/her body. |
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| Feng Shui |
| An ancient Chinese belief that the physical characteristics of a house and the positioning of the home will affect the fortunes of the owner. |
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| FHA Loans |
| Mortgages that are insured by the Federal Housing Administration (FHA). The FHA provides low-rate mortgages to buyers who make a down payment as small as 3 percent, and operates loan plans for investors and purchasers of rural property. |
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| Fiduciary |
| A Person to whom property is entrusted; a trustee who holds, controls or manages for another. |
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| Fiduciary Duty |
| The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships. |
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| Field Changes |
| Modifications made on the construction site that do not match blueprints. |
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| Fill Dirt |
| Soil brought in to solidify a finished foundation. |
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| Filled Land |
| An area where the ground has been raised by adding dirt, gravel or other fill material. |
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| Financing Statement |
| The form used for filing to give notice of a security interest in personal property under the Uniform Commercial Code. |
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| Finder's Fee |
| A fee in any amount that is paid to someone. |
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| Finish Grade |
| A finish that prepares a lot for landscaping. |
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| Fire Wall |
| A buffer composed of fire-resistant material. |
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| Firm Commitment |
| A promise made by a lender when it agrees to loan money for the purchase of property. |
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| FIRPTA |
| Foreign Investment in Real Property Tax Act of 1980. |
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| First American Credco |
| First American Credco, Inc., provides a merged credit report from the Big Three credit-reporting companies (Equifax, Experian and Trans Union Corp) for $30.95. Phone: (800) 443-9342 |
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| First Mortgage |
| A mortgage that has priority as a lien over all other mortgages (or deeds of trust), which are second or junior mortgages. first right of refusal |
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| Fixed Installment |
| The monthly payment on a home loan. |
| |
| Fixed Rate-level Payment Mortgage |
| A mortgage with a fixed interest rate and a constant monthly payment the entire loan term. |
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| Fixed Rental Lease |
| A lease calling for payment of a fixed amount of rent at regular intervals during the term of the lease. Also called a flat lease. |
| |
| Fixed Time |
| The specific weeks in a year an owner of a timeshare arrangement has access to accommodations. |
| |
| Fixed-rate Mortgage |
| A home loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates. |
| |
| Fixer-upper |
| A house that needs refurbishment or remodeling It usually sells at a below-market price. |
| |
| Fixture |
| An item of personal property, a chattel, affixed to a building or structure on land in such a manner that it becomes a part of the building, structure, or real estate to which it is affixed and annexed. Fixtures, such as drapery rods, toilets, built-in bookcases or a furnace, affixed to real estate become appurtenances of the real estate to which they are affixed and subject to the legal rules that apply to real estate, rather than the legal rules that apply to personal property. This means that a fixture automatically passes with the real estate unless the contract to convey provides otherwise. |
| |
| Flashing |
| Metal strips placed around chimneys, skylights, vents, windows, doors, beneath shingles and along seams in the roof to prevent water seepage. |
| |
| Flat Fee |
| A set fee charged by a broker instead of a commission. |
| |
| Flat Fee Listing |
| A brokerage fee arrangement in a listing contract whereby the broker is to receive a fixed sum upon sale of the property. The fee is not a percentage of the ultimate sales price and may not even be tied to whether or not the broker is successful in selling the listed property. |
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| Flat Lease |
| See Fixed Rental Lease. |
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| Flat Roof |
| A roof with a level surface. |
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| Float Floor Drain |
| A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump. |
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| Floating Wall |
| Walls built to withstand movement in the basement floor. |
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| Flood Insurance |
| Hazard coverage that is required in designated flood areas. |
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| Flood Plain |
| A flat area of land near a river or other body of water that is subject to periodic flooding and typically has its use restricted by zoning. |
| |
| Floor Area Ratio |
| The calculation of the floor area of all homes or buildings in a project. It is used in the planning and development of a site. |
| |
| Florida Rooms |
| Enclosed porches built on the side or back of a home. |
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| Footings |
| Concrete foundations that support a structure. |
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| For Sale By Owner (FSBO) |
| The seller acts as the selling agent and handles the sales process directly with the buyer or buyer's agent. In this situation, the seller does not pay a listing commission. |
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| Forbearance |
| A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower. |
| |
| Foreclosure |
| A legal remedy to enforce security rights in land under a mortgage or deed of trust. The lender or creditor may bring an action in court to foreclose a mortgage or deed of trust to compel a public sale of the property involved and application of the proceeds to payment of the debt secured. In addition, most mortgages and deeds of trust provide that the secured lender or creditor can compel a foreclosure under a power of sale given-to the mortgagee or trustee (in a deed of trust) upon default in payment of the indebtedness without the necessity of a court action. A valid foreclosure terminates the debtor-mortgagor's interest in the secured property and the proceeds of the foreclosure sale are applied to payment of his indebtedness. |
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| Forfeiture |
| A loss of anything of value due to failure to perform, such as by a delinquent borrower, under a lease or contract for the sale of property where such is provided for in the lease or contract. |
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| Foundation |
| The support structure of a house. |
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| Foyer |
| The entrance hall to a home or building. |
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| Framing |
| The construction of the skeletal framework of a house. |
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| Fraud |
| Fraud covers a multitude of intentional and deceitful acts committed by one party to take unfair advantage of another. Traditional elements of fraud are: a false representation as to a material fact, made with knowledge of its falsity, made with an intent to deceive, and resulting in action by the victim in justifiable reliance on the misrepresentation. |
| |
| Fraudulent Misrepresentation |
| With regard to real estate sales, the intentional misrepresentation of a material fact by a seller or his real estate agent to induce the purchase of property. The purchaser under these circumstances will be entitled to certain remedies including damages. See also Fraud. |
| |
| Freddie Mac |
| The common name for the Federal Home Loan Mortgage Corporation, a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market. |
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| Free-market Lots |
| Owners of these types of lots may hire any builder to construct their home. |
| |
| Freehold |
| An interest (estate) in real estate of not less than a life estate; either a fee simple estate or a life estate. |
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| French Doors |
| Two adjoining doors inlaid with glass that open from the middle. |
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| Front Footage |
| A property measurement for sale or valuation purposes consisting of the number of feet of street or road frontage. |
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| Front-end Ratio |
| A front-end ratio is a lender calculation that compares a borrower's monthly housing expense (principal, interest, taxes and insurance) to gross monthly income. |
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| Frontage |
| The portion of property that borders a roadway or body of water. |
| |
| Fructus Industriales |
| Crops or vegetable products that are the result of annual labor and cultivation and treated as personal property for certain purposes. |
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| Fructus Naturales |
| Plant life that is the natural and spontaneous growth of nature requiring no annual planting or cultivation and that is treated as real property as long as it remains unsevered. |
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| FSBO (for Sale By Owner) |
| The owner acts as the agent to avoid paying a sales commission. |
| |
| Full Performance |
| In contract law, the complete performance of the contract terms by each party. See also Executed contract. |
| |
| Full-service Lease |
| A type of lease, commonly used with multi-tenant commercial property, where the leasees share overall operating expenses for the building and common areas. |
| |
| Fully Amortized Adjustable-rate Mortgage |
| A mortgage that amortizes, or pays down, the balance of a loan. |
| |
| Functional Obsolescence |
| An impairment of desirability of a property arising from its being out-of-date with respect to design and style, capacity and utility in relation to site, lack of modern facilities or the like. |
| |
| Furnace |
| An enclosed heating device powered by coal, oil, propane or natural gas. |
| |
| Fuse |
| A device that allows power to be channeled into a home. |
| |
| Future Estate (or Future Interest) |
| An interest in land entitling its owner to possession of the land at a future date, as, for example, the interest that a remainderman holds during the life of a present life tenant. |
| |
|
| G.l. Loan |
| A loan guaranteed by the Veterans Administration under the Servicemen Readjustment Act of 1944, as amended. Only honorably discharged veterans and their widows are eligible. See also VA mortgage loan. |
| |
| Gable |
| A triangular wall enclosed by the sloping ends of a ridged roof or a triangular decorative feature. |
| |
| Gable Roof |
| A ridged roof that forms a triangle at each end. |
| |
| Gag Rules |
| A provision in contracts signed by new buyers that prohibits the owners from publicizing complaints about the builder. |
| |
| Gambrel Roof |
| A roof with two slopes, often seen on barns. |
| |
| General Agent |
| An agent who is authorized by his/her principal to perform a broad range of acts, usually all acts necessary in connection with a particular business or venture. |
| |
| General Contractor |
| The contractor in general control and supervision of the subcontractors in a construction project. The person who hires all of the subcontractors and suppliers for a project. Also called the Prime Contractor. |
| |
| General Lien |
| A lien that attaches to any real or personal property owned by a person in the county in which the lien is filed. A properly filed judgment lien, for example, is a lien against all property owned by the debtor in the county in which the lien is filed. Compare Specific Lien. |
| |
| General Plan |
| A government's long-range land-use plan. |
| |
| General Warranty Deed |
| A deed whereby the grantor agrees to protect the grantee against the valid claims of all persons whomsoever with respect to the land granted. |
| |
| Geodesic Dome |
| A structure constructed of lightweight bars forming a grid of polygons. |
| |
| Georgian Style |
| Popular throughout the 18th century, this type of architecture is distinguished by a symmetrical facade, prominent front entrance and quoins-decorative blocks of masonry or wood set in the corners of the house. |
| |
| Gift |
| A cash gift a buyer receives from a relative or other source. Lenders usually require a gift letter stating that the money will not have to be repaid. |
| |
| Gift Deed |
| See Deed of Gift. |
| |
| Gingerbread Decoration |
| An intricate, almost lacy, wood trim. |
| |
| Girders |
| Crossbeams that support floor joists. |
| |
| Good Faith |
| The absence of bad faith or evil intent. An intention to deal honestly. Even though good faith is exercised by a real estate agent, the agent may nonetheless be liable for negligent misrepresentation or nondisclosure (omission). |
| |
| Good Faith Estimates Disclosure |
| A document provided by the lender to a borrower under RESPA at the time of the loan application or within three days thereafter containing good faith estimates of closing service charges likely to be incurred by the borrower. |
| |
| Good-faith Estimate |
| An estimate from an institutional lender that shows the costs a borrower will incur, including loan-processing charges and inspection fees. |
| |
| Government National Mortgage Association (GNMA Or GINNIE MAE) |
| A government organization under the jurisdiction of HUD that plays an important role in the secondary mortgage market by attracting capital into the real estate finance market through the sale of securities backed by pools of mortgages, the timely payment of which are guaranteed by GNMA. Unlike similar agencies Fannie Mae and Freddie Mac, Ginnie Mae only purchases loans backed by the federal government. |
| |
| Government Survey System |
| Also known as the Rectangular Survey System, this system of land description is used extensively in midwestern and western states. |
| |
| GPM (graduated-payment Mortgage) |
| A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed. |
| |
| Grace Period |
| A specified amount of time to make a loan payment after its due date without penalty. |
| |
| Grade |
| The elevation of land above level ground. |
| |
| Grade Level |
| The flat or sloping surface upon which a house is built. |
| |
| Graduate Real Estate Institute (GRI) |
| A designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for residential real estate sales. |
| |
| Graduated Lease |
| A lease calling for systematic increases in rental at regular intervals over the lease term. |
| |
| Graduated-payment Mortgage (GPM) |
| A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed. |
| |
| Granny Flat |
| Slang term for a separate unit in a house or above the garage, which in the past may have been occupied by an elderly relative. |
| |
| Grant |
| A generic term applicable to all transfers of real property; a technical term used in deeds of conveyance of lands to import a transfer. |
| |
| Grantee |
| A person to whom real estate is conveyed; the buyer of real estate. |
| |
| Grantor |
| A person who conveys real estate by deed; the seller of real estate. Also, the person who conveys legal title to a trustee under a deed of trust; the owner of property subject to a deed of trust. |
| |
| Greek Revival Style |
| A style introduced in the U.S. at the end of the 18th Century. Its most prominent feature is a pillar-anchored pediment forming a portico in the front of the house. |
| |
| Greenbelt |
| Any stretch of park, open space or other natural setting in a community. |
| |
| Gross Income |
| The total income from property before any expenses are deducted. |
| |
| Gross Lease |
| A lease of property whereby the lessor is to pay all property charges regularly incurred through ownership. |
| |
| Gross Rent Multiplier |
| A figure, used in connection with the income approach method of appraisal, which represents the relationship between gross rental income and value derived by dividing value (represented by sale price) by monthly or annual gross rental income. |
| |
| Ground Fault Circuit Interrupter |
| Devices that detect leakage of electrical current to the ground and prevent accidental shock. |
| |
| Ground Lease |
| A lease of land only that involves the separation of ownership of the land from ownership of the buildings and improvements on the land. |
| |
| Ground Rent |
| The amount of money paid for the use of a piece of property when it is a leasehold estate; that portion of the total rental paid that is considered to represent a return upon the land only. |
| |
| Group Home |
| A single-family residence used as a living space for unrelated, developmentally disabled or mentally disabled people. |
| |
| Growing-equity Mortgage |
| A fixed rate mortgage that increases payments over a specific period of time. The extra funds are applied to the principal. |
| |
| Guarantee Mortgage |
| A loan guaranteed by a third party, such as a government institution. |
| |
| Gutters |
| Horizontal channels installed at the edge of a roof to carry rainwater or melted snow away from the house. |
| |
|
| Habendum Clause |
| The To Have and To Hold clause in a deed that defines or limits the quantity of the estate granted. habitability |
| |
| Half-bath |
| Also called a powder room, a half-bath contains a toilet and a sink but no bathtub or shower stall. |
| |
| Hazrad Insurance |
| This provision of homeowners insurance covers specified perils that might physically damage property such as damage by fire, wind or other disaster. It is required by all lenders before a loan is approved. |
| |
| Header |
| Crossbeams above windows and doors. |
| |
| Heat Pump |
| An electric cooling and heating system. |
| |
| Hectare |
| The equivalent of 2.471 acres. |
| |
| Heirs |
| The persons who inherit property of a decedent owner who dies without a valid will. |
| |
| Hereditaments |
| Every sort of inheritable interest in property, tangible (corporeal) and intangible (incorporeal). Used generally in connection with real property, meaning land and all of its incidents and appurtenances. |
| |
| High Density |
| The concentration of housing units in a specific area or on a specific property. |
| |
| High-rise |
| Any building higher than six stories. |
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| Highest And Best Use |
| That use of a property which will, as of the date of appraisal, support the highest present value for such property; also, that use which will produce the maximum net return on the property over the period encompassing the foreseeable useful life of the property, or a given period of time; also, the optimum use of a property. |
| |
| Hip Roof |
| A pitched roof with sloping sides. |
| |
| Historic Preservation |
