Friday, September 30, 2011
Real Estate Glossary - Z
Zero-lot lines : Houses built without space between them and with little or no yard.
Zoning : Regulations that control the use of land within a jurisdiction..
Zoning variance : A one-time modification of existing zoning law.
Zoning : Regulations that control the use of land within a jurisdiction..
Zoning variance : A one-time modification of existing zoning law.
Real Estate Glossary - W
Wainscoting : Wood paneling, tongue-and-groove boards or similar material installed between a baseboard and a chair rail.
Waiver : A voluntary relinquishing of certain rights or claims.
Walk-out basement : A feature that allows a door to open onto ground level.
Walk-through : A buyer's final inspection of the home to determine if conditions in the purchase agreement have been satisfied.
Warranty : A legally binding promise to do something in the future.
Wetlands : Watery areas such as swamps, marshes and floodplains.
Wild deed : An improperly recorded deed.
Will : The most basic legal document outlining the disposition of a person's estate in the event of death.
Window light : An individual pane of glass.
Window seat : A bench built under an interior window.
Window well : A curved, corrugated steel insert used to isolate basement windows from moisture if they're below the soil line.
Window well covers : Curved plastic covers designed to be installed on top of a window well to cover the opening.
Wraparound mortgage : A loan to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan.
Waiver : A voluntary relinquishing of certain rights or claims.
Walk-out basement : A feature that allows a door to open onto ground level.
Walk-through : A buyer's final inspection of the home to determine if conditions in the purchase agreement have been satisfied.
Warranty : A legally binding promise to do something in the future.
Wetlands : Watery areas such as swamps, marshes and floodplains.
Wild deed : An improperly recorded deed.
Will : The most basic legal document outlining the disposition of a person's estate in the event of death.
Window light : An individual pane of glass.
Window seat : A bench built under an interior window.
Window well : A curved, corrugated steel insert used to isolate basement windows from moisture if they're below the soil line.
Window well covers : Curved plastic covers designed to be installed on top of a window well to cover the opening.
Wraparound mortgage : A loan to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan.
Real Estate Glossary - V
Variable interest rate : A loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills.
Variable rate mortgage : A loan with an interest rate that hinges on factors such as the rate paid on bank certificates and Treasury bills.
Variable rate : An interest rate that changes with fluctuations in such indexes as the U.S. Treasury bill index.
Vaulted ceiling : An elongated half-cylinder that arches above the floor.
Verification of deposit : Part of the loan process, in which a lender will ask a borrower's bank to sign a statement verifying the borrower's account balances and history.
Verification of employment : Part of the loan process, in which a lender asks the borrower's employer for confirmation of the borrower's position and salary.
Vestibule : A small entrance hall or room.
Veterans Administration (VA) : The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment.
Victorian style : An architectural style that dates from the mid-19th century.
Vinyl-clad windows : Wood windows sheathed in vinyl on the outside.
Voluntary lien : A lien that a homeowner willingly gives to a lender.
VA loans : A program that allows most veterans to purchase a house without a down payment.
Variable rate mortgage : A loan with an interest rate that hinges on factors such as the rate paid on bank certificates and Treasury bills.
Variable rate : An interest rate that changes with fluctuations in such indexes as the U.S. Treasury bill index.
Vaulted ceiling : An elongated half-cylinder that arches above the floor.
Verification of deposit : Part of the loan process, in which a lender will ask a borrower's bank to sign a statement verifying the borrower's account balances and history.
Verification of employment : Part of the loan process, in which a lender asks the borrower's employer for confirmation of the borrower's position and salary.
Vestibule : A small entrance hall or room.
Veterans Administration (VA) : The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment.
Victorian style : An architectural style that dates from the mid-19th century.
Vinyl-clad windows : Wood windows sheathed in vinyl on the outside.
Voluntary lien : A lien that a homeowner willingly gives to a lender.
VA loans : A program that allows most veterans to purchase a house without a down payment.
Real Estate Glossary - U
Underlayment : A layer of wood between the subfloor and the floor.
Underwriting : The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan.
Undisclosed heir : A person who claims the right to a piece of property after the death of an owner without a will.
Undisclosed spouse : An unidentified marital partner who can claim the right to a piece of property.
Unrecorded deed : An unrecorded deed transfers ownership from one party to another without being officially recorded.
U.S. Department. of Housing and Urban Development (HUD) : A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.
Unsecured loan : Any loan that is not backed by collateral.
Upgrades : Options than the standard carpeting, lighting, finish carpentry and other amenities offered to all buyers in a new-home project.
Upzoning : The process in which a property is zoned from a lower to a higher use.
Urban sprawl : The unplanned expansion of development over a large area.
Usury : A reference to illegally excessive interest charged on any loan.
Underwriting : The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan.
Undisclosed heir : A person who claims the right to a piece of property after the death of an owner without a will.
Undisclosed spouse : An unidentified marital partner who can claim the right to a piece of property.
Unrecorded deed : An unrecorded deed transfers ownership from one party to another without being officially recorded.
U.S. Department. of Housing and Urban Development (HUD) : A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.
Unsecured loan : Any loan that is not backed by collateral.
Upgrades : Options than the standard carpeting, lighting, finish carpentry and other amenities offered to all buyers in a new-home project.
Upzoning : The process in which a property is zoned from a lower to a higher use.
Urban sprawl : The unplanned expansion of development over a large area.
Usury : A reference to illegally excessive interest charged on any loan.
Real Estate Glossary - T
Tap fees : Most companies charge a tap fee for hooking up utilities.
Tax deduction : A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted.
Tax lien : An impediment placed against a property, such as back taxes.
Tax sale : The public sale of a property by the government for nonpayment of taxes.
Tax shelter : A term often applied to real estate investment and refers to various tax advantages.
Tear-down condition : A house that requires the entire interior to be rebuilt.
Teaser rate : An low, short-term rate offered on a mortgage to entice the borrower.
Tenancy by the entirety : When a married couple owns a home, it is usually considered tenancy by the entirety If the property must be sold to pay the debts of one spouse, both must agree.
Tenants in common : Two or more owners who share interest in a specific property.
Terrace : A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape.
The 72-hour clause : When a buyer has a house to sell before they can purchase another home, most sellers insist on a 72-hour clause. In the event of a better offer coming in before the contingency is settled, this clause entitles the seller to give the buyer 72 hours to remo
Third-party origination : In a third-party origination transaction, the lender has another institution originate all or part of a mortgage.
Timeshare : Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.
Title : The actual legal document conferring ownership of a piece of real estate.
Title company : Firms that ensure that the title to a piece of property is clear and provide title insurance.
Title insurance : A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property.
Title risk : Possible impediments to the transfer of a title from one owner to another.
Title search : A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property.
Top producer : A real state industry term that refers to agents and brokers who sell a high volume of homes.
Top soil : The top layer of soil that is removed when lots are graded in preparation for construction.
Total expense ratio : The percentage of monthly debt obligations relative to gross monthly income.
Townhouse : An attached home that is not a condominium.
Tract home : Another term for a production home, a mass-produced house constructed by one builder in a project.
Trade equity : Other real estate or assets a buyer gives to a seller as part of the down payment.
Trading down : A reference to buyers who purchase a home that is less expensive than their current house.
Trading up : A reference to buyers who purchase a home that is more expensive home than their current house.
Transfer of ownership : Any legal means by which a piece of real estate changes hands.
Transfer tax : An assessment by state or local authorities at the time a piece of property changes hands.
Transom : A small hinged window directly above a door.
Trans-Union : Trans-Union Corp. is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390. Phone: (312) 408-1400.
Tray ceiling : A tray ceiling has edges that slant toward the middle from the walls.
Treasury bills : Securities issued by the Treasury Department that have the full backing of the U.S. government.
Treasury index : An index used to determine interest rate changes for adjustable rate mortgages.
Trellis : A decorative landscape structure made of thin strips of wood or plastic.
Trim work : The finishing of doors, doorways, window frames and floors.
Truss : A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements.
Trust account : Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller.
Trustee : A legally empowered person who holds or controls a piece of property for another person.
Truth-in-Lending Act : A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage or first trust deed)
Tuck-point : The process of removing old mortar from between bricks and replacing it with new mortar.
Two-step mortgage : An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.
Two- to four-family property : A piece of property that is owned by one person but provides housing for up to four households.
Tax deduction : A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted.
Tax lien : An impediment placed against a property, such as back taxes.
Tax sale : The public sale of a property by the government for nonpayment of taxes.
Tax shelter : A term often applied to real estate investment and refers to various tax advantages.
Tear-down condition : A house that requires the entire interior to be rebuilt.
Teaser rate : An low, short-term rate offered on a mortgage to entice the borrower.
Tenancy by the entirety : When a married couple owns a home, it is usually considered tenancy by the entirety If the property must be sold to pay the debts of one spouse, both must agree.
