REAL ESTATE GLOSSARY

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ABSTRACTION METHOD [top]: A method used for estimating the value of property which uses similar properties available in the same market to extract the value of a parcel of land.

ACCELERATION CLAUSE [top]: This provision is used in a mortgage that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstances. This usually happens when the borrower defaults on the loan or re-finances their existing financing.

ACCESSORY BUILDING [top]: Often, this is a building separate from the main structure on a property used for a specific purpose, such as a workshop, storage shed or garage.

ACCRETION [top]: The natural growth of a piece of land resulting from erosion of matter caused by the forces of nature.

ACRE [top]: This is 43,560 square feet of measurement of an area.

ACTUAL AGE [top]: This is considered the amount of time that has passed since a building or other structure was built. See also: EFFECTIVE AGE.

ADJUSTMENT DATE [top]: The actual date in which the interest rate changes on an adjustable rate mortgage.

AD VAL OREM TAX [top]: The taxes assessed by the governing agency based on the value of the land and improvements.

ADDENDUM [top]: This can be a supplement to any document and or contract that contains additional information pertinent to the subject. Appraisers and real estate agents use an addendum to further explain items for which there was inadequate space on the standard appraisal form or document.
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ADJUSTABLE-RATE MORTGAGE (ARM) [top]: A mortgage where the interest rate varies based on a particular index, normally the prime lending rate, Treasury Bills, Libor Index, etc.

ADJUSTED BASIS [top]: The value of an asset (property or otherwise) that includes the original price along with the addition of the value of any improvement, and less any applicable depreciation of such item.

ADJUSTED SALES PRICE [top]: Using the estimate of a property's sales price and making adjustments to account for differences between it and another comparable property or properties.

AESTHETIC VALUE [top]: This is an addition of value a property enjoys based on subjective criteria such as look, appeal or improvement.

AFFIRMATION [top]: This is a signed declaration that a certain set of facts are truthful.

AFFORDABILITY ANALYSIS [top]: Most of the time a lender will use calculations to determine an individual's likelihood of being able to meet the financial obligations of a mortgage for a particular property, by taking into account the down payment, closing costs, credit history and on-going mortgage payments.

AGENT [top]: This is a person or entity, usually a real estate agent, who has been appointed to act on behalf and represent another party for a particular transaction.

AMENITY [top]: An amenity is a feature of a property that increases its value or desirability. Some items may include natural amenities such as location or views of oceans or mountains, or man-made amenities like swimming pools, parks or other recreation areas or facilities.

AMORTIZATION [top]: A loan which is repaid through regular periodic payment, usually on a monthly basis.

AMORTIZATION SCHEDULE [top]: This is a scheduled breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution(s) and interest fees.

AMORTIZATION TERM [top]: The amount of time which an amortized loan is repaid. Most mortgages are commonly amortized over 15 or 30 years.

AMPERAGE [top]: It is a measure of electric current describing the magnitude.

ANNUAL PERCENTAGE RATE (APR) [top]: It is the rate of annual interest charged on a loan and must be disclosed to the consumer upon purchase.

ANNUITY [top]: Usually A sum of money paid at regular intervals on an annual basis.

APPLICATION [top]: This is a form used to apply for a mortgage loan. This is a detailed form which indicates a potential borrower's income, debt, savings and other information used to determine their credit worthiness.

APPRAISAL [top]: A validated and carefully documented opinion of value. The process is most commonly derived by using recent sales of comparable properties by a licensed, professional appraiser.

APPRAISAL REPORT [top]: The purpose of the report is to convey the estimated value of the subject property and support that estimate with corroborating information. The end result of the appraisal process usually consists of one major, standardized form such as the Uniform Residential Appraisal Report form 1004, as well as all supporting documentation and additional detail information.

APPRAISED VALUE [top]: The estimated fair market value of a property prepared and detailed by a licensed, certified appraiser following accepted appraisal principals.

APPRAISER [top]: The appraiser is often the only independent voice in any real estate transaction with no vested interest in the ultimate value or sales price of the property. An appraiser is an educated, certified professional with extensive knowledge of real estate markets, values and practices.

APPRECIATION [top]: A natural rise in property value due to market forces (supply and demand).

ARMS LENGTH TRANSACTION [top]: This is any transaction in which the two parties are unconnected and have no overt common interests. This type of transaction often reflects the true market value of a property.

ASSESSED VALUE [top]: This is the value of a property according to tax assessment established by a County.

ASSESSMENT [top]: The levying of taxes by assigning a value to a property.

ASSESSMENT RATIO [top]: A comparative relationship of a property's assessed value to its fair market value.

ASSESSOR [top]: Is the County who performs the assessment and assigns the value of real estate property for tax purposes.

ASSET [top]: This can be any item of value, whether real estate or personal which a person owns.

ASSIGNMENT [top]: When the transfer of ownership of a mortgage usually when the loan is sold to another company, pension plan and or financial institution.

ASSUMABLE MORTGAGE [top]: When a mortgage can be taken over by the buyer when a home is sold.

ASSUMPTION [top]: A buyer takes over, or "assumes" the sellers existing mortgage. The lender usually charges points for this, along with full documentation from the buyer.

ATTACHED HOUSING (OHANA) [top]: Any number of houses or other dwellings which are physically attached to one another, but are occupied by a number of family members and/or different people.

BACKFILL [top]: A sloped area of the ground around a house or a building site.

BALLOON MORTGAGE [top]: This is a type of mortgage loan in which the monthly payments are not large enough to repay the loan by the end of the term (mostly used in short term loans). So at the end of the term, the remaining balance comes due in a single large payment.

BALLOON PAYMENT [top]: When the last and final large payment at the end of a balloon mortgage term is paid in full.

BANKRUPTCY [top]: When a person or business is unable to pay their debts and seeks protection of the state against creditors. Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loan due to poor credit.

BEAM [top]: A structural supporting member in construction.

BILL OF SALE [top]: A physical receipt indicating the sale of personal property.

BIWEEKLY MORTGAGE [top]: A mortgage where you make "half payments" every two weeks, rather than one payment per month. The end result is by making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgage.

BLIGHTED AREA [top]: When any region of a city or town that has fallen into disrepair or otherwise has become undesirable.