| The physical rehabilitation of a historic home or building, and the movement of the same name begun in the 1960s in the U.S. to preserve and protect landmarks and urban neighborhoods. |
| |
| Historic Preservation Zoning |
| Zoning for the purpose of preserving the historic character of buildings and neighborhoods. |
| |
| Historic Structure |
| A home or building listed in the National Register of Historic Places and certified as historic by the U.S. Secretary of the Interior. |
| |
| Holding Period |
| The period for which a party owns a property. In order for a party to be eligible for long-term capital gains treatment of profits on the sale of real property, the property must be held for at least six months under current requirements. |
| |
| Holdover Tenant |
| A tenant who remains in possession of leased property after the expiration date of the lease term. |
| |
| Home Equity Conversion Mortgage |
| Loans made to older owners who want to convert equity into money. Because borrowers are qualified on the basis of the value of their home, the loan is not the same as a home equity loan. Also known as reverse mortgages. |
| |
| Home Equity Loan |
| A loan that allows owners to borrow against the equity in their homes. |
| |
| Home Inspection |
| An examination of a home's construction, condition and internal systems by an inspector or contractor prior to purchase. |
| |
| Home Rule |
| The power of a local government to adopt its own land-use regulations. |
| |
| Home Warranty |
| A type of insurance that covers repairs to certain parts of a house and some fixtures. |
| |
| Homeowner's Insurance Policy |
| A package policy of insurance designed to insure a homeowner's buildings against a number of perils including fire, lightning, windstorm, hail, etc., and the homeowner against liability claims and theft coverage. |
| |
| Homeowners' Association |
| A group that governs a subdivision or planned community. The association collects monthly fees from all owners to pay for common area maintenance, handle legal and safety issues, and enforce the covenants, conditions and restrictions set by the developer. |
| |
| Homeowners' Warranty |
| Special insurance policies that cover certain home repairs for a specified amount of time. |
| |
| Homestead |
| Real property owned by a person under special legal restrictions and exemptions from claims of his/hers creditors under the Constitution. |
| |
| Hopper Window |
| A window that contains a single sash that tilts inward. |
| |
| Hose Bibb |
| A threaded faucet connection for devices such as a washing machine. |
| |
| House Wrap |
| A polyethylene barrier wrapped around a house to save energy. |
| |
| Housing Discrimination |
| The illegal practice of denying an individual or group the right to buy or rent a home based on race, color, religion, national origin, sex, disability or family status. |
| |
| Housing Expense Ratio |
| The percentage of gross monthly income devoted to housing costs. |
| |
| HUD |
| The U.S. Department of Housing and Urban Development. A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs. |
| |
| HUD-I Form |
| See Uniform Settlement Statement. |
| |
| HUD-I Uniform Settlement Statement |
| A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing. |
| |
|
| Illegal Contract |
| A contract that is unenforceable because it violates the law. |
| |
| Illusory Offer |
| Under the law of contracts, an illusory offer is a statement that looks like an offer to purchase but that is so conditioned and worded that the person making it has really made no legally binding promise at all. |
| |
| Impact Fees |
| Fees collected from developers of new homes to pay for schools, parks and other facilities. |
| |
| Implied Contract |
| A contract that is implied from the conduct of the parties. It is not the result of an express agreement between the parties. |
| |
| Implied Easement |
| An easement created by implication by operation of law as a result of the circumstances of a conveyance. For example, a grantor who landlocks a grantee has created an implied easement known as an easement of necessity. |
| |
| Implied Warranty Of Habitability |
| A theory of landlord and tenant law holding that a landlord renting or leasing residential property implicitly warrants to the tenant that the property is habitable and fit for the use intended. See Fit Premises and Residential Rental Agreements Act. |
| |
| Implied Warranty Or Covenant |
| A guaranty or assurance the law supplies in an agreement, even though the agreement, itself, does not express the guaranty or assurance. |
| |
| Impossibility Of Performance |
| In contract law, the defense of impossibility of performance will excuse a party to a contract from performing in some instances. The defense must be in the nature of the thing to be done and not the inability of the promisor to do it. |
| |
| Impounds |
| A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance. |
| |
| Improvements On Land |
| Structures, of whatever nature, usually privately rather than publicly owned, erected on a site to enable its utilization, e.g., buildings, fences, driveways, retaining walls, etc. |
| |
| Improvements To Land |
| Usually relates to publicly owned structures, such as curbs, sidewalks, street lighting systems, and sewers, constructed so as to enable the development of privately owned land for utilization. |
| |
| In-file Credit Report |
| Computer-generated reports drawn from credit repositories that are generally regarded as objective histories. |
| |
| Income |
| A stream of benefits generally measured in terms of money derived from labor business, property, or capital. |
| |
| Income Approach |
| An appraisal method or procedure used to estimate the value, usually the market value, of property based on the amount of net income the property is expected to produce over its remaining economic life. See Capitalization. |
| |
| Income Property |
| Property that is not occupied by the owner but is used to generate income. |
| |
| Incurable Defect |
| A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property. |
| |
| Indenture |
| A formal, written instrument made between two or more persons in different interests. The word comes from indenting or cutting the deed on the top or side in a wavy line. |
| |
| Index |
| The index is the measure of interest rate changes that the lender uses to decide how much the interest rate on an ARM will change over time. No one can be sure when an index rate will go up or down. Some index rates tend to be higher than others, and some more volatile. (But if a lender bases interest rate adjustments on the average value of an index over time, your interest rate would not be as volatile.) You should ask your lender how the index for any ARM you are considering has changed in recent years, and where it is reported. |
| |
| Index Lease |
| A lease calling for periodic increases or decreases in rent based upon some reliable government or private index or standard. |
| |
| Index, Grantor, Grantee |
| An indexing system used in Register of Deeds offices whereby records of documents affecting title to land are listed in both the grantor's and grantee's name. |
| |
| Individual Retirement Account |
| Tax-deferred savings accounts that allow people to accrue retirement funds. |
| |
| Infill Development |
| Any significant new construction in an established area. |
| |
| Infill Housing |
| Home construction in established areas. |
| |
| Inflation |
| This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears. |
| |
| Informal Reference |
| The description of real property in an informal but adequate enough way so as to identify a parcel of land. Use of a street address, for example, is an example of an informal reference. |
| |
| Infrastructure |
| The roads, schools, parks, utilities, bridges and communications systems in a community. |
| |
| Initial Interest Rate |
| The original interest rate on an adjustable mortgage. |
| |
| Injunction |
| A writ or court order to restrain one or more parties to a suit from doing an inequitable or unjust act in regard to the rights of some other party in the suit or proceeding. |
| |
| Innocent Misrepresentation |
| A representation made by one believing it to be true although it is in fact untrue. While an innocent misrepresentation is not fraud, it is not necessarily harmless, and it can constitute negligent misrepresentation or, in some cases, willful misrepresentation, or, in some cases, willful misrepresentation especially if made by a real estate agent. |
| |
| Inspection Report |
| An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior. |
| |
| Installment Contract |
| A purchase agreement in which the buyer does not receive title to the property until all installments are paid. |
| |
| Installment Land Contract |
| The sale of real estate by the seller on the installment method with the vendee given possession and with the vendor retaining legal title until all payments have been made or until some other agreed upon time. Sometimes called a Contract for Deed. |
| |
| Insulation |
| Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss. |
| |
| Insurable Interest |
| A requirement in insurance law that the insured party have a legitimate financial interest in the subject of the insurance. |
| |
| Insurable Title |
| Title to property that a company agrees to insure against defects and disputes. |
| |
| Insurance |
| Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses. |
| |
| Insurance Binder |
| A temporary insurance arrangement usually put in force until a permanent policy can be obtained. |
| |
| Interest |
| The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan. |
| |
| Interest Accrual Rate |
| The rate at which interest accrues on a mortgage. |
| |
| Interest Rate |
| The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax- deductible. |
| |
| Interest Rate Buy-down Plans |
| For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation. |
| |
| Interest Rate Caps |
| A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period. |
| |
| Interest Rate Ceiling |
| The highest interest a lender can charge for an adjustable-rate mortgage. |
| |
| Interest-only Loan |
| The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment. |
| |
| Interstate Land Sales Full Disclosure Act |
| An act that closely regulates the sale of certain subdivision lots in interstate commerce. |
| |
| Interval Ownership |
| See Time Share. intestate |
| |
| Investment Property |
| Real estate that generates income, such as an apartment building or a rental house. |
| |
| Investment Real Estate |
| For income tax purposes, real estate that is used in a business or held for income-producing purposes. |
| |
|
| Jalousie Window |
| A window that consists of vertical rows of horizontal glass slats that operate together by a crank mechanism that connects all the slats. |
| |
| Joint Liability |
| The responsibility of two or more people to fulfill the terms of a home loan or debt. |
| |
| Joint Tenancy |
| Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners. |
| |
| Joist |
| A floor or ceiling support member supported by foundation walls, piers or beams. Subflooring is connected to floor joists. |
| |
| Judgment |
| The decision or sentence of a court of law as the result of proceedings instituted therein for the redress of an injury. If a court decides that a person must repay a debt, a lien may be placed against that person's property. |
| |
| Judgment Creditor |
| One who has obtained a judgment against his/her debtor. The judgment creditor can enforce his/her judgment by execution. |
| |
| Judgment Debtor |
| One against whom a judgment has been obtained. |
| |
| Judgment Lien |
| A general lien on all property owned or subsequently acquired by the judgment debtor in the county where the lien is filed (docketed). The lien lasts for ten years after docketing. |
| |
| Judicial Foreclosure |
| A procedure to handle foreclosure proceedings as civil matters. |
| |
| Jumbo Loan |
| Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit for a single family unit in the continental US is $240,000. |
| |
| Junior Mortgage |
| A mortgage lower in lien priority than a previous mortgage. A loan that is subordinate to the primary loan. |
| |
| Jurisdiction |
| The authority by which judicial officers take cognizance and decide causes. |
| |
|
| Kit Home |
| A structure that contains prefabricated components and is put together by a contractor. |
| |
| Knee Wall |
| A wall-like structure that supports roof rafters. |
| |
| Knob-and-tube Wiring |
| An old-fashioned wiring system that has been replaced by fuses and circuit breakers. |
| |
|
| Laches |
| Delay or negligence in asserting one's rights. |
| |
| Lanai |
| A lanai is a porch-like room or open-sided living room commonly found in homes in warm climates. |
| |
| Land |
| In a legal sense, the solid part of the surface of the earth, as distinguished from water; any ground, soil, or earth whatsoever, regarded as the subject of ownership; everything annexed to it, whether by nature (e.g., trees), or-by humans (e.g., buildings, fences, etc.); and everything on or in it, such as minerals and running water. |
| |
| Land Contract |
| See Installment Land Contract. Land-use controls |
| |
| Landlord |
| One who rents or leases real estate to others; the lessor. |
| |
| Landscape |
| A home's surroundings can range from a shrub-studded emerald lawn to a native-plant xeriscape. It is a major component of curb appeal. |
| |
| Landscape Architect |
| A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning. |
| |
| Landscape Contractor |
| A professional who carries out the plans of a landscape architect or a landscape designer. |
| |
| Landscape Designer |
| A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree. |
| |
| Late Charge |
| A fee a lender imposes on a borrower when the borrower does not make a payment on time. |
| |
| Late Payment |
| A payment a lender receives after the due date has passed. |
| |
| Latent Ambiguity |
| A condition that exists in a description of real property in a deed or contract that is insufficient in itself to identify a parcel of property, but that provides a reference to outside facts by which the land involved might be identified. Compare Patent Ambiguity. latent defect |
| |
| Lead |
| A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk. |
| |
| Lease |
| A type of contract, written or oral, between the owner of real estate—the landlord, and another person—the tenant, covering the conditions upon which the tenant may possess, occupy and use the real estate. |
| |
| Lease Option |
| A lease that contains the right to purchase the property for a specific price within a certain time frame. |
| |
| Leased Fee |
| The interest of a lessor in leased property that the lessor owns in fee. |
| |
| Leasehold |
| The interest (estate) a lessee has in real estate by virtue of her/his lease. Also called a nonfreehold estate. |
| |
| Leasehold Estate |
| An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease. |
| |
| Legal Blemish |
| Blemishes on a piece of property, such as a zoning violation or fraudulent title claim. |
| |
| Legal Description |
| A statement containing a designation by which land can be identified sufficiently to meet the requirements established by law. A specific way of identifying and locating a piece of real estate that is acceptable to a court. |
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| Legal Title |
| The interest in real property that is held by (a) the trustee under a deed of : trust, (b) the seller under a valid interim real estate sales contract, and (c) the seller under an installment land contract. See also Equitable Conversion. Distinguish from Equitable Title. (Note: The owner of real estate that is not encumbered by a deed of trust and is not the subject of a real estate sales contract holds both legal and equitable title to his/her property.) |
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| Lender |
| A bank, savings institution or mortgage company that offers home loans. |
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| Lessee |
| The person who leases property from another; a tenant. |
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| Lessor |
| The owner who rents or leases property to a tenant or lessee; the landlord. |
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| Letter Of Intent |
| A formal statement that the buyer intends to purchase the property for a certain price on a certain date. |
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| Leverage |
| The creation of a higher return on a cash investment in real estate by using borrowed money. The use of a small amount of cash—a 5% or 10% down payment—to buy a piece of property. |
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| Liabilities |
| A borrower's debts and financial obligations. |
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| Liability Insurance |
| As related to real estate, insurance that indemnifies a property owner in the event that he/she is found liable for damages to a third party who has been injured on the insured's property. A policy that protects owners against any claims of negligence, personal injury or property damage. |
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| License |
| A privilege or right granted to an individual by the state to engage in a business or profession, e.g., as a real estate broker or salesman; in real property law, a license is an authority to go upon or to use another person's land or property without possessing any estate therein. |
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| Lien |
| A charge, hold, or claim that one person has upon the property of another as a security for the payment of a debt. |
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| Lien Foreclosure Sale |
| The involuntary transfer of property to satisfy a tax obligation judgment, or similar obligation that has been secured with a lien on the debtor's property. |
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| Lien Waiver |
| A document signed by a contractor, subcontractor, laborer, or materialman waiving the right to a mechanic's lien claim on the property. |
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| Life Cap |
| Limits the amount that a loan rate can change during the mortgage term. For example, if the rate on an adjustable-rate mortgage begins at 5 percent and has a life cap of 6 percentage points, it can't go over 11 percent. |
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| Life Estate |
| An estate or interest in real property that exists only for the life of a certain designated person. The life tenant has the exclusive right to possession, control, and use of the property during the term of the life estate. Upon the death of the person whose life is the measuring life, title to the property automatically vests in the designated remainderman. See also Life Estate Pur Autre Vie, Life Tenant, and Remainder. |
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| Life Estate Pur Autre Vie |
| A life estate in property measured by the life of another person (i.e., a person other than the life tenant). If the holder of this type of life estate dies before the measuring life, the heirs of the life tenant inherit the property and will hold it until the measuring life dies. |
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| Life Of Loan Cap |
