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a la carte real estate services
Professional real estate services that are rendered one transaction at a time
instead of the conventional full-service, commission-based brokerage
relationship.
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
The process of
reviewing all recorded transactions in the public record to determine whether
any title defects exist that could interfere with the clear transfer of
ownership of the property.
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.
acceleration clause
A provision that gives a lender the right to collect
the balance of a loan if a borrower misses a payment.
acceptance
The seller's written approval of a buyer's offer.
access
Any means by which a person can enter property.
accessibility
The degree to which a building or site allows access to people with
disabilities.
accretion
The gradual addition to the shore or bank of a waterway by deposits of sand or
silt. |
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acknowledgment
A written declaration affirming that a person acted voluntarily.
acre
A measurement of land equal to 43,560 square feet.
acre-foot
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. |
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add-on interest
The interest
a borrower pays on the principal for the duration of the loan.
addendum
An addition or change to a contract.
additional principal payment
Extra money
included in the monthly payment to help reduce the principal and shorten the
term of the loan.
adjustable rate mortgage (ARM)
A loan with an
interest rate that is periodically adjusted to reflect changes in a specified
financial index.
adjusted cost basis
The cost of any
improvements the seller makes to the property. Deducting the cost from the
original sales price provides the profit or loss of a home when it is sold.
adjustment period
The amount of time between interest rate adjustments in an adjustable-rate
mortgage. |
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administrator
A person given authority to manage and distribute the estate of someone who died
without leaving a will.
administrator's deed
A legal document that an administrator of an estate
uses to transfer property.
adverse possession
The acquisition of title
to property 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.
aeolian soil
Soil that is composed of materials deposited by the wind.
affiant
A person who makes a sworn statement. |
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affirmation
A substitution for an oath granted to people based on religious reasons.
agency
The relationship of trust that exists between sellers and buyers and their
agents. The agency is formed through a written contract.
agency closing
The process by which a lender uses a title company or other firm as an agent to
complete a loan.
agency disclosure
Laws in most states require
agents who act for buyers or sellers to disclose who represents whom in a real
estate transaction. Laws vary widely by state.
agreed boundary
A compromise boundary to which property owners agree in order to resolve a
dispute.
agreement of sale
A document the buyer initiates and the seller approves that details the price
and terms of the transaction. |
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air handler
Short for air-handling unit, 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.
air-handling unit
The blower equipment in a furnace, heat pump, or similar appliance designed for
circulating heated or cooled air through a central heating system.
alcove
A recessed section of a room, such as a breakfast nook.
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.
alkali
Mineral salt found in soil. |
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alkaline soil
Soil that
contains a higher concentration of mineral salt than natural acid.
alley
A lane behind a row of buildings or between two rows of buildings.
allowance
A budget offered by builders of new homes for the purchase of carpeting and
fixtures.
alternative mortgage
Any home loan that does
not conform to a standard fixed-rate mortgage.
aluminum siding
A metal covering that provides an alternative to paint for owners of wood homes.
aluminum-clad windows
Wooden windows with
aluminum covering the exterior. |
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amenities
Parks, swimming pools, health-club facilities, party rooms, bike paths,
community centers, and other enticements offered by builders of planned
developments.
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.
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
The process of paying the principal and interest on a loan through regularly
scheduled installments. Initially, most of each payment is applied toward
interest owed, and later in the loan term increasingly applied toward principal.
amortization tables
Mathematical tables that
lenders use to calculate a borrower's monthly payment.
amperage
The strength of an electrical current. |
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ampere
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
Any kind of plant that must be planted every year.
annual assessments
The process of placing a
value on property for the strict purpose of taxation. May also refer to a levy
against property for a special purpose, such as a street lighting or sewer
assessment.
annual mortgagor statement
A yearly statement
to borrowers that details the remaining principal and amounts paid for taxes and
interest.
annual percentage rate (APR)
A measure of
interest rate 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. |
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annuity
The payment of a fixed sum to an investor at regular intervals.
anticipatory breach
A communication that informs a party that the obligations of the original
contract will not be fulfilled.
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 document that details a potential borrower's income, debt, and other
obligations to determine credit worthiness.
application fee
Includes any fees that are
paid upon application. An application fee may include charges for property
appraisal and a credit report, if those fees are not reported separately. |
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appraisal
An opinion of the value of a property at a given point in time.
appraisal fee
The fee that a professional real estate appraiser charges to appraise, or
estimate the market value of, a property.
appraisal report
A detailed written report on the value of a property based on recent sales of
comparable sites in the area.
appraised value
An opinion of the current market value of a property.
appreciation
An increase in the value of a home or other property.
approval
A thorough assessment made by a lender of a borrower's ability to pay for a
home, and a confirmation of the amount the borrower may obtain. |
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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.
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
A method of resolving a dispute in which a third party renders a decision.
arbor
An area shaded by trees, shrubs, or vines on a latticework structure.
arc
A spark between two electrical points. |
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arch
A curved structure that supports weight over an area, such as a doorway.
arch surrounds
Half-round or elliptical trim
mounted above a door or window for decorative purposes.
architect
A licensed professional who designs homes, buildings, and other structures.
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.
ARM (adjustable rate mortgage)
A loan with an
interest rate that is periodically adjusted to reflect changes in a specified
financial index.
ARM index
A publicly published number used to adjust the interest rate for an adjustable
rate loan (ARM). An index (such as Treasury bills or the prime rate) reflects
the lender's cost of credit, and is not controlled by individual lenders. |
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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 certain
category sold within a given period of time.
as-is condition
The purchase or sale of a property in its existing condition.
asbestos
A fire-resistant mineral used for insulation and home products that has been
found to pose a health hazard.
ASHI (American Society of Home Inspectors)
A
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.
asking price
A seller's initial price for a property. |
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assemblage
The combining of two or more adjoining lots into one larger tract to increase
total value.
assessed value
A tax assessor's determination of the value of a home in
order to calculate a tax base.
assessment
The estimated value of a piece of real estate or a levy placed on property in
addition to taxes.
assessment rolls
A list of taxable property compiled by the assessor.
assessor
An official who determines the assessed value of a property.
assets
Items of value which include cash, real estate, securities, and investments. |
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assignment
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.
assumable mortgage
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.
assumption fee
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. This is
discouraged and prohibited in many states. |
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automatic flue damper
A
device in the flue of a heating unit that closes to prevent heat loss when the
unit is not in operation.
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
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. |