BONA FIDE [top]: This is a genuine offer, made without intent to defraud or deceive.

BRIDGE FINANCING [top]: This interim loan made to facilitate the purchase of a new home before the buyer's current residence sells and its equity is available to fund the new purchase. This is also called a “Swing Loan”.

BRIDGING [top]: The use of structural members between beams to strengthen the structure.

BROKER [top]: An individual or a company licensed by the state who facilitates the purchase of property by bringing together a buyer and a seller.

BTU [top]: This is a unit of measurement used to describe heating or cooling capacity the acronym for British Thermal Unit.

BUFFER ZONE [top]: When a segment of land between two disparate municipal zones which acts as a shield to keep one zone from encroaching upon the other. This is most often used to separate residential districts from commercial areas.

BUILDING CODE [top]: These are regulations that ensure the safety and material compliance of new construction within a municipality. Building codes are localized to ensure they are adequate to meet the risk of common hazards in structures.

BUILDING LINE OR SETBACK [top]: This is the statutory distance between buildings and the property line, imposed by municipalities, home associations, or other written or personal agreements.

BUILT-INS [top]: These are specific items of personal property which are installed in a real estate improvement such that they become part of the building often considered attachments. Built-in microwave ovens, dishwashers and shelving are common examples.

BUNGALOW [top]: A type of home-style dating from the early twentieth century. Usually, this is a one-story home which is often characterized by a low-pitched roof.

BUY DOWN [top]: The extra money paid in a lump sum to reduce the interest rate of a fixed rate mortgage for a period of time. The money may be paid by the borrower, in order to have a lower payment at the beginning of the mortgage. Or the extra money may be paid by the seller, or lender, as incentive to buy the property or take on the mortgage. Some builders use this as an incentive to sell properties in a down market.

CALL OPTION [top]: This is a clause in a mortgage which allows the lender to demand payment of the outstanding balance at a specific time.

CAP [top]: This is used as a limit on Adjustable Rate Mortgages on how high monthly payments or how much interest rates may change within a certain time period or the life of the mortgage.

CAPE COD COLONIAL [top]: A single-story house style made popular in New England, characterized by a steep roof with gables.

CAPITAL [top]: When goods and money are accumulated most often used to generate additional income.

CAPITAL EXPENDITURE [top]: This is an outlay of funds designed to improve the income-producing capabilities of a property or to extend its economic life.

CASH-OUT REFINANCE [top]: The act of refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cash.

CAULKING [top]: This is a pliable material used to seal cracks or openings such as around windows.

CAVEAT EMPTOR [top]:  When literally translated, it means, ''Let the buyer beware.'' The buyer is responsible for verifying any and all claims by the seller of property.

CERTIFICATE OF DEPOSIT [top]: This is a document showing that the bearer has a certain amount of money, at a particular amount interest, on deposit with a bank or financial institution.

CERTIFICATE OF DEPOSIT INDEX [top]: An index based on the interest rate of six months CD's. This is often used to set interest rates on some Adjustable Rate Mortgages.

CERTIFICATE OF ELIGIBILITY [top]: The Veterans Administration uses this document that certifies eligibility for a VA loan.

CERTIFICATE OF OCCUPANCY [top]: This is issued by a municipality, using a document which certifies that a building complies with all building codes and is safe for use or habitation.

CERTIFICATE OF REASONABLE VALUE (CRV) [top]: This document is usually based on an independent appraisal; a CRV for a particular property establishes the maximum amount which can be secured by a VA mortgage.

CERTIFICATE OF TITLE [top]: Usually provided by a title or abstract company, this is a document designating the legal owner of a parcel of real estate.

CERTIFIED GENERAL APPRAISER [top]: Generally this designation is, any professional who has met the local or state requirements, and passed the appropriate certification exam, and is capable of appraising any type of property.

CERTIFIED RESIDENTIAL APPRAISER [top]: This is a sub-classification of appraiser who is only licensed to appraise residential property, usually up to four units.

CHAIN OF TITLE [top]: The complete documented history of ownership of a piece of property.

CHATTEL [top]:  This is any personal property which is not attached to or an integral part of a property. A Chattel is not commonly taken into consideration when appraising the value of real property.

CIRCUIT BREAKERS [top]: These are electrical devices which automatically open electrical circuits if they are overloaded.

CLEAR TITLE [top]: The ownership of property that is not encumbered by any counter-claim or lien.

CLOSING COSTS [top]: These are all of the appropriate costs generated by the sale of property which the parties must pay to complete the transaction. Costs may include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the deal.

CLOSING STATEMENT [top]: The document details the final financial arrangement between a buyer and seller and the costs paid by each, often used by Title Companies.

CO-BORROWER [top]: Also called a “Co-Signer”, a second person sharing obligation on the loan and title on the property.

COLLATERAL [top]: This is an asset which is placed at risk to secure the repayment of a loan.

COLLECTION [top]: The process a lender or creditor takes to pursue a borrower who is delinquent on his payments in order to bring the mortgage or credit current again. This includes documentation that may be used in foreclosure for a lender.

CO-MAKER [top]: Also considered a “Co Borrower” is a second party who signs a loan, along with the borrower, and becomes liable for the debt should the borrower default.

COMMON LAW [top]: Laws that have been established by custom, usage and courts over many years, as opposed to statute law.

COMMISSION [top]: A percentage of the sales price or a fixed fee negotiated by a real estate agent to compensate for the effort expended to sell or purchase property.

COMMON AREA ASSESSMENTS [top]: The fees which are charged for properties to cover the costs of maintaining common areas shared with other owners or tenants. Mostly found in condominium, PUD or office spaces.

COMMON AREAS [top]: Any areas, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the owners of property near by. Commonly found in condominium, PUD or office spaces.

COMMUNITY PROPERTY [top]: In many states, any property which has been acquired by a married couple. The ownership of the property is considered equal unless stipulated otherwise by both parties.

COMPARABLES [top]: An abbreviated term used by appraisers and real estate agents to describe properties which are similar in size, condition, location and amenities to a subject property, which the value is being determined.

COMPOUND INTEREST [top]: When the interest paid on the principal amount, as well as any accumulated interest.

CONCESSIONS [top]: Usually used as additional value granted by a buyer or seller to entice another party to complete a deal.

