Word | Definition |
Abstract of judgment, law | The summary of a court judgment that creates a lien against a property when filed with the county recorder. |
Accelerated cost recovery system | A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property. |
Accelerated depreciation | A bookkeeping method that depreciates property faster in the early years of ownership. |
Acceleration Clause | A clause contained in a note & trust deed which gives the beneficiary or payee the right to declare the entire payment of any balance due upon an event such as a sale or transfer of title to Real Property. |
Acceptance | The seller's written approval of a buyer's offer. |
Accommodation Recording | The
recordation of an instrument without consideration and without assumption of responsibility for correctness or validity. |
Accretion | The gradual addition to the shore or bank of a waterway by deposits of sand or silt. |
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. |
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) | Also regarded as a Variable Rate Mortgage. A Mortgage with an interest rate that may be adjusted up or down, depending on its terms, conditions or specific index.
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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. |
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 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. |
Affirmation | A substitution for an oath granted to people based on religious reasons. |
Agency | A relationship that can be created by one or more persons in which one is authorized to act for another. In a Real Estate listing or sales transaction, a disclosure of Agency Relationships lawfully must be signed by all parties.
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Agency closing | The process by which a lender uses a title company or other firm as an agent to complete a loan. |
Agent | A person licensed by the state to conduct real estate transactions. |
Agreement of sale | A document the buyer initiates and the seller approves that details the price and terms of the transaction. |
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. |
Allowances | Budgets 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. |
Amendment | An instrument containing any changes or modifications which the parties agree, after the initial escrow instructions have been executed by the parties.
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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 | The American Society of Home Inspectors is a professional association of independent home inspectors. |
Amortization | Provision for the payment of a debt as to both principal and interest is paid in equal installments over a period of time.
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Amortization tables | Mathematical tables that lenders use to calculate a borrower's monthly payment. |
Annual | Any kind of plant that must be planted every year. |
Annual mortgagor statement | A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest. |
Annual Percentage Rate (APR) | The finance charges for a loan, including points and other loan fees, that are charged in addition to interest on the loan.
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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. |
Application | A document that details a potential borrower's income, debt and other obligations to determine credit worthiness. |
Application fee | The fee that a lender charges to process a loan application. |
Appraisal | An opinion of fair market value of both land and improvements on it. This is not to be confused with a Comparative Market Evaluation which an Agent may make.
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Appraisal fee | The fee that an appraiser charges to estimate the market value of the 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.. |
Appurtenance | Anything belonging to or incidental to land and considered part of Real Property.
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Arbitration | A method of resolving a dispute in which a third party renders a decision. |
As-is condition | The purchase or sale of a property in its existing condition. |
Asking price | A seller's initial price for a property. |
Assessed Value | The value of property for taxation purposes.
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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. |
Assessments | Special or local levies upon property in the immediate vicinity of an improvement. Assessments can be imposed by governmental entities such as flood
control districts, street lighting or air pollution districts which serve the area.
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Assets | Items of value which include cash, real estate, securities and investments. |
Assignment | The transfer, in writing, of a person’s interest to another person of an asset, such as an assignment of stock, a deed of trust or a lease.
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Assignor | A person who transfers rights and interests of a property. |
Assumable mortgage | A mortgage that can be transferred to another borrower. |
Assumption (of a mortgage or deed of trust) | An agreement by one party to another to pay an obligation previously owed by another. For example, the assumption of an existing trust deed loan by a new owner may occur when a property is sold.
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Assumption clause | A provision that allows a buyer to take responsibility for the mortgage from a seller. |
Assumption fee | The charge imposed by the existing lender when a buyer assumes the seller’s existing loan.
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Attorney-in-fact | An agent authorized to act for another (see power of attorney)
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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.
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