Real Estate & Mortgage Glossary

295 terminologies brought to you From the Desk of Massey Kouhssari.

A.L.T.A TITLE POLICY

A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard type policy. It is a lender's policy.

Insurance

ABANDONMENT

To release a claim, as a declaration of Abandonment when property has been homestead.

Property

ABSTRACT

A brief summary.

Documentation

ABSTRACT OF JUDGMENT

A condensation of essential provisions of a court judgment.

Legal

ABSTRACT OF TITLE

A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title, together with any other elements of record which may impair the title.

Title

ABSTRACTION METHOD

A method of valuing land. The indicated value of the improvements is deducted from the sale price.

Valuation

ACCELERATION CLAUSE

Clause in trust deed or mortgage giving lender right to call all sums owing him to be immediately due and payable upon the happening of a certain event.

Mortgage

ACCEPTANCE

When the seller or agent's principal agrees to terms of the agreement of sale and approves the negotiation on the part of the agent and acknowledges receipt of the deposit in subscribing to the agreement of sale, that act is termed an acceptance.

Sales

ACCESS RIGHT

The right of an owner to have ingress and egress to and from his property.

Property Rights

ACCESSION

Acquiring title by having property added to your property.

Title

ACCOUNTS PAYABLE

Money owed by a business. They are considered liabilities.

Accounting

ACCOUNTS RECEIVABLE

Money owed to a business. They are considered assets.

Accounting

ACCREDITED ASSESSMENT EVALUATOR (AAE)

A professional designation. A property evaluator who has achieved the requirements of the International Association of Assessing Officers.

Professional

ACCREDITED LAND CONSULTANT (ALC)

A professional designation. A person who has met the requirements of the Realtors Land Institute to aid in the marketing of real property.

Professional

ACCREDITED RESIDENTIAL MANAGER (ARM)

A professional designation for a person trained to manage residential properties. A person who has earned the designation by fulfilling the requirements of the Institute of Real Estate Management (IREM).

Professional

ACCRETION

An addition to land from natural causes as, for example, from gradual action of the ocean or river waters.

Property

ACCRUED

Accumulated up to this point in time. Accrued interest, accrued depreciation.

Finance

ACCRUED DEPRECIATION

The difference between the cost of replacement new as of the date of the appraisal and the present appraised value.

Valuation

ACCRUED INTEREST

Interest earned but not yet paid.

Finance

ACKNOWLEDGMENT

A formal declaration before a duly authorized officer by a person who has executed an instrument that such execution is his act and deed.

Legal

ACQUISITION

The act or process by which a person procures property.

Property

ACRE

A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square.

Measurements

ACTUAL NOTICE

Knowledge of existence of a thing or fact.

Legal

ADC LOAN

A loan that finances the three major phases of a land development project: (i) acquisition, (ii) development and (iii) construction.

Loans

ADMINISTRATOR

A person appointed by the probate court to administer the estate of a person deceased.

Legal

ADDENDUM

An addition to a document that forms part of it. Similar to a Schedule to an Agreement of Purchase and Sale.

Documentation

ADDITIONAL PRINCIPAL PAYMENT

A one-time or lump-sum payment made by a borrower in addition to the regular payments on a loan or mortgage which reduces the principal owing on the debt.

Mortgage

ADJUSTABLE RATE

An interest rate that changes periodically according to an index.

Interest Rates

ADJUSTABLE RATE MORTGAGE (ARM)

A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Thus, interest rate and payments rise and fall with the market.

Mortgage

ADJUSTED BOOK VALUE

Cost of acquisition minus depreciation (if allowed) plus capital improvements. Used when figuring profit for income tax.

Accounting

ADJUSTED GROSS INCOME

Total rents received from income property, after an allowance for vacancies and bad debts.

Finance

ADJUSTED SELLING PRICE

Selling price minus expenses of sale. Used when figuring profit for income tax.

Sales

ADJUSTMENT DATE

The date soon after the completion of a purchase and mortgage transaction on which the borrower must make a payment of accumulated interest only.

Mortgage

ADJUSTMENT INTERVAL

The period of time between changes in the interest rate charged on an adjustable-rate mortgage.

Mortgage

ADJUSTMENTS

Changes made to the selling price to account for the advantages and disadvantages of the subject property, market conditions, and other factors.

Sales

AD VALOREM

According to valuation.

Taxation

ADVANCE FEE

A fee charged for advertising property or business opportunities in a publication other than a newspaper or general circulation.

Fees

ADVERSE POSSESSION

The open and notorious possession of property for a statutory period, which can result in acquiring title.

Property Rights

AFFIANT

A person who makes a sworn or affirmed statement.

Legal

AFFIDAVIT

A statement or declaration reduced to writing, sworn to or affirmed before some officer who has authority to administer an oath or affirmation.

Legal

AFFIRMATION

A solemn declaration made by a person who objects to taking an oath.

Legal

AGREEMENT OF SALE

Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.

Sales

ALTERNATIVE DOCUMENTATION

A method of documenting a loan file that relies on information the borrower is likely to be able to provide instead of waiting on verification sent to third parties.

Loans

AMORTIZATION

A monthly repayment schedule according to which a loan is repaid in fixed payments of principal and interest. For the first few years, most of each payment is applied toward interest.

Mortgage

ANNUAL PERCENTAGE RATE (APR)

The cost of a mortgage expressed as a yearly rate. This percentage takes into account interest, points, origination fees, and mortgage insurance.

Interest Rates

APPLICATION

An initial statement of personal and financial information required to approve your loan.

Loans

APPLICATION FEE

Fees charged by lender to cover initial costs of processing a loan application, often including charges for property appraisal and a credit report.

Fees

APPRAISAL

A written estimate of a property's current market value, based on recent sales information for similar properties, the condition of the property, and neighborhood factors.

Valuation

APPRAISAL FEE

A fee charged by a licensed, certified appraiser to render an opinion of market value as of a specific date.

Fees

APR

See Annual Percentage Rate.

Interest Rates

ARM

See Adjustable Rate Mortgage.

Mortgage

ASSESSMENT

A local tax levied against a property for a specific purpose, such as road or sidewalk construction, a sewer, or street lights.

Taxation

ASSET

Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others.

Finance

ASSIGNMENT

The transfer of property rights by one person, the assignor, to another, the assignee.

Legal

ASSUMABILITY

A feature of a loan which allows it to be transferred to the new purchaser of a home. Assumable mortgages can help attract buyers.

Mortgage

ASSUMPTION

Agreement between buyer and seller for the buyer to take over the payments on an existing mortgage.

Mortgage

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