CONDEMNATION [top]: The official process by a municipality which a property is deemed to be uninhabitable, unsafe or unusable due to internal damage or other external conditions.

CONDENSATION [top]: Typically, this is the transition of water vapor to liquid forms, usually found in areas of high humidity.

CONDOMINIUM [top]: A development where individual units are owned, but common areas and amenities are shared equally by all owners and each owner is assessed by the Home Owners Board of Directors (also called Association of Apartment Owners) to pay for common interests on a monthly basis.

CONDOMINIUM CONVERSION [top]: Commonly, this is used when the conversion of a rental property such as an apartment complex into a CONDOMINIUM-style complex where each unit is owned rather than leased.

CONDUIT [top]: This is the pipe through which electric wiring is run.

CONSTRUCTION LOAN [top]: This is a loan made to a builder or home owner that finances the initial construction of a property, but is replaced by a traditional mortgage one the property is completed. Often, these loans are expensive and short term.

CONTIGUOUS [top]: When a property is connected to or touching along an unbroken boundary.

CONTINGENCY [top]: In a contract when something that must occur before something else happens. Often used in real estate sales when a buyer must sell a current home before purchasing a new one. Or, when a buyer makes an offer that requires a complete home inspection before it becomes official.

CONTRACT [top]: This is a legally binding agreement, oral or written, between two parties.

CONVENTIONAL MORTGAGE [top]: A traditional, real estate financing mechanism that is not backed nor insured by any government or other agency (FHA, VA, etc.).

CONVERTIBLE ARM [top]: When a mortgage begins as and adjustable, that allows the borrower to convert the loan to a fixed rate within a specific timeframe.

COOPERATIVE (CO-OP) [top]: A form of ownership where each resident of a multiunit property owns a share in a cooperative corporation that owns the building. The unit is considered personal property with each resident having stock certificate as collateral and rights to a specific unit within the building.

CORPORATE RELOCATION [top]: When a person's employer pays all or some of the expenses associated with relocation, usually over a substantial distance. Relocation expenses often include the amounts, such as brokerage fees, incurred in the selling, buying of the employee's primary residence and moving costs.

COST OF FUNDS INDEX (COFI) [top]: An index of financial institutions costs used for Adjustable Rate Mortgages.

COVENANT [top]: Used as a stipulation in any mortgage that, if not met, can be cause for the lender to foreclose.

CREDIT [top]: This is a loan of money for the purchase of property, real or personal. Credit is either secured by an asset, such as a home, or unsecured.

CREDIT HISTORY [top]: This is a report used by mortgage lenders in determining credit worthiness of individuals; record of debt payments, past and present.

CREDITOR [top]: This is a person, lender or company to whom money is owed.

CREDIT REPORT [top]: When a detailed report is created of an individual’s credit, employment and residence history prepared by a credit bureau. The reports are used by lenders to determine credit worthiness of individuals.

CREDIT REPOSITORY [top]: These are companies that gather and store financial and credit information about individuals who apply for credit.

CUL-DE-SAC [top]: The term for a dead-end street with only one entrance/exit.

DATE OF APPRAISAL [top]: Often stipulated as the date of inspection, time as of which an appraiser designates the value of a home.

DEBT [top]: This is any obligation to repay some amount owed. This may or may not be monetary.

DEBT EQUITY RATIO [top]: Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt. This is the ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home.

DEED [top]: A written and notarized document indicating the ownership of a property.

DEED-IN-LIEU (OF FORECLOSURE) [top]: Often used to avoid credit-damaging foreclosure procedures, this is a document given by a borrower to a lender, transferring title of the property.

DEED OF TRUST [top]: Often used in mortgage transactions, this is a document which transfers title in a property to a trustee, whose obligations and powers are stipulated in writing.

DEED OF RECONVEYANCE [top]: This is a document used to transfer ownership of a property from a Trustee back to a borrower who has fulfilled the obligations of a mortgage.

DEED OF RELEASE [top]: A document used for the dismissal of a lien or other claim on a property.

DEED OF SURRENDER [top]: When a document used to surrender any claim a person has to a property.

DEFAULT [top]: When a borrower has failed to meet the obligations of a loan or mortgage.

DELINQUENCY [top]: When a borrower has failed to meet payment obligations on time.

DEPOSIT [top]: This is when cash, check, cashiers check or wired funds are given along with an offer to purchase property, also called EARNEST MONEY DEPOSIT.

DEPRECIATION [top]: When the natural decline in property value is due to market forces or depletion of resources.

DETACHED SINGLE-FAMILY HOME [top]: A single building intended to serve as a home for one family.

DISCOUNT POINTS [top]: These are the points paid in addition to the loan origination fee to get a lower interest rate. One point is equal to one percent of the loan amount.

DISTRESSED PROPERTY [top]: When a mortgaged property has been foreclosed on.

DUE-ON-SALE PROVISION [top]: This is a clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the property. Almost every lender includes this in the note.

DUPLEX [top]: This is single-building which is divided and provides two units which serve as homes to two families.

DWELLING [top]: When a house or other building which serves as a home.

DOWN PAYMENT [top]: The amount of money paid in cash for a property, with the intent to mortgage the remaining amount due.

EARNEST MONEY DEPOSIT [top]: A cash deposit made by personal check, cashiers check or wired funds to a home seller to secure an offer to buy the property. This amount is can be forfeited if the buyer decides to withdraw his offer, depending upon the terms of the contract.

EASEMENT [top]: Generally, this is a recorded right of a non-owner of property to exert control over a portion or all of the property. For example, power companies often own an easement over residential properties for access to their power lines or for purposes of ingress or egress to the property.

EAVE [top]: A part of the roof that extends beyond the exterior wall.

ECONOMIC DEPRECIATION [top]: When the decline in property value is caused by external forces, such as neighborhood deterioration or adverse development.

ECONOMIC LIFE [top]: This is the amount of time which any income-producing property is able to provide benefits to its owner. This is mostly used in analysis of investment properties.

EFFECTIVE AGE [top]: This is subjective, estimated age of a property based on its condition, rather than the actual time since it was built (most commonly used by appraisers). The excessive wear and tear can cause a property's effective age to be greater than its actual age.

EMINENT DOMAIN [top]: The legal process whereby a government can take ownership of a piece of property in order to convert it to public use. The property owner is forced to sell the property to the government. Often, the property owner is paid fair-market value for the property.