Tenants in common : Two or more owners who share interest in a specific property.
Terrace : A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape.
The 72-hour clause : When a buyer has a house to sell before they can purchase another home, most sellers insist on a 72-hour clause. In the event of a better offer coming in before the contingency is settled, this clause entitles the seller to give the buyer 72 hours to remo
Third-party origination : In a third-party origination transaction, the lender has another institution originate all or part of a mortgage.
Timeshare : Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.
Title : The actual legal document conferring ownership of a piece of real estate.
Title company : Firms that ensure that the title to a piece of property is clear and provide title insurance.
Title insurance : A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property.
Title risk : Possible impediments to the transfer of a title from one owner to another.
Title search : A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property.
Top producer : A real state industry term that refers to agents and brokers who sell a high volume of homes.
Top soil : The top layer of soil that is removed when lots are graded in preparation for construction.
Total expense ratio : The percentage of monthly debt obligations relative to gross monthly income.
Townhouse : An attached home that is not a condominium.
Tract home : Another term for a production home, a mass-produced house constructed by one builder in a project.
Trade equity : Other real estate or assets a buyer gives to a seller as part of the down payment.
Trading down : A reference to buyers who purchase a home that is less expensive than their current house.
Trading up : A reference to buyers who purchase a home that is more expensive home than their current house.
Transfer of ownership : Any legal means by which a piece of real estate changes hands.
Transfer tax : An assessment by state or local authorities at the time a piece of property changes hands.
Transom : A small hinged window directly above a door.
Trans-Union : Trans-Union Corp. is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390. Phone: (312) 408-1400.
Tray ceiling : A tray ceiling has edges that slant toward the middle from the walls.
Treasury bills : Securities issued by the Treasury Department that have the full backing of the U.S. government.
Treasury index : An index used to determine interest rate changes for adjustable rate mortgages.
Trellis : A decorative landscape structure made of thin strips of wood or plastic.
Trim work : The finishing of doors, doorways, window frames and floors.
Truss : A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements.
Trust account : Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller.
Trustee : A legally empowered person who holds or controls a piece of property for another person.
Truth-in-Lending Act : A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage or first trust deed)
Tuck-point : The process of removing old mortar from between bricks and replacing it with new mortar.
Two-step mortgage : An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.
Two- to four-family property : A piece of property that is owned by one person but provides housing for up to four households.
Real Estate Glossary - S
Sale-leaseback : A transaction in which the buyer leases back the property to the seller for a specified period of time.
Sales contract : A contract signed by the buyer and sellerthat details the terms of a home purchase.
Saltbox style : A design that dates to colonial times and takes its name from the shape of saltboxes.
Sanitary sewer : The drain line in a house that carries away food and human wastewater to a municipal sewer system or a septic system.
Sash : One of two windows in a double-hung window.
Schematic designs : Renderings of floor plans and the exterior of a house.
Second mortgage : Another loan placed upon a piece of property.
Secondary mortgage market : A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.
Secured loan : Any loan backed by collateral.
Security : Apiece of property designated as collateral.
Seller broker : A seller broker represents the interest of the seller.
Seller carry-back : An agreement in which the seller provides financing for a home purchase.
Seller take-back : An agreement in which the seller provides financing for a home purchase.
Seller's market : A hot real estate market in which sellers have the advantage and multiple offers are common.
Semi-custom home : The buyer of a semi-custom home is free to make some design changes but not to the home's structural plan.
Septic system : A self-contained sewage treatment system that distributes wastewater to an underground storage area and relies on bacterial action to decompose solid waste matter.
Servicer : A firm that collects mortgage payments and manages borrowers' escrow accounts.
Setback : The minimum distance a house or buildings must be from the lot line.
Settlement statement : A document that details who has paid what to whom.
Shared-appreciation mortgage : A loan that allows a lender or other party to share in the borrower's profits when the home is sold.
Shared-equity transaction : A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner.
Shed ceiling : A shed ceiling pitches upward at one end.
Shed roof : A shed roof pitches up longer on one side than the other.
Shingle style : An alternative style of Victorian homes that evolved in the late 19th century to simplify the complexity of the traditional Victorian house.
Shingles : Thin, wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber, glass fiber or composition asphalt installed on a roof to prevent water seepage.
Shoe molding : An unobtrusive finish trim between the floor and the baseboard designed to hide any irregularities in the seam between the floor and wall or baseboard.
Sill plate : A horizontal piece of wood placed on top of the foundation.
Sill cock : An exterior threaded faucet connection for garden hoses that provides water outside a home.
Skylight : A window in a roof that allows natural light to illuminate a room.
Slab foundation : A foundation built directly on soil with no basement or crawl space.
Slider window : A window that is composed of two windows, or sashes, that glide open and closed on a metal track.
Soffit : An external area under the overhang of a roof.
Soils test : A test of the subsoil to ensure that foundations can be safely constructed.
Spanish Mission style : A design that is derived from the original missions established by the Spanish in the Southwest.
Special assessment : When a homeowners' association needs or wants extra funds, it levies a special assessment upon the owners.
Special deposit account : Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.
Specifications : The written requirements for materials, equipment, construction systems and standards.
Speculation home : A home that has been built without a buyer.
Splash block : A slanted block used to divert runoff water from a downspout away from the foundation.
Split-level style : A home that is a ranch-style house stacked to fit on a smaller lot and perhaps to accommodate a garage.
Square footage : The number of square feet of livable space in a home or building.
Standard Metropolitan Statistical Area : Areas designated by the U.S. Office of Management and Budget that contain a city of 50,000 or more.
Standard payment calculation : A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments.
Starter home : Homes that fall within the lower price range of a typical first-time buyer.
Steel framing : A construction method used by commercial and residential builders.
Step-rate mortgage : A loan that allows a gradual increase in the interest rate during the first few years of the loan.
Storm sewer : A drain line, which is not connected to the sewer line, removes all other wastewater from a home.
Storm windows : Sets of windows and screens that are installed on older double-hung windows.
Strike plate : The metal part of a lock that is anchored to the doorframe and holds the door closed.
Straight purchase : A transaction in which the buyer gives a new-home builder a deposit to begin building and the balance when the sale of the house closes.
Stucco : A mixture of sand and cement used to cover the exterior surface or interior walls of a home or building.
Studs : The upright pieces of lumber or steel in a wall to which panels, siding, drywall or other coverings are attached.
Subagent : When an agent brings a buyer to a property, they in effect act as a subagent to the listing agent.
Subcontractor : Specialty construction companies hired by the general contractor to perform certain tasks.
Subdivision : The process in which the owner of a large piece of property divides it into smaller parcels.
Sub-flooring : The sheathing, usually made of plywood, placed on top of floor joists and covered by flooring.
Subordinate loan : A second or third mortgage.
Sump pump : A pump that moves water from a basement sump pit.
Survey : A precise measurement of a piece of property by a licensed surveyor.
Sweat equity : The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements.
Sales contract : A contract signed by the buyer and sellerthat details the terms of a home purchase.
Saltbox style : A design that dates to colonial times and takes its name from the shape of saltboxes.
Sanitary sewer : The drain line in a house that carries away food and human wastewater to a municipal sewer system or a septic system.
Sash : One of two windows in a double-hung window.
Schematic designs : Renderings of floor plans and the exterior of a house.
Second mortgage : Another loan placed upon a piece of property.
Secondary mortgage market : A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.
Secured loan : Any loan backed by collateral.
Security : Apiece of property designated as collateral.
Seller broker : A seller broker represents the interest of the seller.
Seller carry-back : An agreement in which the seller provides financing for a home purchase.
Seller take-back : An agreement in which the seller provides financing for a home purchase.
Seller's market : A hot real estate market in which sellers have the advantage and multiple offers are common.
Semi-custom home : The buyer of a semi-custom home is free to make some design changes but not to the home's structural plan.
Septic system : A self-contained sewage treatment system that distributes wastewater to an underground storage area and relies on bacterial action to decompose solid waste matter.
Servicer : A firm that collects mortgage payments and manages borrowers' escrow accounts.
Setback : The minimum distance a house or buildings must be from the lot line.
Settlement statement : A document that details who has paid what to whom.
Shared-appreciation mortgage : A loan that allows a lender or other party to share in the borrower's profits when the home is sold.
Shared-equity transaction : A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner.
Shed ceiling : A shed ceiling pitches upward at one end.
Shed roof : A shed roof pitches up longer on one side than the other.
Shingle style : An alternative style of Victorian homes that evolved in the late 19th century to simplify the complexity of the traditional Victorian house.
Shingles : Thin, wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber, glass fiber or composition asphalt installed on a roof to prevent water seepage.
Shoe molding : An unobtrusive finish trim between the floor and the baseboard designed to hide any irregularities in the seam between the floor and wall or baseboard.
Sill plate : A horizontal piece of wood placed on top of the foundation.
Sill cock : An exterior threaded faucet connection for garden hoses that provides water outside a home.