| A ceiling (maximum upper limit) the interest (note) rate on an adjustable rate mortgage cannot exceed over the life of the mortgage loan. |
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| Life Tenant |
| A person who owns a life estate in land or other real property. |
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| Life-cycle Cost Analysis |
| An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect. |
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| Like-kind Exchange |
| Under the Internal Revenue Code, the exchange of property held for productive use in a trade or business or for investment for other property of a like kind to be held either for productive use in a trade or business or for investment. |
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| Limited Partnership |
| A partnership where some of the partners have their liability limited to the amount of money that they have invested. Real estate syndicates and other investment groups use this type of ownership. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses. |
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| Lintel |
| A horizontal piece over a door or window that carries the weight of the structure above it. |
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| Liquid Assets |
| Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit. |
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| Liquidated Damages |
| An amount of money agreed upon in advance by parties to a contract that will be payable in the event that a party to the contract breaches it. |
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| Lis Pendens |
| A recorded legal document giving notice of the pendency of an action affecting the title of real estate. |
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| Listing |
| A piece of property placed on the market by a listing agent. |
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| Listing Agent |
| A listing agent is a broker or sales agent who has contracted with a seller to handle the marketing and sale of a piece of property. |
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| Listing Contract |
| A document in which a property owner contracts with a broker as agent to deal with the owner's property; the document executed by an owner giving a broker authority to find a buyer for her/his property. Often referred to simply as a listing. |
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| Listing Inventories |
| The known number of houses for sale within a given market. |
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| Littoral Owner |
| A person who owns property adjacent to an ocean or lake. |
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| Live-in Partnership |
| An arrangement in which two unrelated people purchase a home. |
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| Live-work Space |
| An officially designated dwelling in which the occupant conducts a home-based business or enterprise. |
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| Load-bearing Wall |
| A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall. |
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| Loan Application |
| The first step toward submitting a home loan requires the borrower to itemize basic financial information. |
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| Loan Application Fee |
| A fee charged by lenders to for making a loan application. |
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| Loan Commitment |
| A commitment by a lender to make a particular mortgage loan to a loan applicant under specified terms. The commitment, which may be either conditional or firm, is valid for only a specified period of time. |
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| Loan Officer |
| An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits. |
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| Loan Origination Fee |
| Most lenders charge borrowers an origination fee—or points—for processing a loan. A point is 1 percent of the total loan amount. See Origination Fee. |
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| Loan Processing Fee |
| A fee charged by some lenders for gathering information to enable the lender to process the loan. |
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| Loan Term |
| The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms. |
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| Loan-to-value Ratio (LTV) |
| The relationship between the amount of a loan and the appraised value of the property secured by the loan, usually expressed as a percentage. |
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| Lock-in |
| When interest rates are volatile, many borrowers want to lock in an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect. |
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| Loft |
| A living space not partitioned into rooms or a small space built above a larger room. |
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| Log Cabin |
| Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S. |
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| Low Density |
| A low concentration of housing units in a specific area. |
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| Low-ball Offer |
| An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers. |
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| Low-documentation Loan |
| A mortgage that requires only minimal verification of income and assets. |
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| Low-down-payment Loan |
| A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house. |
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| Main Water Shut-off Valve |
| The primary valve that halts the flow of water from the water meter into a home. |
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| Maintenance |
| The act of keeping, or the expenditures required to keep, a property in condition to perform adequately and efficiently the service for which it is used. |
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| Maintenance Fee |
| The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas. |
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| Managed-competition Lots |
| Lots in which buyers choose between one of several builders. |
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| Mansard Roof |
| A roof with four sides that slope upward from the roof edge to the square peak. |
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| Mantel |
| The facing of stone, marble or other material around a fireplace. |
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| Manufactured Housing |
| Prefabricated homes that can range from simple trailers to larger dwellings. |
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| Margin |
| The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment. For example, if the index rate for an adjustable-rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent. |
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| Market Conditions |
| Factors affecting the sale and purchase of homes at a particular point in time. |
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| Market Data Approach |
| An appraisal method or procedure used to estimate the market value of a property by comparison and analysis of the sale prices of other recently sold similar properties. |
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| Market Price |
| The price actually paid for a property (i.e., the sale price). Distinguish from Market Value. |
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| Market Rent |
| The rental income that a property would most probably command on the open market as indicated by current rentals being paid for comparable space. |
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| Market Value |
| The amount for which a property would sell if put upon the open market and sold in the manner in which property is ordinarily sold in the community in which the property is situated. The highest price estimated in terms of money that a buyer would be warranted in paying and a seller justified in accepting, provided both parties were fully informed, acted intelligently and voluntarily, and, further, that all the rights and benefits inherent in or attributable to the property were included in the transfer. Distinguish from market price. |
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| Marketable Title |
| A title that a reasonable purchaser, well informed as to the facts and their legal bearing, willing and anxious to perform his/her contract, would, in the exercise of that prudence that businesspeople ordinarily bring to bear in such transactions, be willing and ought to accept; such a title as a court would compel a purchaser to accept; a title free from any encumbrances or clouds. |
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| Masonry |
| The brick or stone work on a building. |
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| Master-planned Community |
| A suburban plan that includes homes and commercial, work, educational and community facilities. |
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| Material Defect |
| A material defect is any defect in a specific property that could affect a buyer's decision to purchase it or affect the property's value, such as a cracked foundation. |
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| Material Fact |
| Any fact of substance relating to a real estate sales (or rental) transaction that might affect a prospective purchaser's (or tenant's) decision to buy (or rent) the property, such as an upcoming zoning change in the neighborhood. |
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| Maximum Financing |
| A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property. |
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| Mechanic's Lien |
| Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment. |
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| Mechanic's Lien (materialman's And Laborer's Lien) |
| A type of lien created by statute that exists in favor of persons who have performed work or furnished materials in the erection of repair of a building or improvement on real property. |
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| Mechanical Systems |
| A home's plumbing, wiring, heating and cooling systems. |
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| Median Price |
| The price of the house that falls in the middle of the total number of homes for sale in that area. |
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| Mediation |
| A dispute-resolution process in which a neutral party works to resolve contract differences. |
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| Meeting Of Minds |
| A mutual intention of two persons to enter into a contract affecting their legal status based on agreed-upon terms. |
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| Merged Credit Report |
| A report that draws information from the Big Three credit-reporting companies: Equifax, Experian and Trans Union Corp. First American Credco, Inc., provides a merged credit report for $30.95. Phone: (800) 443-9342 |
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| Metes And Bounds |
| The term comes from the old English words metes meaning measurements, and bounds meaning boundaries. It is generally applied to any description of real estate that describes the boundaries by distance and angles. |
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| Mineral Deed |
| A deed transferring mineral rights, which have been severed from surface rights, to a grantee. Mineral deeds must comply with the Statute of Frauds (G.S. §22-2). |
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| Mineral Lease |
| A lease entitling the lessee to explore for minerals and mine them if they are discovered. Mineral leases of any duration must be in writing under the Statute of Frauds (G.S. §22-2). |
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| Mint Condition |
| Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible. |
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| Misrepresentation |
| A false representation, either willful or negligent, of a material fact to another party. See also Fraudulent Misrepresentation, Willful Misrepresentation, and Negligent Misrepresentation. |
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| Mistake Of Fact |
| A basis for avoiding performance of a contract when there is a mutual erroneous impression by the parties to the contract concerning some material fact. |
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| Mistake Of Law |
| An erroneous impression by one or both parties to a contract concerning the law governing their agreement. Mistake of law does not excuse performance of a contract. |
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| Mixed-income Housing |
| A neighborhood that contains houses of widely varying prices. |
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| Mixed-use Development |
| A project that combines several different functions, such as residential space above a commercial establishment or an entire development combining commercial, residential and public accommodations. |
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| MLS (multiple Listing Service) |
| This service combines the listings for all available homes in an area (except For-Sale-By-Owner (FSBO) properties) in one directory or database. |
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| Modification |
| A change in any of the terms of the loan agreement. |
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| Molding |
| Decorative trim elements applied to walls, ceilings, and window and door openings. |
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| Money Market Account |
| Accounts that work like money market funds and allow individual investors to participate in certain managed investments and withdraw funds under most conditions. |
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| Money Market Funds |
| A mutual fund that pools the resources of individuals to invest in certain managed investments. |
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| Monument |
| A stone or other fixed object used to establish real estate boundaries. |
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| Mortgage |
| A pledge of real property as security for the payment of money, the fulfillment of some contract, or the performance of some act, such pledge to become void upon such payment, fulfillment, or performance. See also Deed of Trust. |
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| Mortgage Acceleration Clause |
| A clause which allows a lender to demand repayment of the entire loan balance in a lump sum under certain circumstances, such as when the home is sold, title is changed, the loan is refinanced or the borrower defaults on a scheduled payment. |
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| Mortgage Banker |
| A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae. |
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| Mortgage Broker |
| An agent or broker of a lender who matches lenders with prospective borrowers who meet the lender's criteria and brings them together. The mortgage broker does not make the loan, but receives payment from the lender for services. |
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| Mortgage Companies |
| Also known as mortgage bankers,' these companies process applications for loans, originate loans, service loans, and sell loans to investors. |
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| Mortgage Insurance |
| Required by lenders in some loans to protect them from a possible default. All conventional loans with less than 20% down payments require private mortgage insurance, or PMI. |
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| Mortgage Life Insurance |
| A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired. |
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| Mortgage Market |
| The term used to describe the market wherein various institutions and investors purchase for investment purposes existing mortgages originated by primary lenders, thereby creating additional capital with which lenders may originate more new mortgage loans. Major players are Fannie Mae and Freddie Mac. |
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| Mortgage Note |
| A legal I.O.U. evidencing indebtedness and coupled with a deed of trust on the property of the debtor. See also Note and Negotiable Promissory Note. |
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| Mortgage-interest Deduction |
| The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans. |
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| Mortgagee |
| A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor; same as the beneficiary under a deed of trust. See Beneficiary. |
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| Mortgagor |
| The person who executes the mortgage; the person who borrows money to purchase a house; the borrower-owner who gives the mortgage to the mortgagee as security for the debt owed by her/him; same as the grantor under a deed of trust. |
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| Motivated Buyer |
| Any buyer with a strong incentive to make a purchase. |
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| Motivated Seller |
| Any seller with a strong incentive to make a deal. |
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| Move-in Condition |
| A house that is ready for a new occupant. |
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| Move-up Buyer |
| A buyer who has purchased a home before and is looking for a bigger or more expensive home. |
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| Mullion |
| A vertical dividing bar between window lights or panels. |
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| Multidwelling Property |
| A property that contains individual units for several households but carries only one mortgage. |
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| Multifamily Mortgage |
| A mortgage on a multifamily dwelling with more than four families, typically an apartment building. |
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| Multiple Listing |
| The arrangement among real estate brokers who are members of a Multiple Listing Association or Multiple Listing Service (MLS) whereby information on a property that has been listed with one broker is distributed to other brokers in the area so that all may attempt to sell it. In the event of sale by a broker other than the one with whom the property was originally listed, the commission is split between the listing broker and the selling broker. |
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| Multiple Offers |
| Multiple purchase offers occur in hot markets or hot neighborhoods. |
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| Municipal Housing Inspector |
| Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes. |
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| Mutual Assent |
| Agreement on definite terms required of both parties before a contract can come into existence. |
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| NAHI (National Association Of Home Inspectors) |
| Professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 448-3942 for list of NAHI-certified inspectors in your area. |
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| Nail Pops |
| Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure. |
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| NAR Code Of Ethics |
| A formal code of ethics and standards of practice established by the National Association of Realtors (NAR) and by which its members must abide. |
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| National Association Of Exclusive Buyer Agents |
| National trade organization of buyer's brokers whose members do not accept property listings. Call (800) 986-2322 for information and referrals. |
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| National Association Of Real Estate Brokers (NAREB) |
| A professional trade association of Black real estate brokers. Members are called Realtists. See also Realtist. |
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| National Association Of Realtors (NAR) |
| A professional real estate trade association that is the country's largest and most influential real estate professional organization. Members are referred to as Realtors or Realtor Associates. NAR functions through affiliate state organizations and local organizations referred to as boards. The most prominent activity of most local boards is the operation of area multiple listing services in which brokers who are members of the local board may participate. See also Realtor. |
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| National Council Of State Housing Agencies |
| Nonprofit clearinghouse of information on local and state housing agencies. Consumers may call for names of agencies in their area. Phone: (202) 624-7710. |
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| National Environmental Policy Act |
| A federal environmental law that requires an environmental impact statements' prior to any federal program or activity that might significantly affect the quality of the environment. |
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| National Foundation For Consumer Credit |
| Nonprofit clearinghouse of information on nonprofit credit counseling centers nationwide. Consumers may call for names of centers in their area. Phone: (301) 589-5600. |
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| National Historic Preservation Act |
| Federal legislation protecting and providing some assistance for historic properties. |
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| Natural Monument |
| A reference in a property description to a river, tree, or any other object of nature. |
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| Navigable Water |
| A body of water suitable for the usual purpose of navigation by vessels or boats. |
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| Needs-based Pricing |
| A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house. |
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| Negative Amortization |
| Amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost that isn't covered is added to the unpaid principal balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments not high enough to cover the interest due. |
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| Negative-slope Driveway |
| A driveway that drops from street level to the garage. |
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| Negligence |
| The failure to exercise that degree of reasonable care required under the circumstances existing at a given time; the failure to exercise that degree of care that would be expected of a reasonably prudent person under the same or similar conditions. |
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| Negligent Misrepresentation |
| The unintentional misrepresentation of a material fact by a party where that party should reasonably have known the truth of the matter that was misrepresented. |
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| Negligent Omission |
| The unintentional failure to disclose a material fact by a party where that party should reasonably have known of the fact that was not disclosed. |
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| Negotiable Promissory Note |
| A negotiable promissory note is an unconditional promise to pay on demand, or at a fixed or determinable future time, a sum of money to order or bearer. A negotiable note is assignable by the lender. A non-negotiable note, in contrast, is payable only to a named person. |
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| Neo-traditional Planning |
| Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas. |
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| Net Cash Flow |
| Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted. |
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| Net Lease |
| A lease where, in addition to the rental stipulated. the lessee assumes payment of property charges such as taxes insurance, and maintenance. |
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| Net Listing |
| A brokerage fee arrangement in a listing contract whereby the seller will receive a fixed price for his/her property and the broker will receive any amount realized (i.e., the net) in excess of that price. |
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| Net Operating Income (NOI) |
| In an operating budget, the income projected for an income-producing property after deducting projected vacancy/rent collection losses and operating expenses from projected gross (maximum possible) income. In an income/ expense statement, the income from a property after deducting operating expenses from gross income actually received. |
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| Net Worth |
| The worth of a person or company based on the difference between total assets and liabilities. |
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| New Urbanism |
| A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas. |
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| Niche |
| A small recessed area in a wall, traditionally arched at the top. |
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| NIMBY (not In My Back Yard) |
| The response sometimes given by neighborhoods and communities to proposed changes or development. |
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| No Cash-out Refinance |
| The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan. |
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| No-competition Lots |
| A lot in which the buyer's home will be constructed by a particular builder. |
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| No-documentation Loan |
| A loan application that does not require verification of income but typically is granted in cases of large down payments. |
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| Non-assumption Clause |
| A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval. |
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| Non-conforming Loan |
| A non-conforming loan is any loan that doesn't meet the qualifications or is too large to be purchased by Fannie Mae or Freddie Mac. The current conforming loan limit is $240,000. |
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| Non-liquid Asset |
| An asset such as a house that is not easily turned into cash. |
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| Non-recurring Closing Costs |
| Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection. |
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| Nonconforming Use |
| A use of land that predates zoning, but is not in accordance with the uses prescribed for the area by the zoning ordinance. Because it was there first, it may be continued, subject to certain limitations. |
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| Nonfreehold |
| Any interest (estate) in real estate which is less than a freehold interest. Also called a leasehold estate. |
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| Notarization |
| A certification by an authorized notary public to the effect that the signatures on a document are authentic. See also Acknowledgment. |
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| Note |
| An instrument of credit given to attest a debt; a written promise to pay money which may or may not accompany a mortgage or other security agreement. Also called Promissory Note. |
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| Note Rate |
| The interest rate specified in a mortgage note. |
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| Notice Of Default |
| A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed. |
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| Novation |
| The substitution of a new contract for the former one. All obligations under the old contract are discharged and replaced by the terms of the new one. |
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| Nuisance |
| The unreasonable use of private property in a manner that is hazardous or offensive to the property or health of neighboring property owners or the public in general. |
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| Obsolescence |
| As applied to real estate, it is the loss or impairment of value due to becoming outmoded and/or less useful as a result of social or economic changes. See Economic Obsolescence and Functional Obsolescence. |
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| Offer |
| A promise by one party to another party to perform a specified act provided that the other party promises to perform some specified act in return. An offer may be either an offer to purchase or an offer to sell. |
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| Offeree |
| The person to whom an offer is made. |
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| Offeror |
| The person making an offer. |
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| Oil And Gas Lease |
| A lease transferring the right to extract oil or gas from the real property of the lessor. |
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| Omission |
| The willful or negligent failure to disclose a material fact to another party. See also Willful Omission and Negligent Omission. |
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| Online Real Estate Listings |
| Properties listed for sale on the Internet. |
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| Open House |
| A marketing tool in which a listing agent opens a house for view. |
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| Open Listing |
| A general listing given to a broker by an owner to sell his/her property. Such listing is not exclusive and may be given to a number of brokers at the same time. The owner is not precluded from selling the property during the term of the listing, and, if the owner procures a purchaser, she/he is under no obligation to pay any commission. Only the broker who produces a purchaser is entitled to receive compensation for effecting a sale under this type of listing. A sale by one broker terminates all other such listings. |
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| Open Space |
| Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses. |
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| Open-end Mortgage |
| A mortgage with an additional arrangement allowing the borrower to secure funds up to a certain amount in addition to the original amount borrowed. |
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| Operating Budget |
| A detailed statement of projected income and expenses for a specified period of time. |
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| Operating Expenses |
| All expenses or costs of operating a property except for debt service, capital expenditures, and depreciation. opinion of title |
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| Option |
| A privilege sold by a property owner (optionor) to another (optionee) giving to the optionee, in return for the payment of a consideration, a right to buy or not to buy a property within a specified period of time at a specified price. Also called an option to purchase or an option contract. |
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| Option To Renew |
| In landlord-tenant law, the right given to tenants in some leases to renew the tenancy for an additional term. |
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| Oral Agreement |
| Contractual arrangements that are not in writing and are usually not legally binding. |
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| Ordinance |
| A law passed by the governing body of a county or city acting under authority granted by the state legislature. |
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| Ordinary Gain/loss |
| For income tax purposes, any gain/loss that is not a capital gain/ loss. |
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| Original Principal Balance |
| The amount of principal owed on a loan before a borrower makes any payments. |
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| Origination Fee |
| A one-time fee—also called points—charged to a borrower by a lender for making a mortgage loan. This fee is usually computed as a percentage of the loan amount. A point is 1 percent of the total loan amount. Also called loan origination fee. |
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| Overhang |
| A protruding structural feature. |
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| Overimprovement |
| An improvement that is not the highest and best use for the site on which it is placed by reason of excess in size or cost. |
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| Overlay Zoning District |
| In zoning practice, a district or zone that superimposes a certain zoning use over the existing traditional zoning map. A historic preservation zone, for example, might be superimposed over existing traditional zones. |
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| Override Clause |
| An override or extender clause is a provision in a list that protects the real estate broker in the event that the property owner and a prospective purchaser postpone the ultimate purchase in order to avoid paying a brokerage commission. It provides that, if the property is sold within a certain period of time after expiration of the listing contract to a prospect that the broker found during the listing period. A commission is payable. Also called extender clause. |
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| Owner Financing |
| A transaction in which the seller of a property agrees to finance all or part of the purchase. |
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| Package Insurance Policy |
| A generic term describing an insurance policy that insures against a number of perils, such as a homeowner's policy. package mortgage |
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| Panel |
| A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet. |
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| Paneling |
| Strips of wood or wood material applied as a finish to a wall. |
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| Panic Peddling |
| See Blockbusting. |
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| Parcel |
| An officially described piece of land. |
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| Parking Strip |
| The strip of grass between the sidewalk and the street in front of a house. |
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| Parol |
| Oral, as distinguished from written. |
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| Participation Mortgage |
| (a) A mortgage whereby the lender receives a portion of the income from the property or a partial equity interest in the property; (b) A mortgage loan made by two or more lenders. |
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| Partition |
| A division of land among those who own it in undivided shares, such as tenants in common. A partition may be by a voluntary exchange of deeds or it may be ordered in a judicial proceeding. Also, any kind of structure dividing one room or space from another. |
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| Partition Deed |
| A deed executed by concurrent owners of property in order to convert their ownership into ownership in severally. |
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| Partnership |
| Unmarried individuals who buy a piece of property have several options, such as a live-in partnership (in which both buyers share the residence) or a shared-equity partnership (one buyer lives in the home and the other is an investor in the property). |
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| Party Wall |
| A wall that is erected upon and over a line separating two adjoining properties and to which use the owners of the respective parcels have a common right. |
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| Passive Loss |
| A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate. |
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| Passive Solar System |
| A system that supplies solar heat without the use of electric fans or pumps. |
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| Patent Ambiguity |
| A condition that exists in an attempted description of real estate in a deed, contract, or other document affecting title that is so absolutely uncertain that there is no way of determining where the property is. A document containing a patently ambiguous description is void. Compare Latent Ambiguity. |
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| Patent Defect |
| An obvious property defect, such as a cracked basement slab or a sagging porch, that should be discovered by a reasonably diligent inspection of the property. Compare Latent Defect. |
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| Patio |
| An interior courtyard or a paved backyard area. |
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| Payment Cap |
| A limit on the amount the monthly payment on an adjustable rate mortgage can be increased when the interest rate is adjusted upward. |
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| Per-diem Interest |
| Interest charged or accrued daily. |
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| Percentage Lease |
| A lease of commercial property in which the rent is computed as a percentage of the receipts, either gross or net, from the business conducted by the lessee, sometimes with a guaranteed minimum rental. |
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| Percolation Test |
| A soil test to determine if soil will absorb and drain water sufficiently for use of a septic tank. |
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| Perennial |
| Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies. |
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| Pergola |
| An arbor with an open roof of rafters supported by posts or columns. |
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| Periodic Tenancy |
| See Estate from Year to Year. |
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| Personal Property |