ENCROACHMENT [top]: This can be building or other improvement (such as a fence) on one property which invades another property or restricts its usage. One usually must take legal steps to have the encroachment removed.

ENCUMBRANCE [top]: This is recorded claim against a property. Examples are mortgages, judgments, taxes, liens and easements.

ENERGY EFFICIENCY RATIO [top]: This is an efficiency rating system for air conditioning units which correspond to the number of BTU's output per watt of electricity used. You will find this on the Manufactory’s tag on the appliance.

EQUAL CREDIT OPPORTUNITY ACT (ECOA) [top]: U.S. federal law requires that lenders afford people equal chance of getting credit without discrimination based on race, religion, age, sex etc.

EQUITY [top]: The difference between the fair market value of a property and that amount an owner owes on any mortgages or loans secured by the property.

EQUITY BUILDUP [top]: When the natural increase in the amount of equity an owner has in a property has accumulated through market appreciation and debt repayment.

ERRORS AND OMISSIONS INSURANCE [top]: An insurance policy taken out by appraisers and Realtors to cover their liability for any mistakes made during the appraisal process or sale of a property.

ESCROW [top]:  An amount retained by a third party in a trust to meet a future obligation. Often used in the disbursement of fund to sell a property and or payment of annual taxes or insurance for real property.

ESCROW ACCOUNT [top]: This is an account setup by a mortgage servicing company to hold funds with which to pay expenses such as homeowners insurance and property taxes. There is usually an extra amount of funds paid with regular principal and interest payments that goes into the escrow account each month.

ESCROW ANALYSIS [top]: This is an analysis performed by the lender usually once each year to see that the amount of money going into the escrow account each month is correct for the forecasted expenses.

ESCROW DISBURSEMENTS [top]: This is where the Escrow Company pays for funds from an escrow account to pay property expenses such as taxes and insurance.

ESTATE [top]: The total of all real and person property and assets owned by an individual.

EXAMINATION OF TITLE [top]: This is a report generated on the title of a property from the public records or an abstract of the title.

EXCLUSIVE LISTING [top]: A written agreement between the owner of a property and a real estate agent giving the agent exclusive right to sell the property.

EXECUTOR Of EXECUTRIX [top]: A male or female person named in a will to administer the estate.

FAÇADE [top]: Often used to describe an artificial or false front which is not consistent with the construction of the rest of the building. This is the front exposure of any building.

FAIR CREDIT REPORTING ACT [top]: This is a federal law regulating the way credit agencies disclose consumer credit reports and the remedies available to consumers for disputing and correcting mistakes on their credit history.

FAIR MARKET VALUE [top]: This is when a price is reached at which two unrelated parties, under no duress, are willing to transact business.

FANNIE MAE [top]: Created by Congress in 1938, Fannie Mae is the nation's largest source of financing for home mortgages. A private, shareholder-owned company that works to make sure mortgage money is available for people to purchase homes.

FASCIA [top]: These are the boards that enclose the eaves.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) [top]: The U.S. Government agency created in 1933 which maintains the stability of and public confidence in the nation's financial system by insuring deposits and promoting safe and sound banking practices.

FEDERAL HOUSING ADMINISTRATION (FHA) [top]: It currently provides federally-subsidized mortgage insurance for private lenders. This is a sub-agency of the U.S. Department of Housing and Urban Development created in the 1930's to facilitate the purchase of homes by low-income, first-time home buyers.

FEE APPRAISER [top]: This is a certified, professional appraiser who estimates the fair market value of property and receives a set fee in exchange.

FEE SIMPLE [top]: This is a complete, unencumbered ownership right in a piece of property.

FEE SIMPLE ESTATE [top]: It is the most complete form of title, having an unconditional and unlimited interest of perpetual duration with a form or ownership, or holding title to real estate.

FHA MORTGAGE [top]: When a mortgage is insured by the Federal Housing Administration (FHA).

FIRST MORTGAGE [top]: This is the primary loan or mortgage secured by a piece of property.

FIXED-RATE MORTGAGE (FRM) [top]: This is a mortgage which has a fixed rate of interest over the life of the loan, usually a 15 year or 30 year mortgage.

FIXTURE [top]: This is any piece of personal property which becomes permanently affixed to a piece of real property.

FLASHING [top]: This is the metal used around the base of roof mounted equipment, or at the junction of angles used to prevent leaking.

FLOOD INSURANCE [top]: This is a supplemental insurance which covers a home owner for any loss due to water damage from a flood. This is usually required by lenders for homes located in FEMA-designated flood zones.

FLOOR PLAN [top]: The drawing of a building which shows the basic outline of the structure, as well as detailed information about the positioning of rooms, hallways, doors, stairs and other features. Oftentimes, this includes detailed information about other fixtures and amenities.

FOOTING [top]: This is a partially buried support for a vertical structural member such as a post.

FORECLOSURE [top]: The processes whereby a lender can reclaim the property used by a borrower in order to secure the mortgage and sell the property to meet the obligations of the loan.

FORFEITURE [top]: This is when there is a loss of property or money due to the failure to meet the obligations of a mortgage or loan secured by that property.

FOUNDATION [top]: The solid part of the structural element upon which a structure is built.

FRONTAGE [top]: When part of a property runs along a point of access, such as a street or water front.

FUNCTIONAL OBSOLESCENCE [top]: Functional obsolescence can also occur when the surrounding area changes, rendering the property unusable for its originally intended purpose. This decreases in the value of property due to a feature or lack thereof which renders the property undesirable.

GALVANIZED PIPE [top]: This is an iron pipe with a galvanized (zinc) coating.

GAMBREL ROOF [top]: A ''barn-like'' roof of a property, where the upper portion of the roof is less-steeply angled than the lower part.

GENERAL LIEN [top]: This is a broad-based claim against several properties owned by a defaulting party.

GEORGIAN [top]: This is a classic, English-style hose characterized by simple rectangular shape and multiple stories.

GFI [top]: A Ground Fault Interrupter is a type of circuit breaker required in areas where water is present.

GINNIE MAE [top]: Created in 1968 within the U.S. Department of Housing and Urban Development by a wholly owned corporation to serve low-to moderate-income homebuyers.