Skylight : A window in a roof that allows natural light to illuminate a room.
Slab foundation : A foundation built directly on soil with no basement or crawl space.
Slider window : A window that is composed of two windows, or sashes, that glide open and closed on a metal track.
Soffit : An external area under the overhang of a roof.
Soils test : A test of the subsoil to ensure that foundations can be safely constructed.
Spanish Mission style : A design that is derived from the original missions established by the Spanish in the Southwest.
Special assessment : When a homeowners' association needs or wants extra funds, it levies a special assessment upon the owners.
Special deposit account : Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.
Specifications : The written requirements for materials, equipment, construction systems and standards.
Speculation home : A home that has been built without a buyer.
Splash block : A slanted block used to divert runoff water from a downspout away from the foundation.
Split-level style : A home that is a ranch-style house stacked to fit on a smaller lot and perhaps to accommodate a garage.
Square footage : The number of square feet of livable space in a home or building.
Standard Metropolitan Statistical Area : Areas designated by the U.S. Office of Management and Budget that contain a city of 50,000 or more.
Standard payment calculation : A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments.
Starter home : Homes that fall within the lower price range of a typical first-time buyer.
Steel framing : A construction method used by commercial and residential builders.
Step-rate mortgage : A loan that allows a gradual increase in the interest rate during the first few years of the loan.
Storm sewer : A drain line, which is not connected to the sewer line, removes all other wastewater from a home.
Storm windows : Sets of windows and screens that are installed on older double-hung windows.
Strike plate : The metal part of a lock that is anchored to the doorframe and holds the door closed.
Straight purchase : A transaction in which the buyer gives a new-home builder a deposit to begin building and the balance when the sale of the house closes.
Stucco : A mixture of sand and cement used to cover the exterior surface or interior walls of a home or building.
Studs : The upright pieces of lumber or steel in a wall to which panels, siding, drywall or other coverings are attached.
Subagent : When an agent brings a buyer to a property, they in effect act as a subagent to the listing agent.
Subcontractor : Specialty construction companies hired by the general contractor to perform certain tasks.
Subdivision : The process in which the owner of a large piece of property divides it into smaller parcels.
Sub-flooring : The sheathing, usually made of plywood, placed on top of floor joists and covered by flooring.
Subordinate loan : A second or third mortgage.
Sump pump : A pump that moves water from a basement sump pit.
Survey : A precise measurement of a piece of property by a licensed surveyor.
Sweat equity : The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements.
Real Estate Glossary - R
R-value : A construction term that refers to the resistance of to heat loss. The higher the R-value, the slower the rate of heat loss.
Radon : A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets. A leading cause of lung cancer , radon is found in mostly the northern half of the country.
Rafter : Rafters form the slope of a pitched roof and are analogous to floor joists.
Rammed-earth construction : An alternative building process in which dirt is compacted into large structural frames to create walls.
Ranch style : Modern ranch-style homes, popularized in the 1950s, were championed by such architectural giants as Frank Lloyd Wright.
Rate-improvement mortgage : A loan with a clause that entitles a borrower to a one-time cut in the interest rate without going through refinancing.
Rate lock : When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the guaranteed interest rate is in effect.
Real estate : Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure.
Real estate agent : A real estate agent has a state license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for real estate brokers.
Real estate attorney : A lawyers who specializes in real estate transactions.
Real estate broker : A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction in exchange for a commission. Most brokers also have agents working for them, and are entitled to a portion of their commissions.
Real estate investment trusts (REITs) : The trusts are publicly traded companies that own, develop and operate commercial properties.
Real Estate Settlement Procedures Act (RESPA) : A federal law designed to make sellers and buyers aware of settlement fees and other transaction-related costs. RESPA also outlaws kickbacks in the real estate business.
Real property : Land and any permanent fixtures on it, including buildings, trees and minerals.
Realtist : A designation for an agent or broker who is a member of the National Association of Real Estate Brokers.
Realtor : A designation for an agent or broker who is a member of the National Association of Realtors.
Recission : The cancellation of a contract by law or consent by the parties involved.
Reconveyance : When a borrower completely pays off the mortgage, the property is reconveyed to them from the lender.
Recorder : A public official responsible for keeping the records of all real estate transactions.
Recording : The filing of a specific document to the appropriate government entity.
Recording fee : A fee charged by real estate agents for conveying the sale of a piece of property into the public record.
Redlining : The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood.
Refinancing : The process of replacing an older loan with a new mortgage that has better terms.
Regulation Z : The federal code issued under the Truth-in-Lending Act which requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.
Rehabilitation mortgage : A mortgage that provides for the costs of repairing and improving a resale home or building.
Relocation benefits : Benefits provided by employers for new workers and can include moving costs, reimbursement for temporary housing and transportation, real estate agent assistance and discounted loans.
Relocation company : A firm that administers all aspects of moving in new employees to the community.
Remaining balance : The amount of unpaid principal on a home loan.
Remaining term : The original loan term minus the number of payments made.
Renter's insurance : A policy that covers the replacement value of possessions.
Rent loss insurance : A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable.
Repayment plan : When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court.
Replacement reserve fund : Money that is set aside from homeowners' assessments to replace common property, such as furniture in a planned development's community room.
Repossession : When a house is repossessed, it is taken back by the lender holding the mortgage.
Resale value : The future value of a piece of property that can be affected by many factors, including the surrounding neighborhood, school scores, and economic and housing market conditions.
Reserve fund : All homeowners associations set aside a certain amount of money for major repairs or improvements.
Restructured loan : A mortgage in which new terms are negotiated.
Return on investment : The amount of profit a property generates.
Reverse mortgage : A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community.
Ridge board : A horizontal board that serves as the apex of the roof structure.
Ridge vent : A vent located along the ridge board of the roof that allows moisture to escape.
Right of first refusal : An agreement by a property owner to give another person the right to buy or rent the property before it goes on the open market.
Right to recission : A provision in the federal Truth-in-Lending Act that allows borrowers to cancel certain kinds of loans within three days of signing.
Rough-in : The installation of plumbing, electrical and other mechanical systems.
Rural Housing Service : A U.S. Department of Agriculture program that provides financing to farmers and certain borrowers to purchase rural property when other funds are not available.
Radon : A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets. A leading cause of lung cancer , radon is found in mostly the northern half of the country.
Rafter : Rafters form the slope of a pitched roof and are analogous to floor joists.
Rammed-earth construction : An alternative building process in which dirt is compacted into large structural frames to create walls.
Ranch style : Modern ranch-style homes, popularized in the 1950s, were championed by such architectural giants as Frank Lloyd Wright.
Rate-improvement mortgage : A loan with a clause that entitles a borrower to a one-time cut in the interest rate without going through refinancing.
Rate lock : When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the guaranteed interest rate is in effect.
Real estate : Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure.
Real estate agent : A real estate agent has a state license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for real estate brokers.
Real estate attorney : A lawyers who specializes in real estate transactions.
Real estate broker : A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction in exchange for a commission. Most brokers also have agents working for them, and are entitled to a portion of their commissions.
Real estate investment trusts (REITs) : The trusts are publicly traded companies that own, develop and operate commercial properties.
Real Estate Settlement Procedures Act (RESPA) : A federal law designed to make sellers and buyers aware of settlement fees and other transaction-related costs. RESPA also outlaws kickbacks in the real estate business.
Real property : Land and any permanent fixtures on it, including buildings, trees and minerals.
Realtist : A designation for an agent or broker who is a member of the National Association of Real Estate Brokers.
Realtor : A designation for an agent or broker who is a member of the National Association of Realtors.
Recission : The cancellation of a contract by law or consent by the parties involved.
Reconveyance : When a borrower completely pays off the mortgage, the property is reconveyed to them from the lender.
Recorder : A public official responsible for keeping the records of all real estate transactions.
Recording : The filing of a specific document to the appropriate government entity.
Recording fee : A fee charged by real estate agents for conveying the sale of a piece of property into the public record.
Redlining : The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood.
Refinancing : The process of replacing an older loan with a new mortgage that has better terms.
Regulation Z : The federal code issued under the Truth-in-Lending Act which requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.
Rehabilitation mortgage : A mortgage that provides for the costs of repairing and improving a resale home or building.
Relocation benefits : Benefits provided by employers for new workers and can include moving costs, reimbursement for temporary housing and transportation, real estate agent assistance and discounted loans.
Relocation company : A firm that administers all aspects of moving in new employees to the community.
Remaining balance : The amount of unpaid principal on a home loan.
Remaining term : The original loan term minus the number of payments made.
Renter's insurance : A policy that covers the replacement value of possessions.
Rent loss insurance : A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable.
Repayment plan : When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court.
Replacement reserve fund : Money that is set aside from homeowners' assessments to replace common property, such as furniture in a planned development's community room.
Repossession : When a house is repossessed, it is taken back by the lender holding the mortgage.
