Friday, September 30, 2011

Real Estate Glossary - A

Abstract of judgment,law : The summary of a court judgment that creates a lien against a property when filed with the county recorder.

Accelerated cost recovery system : A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.

Acceleration clause : A provision that gives a lender the right to collect the balance of a loan if a borrower misses a payment.

Accelerated depreciation : A bookkeeping method that depreciates property faster in the early years of ownership.

Acceptance : The seller's written approval of a buyer's offer.

Access : Any means by which a person can enter property.

Accessibility : The degree to which a building or site allows access to people with disabilities.

Accretion : The gradual addition to the shore or bank of a waterway by deposits of sand or silt.

Acknowledgment : A written declaration affirming that a person acted voluntarily.

Acre : A measurement of land equal to 43,560 square feet.

Acre foot : The volume of material needed to cover an acre of land one foot deep.

Active solar system : A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use.

Actual age : The number of years a structure has been standing.

Addendum : An addition or change to a contract.

Additional principal payment : Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.

Add-on interest : The interest a borrower pays on the principal for the duration of the loan.

Adjustable-rate mortgage (ARM) : A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.

Adjusted cost basis : The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.

Adjustment period : The amount of time between interest rate adjustments in an adjustable-rate mortgage.

Administrator : A person given authority to manage and distribute the estate of someone who died without leaving a will.

Administrator's deed : A legal document that an administrator of an estate uses to transfer property.

Adverse possession : The acquisition of title to property through possession without the owner's consent for a certain period of time.

Adverse use : The access and use of property without the owner's consent.

Aeolian soil : Soil that is composed of materials deposited by the wind.

Affiant : A person who makes a sworn statement.

Affirmation : A substitution for an oath granted to people based on religious reasons.

A-frame design : An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.

Agency : The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract.

Agency closing : The process by which a lender uses a title company or other firm as an agent to complete a loan.

Agent : A person licensed by the state to conduct real estate transactions.

Agreed boundary : A compromise boundary to which property owners agree in order to resolve a dispute.

Agreement of sale : A document the buyer initiates and the seller approves that details the price and terms of the transaction.

Alcove : A recessed section of a room, such as a breakfast nook.

Alienation clause : A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.

Alkali : Mineral salt found in soil.

Alkaline soil : Soil that contains a higher concentration of mineral salt than natural acid.

Alley : A lane behind a row of buildings or between two rows of buildings.

Allowances : Budgets offered by builders of new homes for the purchase of carpeting and fixtures.

Alternative mortgage : Any home loan that does not conform to a standard fixed-rate mortgage.

Aluminum-clad windows : Wooden windows with aluminum covering the exterior.

Aluminum siding : A metal covering that provides an alternative to paint for owners of wood homes.

Amenities : Parks, swimming pools, health-club facilities, party rooms, bike paths, community centers and other enticements offered by builders of planned developments.

American Society of Home Inspectors : The American Society of Home Inspectors is a professional association of independent home inspectors. Phone: (800) 743-2744.

Americans with Disabilities Act : A law passed in 1990 that outlaws discrimination against a person with a disability in housing, public accommodations, employment, government services, transportation and telecommunications.

Amortization : The process of paying the principal and interest on a loan through regularly scheduled installments.

Amortization tables : Mathematical tables that lenders use to calculate a borrower's monthly payment.

Amperage : The strength of an electrical current.

Anchor bolt : A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.

Annual : Any kind of plant that must be planted every year.

Annual mortgagor statement : A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.

Annual Percentage Rate (APR) : The cost of the loan expressed as a yearly rate on the balance of the loan.

Annuity : The payment of a fixed sum to an investor at regular intervals.

Anticipatory breach : A communication that informs a party that the obligations of the original contract will not be fulfilled.

Application : A document that details a potential borrower's income, debt and other obligations to determine credit worthiness.

Application fee : The fee that a lender charges to process a loan application.

Appraisal : An opinion of the value of a property at a given point in time.

Appraisal fee : The fee that an appraiser charges to estimate the market value of the property.

Appraisal report : A detailed written report on the value of a property based on recent sales of comparable sites in the area.

Appraised value : An opinion of the current market value of a property.

Appreciation : An increase in the value of a home or other property..

Arbitration : A method of resolving a dispute in which a third party renders a decision.

Arbor : An area shaded by trees, shrubs or vines on a latticework structure.

Arch : A curved structure that supports weight over an area, such as a doorway.

Architect : A licensed professional who designs homes, buildings and other structures.

Architectural fees : The fee an architect charges for services. In general, architects charge for their services by the hour, by the square foot, or by a percentage of the project budget.

Arpent : A French measurement of land equal to .84625 acres.

Asbestos : A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.

As-is condition : The purchase or sale of a property in its existing condition.

Asking price : A seller's initial price for a property.

Assessed value : A tax assessor's determination of the value of a home in order to calculate a tax base.

Assessment : The estimated value of a piece of real estate or a levy placed on property in addition to taxes.

Assessment rolls : A list of taxable property compiled by the assessor.

Assets : Items of value which include cash, real estate, securities and investments.

Assignor : A person who transfers rights and interests of a property.

Assumable mortgage : A mortgage that can be transferred to another borrower.

Assumption clause : A provision that allows a buyer to take responsibility for the mortgage from a seller.

Assumption fee : A fee the lender charges to process new records for a buyer who assumes an existing loan.

Average price : The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the number of homes.

Avigation easement : An easement over private property near an airport that limits the height of structures and trees.

Awning windows : Single-sash windows that tilt outward and up.

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