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a la carte real estate services

A real estate transaction with additional itemized prices for a commission based service.

ABSOLUTE AUCTION

A type of a public sale where an auctioned property is awarded to the highest bidder. The seller has no control over the price of the property.

accelerated cost recovery system

A faster recovery method that allows the property costs shorter useful life than previously permitted by the tax code.

accelerated depreciation

A System of depreciation that permits much more deductions in the beginning stages of the life of an asset.

acceleration clause

Is part of a loan agreement that lets the lender accelerate the deadline of payment in full, in the event that the borrower misses a payment.

acceptance

An agreement between the seller and buyer staying within the terms and conditions placed by the buyers offer.

acre

Determines the dimensions of a land area equal to 43,560 square feet. acre-foot

The quantity of solid matter in depth of a foot that would cover an acre.

ACCELERATION A provision in one’s mortgage allowing the lender to request payment of a default loan balance from a borrower for varied reasons. Usually, accelerating a particular loan happens when borrower failed to pay certain financial obligations or transferred a property title to another person without consent of the lender.

actual age

The time lapsed since a structure has been constructed.

ad valorem tax

Taxes that are imposed on an estimated value of a property.

add-on interest

The interest that is compiled on the principal amount of a loan through its entirety that must be repaid even if the loan is paid off early.

addendum

An attachment to a contract or substitution.

adjustable rate mortgage (ARM)

An interest rate that fluctuates according to on going interest rates which may change on a yearly basis.

adjusted cost basis

The cost of home improvements that are subtracted from the original sales price of a property to show loss or profit when sold.

adjustment period

Adjustment Interval. The time between rate changes on a flexible mortgage rate.

ARM (adjustable rate mortgage)

Is a variable rate loan that with an interest rate that changes according to the current interest rates.

awning windows

A top hinged window that tilts out-ward and up with a single frame.

A-frame design

An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.   

abstract of judgment

The summary of a court judgment that creates a lien against a property when filed with the county recorder.

abstract or title search

A review of all public title records to ascertain that there are no title defects, no claims or liens against the property that would interfere with the transfer of ownership for the property.

access

Any means by which a person can enter a property.

accessibility

The quality of ease of access for persons with disabilities.

accretion

The gradual addition to the shores of a body of water by deposits of sand or silt.

acknowledgment

A written declaration affirming that the execution of an act was completed voluntarily.

additional principal payment

An extra payment made by the borrower in order to reduce the principal amount owing and shorten the term of the loan.

administrator

A court appointed person given authority to act for another person who is incapable of acting for him/herself, or a court appointed person given authority to administer the estate of a person who died intestate.

administrators deed

A legal document that an administrator of an estate uses to transfer property.

adverse possession

A method of claiming ownership to property owned by another person without the owner’s consent,  by occupying the property for a certain amount of time.

adverse use

The access and use of property without the owners consent.

aeolian soil

Soil that is composed of materials deposited by the wind.

affiant

A person who makes a sworn statement.

affirmation

A solemn and formal declaration of the truth of a statement of facts used by a person who objects to taking an oath, usually due to religious convictions that preclude swearing an oath.

agency

The relationship between a Principal and an Agent who represents the interests of the Principal in dealings with third parties whereby the Principal is bound by the statements, warranties and contracts.

agency closing

The process by which a lender uses a title company or other firm to act on the lenders behalf for closing the purchase of a home or refinancing a home loan.

agency disclosure

Documents that disclose the agents and brokerage agency relationships with the parties involved in the real estate transaction.

agreed boundary

Property line boundaries that are drawn to settle a dispute between the property owners.

agreement of sale

A document initiated by a buyer, which contains the terms and conditions for the transfer of title of a given property.

air handler

An appliance that pushes air across a central air conditioners evaporator coil and into the ducts.  The fan that blows the air from your furnace throughout your house. 

air lot

A designated airspace over a piece of property.

air-handling unit

An appliance that pushes air across a central air conditioners evaporator coil and into the ducts.  The fan that blows the air from your furnace throughout your house. 

alcove

A recessed section of a room or an extension of a room that forms part of the room.

alienation clause

A term in a mortgage which allows the creditor to request full payment of the balance of a mortgage upon the transfer of title of the property.

alkali

Soluble mineral salts found in natural water and arid soils.

alkaline soil

Soil that contains a higher concentration of mineral salt than natural acid.

alley

A narrow street or passageway between or behind a row of buildings.

allowance

A budget offered by builders of new homes for the purchase of carpeting and fixtures.

alternative mortgage

Any home loan that is not a standard fixed-rate mortgage.

aluminum siding

A metal covering for homes.

aluminum-clad windows

Wooden windows with aluminum covering the exterior.

amenities

Positive features and attractions located in or near a neighborhood which increase the value of a property. 

American Society of Home Inspectors (ASHI)

Professional association of independent home inspectors whose members must meet the standardized national policies.  Call (800) 743-2744 for list of ASHI-certified inspectors in your area.

Americans with Disabilities Act (ADA)

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

A loan repayment plan which allows for equal payments to be made to the creditor at regularly scheduled intervals over the life of the loan.  Payments cover the interest accrued over the interval period first with the remainder of the payment being applied to the principal.  The loan will be completely repaid at the end of the amortization period if all payments are made and made on time.

amortization tables

Mathematical tables that lenders use to calculate a borrowers monthly payment.