GIRDER [top]: This is a main supporting beam.

GOVERNMENT MORTGAGE [top]: This is any mortgage insured by a government agency, such as the FHA or VA.

GRADE [top]: The actual slope of land around a building can also be ground level.

GRANTEE [top]: This is any person who is given ownership of a piece of property.

GRANTOR [top]: This is any person who gives away ownership of a piece of property.

GROSS AREA [top]: Often measured based on external wall lengths, this is the sum total of all floor space, including areas such as stairways and closet space.

GROUTING [top]: This is the material used around ceramic tile.

GUTTER [top]: The trough around the edge of the roof that catches and diverts rain of a property.

HALF-SECTION [top]: This is a land measurement of 320 acres.

HAZARD INSURANCE [top]: This is an Insurance Policy covering any damage to a property caused by hazards such as fire, wind and accident.

HEADER [top]: The framing elements of a building above an opening such as a window or door.

HEARTH [top]: This is the floor of a fireplace or the area immediately in front of it.

HEIGHT ZONING [top]: This is a municipal restriction on the maximum height of any building or other structure.

HIDDEN AMENITIES [top]: These are assets of a property which contribute to its value, but are not readily apparent. Examples might include upgraded or premium building materials, such as windows.

HIGHEST AND BEST USE [top]: This is the most profitable and likely use of a property.

HOME EQUITY CONVERSION MORTGAGE (HECM) [top]: Also known as a reverse annuity mortgage, which allows home owners (usually older) to convert equity in the home into cash. This is normally paid by the lender in monthly payments. HECM's typically don't have to be repaid until the borrower is no longer occupying the home or.

HOME EQUITY LINE OF CREDIT [top]: This is a type of mortgage loan that allows the borrower to draw cash against the equity in his home.

HOME INSPECTION [top]: This is a complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value.

HOME INSPECTOR [top]: A person who performs professional home inspections. Usually, they have an extensive knowledge of house construction methods, common house problems, how to identify those problems and how to correct them.

HOMEOWNER'S ASSOCIATION [top]: This is an organization of home owners in a particular neighborhood or development formed to facilitate the maintenance of common areas and to enforce any building restrictions or covenants.

HOMEOWNER'S INSURANCE [top]: This is a policy which covers a home owner for any loss of property due to accident, intrusion or hazard. All lenders require this before funding for a loan on a property.

HOMEOWNER'S WARRANTY [top]: This is an insurance policy offered for covering the repair of systems and appliances within the home for the coverage period.

HUD MEDIAN INCOME [top]: Estimated by the Department of Housing and Urban Development (HUD), is the Median family income for a particular county or metropolitan statistical area (MSA).

HUD-1 STATEMENT [top]: This is a standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase. This is required by law to give to the buyer by the lender within a specific amount of time.

IMPROVED LAND [top]: This is a parcel of land which has been changed from its natural state through the creation of roads, buildings or other structures.

IMPROVEMENTS [top]: This is any item added to vacant land with the intent of increasing its value or usability.

IMPROVEMENT RATIO [top]: This is the comparative value of an improved piece of land to its natural and unaltered state.

INCOME APPROACH [top]: The process by which an estimation of the value of property by considering the present value of a stream of income generated by the property.

INCOME PROPERTY [top]: The definition is apiece of property whose highest and best use is the generation of income through rents or other sources.

INDEPENDENT APPRAISAL [top]: This is an estimation of value created by a professional, certified appraiser with no vested interest in the value of the property.

INSPECTION [top]: The physical examination of a piece of property, its buildings or other amenities.

INSURABLE TITLE [top]: When the title to property has been sufficiently reviewed by a title insurance company, that they are willing to insure it as free and clear.

INTEREST RATE [top]: This is percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

INVESTMENT PROPERTY [top]: This is any piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.

JOINT TENANCY [top]: A way of holding title to property where two or more parties own a piece of property together. Each of the owners has an equal share, and may not dispose of or alter that share without the consent of the other owners. The parties also have the “Right of Survivorship”, upon the death of one of the parties.

JOISTS [top]: When the horizontal beams are laid on edge to support flooring or a ceiling.

JUDGMENT [top]: This is an official court decision. If the judgment requires payment from one party to another, the court may put a lien against the property as collateral.

JUDICIAL FORECLOSURE [top]: When a type of foreclosure is conducted as a civil suit in a court of law.

JUMBO LOAN [top]: A mortgage loan for an amount that exceeds the limits set by Fannie Mae and Freddie Mac.

LALLY COLUMN [top]: This is a concrete filled steel pipe used to support beams.

LATE CHARGE [top]: An added charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan documents.

LATENT DEFECTS [top]: Any and all defects in a piece of property which is not readily apparent, but which has an impact of the value. Actual structural damage or termite infestation would be examples of latent defects.

LEASE [top]: This is a written contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.

LEASEHOLD ESTATE [top]: This is a type of property ''ownership'' where the buyer actually has a long-term lease on the property.

LEASE OPTION [top]: This is a type of lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.

LEGAL DESCRIPTION [top]: The physical description of a piece of property, identifying its specific location in terms established by the municipality in which the property resides. Often, this is related to specific distances from a known landmark or intersection.

LENDER [top]: This can be a person or entity who loans funds to a buyer. In return for the loan, the lender will receive periodic payments, including principal and interest amounts.

LIABILITIES [top]: This is considered a person's outstanding debt obligations.

LIABILITY INSURANCE [top]: Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in physical or other type damage to another party.

LIEN [top]: This is any claim against a piece of property resulting from a debt or other obligation.

LIFE CAP [top]: The actual limit on how far the interest rate can move for an Adjustable Rate Mortgage.

LIKE-KIND PROPERTY [top]: This is any property which is substantially similar to another property.

LINE OF CREDIT [top]: When a lender extends credit for a certain amount for a specific amount of time. This can be used by the borrower at his discretion.

LIQUID ASSET [top]: This is considered any asset which can be quickly converted into cash at little or no cost, or cash itself.

LOAN [top]: This is money borrowed, to be repaid with interest, according to the specific terms and conditions a loan.

LOAN OFFICER [top]: This is a person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.

LOAN ORIGINATION [top]: This is how a lender refers to the process of writing new loans.