Resale value : The future value of a piece of property that can be affected by many factors, including the surrounding neighborhood, school scores, and economic and housing market conditions.
Reserve fund : All homeowners associations set aside a certain amount of money for major repairs or improvements.
Restructured loan : A mortgage in which new terms are negotiated.
Return on investment : The amount of profit a property generates.
Reverse mortgage : A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community.
Ridge board : A horizontal board that serves as the apex of the roof structure.
Ridge vent : A vent located along the ridge board of the roof that allows moisture to escape.
Right of first refusal : An agreement by a property owner to give another person the right to buy or rent the property before it goes on the open market.
Right to recission : A provision in the federal Truth-in-Lending Act that allows borrowers to cancel certain kinds of loans within three days of signing.
Rough-in : The installation of plumbing, electrical and other mechanical systems.
Rural Housing Service : A U.S. Department of Agriculture program that provides financing to farmers and certain borrowers to purchase rural property when other funds are not available.
Real Estate Glossary - Q
Qualifying ratios : Lenders compute qualifying ratios to determine how much a potential buyer can borrow.
Queen Anne style : A Victorian-era style that originated in San Francisco.
Quit-claim deed : A document that releases a party from any interest in a piece of real estate.
Queen Anne style : A Victorian-era style that originated in San Francisco.
Quit-claim deed : A document that releases a party from any interest in a piece of real estate.
Real Estate Glossary - P
Parcel : An officially described piece of land.
Partition : An interior wall.
Partnership : There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an in
Passive loss : A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.
Passive solar system : A system that supplies solar heat without the use of electric fans or pumps.
Patent defect : A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.
Payment cap : A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.
Percolation test : A test used to determine the ability of soil to accommodate a septic system.
Per-diem interest : Interest charged or accrued daily.
Panel : A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.
Paneling : Strips of wood or wood material applied as a finish to a wall.
Parking strip : The strip of grass between the sidewalk and the street in front of a house.
Partition : Any kind of structure dividing one room or space from another.
Patio : An interior courtyard or a paved backyard area.
Perennial : Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.
Pergola : An arbor with an open roof of rafters supported by posts or columns.
Personal property : Any moveable property in a house such as furniture or appliances.
Pest-control inspection : A common pest-control inspection is a termite inspection, which is required in some states, such as California.
Pier : A rectangular masonry support column.
PITI (Principal, Interest, Taxes, Insurance) : When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.
Planned communities : The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.
Planned-unit development : Residents own the home and the land, and share the use and financial responsibility for common areas.
Plaster : A labor-intensive and more costly wall finish.
Pocket door : A sliding door that retreats into the wall when opened.
Point : Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.
Porch : The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.
Porte cochere : A porch-like roof extending over a driveway.
Portfolio lender : A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.
Portico : A porch supported by a row of columns.
Possession : When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.
Power of attorney : A document that authorizes an individual to act on behalf of someone else.
Pre-approval letter : A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.
Prepaid expenses : The costs for taxes, insurance and assessments paid before the due date.
Prepaid interest : Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.
Prepayment penalty : Lenders can impose a penalty on a borrower who pays a loan off before its expected end date.
Prequalification : Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.
Pre-sold home : Homes that are sold before they are built.
Pressure relief valve : A safety vent that relieves excess pressure in a water heater.
Price range : The range of how much a buyer is willing to pay for a home.
Primer : The initial coat of paint that is applied before the final topcoat.
Principal : The amount of money that the borrower owes on a mortgage.
Principle of conformity : The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.
Principle of progression : An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.
Principle of regression : An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.
Privacy fence : A structure erected between two pieces of property.
Private mortgage insurance (PMI) : A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.
Probate sale : A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.
Production home : Homes that are mass-produced by one builder in a project.
Programming : A written summation by an architect of a project's design objectives, constraints and criteria.
Project budget : A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services.
Property line : The official dividing line between properties.
Property report : A disclosure issued by the state when a time-share project is located or sold.
Property tax : Property taxes are calculated at about 1.5 percent of the current market value.
Property tax deduction : The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.
Property value : The value of a piece of property is based on the price a buyer will pay at a certain time.
Proration : Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.
Punch list : Buyers compile a punch list during the final walk-through detailing items to be fixed before closing.
Purchase agreement : A document which details the purchase price and conditions of the transaction.
Purchase-money mortgage : A mortgage that a borrower obtains to acquire a property.
Partition : An interior wall.
Partnership : There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an in
Passive loss : A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.
Passive solar system : A system that supplies solar heat without the use of electric fans or pumps.
Patent defect : A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.
Payment cap : A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.
Percolation test : A test used to determine the ability of soil to accommodate a septic system.
Per-diem interest : Interest charged or accrued daily.
Panel : A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.
Paneling : Strips of wood or wood material applied as a finish to a wall.
Parking strip : The strip of grass between the sidewalk and the street in front of a house.
Partition : Any kind of structure dividing one room or space from another.
Patio : An interior courtyard or a paved backyard area.
Perennial : Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.
Pergola : An arbor with an open roof of rafters supported by posts or columns.
Personal property : Any moveable property in a house such as furniture or appliances.
Pest-control inspection : A common pest-control inspection is a termite inspection, which is required in some states, such as California.
Pier : A rectangular masonry support column.
PITI (Principal, Interest, Taxes, Insurance) : When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.
Planned communities : The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.
Planned-unit development : Residents own the home and the land, and share the use and financial responsibility for common areas.
Plaster : A labor-intensive and more costly wall finish.
Pocket door : A sliding door that retreats into the wall when opened.
Point : Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.
Porch : The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.
Porte cochere : A porch-like roof extending over a driveway.
Portfolio lender : A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.
Portico : A porch supported by a row of columns.
Possession : When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.
Power of attorney : A document that authorizes an individual to act on behalf of someone else.
Pre-approval letter : A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.
Prepaid expenses : The costs for taxes, insurance and assessments paid before the due date.
Prepaid interest : Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.
Prepayment penalty : Lenders can impose a penalty on a borrower who pays a loan off before its expected end date.
Prequalification : Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.
Pre-sold home : Homes that are sold before they are built.
Pressure relief valve : A safety vent that relieves excess pressure in a water heater.
Price range : The range of how much a buyer is willing to pay for a home.
Primer : The initial coat of paint that is applied before the final topcoat.
Principal : The amount of money that the borrower owes on a mortgage.
Principle of conformity : The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.
Principle of progression : An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.
Principle of regression : An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.
Privacy fence : A structure erected between two pieces of property.
Private mortgage insurance (PMI) : A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.
Probate sale : A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.
Production home : Homes that are mass-produced by one builder in a project.
Programming : A written summation by an architect of a project's design objectives, constraints and criteria.
Project budget : A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services.
Property line : The official dividing line between properties.
Property report : A disclosure issued by the state when a time-share project is located or sold.
Property tax : Property taxes are calculated at about 1.5 percent of the current market value.
Property tax deduction : The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.
Property value : The value of a piece of property is based on the price a buyer will pay at a certain time.
Proration : Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.
Punch list : Buyers compile a punch list during the final walk-through detailing items to be fixed before closing.
Purchase agreement : A document which details the purchase price and conditions of the transaction.
Purchase-money mortgage : A mortgage that a borrower obtains to acquire a property.
Real Estate Glossary - O
Online real estate listings : Properties listed for sale on the Internet.
Open house : A marketing tool in which a listing agent opens a house for view.
Open listing : A property given to a number of brokers to market at the same time.
Open space : Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.
Option : A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.
Oral agreement : Contractual arrangements that are not in writing and are usually not legally binding.
Original principal balance : The amount of principal owed on a loan before a borrower makes any payments.
Origination fee : A fee charged by most lenders--also called points--for processing a loan. A point is 1 percent of the total loan amount.
Overhang : A protruding structural feature.
Owner financing : A transaction in which the seller of a property agrees to finance all or part of the purchase.
Open house : A marketing tool in which a listing agent opens a house for view.
Open listing : A property given to a number of brokers to market at the same time.
Open space : Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.
Option : A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.
Oral agreement : Contractual arrangements that are not in writing and are usually not legally binding.
Original principal balance : The amount of principal owed on a loan before a borrower makes any payments.
Origination fee : A fee charged by most lenders--also called points--for processing a loan. A point is 1 percent of the total loan amount.
Overhang : A protruding structural feature.
Owner financing : A transaction in which the seller of a property agrees to finance all or part of the purchase.
Real Estate Glossary - N
Nail pops : Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure.
Needs-based pricing : A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.
Negative amortization : The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate lo
Negative-slope driveway : A driveway that drops from street level to the garage.
Neo-traditional planning : Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
Net cash flow : Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.
Net worth : The worth of a person or company based on the difference between total assets and liabilities.
New Urbanism : A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
Niche : A small recessed area in a wall, traditionally arched at the top.
NIMBY (Not In My Back Yard) : The response sometimes given by neighborhoods and communities to proposed changes or development.