A mathematical formula which calculates a borrowers monthly payment based on the amount borrowed, the interest rate and the term of the loan.

amperage

The strength of an electrical current.

ampere

A unit of electric current in the meter-kilogram-second system.

anchor bolt

A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.

annual

Any kind of plant that completes its entire life cycle in a single growing season and must be planted every year.

annual assessments

The process of assessing a property for value for the strict purpose of taxation.

annual mortgagor statement

A report sent to a borrower once a year detailing how much interest, taxes and principal were paid on the loan during the year. 

annual percentage rate (APR)

A standard format to provide the annual average compound interest rate over the term of the loan so borrowers can comparison shop for loans.    In mortgages, it is the interest rate when taking into account the interest, mortgage insurance, and certain closing costs.

annuity

A periodic payment of a fixed sum of money paid to an investor.

anticipatory breach

A notification that informs the parties to a contract that one party will not be fulfilling the obligations of the contract, releasing the other party (or parties) from having to fulfill their end of the agreement.

antioxidant compound

A substance applied to aluminum wiring connections to seal and promote conduction.

appellant

A taxpayer or representative who appeals to a higher tribunal.

application

A form that is filled out when applying for a mortgage which documents personal and financial information of the applicant.

application fee

The fee that the lender charges the applicant to process the application for a loan.

appraisal

An estimate of the market value of a property after an inspection of the property

appraisal fee

The fee that is charged by an appraiser to do a market evaluation on a property.

appraisal report

A written report which supports an appraisal of property value based on recent sales of comparable properties in the same area.

appraised value

An estimate of the market value on a property after an inspection of the property and the analysis of similar properties in the same area.

appreciation

An increase in the value of a property due to changes in market conditions, inflation or changes to the value of surrounding properties.

approval

A confirmation of the amount a borrower may obtain.

APR (annual percentage rate)

A standard format to provide the annual average compound interest rate over the term of the loan so borrowers can comparison shop for loans.    In mortgages, it is the interest rate when taking into account the interest, mortgage insurance, and certain closing costs.

apron

A paved area, such as the junction of a driveway with the street.

aquastat

A thermostat submerged in water and used to control the operation of a device.

arbitration

An alternative dispute resolution method in which a third party renders a decision without resorting to court. 

arbor

A shaded area often made of rustic work or latticework on which plants, shrubs or vines are grown.

arc

A highly luminous, hot discharge of electricity between two electrodes.  Characterized by a high current, low voltage and of indefinite duration that is usually started when two electrodes carrying an electric current are drawn apart. 

arch

A structure forming the curved, pointed, or flat upper edge of an open space and supporting the weight above it.

arch surround

Half-round or elliptical trim mounted above a door or window for decorative purposes.

architect

A licensed professional who designs and supervises the construction of buildings and other structures.

architectural fees

The fee an architect charges for services.

ARM index

A reliable financial indicator used to adjust the interest rate for an adjustable rate loan (ARM).   ARM mortgages rely on the U.S. Treasury Securities rate and the London Inter-Bank Offered Rate (LIBOR) for the rates.

arpent

A French measurement of land equal to .84625 acres.

array

A term used by tax assessors to describe a list of properties in a specific category that have been sold within a given period of time.

asbestos

A natural incombustible and chemical-resistant material that was used for fireproofing, electrical insulation, building materials, brake linings, and chemical filters.   Made up of tiny fibers that can lodge in the lungs and lead to cancer or scarring of the lungs.  In 1989, the Environmental Protection Agency imposed a ban on 94% of U.S. asbestos production and imports.

as-is condition

Acceptance of the property in its current condition which releases the vendor from any liability for problems found before or after closing.

ASHI (American Society of Home Inspectors)

aProfessional association of independent home inspectors whose members must meet the standardized national policies.  Call (800) 743-2744 for list of ASHI-certified inspectors in your area.

asking price

The advertised price of the property; may suggest flexibility regarding the price.

assemblage

The combining of two or more adjoining properties into one larger property to increase the total value.

assessed value

The value placed on a property by the municipality to establish the taxes payable by the owner of the property.

assessment

The process of placing a value on a property for tax purposes.  May also refer to a levy placed on a property for a special purpose.

assessment rolls

A public record of taxable property compiled by an assessor.

assessor

A public official employed by the municipality to determine the value of a property for taxation purposes.

assets

Items of monetary value owned by a person.  Includes property, personal property and investments.

ASSESSED VALUE A tax assessor’s estimated value on a particular property for the purpose of tax calculations.

AUCTION Selling of properties in public in a form of bidding.

assignment

The transfer of a mortgage from one lender to another. 

assignor

A person who transfers rights and interests of a property.

assumable mortgage

A mortgage or loan that can be taken over (assumed) by the new owner with the new owner paying the seller the difference between the sales price and the balance on the loan.

assumption clause

A provision in an assumable mortgage that states the borrower has the right to have the mortgage assumed by a purchaser.

assumption fee

A fee the lender charges the purchaser of a property to process the records for the assumption of the existing mortgage.

automatic extension

A clause in a listing contract that states the agreement will automatically continue for a specified period of time after the expiration date.  This is discouraged and prohibited in many states.

automatic flue damper

An energy saving device in the flue of a heating unit that closes to prevent heat loss when the unit is not in use.

average price

The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the number of homes.

avigation easement

Used to secure airspace for an airport and runway approach.  May consist of the right-of-flight; the right to cause noise; the right to remove all objects protruding into the airspace and to prohibit future obstructions; and the right of ingress/egress on the land to exercise the rights.  May also contain any number of additional restrictions the airport owner deems necessary.