| Movable property that is not real property. The term personal property includes tangible property such as money, goods, chattels, furniture or appliances, and also intangible property such as debts and claims (choses in action). personal representative |
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| Pest Inspection Report |
| See Wood-Destroying Insect Inspection Report. |
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| Pest-control Inspection |
| A common pest-control inspection is a termite inspection, which is required in some states, such as California. |
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| Physical Deterioration |
| Impairment of condition; one of the causes of depreciation, resulting from wear and tear, disintegration use in service, action of the elements, and other causes. |
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| Pier |
| A rectangular masonry support column. |
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| PITI (principal, Interest, Taxes, Insurance) |
| When a buyer applies for a loan, the lender will calculate the principal,, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses. |
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| Plaintiff |
| The complaining party in an action or suit in court. |
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| Planned Communities |
| The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals. |
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| Planned Unit Development (PUD) |
| A PUD is a special use permitted under some zoning ordinances that allows a developer to deviate from construction on standard lots. Planned unit developments are highly designed residential projects that feature relatively dense clusters of houses. PUDS are usually surrounded by areas of commonly owned open space maintained by a nonprofit community association. |
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| Plaster |
| A labor-intensive and more costly wall finish. |
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| Plat |
| A map of a division of land into blocks and lots. |
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| Plat Book |
| A public record in the office of the Register of Deeds of various recorded plans of subdivisions of land into blocks and lots. |
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| PMI (private Mortgage Insurance) |
| A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price. |
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| Pocket Door |
| A sliding door that retreats into the wall when opened. |
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| Points |
| A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $100,000, one point means you pay $1,000 to the lender. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages in order to increase the yield on the mortgage and to cover loan-closing costs. These points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them. See also Discount Points |
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| Police Power |
| The inherent rights of a government to pass such legislation as may be necessary to protect the public health and safety and to promote the general welfare. |
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| Porch |
| The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence. |
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| Porte Cochere |
| A porch-like roof extending over a driveway. |
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| Portfolio Lender |
| A lender who makes loans with its own funds and keeps the loans on the company's books—in other words, inside the institution's portfolio—rather than selling the loan on the secondary market. |
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| Portico |
| A porch supported by a row of columns. |
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| Possession |
| When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession. |
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| Power Of Attorney |
| An instrument authorizing a person to act as the agent or attorney of the person granting it; may be a general power or may be limited to performance of specific act or acts. |
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| Power Of Sale |
| A method of foreclosure of a mortgage or deed of trust in default. After proper notice and a hearing before a clerk of court, the mortgaged property Is sold at a public sale. |
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| Pre-approval |
| When you get pre-approved for a loan, the lender completes a thorough assessment of your ability to pay for a home, and confirms the amount you can borrow. You must then complete the loan application to close the loan. |
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| Pre-approval Letter |
| A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain. |
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| Pre-sold Home |
| Homes that are sold before they are built. |
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| Prepaid Expenses |
| The costs for taxes, insurance and assessments paid before the due date. |
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| Prepaid Interest |
| Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment. |
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| Prepayment Penalty |
| Lenders can impose a penalty on a borrower who pays a loan off before its expected end date. |
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| Prequalification |
| Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home. The borrower gets the lender's estimate of how much you can borrow, the first step in applying for a loan. |
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| Prequalifying A Buyer |
| The process of making a nonbinding preliminary determination as to the qualifications of a prospective buyer of real estate with respect to a mortgage loan. Prequalification may be performed by a lender or a real estate agent. |
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| Present Value |
| The present worth of money to be received at some future time. |
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| Pressure Relief Valve |
| A safety vent that relieves excess pressure in a water heater. |
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| Prima Facie |
| From Latin and meaning first view. Prima facie evidence of fact is in law sufficient to establish the fact unless rebutted. |
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| Primary Mortgage Market |
| The market in which mortgage loans are originated. This market consists of lenders (such as savings and loan associations, mortgage companies, and banks) that make mortgage loans directly to borrowers. |
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| Prime Contractor |
| See General Contractor. |
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| Primer |
| The initial coat of paint that is applied before the final topcoat. |
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| Principal |
| (a) One who appoints or hires an agent to act for and in his/her stead; (b) A capital sum lent at interest; the amount of a loan. The amount of money that the borrower owes on a mortgage. |
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| Principal, Interest, Taxes, Insurance (PITI) |
| When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses. |
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| Principle Of Conformity |
| The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood. |
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| Principle Of Progression |
| An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties. |
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| Principle Of Regression |
| An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties. |
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| Privacy Fence |
| A structure erected between two pieces of property. |
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| Private Mortgage Insurance |
| Insurance that insures a mortgage lender (and subsequent purchaser of the mortgage note) against default by the borrower on a conventional mortgage loan. |
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| Probate |
| The judicial process by which the validity of a will is formally determined. |
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| Procuring Cause |
| A legal term referring to that cause which originates a series of events that lead directly to the accomplishment of a goal. In real estate brokerage, a test applied to determine whether a broker has earned his/her commission under a listing contract (except for an exclusive right-to-sell listing) by procuring a purchaser who is ready, willing, and able to complete a sales transaction in accordance with terms acceptable to the seller. See also Ready, Willing and Able. |
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| Production Home |
| Homes that are mass-produced by one builder in a project. |
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| Programming |
| A written summation by an architect of a project's design objectives, constraints and criteria. |
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| Project Budget |
| A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services. |
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| Promissory Note |
| See Note. |
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| Property |
| The term describing the rights and interests a person has in lands, chattels, and other determinate things. Property encompasses a bundle of rights, various interests that are created and protectible by law, giving to an individual exclusive rights to own, possess, use, enjoy, and to dispose of determinate things. |
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| Property Line |
| The official dividing line between properties. |
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| Property Report |
| A disclosure issued by the state when a time-share project is located or sold. |
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| Property Tax |
| A tax on real and personal property ownership based on the market value of the property and vary from state to state; called an ad valorem property tax. |
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| Property Tax Deduction |
| The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes. |
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| Property Value |
| The value of a piece of property is based on the price a buyer will pay at a certain time. |
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| Proprietary Lease |
| A lease given by the corporation owning a cooperative apartment building to a tenant (who is also a stockholder in the corporation) giving the tenant the right to occupy a particular unit. |
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| Proration |
| The division or distribution of money or monetary obligations between seller and buyer in a real estate closing transaction. |
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| Prospectus |
| A printed advertisement for a new enterprise, such as a planned subdivision development or office complex. |
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| Protection Agreement |
| An agreement between an owner of real estate and a real estate broker in which the owner promises to pay the broker a commission if the property is sold to a specified prospective purchaser procured by the broker. |
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| Public Offering Statement |
| A disclosure statement prepared by a developer that contains all material facts about a property offered for sale and that must be provided to a prospective purchaser in accordance with applicable state or federal law. |
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| Punch List |
| Buyers compile a punch list during the final walk-through detailing items to be fixed before closing. |
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| Purchase Agreement |
| A document which details the purchase price and conditions of the transaction. |
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| Purchase Contract |
| An offer to purchase that has been accepted by the seller and has become a binding contract. See also Sales Contract. |
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| Purchase Money Mortgage (or Purchase Money Deed Of Trust) |
| A mortgage (or deed of trust) given by a buyer to the seller to secure a part or all of the purchase price of real estate. |
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| Qualification |
| When you qualify for a loan, a lender checks your credit and assesses your ability to borrow a specific amount of money. |
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| Qualifying A Buyer |
| The process of determining whether or not a buyer of real estate applying for a mortgage loan is qualified under the qualification standards for that loan. Qualification of a buyer-borrower is performed by the lender. See also Prequalifying a Buyer. |
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| Qualifying Ratios |
| Lenders compute qualifying ratios to determine how much a potential buyer can borrow. |
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| Queen Anne Style |
| A Victorian-era style that originated in San Francisco. |
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| Quiet Enjoyment |
| The right of an owner of an interest in land, whether an owner or a tenant, to protection against disturbance or interference with his/her possession of the land. If a grantee's or lessee's possession is disturbed by one who has superior title to that of a grantor or lessor, the grantee or lessee may sue his/her grantor or lessor and recover for breach of the covenant of quiet enjoyment in the deed or lease by which the grantee or lessee took his/her interest. |
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| Quiet Title |
| A court action brought to establish title and to remove a cloud on the title. |
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| Quit-claim Deed |
| A document that releases a party from any interest in a piece of real estate. |
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| R-value |
| A construction term that refers to the resistance to heat loss. The higher the R-value, the slower the rate of heat loss. |
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| Racial Steering |
| An illegal practice under the Federal Fair Housing Act of 1968 and the State Fair Housing Act by which patterns of racial segregation are preserved and encouraged by steering members of racial and ethnic groups to buildings occupied primarily by members of their own racial or ethnic group. |
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| Radon |
| A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets. A leading cause of lung cancer , radon is found in mostly the northern half of the country. |
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| Rafter |
| Rafters form the slope of a pitched roof and are analogous to floor joists. |
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| Rammed-earth Construction |
| An alternative building process in which dirt is compacted into large structural frames to create walls. |
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| Ranch Style |
| Modern ranch-style homes that were popularized in the 1950s and championed by architect Frank Lloyd Wright, among others. |
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| Rate Cap |
| A limit on the amount of adjustment that can be made in the interest (note) rate on an adjustable rate mortgage at each rate adjustment date. |
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| Rate Lock |
| When interest rates are volatile, many borrowers want to lock in an interest rate and many lenders will oblige, setting a limit on the amount of time the guaranteed interest rate is in effect. |
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| Rate-improvement Mortgage |
| A loan with a clause that entitles a borrower to a one-time cut in the interest rate without going through refinancing. |
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| Ready, Willing, And Able |
| A self-explanatory phrase referring to a prospective purchaser of real estate who is prepared to purchase a property on terms acceptable to the seller and is in a position, financially and otherwise, to complete the transaction. See also Procuring Cause. |
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| Real Estate |
| Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure. See Real Property. |
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| Real Estate Broker Or Agent |
| A person, corporation or partnership licensed by a state to represent a buyer or seller in a real estate transaction in exchange for a commission. Brokers supervise licensed sales agents, who then act for the broker (legally the principal agent in any transaction). |
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| Real Estate Commission |
| The state agency charged with the responsibility of administering and enforcing the Real Estate licensing Law. |
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| Real Estate Investment Trusts (REITS) |
| A legal entity formed by a group of investors who desire to pool their resources for the purpose of real estate investment. |
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| Real Estate License Law |
| The law enacted by the state General Assembly that governs the licensing of real estate brokers and salesmen, establishes standards of conduct for such licensees, and provides for disciplinary action against licensees who violate its provisions. The enforcing agency is the state Real Estate Commission. |
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| Real Estate Professional |
| Any real estate broker, sales agent, or attorney who holds a real estate license. |
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| Real Estate Settlement Procedures Act (RESPA) |
| Consumer protection legislation enacted by Congress requiring lenders to provide borrowers with specified information in residential real estate loan transactions, such as settlement fees and other transaction-related costs. RESPA also prohibits certain practices in residential real estate closings. |
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| Real Property |
| Lands, tenements, and hereditaments; the earth's surface, the air above, the ground below and all improvements and appurtenances to the land, including buildings, trees and minerals; the rights, interests, and benefits (sometimes referred to as the bundle of rights) inherent in the ownership of real property. Synonym with the terms real estate and realty. |
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| Realtist |
| A term used to designate a member of the National Association of Real Estate Brokers. |
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| Realtor™ |
| A coined word owned by the National Association of Realtors which is used to designate a member, usually a real estate agent, of that professional trade association. Should not be confused with real estate agent because many licensed brokers and salespeople are not members of the National Association of Realtors; however, most licensed real estate agents who are active in the brokerage business on a full-time basis are probably members of this association. See National Association of Realtors. |