LOAN SERVICING [top]: Typically this is carried out by the company you make payments to. They process the payments, mailing of monthly statements, management and disbursement of escrow funds, etc.

LOAN-TO-VALUE RATIO (LTV) [top]: The lender compares the amount owed on a mortgaged property to its fair market value.

LOCK-IN [top]: This is an agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.

LOCK-IN PERIOD [top]: It is the amount of time the lender has guaranteed an interest rate to a borrower. The borrower sometimes pays a fee for this.

MAJOR DEFICIENCY [top]: A deficiency that deficiency that may be very expensive to repair and/or strongly impacts the usability and habitability of a house.

MANUFACTURED HOUSING [top]: Manufactured housing is any building which has been constructed off site, then moved onto a piece of real property, at one time known as ''mobile homes”.

MARGIN [top]: This is the difference between the interest rate and the index on an adjustable rate mortgage.

MARGINAL LAND [top]: This is where land value has been diminished due to some internal defect or external condition. In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the property.

MASTER ASSOCIATION [top]: Often found in very large developments or condominium projects, this is an umbrella organization that is made up of multiple, smaller home owner's associations.

MATURITY [top]: This is the actual date on which the principal balance of a financial instrument becomes due and payable.

MERGED CREDIT REPOR [top]:  This is credit report which has derived from data obtained from multiple credit agencies.

METES AND BOUNDS [top]: A traditional way of measuring and describing property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the property back to its origin.

METROPOLITAN AREA [top]: The total of accumulated land in and around a city or other municipality which falls under the political and economic influence of that entity.

MINERAL RIGHTS [top]: This is the legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of land.

MISREPRESENTATION [top]: A statement by a party in a transaction that is incorrect or misleading. Most misrepresentations are deemed to be intentional and thus may constitute fraud and are punished by the governing laws. Others, however, some are rendered through simple mistakes, oversights or negligence.

MORTGAGE [top]: This is a written financial arrangement and document wherein an individual borrows money to purchase real property and secures the loan with the property as collateral.

MORTGAGE BANKER [top]: This is a financial institution that provides primary and secondary mortgages to home buyers.

MORTGAGE BROKER [top]:  This is a person or organization that serves as a middleman to facilitate the mortgage process. Brokers often represent multiple mortgage bankers and offer the best deal to each buyer.

MORTGAGEE [top]: The entity, person or financial institution that lends money in a real estate transaction.

MORTGAGE INSURANCE [top]: This is a type of policy that fulfills obligations of a mortgage when the policy holder defaults or is no longer able to make payments.

MORTGAGE INSURANCE PREMIUM (MIP) [top]: This is a fee that is often included in mortgage payments that pays for mortgage insurance coverage.

MORTGAGE LIFE INSURANCE [top]: A policy that fulfills the obligations of a mortgage upon the death of the policy holder.

MORTGAGOR [top]: This is the entity that borrows money in a real estate transaction.

MULTI-FAMILY PROPERTIES [top]: These are any collection of buildings that are designed and built to support the habitation of more than four families.

NATIONAL ASSOCIATION OF MASTER APPRAISERS (NAMA) [top]: This is an organization of a non profit professional association organized in 1982 and is dedicated to the advancement of professionalism in real estate appraisal.

NATIONAL SOCIETY OF REAL ESTATE APPRAISERS [top]:  This is an organization founded in 1956 which promotes standards of the professionalism of real estate appraisers in.

NATURAL VACANCY RATE [top]: This is the analysis of the percentage of vacant properties in a given area that is the result of natural turnover and market forces.

NEGATIVE AMORTIZATION [top]: Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interest, which makes the balance of a loan increase instead of decrease.

NEIGHBORHOOD LIFE-CYCLE [top]: The Economic fluctuations, municipal zoning changes and population shifts that can affect the evolution of neighborhood use and demographics over time.

NEIGHBORHOOD [top]: This is where a subsection of a municipality has been designated by a developer, economic forces or physical formations.

NET LEASABLE AREA [top]: This is the space in a development, outside of the common areas, that can be rented to tenants.

NEW ENGLAND COLONIAL [top]: This is typified by an architectural style dating from early American history of a two-story building with clapboard siding.

NO-COST LOAN [top]: There are many lenders who offer loans that you can obtain at "no cost." You should carefully inquire about means as to whether there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and other costs. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Know that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.

NO-POINT LOAN [top]: This is loan with no "points". The interest rate on such a loan will be higher than a loan with points paid. This can sometime refer to a refinance loan where closing costs are included in the loan.

NON-CONFORMING USE [top]: It is the use of land for purposes contrary to the applicable municipal zoning specifications. Often, this occurs when zoning changes after a property is in use.

NONLIQUID ASSET [top]: This is any asset which can not be quickly converted into cash at little or no cost.

NOTE [top]: A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

NOTE RATE [top]: This is the amount of interest rate stated on a mortgage note.

NOTICE OF DEFAULT [top]: This is a formal written notice from a lender to a borrower that they are in default.

OBSOLESCENCE [top]: This is the process of an assets value diminishing due to the development of more desirable alternatives or is no longer is useful of its capabilities.

OCCUPANCY [top]: How much of a physical presence within and control of a property.

OCCUPANCY RATE [top]: This is the percentage of properties in a given area that are occupied, commonly used with vacation rentals.

OCTOPUS RECEPTACLE [top]:  This is an outlet with too many devices plugged into it, using a power strip or other device to multiply the outlets.

OFF-SITE IMPROVEMENTS [top]: These are buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the property.

OFF-STREET PARKING [top]: These are designated parking spaces associated with a particular building or other structure which are not located on public streets.

OLD TERMITE ACTIVITY [top]: When a Termite Company determines no termites are currently active, but indications of past activity can be seen.

ON-SITE IMPROVEMENTS [top]: Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.

OPEN SPACE [top]: When any land which has not had any significant buildings or structures erected on it. Most often used to describe desirable neighborhood features like parks, owned by municipalities or private homeowner associations.

OPEN SPLICE [top]: This is an uncovered electrical connection.

ORIGINAL EQUITY [top]: This is the original amount of cash a home buyer initially invests in the home.

ORIGINAL PRINCIPAL BALANCE [top]: This is the actual amount of principal owed on a mortgage loan at the time of closing.