No cash-out refinance : The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.
No-competition lots : A lot in which the buyer's home will be constructed by a particular builder.
No-documentation loan : A loan application that does not require verification of income but typically is granted in cases of large down payments.
Non-assumption clause : A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
Non-liquid asset : An asset such as a house that is not easily turned into cash.
Non-recurring closing costs : Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.
Note : The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.
Note rate : The interest rate specified in a mortgage note.
Notice of default : A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.
Needs-based pricing : A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.
Negative amortization : The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate lo
Negative-slope driveway : A driveway that drops from street level to the garage.
Neo-traditional planning : Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
Net cash flow : Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.
Net worth : The worth of a person or company based on the difference between total assets and liabilities.
New Urbanism : A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
Niche : A small recessed area in a wall, traditionally arched at the top.
NIMBY (Not In My Back Yard) : The response sometimes given by neighborhoods and communities to proposed changes or development.
No cash-out refinance : The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.
No-competition lots : A lot in which the buyer's home will be constructed by a particular builder.
No-documentation loan : A loan application that does not require verification of income but typically is granted in cases of large down payments.
Non-assumption clause : A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
Non-liquid asset : An asset such as a house that is not easily turned into cash.
Non-recurring closing costs : Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.
Note : The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.
Note rate : The interest rate specified in a mortgage note.
Notice of default : A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.
Real Estate Glossary - M
Main water shut-off valve : The primary valve that halts the flow of water from the water meter into a home.
Mansard roof : A roof with four sides that slope upward from the roof edge to the square peak.
Manufactured housing : Prefabricated homes that can range from simple trailers to larger dwellings.
Mantel : The facing of stone, marble or other material around a fireplace.
Maintenance fee : The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas.
Managed-competition lots : Lots in which buyers choose between one of several builders.
Margin : The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable-rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.
Market conditions : Factors affecting the sale and purchase of homes at a particular point in time.
Market value : The price that a piece of property sells for at a particular point in time.
Masonry : The brick or stone work on a building.
Master-planned community : A suburban plan that includes homes and commercial, work, educational and community facilities.
Maximum financing : A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property.
Mechanical systems : A home's plumbing, wiring, heating and cooling systems.
Mechanic's lien : Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment.
Mediation : A dispute-resolution process in which a neutral party works to resolve contract differences.
Median price : The price of the house that falls in the middle of the total number of homes for sale in that area.
Merged credit report : A report that draws information from the Big Three credit-reporting companies: Equifax, Experian and TransUnion Corp.
Metes and bounds : A time-honored land surveying method of describing land in terms of shape and boundary dimensions.
Mint condition : Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible.
Mixed-income housing : A neighborhood that contains houses of widely varying prices.
Mixed-use development : A project that combines several different functions, such as residential space above a commercial establishment or an entire development combining commercial, residential and public accommodations.
Modification : A change in any of the terms of the loan agreement.
Molding : Decorative trim elements applied to walls, ceilings, and window and door openings.
Money market account : Accounts that work like money market funds and allow individual investors to participate in certain managed investments and withdraw funds under most conditions.
Money market funds : A mutual fund that pools the resources of individuals to invest in certain managed investments.
Mortgage : A legal document specifying a certain amount of money to purchase a home at a certain interest rate, and using the property as collateral.
Mortgagee : A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.
Mortgagor : The person who borrows money to purchase a house. The lender is called the mortgagee.
Mortgage acceleration clause : A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or
Mortgage banker : A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.
Mortgage broker : A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.
Mortgage insurance : Required by lenders in some loans to protect them from a possible default . All conventional loans with less than a 20 percent down payments require private mortgage insurance, or PMI.
Mortgage-interest deduction : The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans.
Mortgage life insurance : A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired.
Motivated buyer : Any buyer with a strong incentive to make a purchase.
Motivated seller : Any seller with a strong incentive to make a deal.
Move-in condition : A house that is ready for a new occupant.
Move-up buyer : A buyer who has purchased a home before and is looking for a bigger or more expensive home.
Mullion : A vertical dividing bar between window lights or panels.
Multidwelling property : A property that contains individual units for several households but carries only one mortgage.
Multifamily mortgage : A mortgage on a multifamily dwelling with more than four families, typically an apartment building.
Multiple listing service (MLS) : The service combines the listings for all available homes in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database.
Multiple offers : Multiple purchase offers occur in hot markets or hot neighborhoods.
Municipal housing inspector : Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.
Mansard roof : A roof with four sides that slope upward from the roof edge to the square peak.
Manufactured housing : Prefabricated homes that can range from simple trailers to larger dwellings.
Mantel : The facing of stone, marble or other material around a fireplace.
Maintenance fee : The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas.
Managed-competition lots : Lots in which buyers choose between one of several builders.
Margin : The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable-rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.
Market conditions : Factors affecting the sale and purchase of homes at a particular point in time.
Market value : The price that a piece of property sells for at a particular point in time.
Masonry : The brick or stone work on a building.
Master-planned community : A suburban plan that includes homes and commercial, work, educational and community facilities.
Maximum financing : A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property.
Mechanical systems : A home's plumbing, wiring, heating and cooling systems.
Mechanic's lien : Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment.
Mediation : A dispute-resolution process in which a neutral party works to resolve contract differences.
Median price : The price of the house that falls in the middle of the total number of homes for sale in that area.
Merged credit report : A report that draws information from the Big Three credit-reporting companies: Equifax, Experian and TransUnion Corp.
Metes and bounds : A time-honored land surveying method of describing land in terms of shape and boundary dimensions.
Mint condition : Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible.
Mixed-income housing : A neighborhood that contains houses of widely varying prices.
Mixed-use development : A project that combines several different functions, such as residential space above a commercial establishment or an entire development combining commercial, residential and public accommodations.
Modification : A change in any of the terms of the loan agreement.
Molding : Decorative trim elements applied to walls, ceilings, and window and door openings.
Money market account : Accounts that work like money market funds and allow individual investors to participate in certain managed investments and withdraw funds under most conditions.
Money market funds : A mutual fund that pools the resources of individuals to invest in certain managed investments.
Mortgage : A legal document specifying a certain amount of money to purchase a home at a certain interest rate, and using the property as collateral.
Mortgagee : A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.
Mortgagor : The person who borrows money to purchase a house. The lender is called the mortgagee.
Mortgage acceleration clause : A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or
Mortgage banker : A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.
Mortgage broker : A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.
Mortgage insurance : Required by lenders in some loans to protect them from a possible default . All conventional loans with less than a 20 percent down payments require private mortgage insurance, or PMI.
Mortgage-interest deduction : The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans.
Mortgage life insurance : A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired.
Motivated buyer : Any buyer with a strong incentive to make a purchase.
Motivated seller : Any seller with a strong incentive to make a deal.
Move-in condition : A house that is ready for a new occupant.
Move-up buyer : A buyer who has purchased a home before and is looking for a bigger or more expensive home.
Mullion : A vertical dividing bar between window lights or panels.
Multidwelling property : A property that contains individual units for several households but carries only one mortgage.
Multifamily mortgage : A mortgage on a multifamily dwelling with more than four families, typically an apartment building.
Multiple listing service (MLS) : The service combines the listings for all available homes in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database.
Multiple offers : Multiple purchase offers occur in hot markets or hot neighborhoods.
Municipal housing inspector : Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.
Real Estate Glossary - L
Landscape : A home's surroundings can range from a shrub-studded emerald lawn to a native-plant xeriscape. It is a major component of curb appeal.
Landscape architect : A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning.
Landscape designer : A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.
Landscape contractor : A professional who carries out the plans of a landscape architect or a landscape designer.
Late charge : A fee a lender imposes on a borrower when the borrower does not make a payment on time.
Late payment : A payment a lender receives after the due date has passed.
Latent defect : An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.
Lead : A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk.
Lease : A binding agreement that contains the terms and conditions of a renter's occupancy.
Leasehold estate : An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
Lease option : A lease that contains the right to purchase the property for a specific price within a certain time frame.
Lender : A bank, savings institution or mortgage company that offers home loans.
Legal blemish : Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.
Legal description : A specific way of identifying and locating a piece of real estate that is acceptable to a court.
Letter of intent : A formal statement that the buyer intends to purchase the property for a certain price on a certain date.
Leverage : The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.
Liabilities : A borrower's debts and financial obligations.
Liability insurance : A policy that protects owners against any claims of negligence, personal injury or property damage.
Lien : A claim laid by one person or company on the property of another as security for money owed.
Life cap : A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if rates on fix
Life-cycle cost analysis : An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
Limited partnership : Real estate syndicates and other investment groups use this type of ownership.. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.
Lintel : A horizontal piece over a door or window that carries the weight of the structure above it.
Liquid assets : Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.
Liquidated damages : When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.
Listing : A piece of property placed on the market by a listing agent.
