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Real Property Glossary -A-
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A la carte real estate servicesProfessional real estate services that are rendered one transaction at a time.
A-frame design
An interior style featuring a steeply peaked roofline and a ceiling open to the
top rafters.
Abatement
Often referred to as free rent or early occupancy and may occur outside or in
addition to the primary term of the lease
Absorption rate
The rate at which rentable space is filled.
Abstract of judgment
The summary of a court judgment that creates a property lien when filed with the
appropriate government recording office.
Abstract or title search
The process of reviewing all publicly recorded transactions to determine whether
any title defects exist that could interfere with a clear transfer of property
ownership.
Accelerated cost recovery system
A tax calculation that provides greater depreciation in the early years of
ownership.
Accelerated depreciation
A bookkeeping method that provides faster property depreciation in the early
years of ownership.
Acceleration clause
A clause that provides the mortgagee (lender) the right to demand immediate
repayment of the loan balance upon default of the mortgagor (borrower).
"Acceleration" is also triggered by the due on sale clause (demands immediate
repayment if the home is sold).
The seller's written approval of a buyer's offer.
Access
Any means by which a person can enter property.
The degree to which a building or site allows access for people with disabilities.
Accretion
The gradual addition to the shore or bank of a waterway by deposits of sand or
silt.
Acre
A measurement of land equal to 43,560 square feet.
The volume of material needed to cover an acre of land one foot deep.
Active solar system
A system that utilizes electric pumps or fans to transfer solar energy for
storage or direct use.
Actual age
The number of years a structure has been standing.
Ad valorem tax
Tax based on assessed property value.
Addendum
An addition or change to an existing contract between two (2) or more
parties.
Additional principal payment
Additional funds outside of the scheduled loan payment to reduce the principal
balance and shorten the term of the loan.
Adjustable rate mortgage (ARM)
A home loan with an interest rate that periodically adjusts to reflect changes
in a specified financial index.
Adjusted cost basis
The addition of any improvement costs a seller makes to a property. Deducting
this cost figure from the original sales price will provide the realized profit
or loss upon sale.
Adjustment period
The amount of time between interest rate adjustments in an adjustable-rate
mortgage.
A person given authority to administer and distribute the effects of an estate left who dies without a will.
Administrator's deed
A legal document that an estate administrator uses to transfer property.
Adverse possession
The acquisition of property title through possession without the owner's
consent for a certain period of time.
Adverse use
The access and use of property without the owner's consent.
Soil composed of materials deposited by the wind.
Affiant
A person who makes a sworn statement.
A substitution for an oath granted to people based on religious reasons.
Affordability Analysis
An analysis of a consumers ability to
afford the purchase of a home. This analysis usually includes the review of a
potential borrower's income, liabilities and available funds.
Agency
The relationship of trust that exists between sellers, buyers and their
agents.
When a lender uses a title company or other firm as an agent to complete a loan.
Agency disclosure
Most states require agents who act for both buyers or sellers to disclose
who they are working for in the transaction.
A boundary property owners agree on in order to resolve a dispute.
Agreement of sale
A legal document the buyer and seller approve detailing the price & terms of
the transaction.
The blower equipment in a furnace, heat pump, or similar appliance designed for circulating heated or cooled air through a central heating system.
Air lot
A designated airspace over a piece of property.
Alcove
A recessed section of a room.
A loan provision requiring the borrower to pay the balance of the loan in a lump sum if the property is sold or transferred.
Alkali
Mineral salt found in soil.
Soil containing a higher concentration of mineral salt than natural acid.
Alley
A lane behind a row of buildings or between two rows of buildings.
A dollar amount offered by builders of new homes for the purchase of carpeting and fixtures.
Alternative mortgage
A home loan program that does not conform to standard fixed-rate mortgage
terms.
Enticements offered by builders of planned developments. Common amenities include swimming pools, health clubs and business centers.
American Society of Home Inspectors (ASHI)
Professional association of independent home inspectors. Members must meet
defined education and performance requirements.
A law passed in 1990 that outlaws discrimination against a person with a disability in housing, public accommodations, employment, government services, transportation and telecommunications.
Amortization
The process of paying the principal and interest on a loan through regularly
scheduled payments.
Mathematical tables used to calculate a borrower's monthly payment.
Amortization term
The length of time required to amortize the mortgage loan expressed as a number
of months. For example, 360 months is the amortization term for a 30-year
fixed-rate mortgage.
Amperage
The strength of an electrical current.
The basic unit used to measure electric current.
Anchor bolt
A large steel bolt anchored in concrete and attached to a building to
prevent the structure from moving.
Annual assessments
The process of placing a value on property for the sole purpose of
taxation. Also refers to a levy against property for a special purpose, such as
street lighting or sewer assessment.
An annual statement to borrowers detailing the remaining principal balance and amounts paid for taxes and interest throughout the year.
Annuity
The payment of a fixed sum at regular intervals.
Anticipatory breach
A communication informing a party to a contract that one or more obligations
of the original contract will not be fulfilled.
A substance applied to aluminum wiring connections to seal and promote conduction.
Application fee
An application fee is charged by some lenders and may include charges for
items such as property appraisal and/or a credit report unless those fees are
reported separately.
A professional opinion of the value of a property by a licensed real estate appraiser.
Appraisal fee
The fee that a professional real estate appraiser charges to appraise, or
estimate the market value of, a property.
A written report on the value of a property based on recent sales of comparable property in the area.
Appraised value
A professional opinion of the current market value of a property.
An increase in the value of a home or other property.
APR (annual percentage rate)
A measure of interest that expresses the cost of a mortgage as a yearly rate
on the loan balance. The APR assumes the loan is held for its full term. For
adjustable-rate loans, the APR assumes the loan's index doesn't change from its
initial value.
Arbitration
A method of resolving a dispute in which a third party renders a decision.
A licensed professional who designs residential and commercial property structures.
Architectural fees
The fee charged by an architect for services. A common way of billing by
architects is to charge for their services by the hour, by the square foot or by
a percentage of the project budget.
A home loan with an interest rate that periodically adjusts to reflect changes in a specified financial index.
ARM index
A publicly published number used as the basis for adjusting the interest
rates of adjustable rate loans (ARM).
Array
A term used by tax assessors to describe a list of properties in a certain
category sold within a defined period of time.
The purchase or sale of a property in its existing condition.
ASHI (American Society of Home Inspectors)
A professional association of independent home inspectors whose members must
meet and maintain defined education and performance requirements.
Asking price
A seller's initial sales price.
The combining of two or more adjoining lots into one larger tract.
Assessed value
A tax assessor's determination of the value of a home in order to calculate
a tax base.
The estimated value of a piece of real estate or a special levy placed in addition to taxes.
Assessment rolls
A list of taxable property compiled by the assessor.
An official who determines the assessed value of a property.
Assets
Items of value which include cash, real estate, securities, and investments.
The transfer of rights to pay a debt from one party to another, with the original party remaining liable for the debt if the second party defaults.
Assignor
A person who transfers rights and interests of a property.
A mortgage that can be transferred to another borrower.
Assumption clause
A provision that allows a buyer to take responsibility for the mortgage from
a seller.
A fee the lender charges to process new records for a buyer who assumes an existing loan.
Automatic extension
A clause in a listing contract stating that the agreement will automatically
continue for a certain period of time after the expiration date (very rare)
A device in the flue of a heating unit that closes to prevent heat loss when the unit is not in operation.
Avigation easement
An easement over private property near an airport that limits the height of
structures and trees.
Awning windows
Single-sash windows that tilt outward and up.