ORIGINATION FEE [top]: This is what a lender charges in reference to the total number of points paid by a borrower at closing.

OWNER FINANCING [top]: This is a transaction where the property owner (seller) provides all or part of the financing.

OWNER OCCUPIED [top]: This is when the owner occupies at least some portion of the property.

PARTIAL INTEREST [top]: This shared ownership in a piece of property. It may be divided among two or more parties.

PARTIAL PAYMENT [top]: When a payment is less than the regular monthly amount. Usually, a lender will not accept partial payments.

PERIODIC PAYMENT CAP [top]: The limit established on how much regular monthly payments will be on an Adjustable Rate Mortgage can change during one adjustment period.

PERIODIC RATE CAP [top]: The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

PERSONAL PROPERTY [top]: These are owned items which are not permanently affixed to the land, also known as Chattels.

PERSONAL RESIDENCE [top]: The primary place of residence of a person or family.

PLANNED UNIT DEVELOPMENT (PUD) [top]: This consists of a coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity.

PLAT [top]: This is plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements and may be derived from a survey.

POINT [top]: This is known as a percentage of a mortgage amount (one point = 1 percent).

PRE-APPROVAL [top]: The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval usually accompanies an offer to purchase from the borrower when in negotiations with sellers.

PREFABRICATED [top]: This is considered any building or portion thereof which is manufactured and assembled off site, then erected on a property.

PREPAYMENT [top]: Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.

PREPAYMENT PENALTY [top]: This is fee that may be charged to a borrower who pays off a loan before it is due and can be expensive.

PRE-QUALIFICATION [top]: Pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan, contingent upon credit report, appraisal and other documentation. This is less formal than a pre-approval, which means most of the conditions of the loan have been met.

PRIME RATE [top]: The interest rate which banks and other lending institutions charge other banks or preferred customers.

PRINCIPAL [top]: This is the amount owed on a mortgage which does not include interest or other fees.

PRINCIPAL BALANCE [top]: This is the outstanding balance of principal on a mortgage and does not included interest due.

PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI) [top]: The most common type of a monthly mortgage payment.

PRIVATE MORTGAGE INSURANCE (PMI) [top]: This is a required form of mortgage insurance provided by private, non-government entities. It is normally required when the LOAN TO VALUE RATIO is less that 20%.

PROPERTY [top]: This is item which is owned or possessed.

PURCHASE AGREEMENT [top]: A written legal contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

QUADRAPLEX [top]: This is considered any building designed to accommodate four families.

QUALIFYING RATIOS [top]: These are two ratios used in determining credit worthiness for a mortgage loan. One is the ratio of a borrower's monthly housing costs to monthly income. The other is a ratio of all monthly debt to monthly income.

QUITCLAIM DEED [top]: This is a legal document which transfers any ownership an individual has in a piece of property. Often used when the amount of ownership is not known, is unclear or in divorce settlements.

RAFTER [top]: The structural element of the roof, sloping from the peak to the outer walls.

RANCH HOUSE [top]:  A Popular design for a home in the western U.S, the style typically by a single-story, low-roof construction.

RATE LOCK [top]: The actual guarantee from a lender of a specific interest rate for a period of time.

RAW LAND [top]: This is considered any land which has not been developed.

REAL ESTATE [top]: This is a piece of land and or any improvements or fixtures located on that land.

REAL ESTATE AGENT [top]: A licensed real estate professional who facilitates the buying and selling of real estate.

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) [top]: A federal law requiring lenders to give full disclosure of closing costs to borrowers, within a specific amount of time from applying for a loan.

REAL PROPERTY [top]: All land, improvements and appurtenances, and the interest and benefits thereof.

REALTOR [top]: A licensed real estate agent or broker who is a member of the National Association of Realtors.

RECEPTACLE [top]: This is an electrical outlet to plug into.

RECORDER [top]: A local government employee whose role it is to keep records of all real estate transactions within the jurisdiction and or municipality.

RECORDING [top]: The formal legal filing of a real estate transaction with the appropriate government agent (normally the RECORDER). A real estate transaction is considered final when it is recorded.

REFINANCE TRANSACTION [top]: Obtaining a new loan to pay off an existing loan, usually to gain a lower interest rate or convert equity into cash.

REGISTER [top]: This is where air from a furnace or air conditioning system enters the room.

RELOCATION SERVICE [top]: Any company or agency that assists corporate employees in relocating from one place to another. Services may include hiring and coordinating real estate agents, moving companies, utilizes and the like.

REMAINING BALANCE [top]: This is the amount of principal, interest and other costs remaining on a loan that have not yet been repaid to a lender.

REMAINING TERM [top]: This is amount of time remaining on the original amortization schedule of a loan.

REMODEL [top]: Actively designing a piece of property to improve the value or desirability of a property through rebuilding, refurbishing, redecorating or adding on to it.

REPAYMENT PLAN [top]: This is a plan whereby a repayment plan is set up to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosure.

REPLACEMENT RESERVE FUND [top]: An account or fund set up for, the replacement of short life items, such as carpeting, in the common areas of a cooperative property.

RESIDENTIAL PROPERTY [top]: Commonly, this piece of property whose highest and best use is the maintenance of a residence.

REVOLVING DEBT [top]: This is a type of credit that allows the borrower/customer to make charges against a predetermined line of credit. The customer then pays monthly installments on the amount borrowed, plus interest.

RIGHT OF FIRST REFUSAL [top]: This is an agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others.

ROOF PITCH [top]: The amount of degree of a slope in a roof.

RURAL [top]: This is an area outside of an established urban area or metropolitan district.

SALE PRICE [top]: The actual price a property sells for and is recorded in the local municipality.

SALES COMPARISON APPROACH [top]: An appraisal practice used by both real estate agents and appraisers which estimates the value of a property by comparing it to comparable properties which have sold recently.

SCARCITY [top]: An economic principal that dictates the price of a good or service through the interaction of supply and demand. When an item is scarce, its price tends to rise, given a constant demand. Real Estate is a classic example of scarcity.

SECOND MORTGAGE [top]: This is a loan secured by the equity in a home, when a primary mortgage already exists and is recorded in secondary position.

SECONDARY MORTGAGE MARKET [top]: This is an economic marketplace where mortgage bankers buy and sell existing mortgages.