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| Realty |
| See Real Property. |
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| Reappraisal Lease |
| A lease tying rent calculation to the value of the leased premises and calling for periodic recalculation of rent based on percentage of market value. |
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| Recission |
| The cancellation of a contract by law or consent by the parties involved. |
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| Reconcilation |
| The final step in the appraisal process; the process by which an appraiser reconciles the estimates of value derived through the market data, cost, and income approaches to select a single conclusion of value. |
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| Reconveyance |
| When a borrower completely pays off the mortgage, the property is reconveyed to them from the lender. |
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| Record Title |
| The ownership of real estate as shown by the instruments recorded in the office of the Register of Deeds along with records in certain other public offices. |
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| Recorder |
| A public official responsible for keeping the records of all real estate transactions. |
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| Recording |
| The placing of a copy of documents affecting title to real estate (and certain other documents) in the proper books in the office of the Register of Deeds so that a public record will be made of it. Also called recordation. |
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| Recording |
| The filing of a specific document to the appropriate government entity. |
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| Recording Fee |
| A fee charged by real estate agents for conveying the sale of a piece of property into the public record. |
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| Rectangular Survey System |
| See Government Survey System. |
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| Redemption |
| The right that an owner-mortgagor, or one claiming under her/him, has after execution of the mortgage to recover back her/his title to the mortgaged property by paying the mortgage debt, plus interest and any costs accrued, prior to a valid foreclosure. The payment discharges the mortgage and places the title back as it was at the time the mortgage was executed. See Equity of Redemption and Statutory Redemption Period. |
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| Redlining |
| An illegal practice under the Federal Fair Housing Act of 1968 by which lending institutions deny or discourage loan applications within a given (redlined) area based on its racial composition. |
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| Refinancing |
| The process of replacing an older loan with a new mortgage that has better terms. |
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| Reformation |
| The correction of a deed or other instrument by reason of a mutual mistake of the parties involved or because of mistake of one party caused by the fraud or inequitable conduct of the other party. |
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| Regulation Z |
| The federal code issued under the Truth-in-Lending Act that requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction. |
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| Rehabilitation Mortgage |
| A mortgage that provides for the costs of repairing and improving a resale home or building. |
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| Relation Back Doctrine |
| In escrow closings, a doctrine that treats the deed as having been delivered for certain purposes when it was delivered by the seller into escrow; i.e., the delivery to the purchaser by the escrow agent relates back to the earlier delivery of the deed into escrow by the seller. |
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| Release |
| The giving up or abandoning of a claim or right to the person against whom the claim exists or against whom the right is to be exercised or enforced. |
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| Release Of Lien |
| The discharge of certain property from the lien of a judgment, mortgage, or claim. |
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| Relocation Benefits |
| Benefits provided by employers for new workers and can include moving costs, reimbursement for temporary housing and transportation, real estate agent assistance and discounted loans. |
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| Relocation Company |
| A firm that administers all aspects of moving in new employees to the community. |
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| Remainder |
| An estate in real property to take effect and be enjoyed after another estate has terminated, such as a life estate. The holder of this estate is someone other than the grantor of the life estate and is called the remainderman. |
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| Remaining Balance |
| The amount of unpaid principal on a home loan. |
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| Remaining Term |
| The original loan term minus the number of payments made. |
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| Rent |
| A compensation, either in money, provisions. chattels or labor, received by the owner of real estate from a tenant for her/his occupancy of the premises. |
| |
| Rent Loss Insurance |
| A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable. |
| |
| Rental Value |
| The worth of the right to use and occupy property for a stated period; the amount of rent that a reasonable and prudent tenant would be warranted in paying and that a reasonable and prudent lessor would be justified in accepting, for a stated period of time, provided both parties were fully informed and acted voluntarily and intelligently. See also Market Rent. |
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| Renter's Insurance |
| A policy that covers the replacement value of possessions. |
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| Repayment Plan |
| When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court. |
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| Replacement Cost |
| The cost of replacing an improvement with another having the same or equal utility, using current standards of material and design, and based on current prices for labor and materials. |
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| Replacement Reserve Fund |
| Money that is set aside from homeowners' assessments to replace common property, such as furniture in a planned development's community room. |
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| Repossession |
| When a house is repossessed, it is taken back by the lender holding the mortgage. |
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| Reproduction Cost |
| The cost of creating an exact replica of an improvement, using the same or very similar materials, based on current prices for labor and materials. |
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| Resale Value |
| The future value of a piece of property that can be affected by many factors, including the surrounding neighborhood, school scores and economic and housing market conditions. |
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| Rescission Of Contract |
| The abrogating or annulling of a contract; the revocation or repealing of a contract by mutual consent of the parties to the contract, or for other cause recognized by law. |
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| Reservation |
| A right retained or reserved by an owner when he/she makes a grant of property either by deed or lease. |
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| Reserve Fund |
| All homeowners associations set aside a certain amount of money for major repairs or improvements. |
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| Residuary Estate |
| That which remains of a testator's estate after deducting all devises, bequests, and debts of the decedent. |
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| Restrictive Covenant |
| A clause of limitation in a deed providing that land will be used (or not used) in a certain way. For example, a deed may provide that land may be used for single family residential purposes only; the grantee, by accepting the deed, is deemed to covenant or promise that the land will be used only in a certain way and this covenant runs with the land, binding not only the person making it, but subsequent owners of the land as well. |
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| Restructured Loan |
| A mortgage in which new terms are negotiated. |
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| Retaliatory Eviction |
| Under common law theory, a landlord can evict a tenant for any legal reason including no reason at all. The doctrine of retaliatory eviction modifies this rule as a matter of public policy by holding that a landlord cannot evict a tenant in retaliation for the tenant's assertion of some legal right (e.g., reporting a building code violation) or engagement in a protected activity. |
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| Return On Investment |
| The amount of profit a property generates. |
| |
| Revenue Stamps |
| See Excise Tax on Real Property Transfers. |
| |
| Reverse Annuity Mortgage |
| Instead of a payment plan whereby the debtor finances the purchase of real estate, a reverse annuity mortgage involves payments from the financial institution to a mortgagor who uses the substantial equity in his/her property as security. Eventually this type of loan has to be repaid or refinanced. |
| |
| Reverse Mortgage |
| A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community. |
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| Reversion |
| The residue of an estate left in a grantor, to commence in possession after the determination of some particular estate granted out by him/her; the return of land to the grantor and his/her heirs after the grant is over. |
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| Ridge Board |
| A horizontal board that serves as the apex of the roof structure. |
| |
| Ridge Vent |
| A vent located along the ridge board of the roof that allows moisture to escape. |
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| Right Of First Refusal |
| An agreement by a property owner to give another person the right to buy or rent the property before it goes on the open market. Often included as a provision in leases. |
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| Right Of Redemption |
| See Equity of Redemption. right of survivorship |
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| Right To Recission |
| A provision in the federal Truth-in-Lending Act that allows borrowers to cancel certain kinds of loans within three days of signing. |
| |
| Right-of-way |
| A right whereby the owner of land has given to another the right to pass over her/his land, to construct a roadway, or use as a roadway, a specific part of her/his land without actually transferring ownership of the land. A right-of-way may also be a right of one to construct over the land of the owner telephone, telegraph, or electric power lines, or to place underground water mains gas mains, sewer mains and the like in the lands of the owner. See Easement. |
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| Riparian Owner |
| One who owns lands bounding upon a river or water course. A riparian owner has peculiar riparian rights to water that is on, under, or adjacent to his/her land. |
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| Riparian Rights |
| Rights to use water enjoyed by riparian owners. |
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| Risk Of Loss |
| The allocation of loss between seller and purchaser due to damage or destruction of property during the interim period between the time of signing of a valid real estate sales contract and the closing date. Risk of loss can be specified by contractual agreement. Where the contract is silent, the Uniform Vendor and Purchaser Risk Act or the common law must be referred to. |
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| Rod |
| A measure of length containing 5 1/2 yards or 161/2 feet; also the corresponding square measure. |
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| Rough-in |
| The installation of plumbing, electrical and other mechanical systems. |
| |
| Rural Housing Service |
| A U.S. Department of Agriculture program that provides financing to farmers and certain borrowers to purchase rural property when other funds are not available. |
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| Sale-leaseback |
| This is a real estate financing technique whereby the seller conveys title to a buyer-investor and at the same time leases the property back under a long-term net lease. |
| |
| Sales Contract |
| A contract signed by the buyer and seller that details the terms of a home purchase. See Purchase Contract |
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| Salesman, Real Estate |
| A person employed by a real estate broker to perform any act authorized to be performed by a broker; one who is licensed as a real estate salesperson by the state Real Estate Commission. |
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| Saltbox Style |
| A design that dates to colonial times and takes its name from the shape of saltboxes. |
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| Sanitary Sewer |
| The drain line in a house that carries away food and human wastewater to a municipal sewer system or a septic system. |
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| Sash |
| One of two windows in a double-hung window. |
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| Satisfaction Of Mortgage |
| An instrument or notation on an instrument acknowledging payment of an indebtedness secured by a mortgage. |
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| Schematic Designs |
| Renderings of floor plans and the exterior of a house. |
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| Seal |
| A particular sign or word impressed on a document, made to attest in the most formal manner the execution (signing) of an instrument such as a deed. |
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| Second Mortgage |
| A junior mortgage that is second in lien priority to a previous first mortgage. Another loan placed upon a piece of property. secondary |
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| Secured Loan |
| Any loan backed by collateral. |
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| Security |
| Apiece of property designated as collateral. |
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| Security Agreement |
| An agreement by which a person, usually a lender or seller, takes a security interest in personal property as collateral for a debt. (Examples: agreements in the nature of chattel mortgages or conditional sales contracts.) |
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| Security Deposit |
| Money or things of value received by or for a property owner to insure payment of rent and/or satisfactory condition of the rented premises upon termination of the written or oral lease. |
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| Security Interest |
| An interest in property that secures payment or performance of an obligation. |
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| Seisin |
| The possession of real estate with the intent on the part of the possessor to claim an estate of freehold in the land, either a fee simple or a life estate. |
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| Self-dealing |
| Improper conduct by a broker who, while employed by a principal, deals with the property for the broker's personal interest or benefit without full disclosure to and consent by the principal. An example of self-dealing is the selling of a property to a broker's relative without disclosure and consent of the principal. |
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| Seller Broker |
| A seller broker represents the interest of the seller. |
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| Seller Carry-back |
| An agreement in which the seller provides financing for a home purchase. |
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| Seller Rent-back |
| A seller rent-back is a real estate transaction in which the buyer leases back the property to the seller for a specific period of time. |
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| Seller Take-back |
| An agreement in which the seller provides financing for a home purchase. |
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| Seller's Market |
| A hot real estate market in which sellers have the advantage and multiple offers are common. |
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| Selling Agent |
| A real estate broker or salesperson who writes the purchase offer for a buyer in a real estate transaction, but may not actually represent the buyer. |
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| Semi-custom Home |
| The buyer of a semi-custom home is free to make some design changes but not to the home's structural plan. |
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| Septic System |
| A self-contained sewage treatment system that distributes wastewater to an underground storage area and relies on bacterial action to decompose solid waste matter. |
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| Servicer |
| A firm that collects mortgage payments and manages borrowers' escrow accounts. |
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| Servient Estate |
| A parcel of land that is burdened by an easement for the benefit of a dominant estate. |
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| Setback |
| The distance from a curb or other established line within which no buildings may be erected. A setback ordinance prohibits erection of buildings or structures beyond defined setback lines. |
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| Settlement Statement |
| A document that details who has paid what to whom. |
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| Severalty Ownership |
| Sole ownership; where real property is owned by one person only. See Tenancy in Severalty. |
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| Severance Damage |
| The impairment in value caused by separation; commonly, the damage resulting from the taking of a fraction of the whole property, reflected in a lowered utility and value in the land remaining and caused by reason of the fractional taking. |
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| Shared-appreciation Loan |
| A mortgage loan plan that requires the borrower to pay to the lender a share of the appreciated value of the property after a certain period of time. In return, the borrower obtains a lower interest rate. |
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| Shared-equity Transaction |