Listing inventories : The known number of houses for sale within a given market.
Live-in partnership : An arrangement in which two unrelated people purchase a home.
Live-work space : An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
Load-bearing wall : A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.
Loan application : The first step toward submitting a home loan requires the borrower to itemize basic financial information.
Loan application fee : A fee charged by lenders to for making a loan application.
Loan commitment : A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.
Loan officer : An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.
Loan origination fee : Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is 1 percent of the total loan amount.
Loan processing fee : A fee charged by some lenders for gathering information to enable the lender to process the loan.
Loan term : The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.
Loan -to-value ratio : A technical measure used by lenders to assess the relationship of the loan amount to the value of the property
Lock-in : When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.
Loft : A living space not partitioned into rooms or a small space built above a larger room.
Log cabin : Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S.
Low-ball offer : An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.
Low density : A low concentration of housing units in a specific area.
Low-documentation loan : A mortgage that requires only minimal verification of income and assets.
Low-down-payment loan : A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.
Landscape architect : A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning.
Landscape designer : A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.
Landscape contractor : A professional who carries out the plans of a landscape architect or a landscape designer.
Late charge : A fee a lender imposes on a borrower when the borrower does not make a payment on time.
Late payment : A payment a lender receives after the due date has passed.
Latent defect : An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.
Lead : A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk.
Lease : A binding agreement that contains the terms and conditions of a renter's occupancy.
Leasehold estate : An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
Lease option : A lease that contains the right to purchase the property for a specific price within a certain time frame.
Lender : A bank, savings institution or mortgage company that offers home loans.
Legal blemish : Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.
Legal description : A specific way of identifying and locating a piece of real estate that is acceptable to a court.
Letter of intent : A formal statement that the buyer intends to purchase the property for a certain price on a certain date.
Leverage : The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.
Liabilities : A borrower's debts and financial obligations.
Liability insurance : A policy that protects owners against any claims of negligence, personal injury or property damage.
Lien : A claim laid by one person or company on the property of another as security for money owed.
Life cap : A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if rates on fix
Life-cycle cost analysis : An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
Limited partnership : Real estate syndicates and other investment groups use this type of ownership.. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.
Lintel : A horizontal piece over a door or window that carries the weight of the structure above it.
Liquid assets : Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.
Liquidated damages : When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.
Listing : A piece of property placed on the market by a listing agent.
Listing inventories : The known number of houses for sale within a given market.
Live-in partnership : An arrangement in which two unrelated people purchase a home.
Live-work space : An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
Load-bearing wall : A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.
Loan application : The first step toward submitting a home loan requires the borrower to itemize basic financial information.
Loan application fee : A fee charged by lenders to for making a loan application.
Loan commitment : A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.
Loan officer : An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.
Loan origination fee : Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is 1 percent of the total loan amount.
Loan processing fee : A fee charged by some lenders for gathering information to enable the lender to process the loan.
Loan term : The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.
Loan -to-value ratio : A technical measure used by lenders to assess the relationship of the loan amount to the value of the property
Lock-in : When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.
Loft : A living space not partitioned into rooms or a small space built above a larger room.
Log cabin : Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S.
Low-ball offer : An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.
Low density : A low concentration of housing units in a specific area.
Low-documentation loan : A mortgage that requires only minimal verification of income and assets.
Low-down-payment loan : A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.
Real Estate Glossary - K
Kit home : A structure that contains prefabricated components and is put together by a contractor.
Knee wall : A wall-like structure that supports roof rafters.
Knob-and-tube wiring : An old-fashioned wiring system that has been replaced by fuses and circuit breakers.
Knee wall : A wall-like structure that supports roof rafters.
Knob-and-tube wiring : An old-fashioned wiring system that has been replaced by fuses and circuit breakers.
Real Estate Glossary - J
Jalousie window : A window that consists of vertical rows of horizontal glass slats that operate together by a crank mechanism that connects all the slats.
Joint liability : The responsibility of two or more people to fulfill the terms of a home loan or debt.
Joint tenancy : Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.
Joist : A floor or ceiling support member supported by foundation walls, piers or beams. Subflooring is connected to floor joists.
Judgment : The decision of a court or law. If a court decides that a person must repay a debt, a lien may be placed against that person's property.
Judicial foreclosure : A procedure to handle foreclosure proceedings as civil matters.
Jumbo mortgage : Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit is $300,700.
Junior mortgage : A loan that subordinate to the primary loan.
Joint liability : The responsibility of two or more people to fulfill the terms of a home loan or debt.
Joint tenancy : Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.
Joist : A floor or ceiling support member supported by foundation walls, piers or beams. Subflooring is connected to floor joists.
Judgment : The decision of a court or law. If a court decides that a person must repay a debt, a lien may be placed against that person's property.
Judicial foreclosure : A procedure to handle foreclosure proceedings as civil matters.
Jumbo mortgage : Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit is $300,700.
Junior mortgage : A loan that subordinate to the primary loan.
Real Estate Glossary - I
Impact fees : Fees collected from developers of new homes to pay for schools, parks and other facilities.
Implied warranty of habitability : Court cases which determined that all new homes are assumed to be fit for human habitation and meet all building codes.
Impounds : A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.
Income property : Property that is not occupied by the owner but is used to generate income.
Incurable defect : A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property.
Index : Financial tables used by lenders to calculate interest rates on adjustable mortgages and on Treasury bills.
Individual Retirement Account : Tax-deferred savings accounts that allow people to accrue retirement funds.
In-file credit report : Computer-generated reports drawn from credit repositories that are generally regarded as objective histories.
Infill development : Any significant new construction in an established area.
Infill housing : Home construction in established areas.
Inflation : This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears.
Infrastructure : The roads, schools, parks, utilities, bridges and communications systems in a community.
Initial interest rate : The original interest rate on an adjustable mortgage.
Inspection report : An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.
Installment contract : A purchase agreement in which the buyer does not receive title to the property until all installments are paid.
Insulation : Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss.
Insurable title : Title to property that a company agrees to insure against defects and disputes.
Insurance : Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.
Insurance binder : A temporary insurance arrangement usually put in force until a permanent policy can be obtained.
Interest : The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.
Interest accrual rate : The rate at which interest accrues on a mortgage.
Interest-only loan : The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.
Interest rate : The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax- deductible.
Interest rate buy-down plans : For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.
Interest rate caps : A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.
Interest rate ceiling : The highest interest a lender can charge for an adjustable-rate mortgage.
Investment property : Real estate that generates income, such as an apartment building or a rental house.
Implied warranty of habitability : Court cases which determined that all new homes are assumed to be fit for human habitation and meet all building codes.
Impounds : A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.
Income property : Property that is not occupied by the owner but is used to generate income.
Incurable defect : A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property.
Index : Financial tables used by lenders to calculate interest rates on adjustable mortgages and on Treasury bills.
Individual Retirement Account : Tax-deferred savings accounts that allow people to accrue retirement funds.
In-file credit report : Computer-generated reports drawn from credit repositories that are generally regarded as objective histories.
Infill development : Any significant new construction in an established area.
Infill housing : Home construction in established areas.
Inflation : This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears.
Infrastructure : The roads, schools, parks, utilities, bridges and communications systems in a community.
Initial interest rate : The original interest rate on an adjustable mortgage.
Inspection report : An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.
Installment contract : A purchase agreement in which the buyer does not receive title to the property until all installments are paid.
Insulation : Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss.
Insurable title : Title to property that a company agrees to insure against defects and disputes.
Insurance : Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.
Insurance binder : A temporary insurance arrangement usually put in force until a permanent policy can be obtained.
Interest : The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.
Interest accrual rate : The rate at which interest accrues on a mortgage.
Interest-only loan : The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.
Interest rate : The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax- deductible.
Interest rate buy-down plans : For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.
Interest rate caps : A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.
Interest rate ceiling : The highest interest a lender can charge for an adjustable-rate mortgage.
Investment property : Real estate that generates income, such as an apartment building or a rental house.
Real Estate Glossary - H
Half-bath : Also called a powder room, a half-bath contains a toilet and a sink but no bathtub or shower stall.
Hazard insurance : This provision of homeowners insurance covers damage by fire, wind or other disaster. It is required by all lenders before a loan is approved.
Header : Crossbeams above windows and doors.
Heat pump : An electric cooling and heating system.
Hectare : The equivalent of 2.471 acres.
High density : The concentration of housing units in a specific area or on a specific property.
High-rise : Any building higher than six stories.
Hip roof : A pitched roof with sloping sides.
Historic preservation : The physical rehabilitation of a historic home or building, and the movement of the same name begun in the 1960s in the U.S. to preserve and protect landmarks and urban neighborhoods.
Historic structure : A home or building listed in the National Register of Historic Places and certified as historic by the U.S. Secretary of the Interior.
Home equity conversion mortgage : Loans made to older owners who want to convert equity into money. Because borrowers are qualified on the basis of the value of their home, e, the loan is not the same as a home equity loan. Also known as reverse mortgages.