SECURED LOAN [top]: Clearly defined, this is a loan which is backed by collateral. In the case of a mortgage loan, the collateral is the house.

SECURITY [top]: This is a piece of property used as collateral for a loan.

SEMIDETACHED HOUSING [top]:  The definition of two residences which share a common wall.

SERVICER [top]: This is a financial institution which collects mortgage payments from borrowers and applies the appropriate portions to principal, interest and any escrow accounts.

SERVICING [top]: Typically, this service is carried out by the company you make payments to. The processing includes payments, mailing of monthly statements, management and disbursement of escrow funds, etc.

SHEATHING [top]: The covering on outside walls beneath the siding or exterior finish such as stucco on property.

SHEETROCK [top]: Also called drywall, the gypsum board which is commonly used on interior walls.

SILL PLATE [top]: This is the lumber used around the foundation to support exterior wall framing.

SILL COCK [top]: This is a garden hose pipe connection.

SINGLE-FAMILY PROPERTY [top]: This is a property designed and built to support the habitation of one family.

SOFFIT [top]: It is the underside of a cornice at the eaves.

STUCCO [top]: A Type of textured plaster exterior (and occasionally interior) wall finish.

STUD [top]: This is a vertical framing piece in a wall, generally 2x4 lumber in interior walls.

SUBDIVISION [top]: This is a residential development that is created from a piece of land which has been subdivided into individual lots.

SUBJECT PROPERTY [top]: This is a term used when a property is indicated in a real estate contract and also used for appraisals.

SUMP [top]: This is a basin into which water drains and from which the water is pumped out. Sump Pumps are what are generally used to accomplish this task.

SURVEY [top]: A specific map performed by a Surveyor on a piece of property which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements.

SWEAT EQUITY [top]: This is a method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.

TAX-EXEMPT PROPERTY [top]: This is any property which is not taxed, usually churches and parks.

TENANCY [top]: The legal right to occupy a building or unit.

TENANCY IN COMMON [top]: This is a way of holding title, whereby there are two or more people on title to a property, ownership does not pass on to the others upon the death of one individual.

THIRD PARTY ORIGINATION [top]: This is when a lender uses a third party to originate and package loans for sale to the secondary market (Fannie Mae, Freddie Mac).

TITLE [top]: This is a specific document which serves as proof of ownership.

TITLE COMPANY [top]: An organization and company which researches and certifies ownership of real estate before it is bought or sold. Title companies also act at the facilitator ensures all parties are paid during the real estate transaction.

TITLE INSURANCE [top]: A policy which insures a property owner should a prior recorded claim arises against the property after the purchase has been completed. This also insures a lender’s interest should a question of ownership arise.

TITLE SEARCH [top]: The process whereby the TITLE COMPANY researches a properties title history and ensures that no outstanding claims, encroachments, taxes or judgments exist against the property.

TRANSFER OF OWNERSHIP [top]:  This is any means by which the ownership of a property changes hands.

TRANSFER OF TAX [top]: When the title passes from one owner to another taxes are paid.

TRAP [top]: Typically, this is a bend in water pipe.

TRUSTEE [top]: A person or entity who acts as a fiduciary to hold or control property for the benefit of another.

TRUTH IN LENDING [top]: This is a federal law requiring full disclosure by lenders to borrowers of all terms, conditions and costs of a mortgage loan.

TUDOR [top]: Similar to the style of English manor homes. This kind of architecture is typified by exposed stone, wood and brick construction.

UNDER IMPROVED LAND [top]: Land which has been improved, but not to the full extent of its potential.

UNENCUMBERED PROPERTY [top]: A property which has no outstanding claims or liens against it.

UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) [top]: The purpose of these Standards is to establish requirements for professional appraisal practice, which includes appraisal, appraisal review, and appraisal consulting. The intent of these Standards is to promote and maintain a high level of public trust in professional appraisal practice. Developed in 1986 by the Ad Hoc Committee on Uniform Standards and copyrighted in 1987 by The Appraisal Foundation, USPAP forms the guidelines followed by every licensed and certified real estate appraiser in the United States.

USEFUL LIFE [top]: A span of time a property can be used or can provide benefits to its owner. This is used by appraisers to determine value.

VACANCY RATE [top]: A percentage of current vacant properties in a given area, regardless of why they are vacant used mostly by appraisers and investors to establish value.

VA MORTGAGE [top]: A type of mortgage that is guaranteed by the Department of Veterans Affairs (VA).

VARIANCE [top]: An exception to municipal zoning regulations granted for a specific time period to allow for non-conforming use of the land. Oftentimes, if a building is damages by natural causes or fire, the non-conforming use may no longer be valid.

VESTED [top]: Having the right to use a portion of a fund such as an IRA or Pension Fund. Usually vesting occurs over time. If become fully vested, you have a right to 100% of the fund.

VETERANS AFFAIRS, DEPARTMENT OF (VA) [top]: The VA (Veterans Administration) insures home loans made to veterans. The Veteran's Administration is a government agency which is responsible for ensuring the rights and welfare of our nation's veterans and their dependents.

VOLTAGE [top]: One volt is the force needed to move one amp against one ohm of resistance. This is an expression of electric force, or pressure.

WALK-THROUGH INSPECTION [top]: Prior to the close of an escrow a Buyer will inspection a property for any damage prior to that property being bought or sold. This is also a process whereby an appraiser examines a property in preparation for estimating its value.

WARRANTY [top]: An affidavit given as to the condition of a property. A person giving the warranty assumes liability if the condition turns out to be untrue. Some companies provide “Home Warranty Protection Policy”.

WATT [top]: An amount of electrical power. Volt x amps = watts.

WEAR AND TEAR [top]: Used to describe normal damage inflicted on a property through every-day use.

WEATHER STRIPPING [top]: Different types of material used around windows and doors to prevent drafts.

WEEP HOLE [top]: A drainage hole that allows water to escape.

ZERO LOT LINE [top]: This is a municipal zoning category wherein a building or other fixture may abut the property line. This is often used in Urban areas.

ZONE [top]:  A specific area within a county or other jurisdiction which conforms to certain guidelines regarding the use of property in the zone. Some zones may include single-family, multi-family, industrial, commercial and mixed-use.