| A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner. |
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| Shed Ceiling |
| A shed ceiling pitches upward at one end. |
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| Shed Roof |
| A shed roof pitches up longer on one side than the other. |
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| Sheriff’s Deed |
| A deed given by a sheriff conveying title to real property pursuant to an execution sale to satisfy a judgment against a judgment debtor who is an owner. |
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| Shingle Style |
| An alternative style of Victorian homes that evolved in the late 19th century to simplify the complexity of the traditional Victorian house. |
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| Shingles |
| Thin, wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber, glass fiber or composition asphalt installed on a roof to prevent water seepage. |
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| Shoe Molding |
| An unobtrusive finish trim between the floor and the baseboard designed to hide any irregularities in the seam between the floor and wall or baseboard. |
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| Sill Cock |
| An exterior threaded faucet connection for garden hoses that provides water outside a home. |
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| Sill Plate |
| A horizontal piece of wood placed on top of the foundation. |
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| Simple Interest |
| Interest computed based on the remaining principal balance of a loan. Previously earned but unpaid interest is not included in the computation. Most mortgage loans are simple interest loans. |
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| Single Agent |
| A single agent represents either the buyer or the seller in a transaction. |
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| Skylight |
| A window in a roof that allows natural light to illuminate a room. |
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| Slab Foundation |
| A foundation built directly on soil with no basement or crawl space. |
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| Slider Window |
| A window that is composed of two windows, or sashes, that glide open and closed on a metal track. |
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| Soffit |
| An external area under the overhang of a roof. |
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| Soils Test |
| A test of the subsoil to ensure that foundations can be safely constructed. |
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| Spanish Mission Style |
| A design that is derived from the original missions established by the Spanish in the Southwest. |
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| Special Agent |
| An agent who is authorized to perform a specified act or a series of specified acts in accordance with detailed instructions. A real estate is usually a special agent. |
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| Special Assessment |
| A legal charge against real estate by a public authority to pay the cost of public improvements, such as for the opening, grading, and guttering of streets, the construction of sidewalks and sewers, the installation of street lighting, and the like. Also, when a homeowners' association needs or wants extra funds, it levies a special assessment upon the owners. |
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| Special Deposit Account |
| Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed. |
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| Special Use Permit |
| A zoning procedure that allows a property owner to make a certain use of property if certain stated conditions are met. It is sometimes called a conditional use permit. |
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| Special Warranty Deed |
| A deed in which the grantor warrants and guarantees to his/her grantee that the title she/he conveys is free from defects or encumbrances that have arisen since the grantor acquired title; a warranty only against defects or encumbrances that have occurred by, through, or under the grantor. |
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| Specific Lien |
| A lien filed against a particular parcel of property. Compare General Lien. |
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| Specific Performance |
| A remedy in a court of equity whereby the defendant may be compelled to do whatever he/she has agreed to do in a contract executed by him/her. Because all land is considered unique, the remedy is often applied in real estate law to enable a buyer to force a defaulting seller to transfer the specific real estate that is the subject of a sales contract rather than to be compensated in money damages for the seller's breach of contract. |
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| Specifications |
| The written requirements for materials, equipment, construction systems and standards. |
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| Speculation Home |
| A home that has been built without a buyer. |
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| Splash Block |
| A slanted block used to divert runoff water from a downspout away from the foundation. |
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| Split-level Style |
| A home that is a ranch-style house stacked to fit on a smaller lot and perhaps to accommodate a garage. |
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| Spot Zoning |
| The illegal singling out of a parcel of land for either special or more restrictive treatment inconsistent with the zone in which the parcel is located. |
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| Square Footage |
| The number of square feet of livable space in a home or building. |
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| Standard Payment Calculation |
| A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments. |
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| Starter Home |
| Homes that fall within the lower price range of a typical first-time buyer. |
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| Statistical Area |
| Areas designated by the U.S. Office of Management and Budget that contain a city of 50,000 or more. |
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| Statute |
| A law established by the act of the legislative power; an act of the legislature; the written will of the legislature solemnly expressed according to the forms necessary to constitute it the law of the state. |
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| Statute Of Frauds |
| State law that provides that certain contracts, including contracts for the sale of real estate, must be in writing in order to be enforceable in law. |
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| Statute Of Limitations |
| A statute declaring that no suit shall be maintained on certain expressed causes of actions unless they are brought within a specified period after the right accrued. |
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| Statutory Redemption Period |
| The statutory equivalent to the debtor's equity of redemption, the statutory redemption period is a grace period granted to defaulting mortgagor to recover his/her title to the mortgaged property, even though the debt is past due, by paying to the obligee the principal, accrued interest and costs incurred up to the time of foreclosure sale or upset bid periods, as the case may be. |
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| Steel Framing |
| A construction method used by commercial and residential builders. |
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| Steering |
| See Racial Steering. |
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| Step-rate Mortgage |
| A loan that allows a gradual increase in the interest rate during the first few years of the loan. |
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| Storm Sewer |
| A drain line, which is not connected to the sewer line, removes all other wastewater from a home. |
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| Storm Windows |
| Sets of windows and screens that are installed on older double-hung windows. |
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| Straight Purchase |
| A transaction in which the buyer gives a new-home builder a deposit to begin building and the balance when the sale of the house closes. |
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| Strike Plate |
| The metal part of a lock that is anchored to the doorframe and holds the door closed. |
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| Stucco |
| A mixture of sand and cement used to cover the exterior surface or interior walls of a home or building. |
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| Studs |
| The upright pieces of lumber or steel in a wall to which panels, siding, drywall or other coverings are attached. |
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| Sub-flooring |
| The sheathing, usually made of plywood, placed on top of floor joists and covered by flooring. |
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| Subagent |
| An agent of an agent; one designated or employed by an agent to perform part or all of the agent's duties on behalf of the agent's principal; the selling agent in a real estate sales transaction (if different from the listing agent). A seller's subagent who writes the buyer's offer owes loyalty to the seller, though many states presume any agent working with a buyer is the buyer's agent. |
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| Subcontractor |
| A contractor who contracts with a general or prime contractor to perform labor at or furnish materials to a construction site. A subcontractor is entitled to obtain a statutory lien against the real estate if they have not been paid for their services. |
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| Subdivision |
| A tract of land divided into smaller parcels or lots, usually for homebuilding purposes. |
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| Subdivision Plat |
| A map of a subdivision. (In some instances, various public officials must review it and give their approval before it can be accepted for recordation by the Register of Deeds.) |
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| Subject |
| With regard to appraisal, the property being appraised (for which an estimate of value is sought). |
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| Subject To Mortgage |
| A term or phrase referring to the taking of title to mortgaged property by a grantee-purchaser, wherein he/she is not responsible to the holder of the promissory note for the payment of any portion of the amount due. In the event of foreclosure, the most that he/she can lose is his/her equity in the property. The original maker of the note (i.e., the seller-grantor) is not released from his/her responsibility. |
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| Sublease |
| An agreement whereby one person who has leased land from the owner rents out all or a portion of the premises for a period ending prior to the expiration of the original lease. |
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| Subordinate Loan |
| A second or third mortgage. |
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| Subordinated Ground Lease |
| A ground lease in which the lessor has agreed to subordinate her/his title in the land to a mortgage or deed of trust subsequently executed by the ground lessee. |
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| Subordination Clause |
| A clause in a mortgage or lease stating that one who has a prior claim or interest agrees that his claim or interest shall be secondary or subordinate to a subsequent claim, encumbrance, or interest. |
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| Sump Pump |
| A pump that moves water from a basement sump pit. |
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| Surety |
| One who guarantees the performance of another. |
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| Surrender |
| A voluntary termination of a lease by agreement of the landlord and tenant prior to the normal expiration date. |
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| Survey |
| The process by which the quantity and boundaries of a piece of land are ascertained; the statement of the courses, distances, and quantity of land is also called a survey. A survey may also include grades, contours, structures, or other physical features affecting the land. |
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| Survivorship |
| The distinguishing feature of a tenancy by the entirety, by which, on the death of one spouse, the surviving spouse acquires full ownership. |
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| Syndication |
| A group of investors who combine to pursue a specific goal of investment in real estate. |
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| Takeout Commitment |
| A commitment by a lender to grant a takeout loan to a developer when construction of a project is completed. |
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| Takeout Loan |
| A loan, usually for an interim period of a few years, to a developer that enables the developer to pay off his prior construction loan and continue to have financing on his property until it can be sold. |
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| Tap Fees |
| Most companies charge a tap fee for hooking up utilities. |
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| Tax |
| A charge or burden, usually pecuniary, laid upon persons or property for public purposes; a forced contribution of wealth to meet the public needs of a government. |
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| Tax Deduction |
| A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted. |
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| Tax Deed |
| A deed given where property has been purchased at public sale because of the owner's nonpayment of taxes. |
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| Tax Lien |
| A statutory lien against the property of a party who has failed to pay her/his taxes. Tax liens may be specific liens against specific property, as with property tax or special assessment liens, or may be general liens against all property of the defaulting taxpayer, as with federal or state income tax liens. |
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| Tax Sale |
| The public sale of a property by the government for nonpayment of taxes. |
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| Tax Shelter |
| A term often applied to real estate investment and refers to various tax advantages. |
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| Tear-down Condition |
| A house that requires the entire interior to be rebuilt. |
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| Teaser Rate |
| An low, short-term rate offered on a mortgage to entice the borrower. |
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| Tenancy At Will |
| See Estate at Will. |
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| Tenancy By The Entirety |
| A form of joint tenancy held only by husbands and wives in which each spouse (tenant) holds an equal, undivided interest in the whole property. The most important characteristic of a tenancy by the entirety is the right of survivorship that exists in behalf of each tenant (spouse); upon the death of one spouse, the surviving spouse automatically acquires ownership in severally of the entire property without the need for probate. |
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| Tenancy For Years |
| See Estate for Years. |
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| Tenancy In Common |
| A form of concurrent ownership of real property by two or more persons. Each tenant in common is the owner of an undivided, fractional interest in the whole property. The estate or interests of tenants in common need not be identical or equal; upon the death of a tenant in common his/her undivided interest descends to his/her heirs and there is no right of survivorship in the other co-tenants. tenancy in severalty |
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| Tenancy Of Sufferance |
| See Estate at Sufferance. |
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| Tenant |
| Technically, one who holds any estate in property, whether freehold or less than freehold. In a popular sense and as most often used, a tenant is one who has, under a lease, the temporary use and occupation of lands or tenements that belongs to another; a lessee. |
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| Tenant Security Deposit |
| See Security Deposit. |
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| Tenants In Common |
| A form of ownership in which two or more owners hold an undivided (though not necessarily equal) interest in the property, with no right of survivorship. |
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| Tenements |
| A common law term that signifies anything that was the subject of tenure at common law and includes lands as well as certain intangible rights, such as easements, issuing out of or annexed to lands. |
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| Term Loan |
| A loan, often used for construction financing, that involves no amortization of principal. Interest is paid on the full principal sum during the entire loan period, and principal is payable in full at the end of the loan period. |
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| Termination Of Offer |
| An offer to purchaser is terminated if the offeree rejects the offer, or fails to accept within the prescribed period of time stipulated in the offer, or, if none is so stipulated, within a reasonable period of time. An offer is also terminated by the making of a counteroffer. |
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| Termite Inspection Report |
| See Wood-Destroying Insect Inspection Report. |
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| Terrace |
| A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape. |
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| Testate |
| The condition of one who leaves a valid will at her/his death. |
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| The 72-hour Clause |
| If a buyer needs to sell one house to buy another, most sellers insist on a 72-hour clause. If a better offer comes in before the contingency is settled, this clause allows the seller to give the buyer 72 hours to remove the contingency or lose the house. |
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| Third-party Origination |
| In a third-party origination transaction, the lender has another institution originate all or part of a mortgage. |
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| Timber Deed |
| A deed that conveys the right to harvest standing timber. |
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| Time Is Of The Essence |
| A phrase meaning that time is of crucial and vital importance and that failure to meet time deadlines will be considered to be a failure to perform the contract. |