Home equity loan : A loan that allows owners to borrow against the equity in their homes.
Home inspection : An examination of a home's construction, condition and internal systems by an inspector or contractor prior to purchase.
Homeowners' association : A group that governs a modern subdivision or planned community. An association collects monthly fees from all owners to pay for maintenance of common areas, handle legal and safety issues, and enforce the covenants, conditions and restrictions set by the
Homeowners' insurance : This insurance includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage.
Homeowners' warranty : Special insurance policies that cover certain home repairs for a specified amount of time.
Home rule : The power of a local government to adopt its own land-use regulations.
Homesteading : A document that to protects some of a home's equity from lawsuits.
Home warranty : A type of insurance that covers repairs to certain parts of a house and some fixtures.
Hopper window : A window that contains a single sash that tilts inward.
Hose bibb : A threaded faucet connection for devices such as a washing machine.
Housing discrimination : The illegal practice of denying an individual or group the right to buy or rent a home based on race, color, religion, national origin, sex, disability or family status.
Housing expense ratio : The percentage of gross monthly income devoted to housing costs.
House wrap : A polyethylene barrier wrapped around a house to save energy.
HUD-1 Uniform Settlement Statement : A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.
Hazard insurance : This provision of homeowners insurance covers damage by fire, wind or other disaster. It is required by all lenders before a loan is approved.
Header : Crossbeams above windows and doors.
Heat pump : An electric cooling and heating system.
Hectare : The equivalent of 2.471 acres.
High density : The concentration of housing units in a specific area or on a specific property.
High-rise : Any building higher than six stories.
Hip roof : A pitched roof with sloping sides.
Historic preservation : The physical rehabilitation of a historic home or building, and the movement of the same name begun in the 1960s in the U.S. to preserve and protect landmarks and urban neighborhoods.
Historic structure : A home or building listed in the National Register of Historic Places and certified as historic by the U.S. Secretary of the Interior.
Home equity conversion mortgage : Loans made to older owners who want to convert equity into money. Because borrowers are qualified on the basis of the value of their home, e, the loan is not the same as a home equity loan. Also known as reverse mortgages.
Home equity loan : A loan that allows owners to borrow against the equity in their homes.
Home inspection : An examination of a home's construction, condition and internal systems by an inspector or contractor prior to purchase.
Homeowners' association : A group that governs a modern subdivision or planned community. An association collects monthly fees from all owners to pay for maintenance of common areas, handle legal and safety issues, and enforce the covenants, conditions and restrictions set by the
Homeowners' insurance : This insurance includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage.
Homeowners' warranty : Special insurance policies that cover certain home repairs for a specified amount of time.
Home rule : The power of a local government to adopt its own land-use regulations.
Homesteading : A document that to protects some of a home's equity from lawsuits.
Home warranty : A type of insurance that covers repairs to certain parts of a house and some fixtures.
Hopper window : A window that contains a single sash that tilts inward.
Hose bibb : A threaded faucet connection for devices such as a washing machine.
Housing discrimination : The illegal practice of denying an individual or group the right to buy or rent a home based on race, color, religion, national origin, sex, disability or family status.
Housing expense ratio : The percentage of gross monthly income devoted to housing costs.
House wrap : A polyethylene barrier wrapped around a house to save energy.
HUD-1 Uniform Settlement Statement : A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.
Real Estate Glossary - G
Gable : A triangular wall enclosed by the sloping ends of a ridged roof or a triangular decorative feature.
Gable roof : A ridged roof that forms a triangle at each end.
Gag rules : A provision in contracts signed by new buyers that prohibits the owners from publicizing complaints about the builder.
Gambrel roof : A roof with two slopes, often seen on barns.
General contractor : The person who hires all of the subcontractors and suppliers for a project.
General plan : A government's long-range land-use plan.
Georgian style : Popular throughout the 18th century, this type of architecture is distinguished by a symmetrical facade, prominent front entrance and quoins-decorative blocks of masonry or wood set in the corners of the house.
Geodesic dome : A structure constructed of lightweight bars forming a grid of polygons.
Gift : A cash gift a buyer receives from a relative or other source. Lenders usually require a "gift letter" stating that the money will not have to be repaid.
Gingerbread decoration : An intricate, almost lacy, wood trim.
Girders : Crossbeams that support floor joists.
Government National Mortgage Association : Commonly known as Ginnie Mae, this agency buys home loans from lenders, pools them with other loans and sells shares to investors. Ginnie Mae differs from its cousins, Fannie Mae and Freddie Mac, in that it only purchases loans backed by the federal gover
Grace period : A specified amount of time to make a loan payment after its due date without penalty.
Grade : The elevation of land above level ground.
Graduated-payment mortgage (GPM) : A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed.
Grade level : The flat or sloping surface upon which a house is built.
Granny flat : Slang term for a separate unit in a house or above the garage, which in the past may have been occupied by an elderly relative.
Grantee : A person conveyed an interest in a piece of property.
Grantor : The person who conveys an interest in a piece of property to another person.
Greek Revival style : A style introduced in the U.S. at the end of the 18th century. Its most prominent feature is a pillar-anchored pediment forming a portico in the front of the house.
Greenbelt : Any stretch of park, open space or other natural setting in a community.
Gross income : The total income of a household before taxes or expenses are subtracted.
Ground fault circuit interrupter : Devices that detect leakage of electrical current to the ground and prevent accidental shock.
Ground rent : The amount of money paid for the use of a piece of property when it is a leasehold estate.
Group home : A single-family residence used as a living space for unrelated, developmentally disabled or mentally disabled people.
Growing-equity mortgage : A fixed rate mortgage that increases payments over a specific period of time. The extra funds are applied to the principal.
Guarantee mortgage : A loan guaranteed by a third party, such as a government institution.
Gutters : Horizontal channels installed at the edge of a roof to carry rainwater or melted snow away from the house.
Gable roof : A ridged roof that forms a triangle at each end.
Gag rules : A provision in contracts signed by new buyers that prohibits the owners from publicizing complaints about the builder.
Gambrel roof : A roof with two slopes, often seen on barns.
General contractor : The person who hires all of the subcontractors and suppliers for a project.
General plan : A government's long-range land-use plan.
Georgian style : Popular throughout the 18th century, this type of architecture is distinguished by a symmetrical facade, prominent front entrance and quoins-decorative blocks of masonry or wood set in the corners of the house.
Geodesic dome : A structure constructed of lightweight bars forming a grid of polygons.
Gift : A cash gift a buyer receives from a relative or other source. Lenders usually require a "gift letter" stating that the money will not have to be repaid.
Gingerbread decoration : An intricate, almost lacy, wood trim.
Girders : Crossbeams that support floor joists.
Government National Mortgage Association : Commonly known as Ginnie Mae, this agency buys home loans from lenders, pools them with other loans and sells shares to investors. Ginnie Mae differs from its cousins, Fannie Mae and Freddie Mac, in that it only purchases loans backed by the federal gover
Grace period : A specified amount of time to make a loan payment after its due date without penalty.
Grade : The elevation of land above level ground.
Graduated-payment mortgage (GPM) : A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed.
Grade level : The flat or sloping surface upon which a house is built.
Granny flat : Slang term for a separate unit in a house or above the garage, which in the past may have been occupied by an elderly relative.
Grantee : A person conveyed an interest in a piece of property.
Grantor : The person who conveys an interest in a piece of property to another person.
Greek Revival style : A style introduced in the U.S. at the end of the 18th century. Its most prominent feature is a pillar-anchored pediment forming a portico in the front of the house.
Greenbelt : Any stretch of park, open space or other natural setting in a community.
Gross income : The total income of a household before taxes or expenses are subtracted.
Ground fault circuit interrupter : Devices that detect leakage of electrical current to the ground and prevent accidental shock.
Ground rent : The amount of money paid for the use of a piece of property when it is a leasehold estate.
Group home : A single-family residence used as a living space for unrelated, developmentally disabled or mentally disabled people.
Growing-equity mortgage : A fixed rate mortgage that increases payments over a specific period of time. The extra funds are applied to the principal.
Guarantee mortgage : A loan guaranteed by a third party, such as a government institution.
Gutters : Horizontal channels installed at the edge of a roof to carry rainwater or melted snow away from the house.
Real Estate Glossary - F
Façade : The part of a building facing the street or a courtyard.
Fair Credit Billing Act : A federal law that governs credit and charge card billing errors. If a credit or charge card company violates any provision, consumers can sue to recover damages.
Fair Credit Reporting Act. : A federal law passed in 1971 that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering, main
Fair Debt Collection Practices Act. : A federal law passed in 1977 which outlaws debtor harassment and other types of collection practices. The act regulates collection agencies, original creditors who set up a separate office to collect debts, and lawyers hired by the creditor to help collec
Fair Housing Act : Landmark federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disabil
Fannie Mae : The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
Farmer's Home Administration : A U.S. Department of Agriculture agency that provides credit to farmers and rural residents.
Fascia : A board that connects the ends of the roof rafters and provides a surface to support gutters.
Federal Home Loan Mortgage Corporation,law : The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. The company buys mortgages from lending institutions, pools them with other loans and then sells shares to investors.
Federal Housing Administration (FHA) : This government agency operates a variety of home-loan programs. Its most popular is the Sec. 203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.
Federal National Mortgage Association : Now officially dubbed Fannie Mae, this federally chartered agency buys mortgages from lending institutions, pools them with other loans and sells shares to investors.
Federal Reserve Board : A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates.
Federal Trade Commission : The government agency responsible for regulating a variety of companies and industries, from credit bureaus and collection agencies to timeshare operators and certain types of creditors. National headquarters: Sixth and Pennsylvania Avenue NW, Washington,
Fee simple : This type of ownership is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws.
Fee simple defeasible : The owner of the property holds a fee simple title contingent upon certain conditions.
Federal style : The all-American home architecture style that evolved after the Revolutionary War. Details include bigger windows and a front doorway surrounded by glass and topped with an arched window.
FHA loans : Mortgages that are insured by the Federal Housing Administration. The FHA's 203(b) loan program provides low-rate mortgages to buyers who make a down payment as small as 3 percent. The agency also operates loan plans for investors and purchasers of rural
Feng shui : An ancient Chinese belief that the physical characteristics of a house and the positioning of the home will affect the fortunes of the owner.
Fiduciary duty : The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.
Field changes : Modifications made on the construction site that do not match blueprints.
Fill dirt : Soil brought in to solidify a finished foundation.
Filled land : An area where the ground has been raised by adding dirt, gravel or other fill material.
Finder's fee : A fee in any amount that is paid to someone.
Finish grade : A finish that prepares a lot for landscaping.
Fire wall : A buffer composed of fire-resistant material.
Firm commitment : A promise made by a lender when it agrees to loan money for the purchase of property.
First mortgage : The primary mortgage on a property that has priority over all other voluntary liens.
Fixed installment : The monthly payment on a home loan.
Fixed-rate mortgage : A home loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates.
Fixed time : The specific weeks in a year an owner of a timeshare arrangement has access to accommodations.
Fixer-upper : A house that needs refurbishment or remodeling It usually sells at a below-market price.
Fixture : Personal property permanently attached to a house, such as drapery rods, toilets, built-in bookcases or a furnace.
Flashing : Metal strips placed around chimneys, skylights, vents, windows, doors, beneath shingles and along seams in the roof to prevent water seepage.
Flat fee : A set fee charged by a broker instead of a commission.
Flat roof : A roof with a level surface.
Floor area ratio : The calculation of the floor area of all homes or buildings in a project. It is used in the planning and development of a site.
Float floor drain : A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump.
Floating wall : Walls built to withstand movement in the basement floor.
Flood insurance : Hazard coverage that is required in designated flood areas.
Flood plain : Flat, flood-prone areas located along waterways.
Florida rooms : Enclosed porches built on the side or back of a home.
Footings : Concrete foundations that support a structure.
Forbearance : A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.
Foreclosure : The legal process reserved by a lender to terminate the borrower's interest in a property after a loan has been defaulted. When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. A
Forfeiture : The relinquishing of property rights by a delinquent borrower.
For Sale By Owner (FSBO) : The owner acts as the agent to avoid paying a sales commission.
Foundation : The support structure of a house.
401(k) plans : Financial plans that allow employees to set aside tax-deferred income for retirement or emergency purposes.
Foyer : The entrance hall to a home or building.
Framing : The construction of the skeletal framework of a house.
Freddie Mac : The common name for the Federal Home Loan Mortgage Corporation, a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
Free-market lots : Owners of these types of lots may hire any builder to construct their home.
French doors : Two adjoining doors inlaid with glass that open from the middle.
Frontage : The portion of property that borders a roadway or body of water.
Fully amortized adjustable-rate mortgage : A mortgage that amortizes, or pays down, the balance of a loan.
Furnace : An enclosed heating device powered by coal, oil, propane or natural gas.
Fuse : A device that allows power to be channeled into a home.
Fair Credit Billing Act : A federal law that governs credit and charge card billing errors. If a credit or charge card company violates any provision, consumers can sue to recover damages.
Fair Credit Reporting Act. : A federal law passed in 1971 that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering, main
Fair Debt Collection Practices Act. : A federal law passed in 1977 which outlaws debtor harassment and other types of collection practices. The act regulates collection agencies, original creditors who set up a separate office to collect debts, and lawyers hired by the creditor to help collec
Fair Housing Act : Landmark federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disabil
Fannie Mae : The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
Farmer's Home Administration : A U.S. Department of Agriculture agency that provides credit to farmers and rural residents.
Fascia : A board that connects the ends of the roof rafters and provides a surface to support gutters.
Federal Home Loan Mortgage Corporation,law : The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. The company buys mortgages from lending institutions, pools them with other loans and then sells shares to investors.
Federal Housing Administration (FHA) : This government agency operates a variety of home-loan programs. Its most popular is the Sec. 203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.
Federal National Mortgage Association : Now officially dubbed Fannie Mae, this federally chartered agency buys mortgages from lending institutions, pools them with other loans and sells shares to investors.
Federal Reserve Board : A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates.
Federal Trade Commission : The government agency responsible for regulating a variety of companies and industries, from credit bureaus and collection agencies to timeshare operators and certain types of creditors. National headquarters: Sixth and Pennsylvania Avenue NW, Washington,
Fee simple : This type of ownership is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws.
Fee simple defeasible : The owner of the property holds a fee simple title contingent upon certain conditions.
Federal style : The all-American home architecture style that evolved after the Revolutionary War. Details include bigger windows and a front doorway surrounded by glass and topped with an arched window.
FHA loans : Mortgages that are insured by the Federal Housing Administration. The FHA's 203(b) loan program provides low-rate mortgages to buyers who make a down payment as small as 3 percent. The agency also operates loan plans for investors and purchasers of rural
Feng shui : An ancient Chinese belief that the physical characteristics of a house and the positioning of the home will affect the fortunes of the owner.
Fiduciary duty : The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.
Field changes : Modifications made on the construction site that do not match blueprints.
Fill dirt : Soil brought in to solidify a finished foundation.
Filled land : An area where the ground has been raised by adding dirt, gravel or other fill material.
Finder's fee : A fee in any amount that is paid to someone.
Finish grade : A finish that prepares a lot for landscaping.
Fire wall : A buffer composed of fire-resistant material.
Firm commitment : A promise made by a lender when it agrees to loan money for the purchase of property.
First mortgage : The primary mortgage on a property that has priority over all other voluntary liens.
Fixed installment : The monthly payment on a home loan.
Fixed-rate mortgage : A home loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates.
Fixed time : The specific weeks in a year an owner of a timeshare arrangement has access to accommodations.
Fixer-upper : A house that needs refurbishment or remodeling It usually sells at a below-market price.
Fixture : Personal property permanently attached to a house, such as drapery rods, toilets, built-in bookcases or a furnace.
Flashing : Metal strips placed around chimneys, skylights, vents, windows, doors, beneath shingles and along seams in the roof to prevent water seepage.
Flat fee : A set fee charged by a broker instead of a commission.
Flat roof : A roof with a level surface.
Floor area ratio : The calculation of the floor area of all homes or buildings in a project. It is used in the planning and development of a site.
Float floor drain : A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump.
Floating wall : Walls built to withstand movement in the basement floor.
Flood insurance : Hazard coverage that is required in designated flood areas.
Flood plain : Flat, flood-prone areas located along waterways.
Florida rooms : Enclosed porches built on the side or back of a home.
Footings : Concrete foundations that support a structure.
Forbearance : A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.
Foreclosure : The legal process reserved by a lender to terminate the borrower's interest in a property after a loan has been defaulted. When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. A
Forfeiture : The relinquishing of property rights by a delinquent borrower.
For Sale By Owner (FSBO) : The owner acts as the agent to avoid paying a sales commission.
Foundation : The support structure of a house.
401(k) plans : Financial plans that allow employees to set aside tax-deferred income for retirement or emergency purposes.
Foyer : The entrance hall to a home or building.
Framing : The construction of the skeletal framework of a house.
Freddie Mac : The common name for the Federal Home Loan Mortgage Corporation, a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
Free-market lots : Owners of these types of lots may hire any builder to construct their home.
French doors : Two adjoining doors inlaid with glass that open from the middle.
Frontage : The portion of property that borders a roadway or body of water.
Fully amortized adjustable-rate mortgage : A mortgage that amortizes, or pays down, the balance of a loan.
Furnace : An enclosed heating device powered by coal, oil, propane or natural gas.
Fuse : A device that allows power to be channeled into a home.
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