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| Timeshare |
| Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort. |
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| Title |
| In relation to real estate, title is the sum, the union of, all elements and facts on which ownership is founded, or by which ownership is proved. The actual legal document conferring ownership of a piece of real estate. |
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| Title Assurance |
| The various ways by which purchasers, lenders and others dealing with real property ascertain whether or not a seller or owner has title, determine the quality of title, and protect title. |
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| Title Company |
| Firms that ensure that the title to a piece of property is clear and provide title insurance. |
| |
| Title Examination |
| A search conducted by a licensed attorney to ascertain the status of title to real property; accomplished by searching the public records. |
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| Title Insurance |
| A policy of insurance whereby a title insurance company agrees to indemnify the holder of an interest in real property for any loss sustained as a result of defects in the title. Policies of title insurance frequently except from their coverage certain types of defects, restrictions, liens, and encumbrances which are not insured against. |
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| Title Risk |
| Possible impediments to the transfer of a title from one owner to another. |
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| Title Search |
| A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property. |
| |
| Top Producer |
| A real state industry term that refers to agents and brokers who sell a high volume of homes. |
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| Top Soil |
| The top layer of soil that is removed when lots are graded in preparation for construction. |
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| Tort |
| A wrongful act, injury, or violation of legal right. |
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| Total Expense Ratio |
| The percentage of monthly debt obligations relative to gross monthly income. |
| |
| Townhouse |
| A unit in non-vertically attached, multiunit complex where the owner of the unit owns in severalty both the unit (including the entire physical structure) and the land on which the unit rests. The common areas are owned by the unit owners’ association. A secondary meaning refers to a style of construction, that being a multilevel unit in a multiunit residential complex, as distinguished from a single-level (garden) style of unit in such complexes. See also Condominium. |
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| Tract Home |
| Another term for a production home, a mass-produced house constructed by one builder in a project. |
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| Trade Equity |
| Other real estate or assets a buyer gives to a seller as part of the down payment. |
| |
| Trade-fixture |
| A fixture attached to realty by a tenant under a commercial lease to further her/his business. In most cases, trade fixtures are removable by the tenant at the end of her/his lease. See also Fixture. |
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| Trading Down |
| A reference to buyers who purchase a home that is less expensive than their current house. |
| |
| Trading Up |
| A reference to buyers who purchase a home that is more expensive home than their current house. |
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| Trans Union Corporation |
| Trans Union Corporation is one of the Big Three credit-reporting bureaus that operate nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390. Phone: (800) 888-4213. |
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| Transaction Broker |
| A real estate professional who is hired to help a buyer and seller reach agreement, but does not represent either buyer or seller. |
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| Transfer Of Ownership |
| Any legal means by which a piece of real estate changes hands. |
| |
| Transfer Tax |
| An assessment by state or local authorities at the time a piece of property changes hands. |
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| Transom |
| A small hinged window directly above a door. |
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| Tray Ceiling |
| A tray ceiling has edges that slant toward the middle from the walls. |
| |
| Treasury Bills |
| Securities issued by the Treasury Department that have the full backing of the U.S. government. |
| |
| Treasury Index |
| An index used to determine interest rate changes for adjustable rate mortgages. |
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| Trellis |
| A decorative landscape structure made of thin strips of wood or plastic. |
| |
| Trim Work |
| The finishing of doors, doorways, window frames and floors. |
| |
| Truss |
| A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements. |
| |
| Trust |
| A relationship under which one person (called the trustee) holds legal title to property for the benefit of another person (called the cestui que trust or trust beneficiary). |
| |
| Trust Account |
| Special checking accounts maintained at an insured bank or savings and loan association, used by brokers and escrow agents to safeguard funds for a buyer or seller. Also called an escrow account |
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| Trust Deed |
| See Deed of Trust. trust funds |
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| Trustee |
| A legally empowered person who holds or controls a piece of property for another person. |
| |
| Trustee's Deed |
| A conveyance of property by a trustee under a deed of trust who has completed foreclosure proceedings. |
| |
| Truth-in-lending Act |
| A federal law which requires lenders or arrangers of credit to disclose various information concerning the cost of credit to borrowers or customers connection with consumer loans, including real estate loans; Title I of the Consumer Credit Protection Act. The law also allows a consumer to cancel a home-improvement loan, second mortgage or other loan until midnight the third business day after a contract is signed, if the home was pledged as security (except for a first mortgage or first trust deed). |
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| Tuck-point |
| The process of removing old mortar from between bricks and replacing it with new mortar. |
| |
| Two- To Four-family Property |
| A piece of property that is owned by one person but provides housing for up to four households. |
| |
| Two-step Mortgage |
| An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term. |
| |
|
| U.S. Department. Of Housing And Urban Development (HUD) |
| A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs. |
| |
| Underimprovement |
| An improvement that is not the highest and best use for the site on which it is placed due to deficient size or cost. |
| |
| Underlayment |
| A layer of wood between the subfloor and the floor. |
| |
| Underwriting |
| With regard to mortgage lending, the process of analyzing the risk associated with a particular loan or type of loan and setting appropriate conditions for the loan. With regard to insurance, the process of analyzing and rating the risk associated with a particular policy or type of insurance. |
| |
| Undisclosed Heir |
| A person who claims the right to a piece of property after the death of an owner without a will. |
| |
| Undisclosed Spouse |
| An unidentified marital partner who can claim the right to a piece of property. |
| |
| Undivided Ownership |
| Ownership of a fractional interest (such as one-third, one-quarter, or one-half) in specific property by sharing possession of the whole (undivided) property with one or more other owners. If X and Y own equal interests in a tract of land as tenants in common, each owns an undivided one-half share in the whole tract. |
| |
| Undue Influence |
| Taking any fraudulent or unfair advantage of another's weakness of mind, distress, or necessity. |
| |
| Uniform Commercial Code |
| A set of uniform laws adopted in almost all of the United States governing dealings in commercial matters. Matters relating to banking transactions, sales of goods, and numerous other commercial topics are covered. Real estate brokers will most frequently cross paths with the U.C.C. in the area of security agreements affecting fixtures. |
| |
| Uniform Settlement Statement (HUD-I Form) |
| A standardized settlement statement to be used in all residential real estate closings subject to RESPA. |
| |
| Unilateral Contract |
| A contract under which one party promises to perform a specified act without receiving in return any express promise of performance by the other party; a contract whereby Party X promises to perform (e.g., pay some valuable consideration) upon the performance of some act by Party Y in such case, Party X is obligated to perform (pay) only if Party Y actually performs the act called for in the contract, and Party Y has no obligation to perform. unimproved land |
| |
| Unit Ownership |
| A legal term used to describe ownership in a condominium unit. |
| |
| Unity Of Person |
| The requirement that only a husband and wife can hold property as tenants by the entirety. |
| |
| Unity Of Possession |
| An incident of all forms of concurrent ownership that gives each cotenant the equal right to possess the entire property. |
| |
| Universal Agent |
| An agent who is authorized to transact all of the principal's business of every kind. |
| |
| Unrecorded Deed |
| An unrecorded deed transfers ownership from one party to another without being officially recorded. |
| |
| Unsecured Loan |
| Any loan that is not backed by collateral. |
| |
| Upgrades |
| Options than the standard carpeting, lighting, finish carpentry and other amenities offered to all buyers in a new-home project. |
| |
| Upzoning |
| The process in which a property is zoned from a lower to a higher use. |
| |
| Urban Sprawl |
| The unplanned expansion of development over a large area. |
| |
| Useful Life |
| See Economic Life. usury |
| |
|
| VA (Veterans Administration) |
| The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment. |
| |
| VA Loans |
| A program that allows most veterans to purchase a house without a down payment. |
| |
| VA Mortgage Loan |
| Mortgage loan guaranteed by the Veterans Administration. |
| |
| Vacancy And Collection Loss |
| The loss in potential rental income due to vacancies and the inability to collect rent due from tenants. |
| |
| Vacation Leases Or Licenses |
| A form of time share whereby resort property is leased (or obtained under a license) for a limited segment of time during each year and for the duration of a certain number of years. |
| |
| Valid |
| Having force, or binding force; legally sufficient and authorized by law. |
| |
| Valuation |
| An estimate or opinion of value, normally market value. Also, the process of deriving a conclusion as to value. See Appraisal. |
| |
| Value |
| The quantity of one commodity that can be obtained in exchange for another (value-in-exchange); also, the utility or usefulness of a commodity (value-in-use). As applied to property, the present worth, usually expressed in terms of money, of all right to future benefits arising from ownership. |
| |
| Variable Interest Rate |
| A loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills. |
| |
| Variable Rate Mortgage |
| A mortgage loan under which the lender may increase or decrease the interest rate periodically during the life of the loan in accordance with certain predetermined factors or indices. See also Adjustable Rate Mortgage. |
| |
| Variance |
| An exception to a zoning ordinance which may be granted by the governmental zoning authority authorizing a property use which is prohibited under the zoning ordinance. |
| |
| Vaulted Ceiling |
| An elongated half-cylinder that arches above the floor. |
| |
| Vendee |
| A purchaser; a buyer; the person to whom a thing is rendered or sold. |
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| Vendor |
| A seller; the person who disposes of a thing for a consideration. |
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| Ventilation |
| Ventilation is the process of both replacing stale air with fresh air and circulating the air in a house through a series of vents or a mechanical system, such as an air conditioner. |
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| Verification Of Deposit |
| Part of the loan process, in which a lender will ask a borrower's bank to sign a statement verifying the borrower's account balances and history. |
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| Verification Of Employment |
| Part of the loan process, in which a lender asks the borrower's employer for confirmation of the borrower's position and salary. |
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| Vestibule |
| A small entrance hall or room. |
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| Veterans Administration (VA) |
| The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment. |
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| Victorian Style |
| An architectural style that dates from the mid-19th century. |
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| Vinyl-clad Windows |
| Wood windows sheathed in vinyl on the outside. |
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| Visible Easements Doctrine |
| A doctrine stating that a purchaser of real estate takes title subject to certain visible easements even though the written sales contract and deed do not except the visible easement from the warranties of title. |
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| Void Contract |
| An agreement that is treated as a complete nullity by the law. That which is unenforceable; having no force or effect. |
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| Voidable Contract |
| A contract with a defect that can be raised by one of the parties in order to avoid performance. If the defect is not raised, the contract is valid and enforceable. |
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| Voluntary Lien |
| A lien that a homeowner willingly gives to a lender. |
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| Wainscoting |
| Wood paneling, tongue-and-groove boards or similar material installed between a baseboard and a chair rail. |
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| Waiver |
| A legal term signifying that a party has given up legal rights she/he would otherwise have; the renunciation, or surrender of some claim, right, or privilege. |
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| Walk-out Basement |
| A feature that allows a door to open onto ground level. |
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| Walk-through |
| A buyer's final inspection of the home to determine if conditions in the purchase agreement have been satisfied. |
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| Warranty |
| A legally binding promise to do something in the future. |
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| Warranty Deed |
| A deed that transfers ownership of real property and in which the grantor guarantees that his/her title is free and clear of all encumbrances. Term normally used to refer to a general warranty deed. |
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| Waste |
| A destruction or material alteration or deterioration of the land or buildings thereon done or permitted by any person in rightful possession to the lasting injury of the interest of the owner of the fee simple title, reversioner, or remainderman. |
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| Water Rights |
| Property rights incident to the ownership of land whereby one is entitled to rights to a supply of water. See Riparian Rights. |
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| Weather Stripping |
| Weather stripping is individual lengths of rubber or plastic used to plug air leaks around doors and window frames. |
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| Wetlands |
| Watery areas such as swamps, marshes and floodplains. |
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| Wild Deed |
| An improperly recorded deed. |
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| Will |
| A written document which, when properly executed, signed, and witnessed, is effective at the death of the maker to dispose of his/her property according to the terms of the document. |
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| Willful Misrepresentation |
| (a) The intentional misrepresentation of a material fact by a party with actual knowledge of the truth of the matter being misrepresented; (b) The misrepresentation of a material fact by a party who does not have actual knowledge of the fact being represented, but who acts without regard for the actual truth of the matter. |
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| Willful Omission |
| The intentional failure to disclose a material fact about which a party has actual knowledge. |
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| Window Light |
| An individual pane of glass. |
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| Window Seat |
| A bench built under an interior window. |
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| Window Well |
| A curved, corrugated steel insert used to isolate basement windows from moisture if they're below the soil line. |
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| Window Well Covers |
| Curved plastic covers designed to be installed on top of a window well to cover the opening. |
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| Wood-destroying Insect Inspection Report |
| A report provided by a licensed pest control operator indicating that an improved property has been inspected and reporting any visible evidence of infestation and structural damage by various wood-destroying insects (including termites), as well as conditions conclusive to such pests. Sometimes referred to by the old term termite inspection report or by the term pest inspection report. |
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| Wraparound Mortgage |
| A loan to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan. |
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| Yield |
| The return or profit on an investment. When expressed as a percentage of the amount invested, the yield is the rate of return.' |
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| Zero-lot Lines |
| Houses built without space between them and with little or no yard. |
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| Zoning |
| Regulations that control the use of land within a jurisdiction. |
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| Zoning Ordinance |
| A local ordinance exercising the police power of a municipal corporation or county that divides the land into use classifications by zone or area and also usually regulates lot size and the placement, bulk, and height of structures. |
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| Zoning Variance |
| A one-time modification of existing zoning law. |
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