Glossary of terms used on this site
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| Term | Definition |
|---|---|
| A-frame |
A structure with steeply angled sides that meet at the top in the shape of an A.
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| Abandonment |
The voluntary relinquishment of property claims or rights.
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| Abatement |
A termination, ending, reduction or decrease which usually applies to the assessed value of ad valorem taxes following their assessment and levy.
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| Absolute Auction |
A type of auction that has no reserve price and the highest bid wins the auction item.
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| Abstract of Title |
A brief summary of all of the conveyances, transfers, legal proceedings and other facts relied on as evidence of title.
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| Accelerated Depreciation |
A method of cost write-off in which depreciation allowances are greater in the first few years of ownership than in the following years.
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| Acceleration Clause |
A provision that allows a lender to demand payment of the total outstanding balance or demand additional collateral under certain circumstances.
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| Access Right |
The right of an owner to have access to and from owner’s property over adjoining property.
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| Accession |
An addition to a property through the efforts of man or by natural forces.
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| Acre |
The unit of measure most typically used to describe land area in the United States. An acre is equivalent to 43,560 square feet.
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| Addendum |
A supplement to any document that contains additional information pertinent to the subject.
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| Adjustable Rate Mortgage (ARM) |
A mortgage loan in which the interest rate may increase or decrease over the course of the loan depending on specific economic indicators. Differs from a fixed rate loan where the interest rate remains the same throughout the loan term.
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| Adjusted Sales Price |
The price of a comparable property after adjustments have been made to account for differences between comparable and subject properties.
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| Agency |
An expressed contractual relationship which can be created in writing or orally in which a principal authorizes and empowers the agent to act on behalf of the principal in dealing with third parties.
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| Agent |
An individual or firm authorized to act on behalf of another.
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| Alienation |
The voluntary or involuntary transfer of property from one entity to another.
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| Allowance |
The contribution by the landlord for the cost of tenant improvement in excess of the base building shell.
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| Amenities |
Additional features that enhance the desirability of a property.
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| Amortization |
A process of gradually paying off a debt by making equal periodic payments of principal and interest on a loan at equal intervals of time.
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| Anchor Tenant |
Major department or chain stores which are strategically located at shopping centers so as to give maximum exposure to smaller satellite stores.
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| Annual Percentage Rate (APR) |
The total annual cost of a loan, including all fees and interest, expressed as a percentage.
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| Annual Property Operating Data (APOD) |
A real estate equivalent of an annual income and expense statement.
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| Appraisal |
Impartial analysis conducted according to established criteria to determine the worth of an item.
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| Appreciation |
The increased value of an asset.
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| Assessed Value |
A value placed on a property by local government as a basis for property taxes.
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| Assignment |
A transfer to another of any property, real or personal, or of any rights or estates in said property.
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| Assumption |
The taking over of the primary liability for the payment of an existing mortgage or trust deed loan.
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| Auction |
A type of sale where the price is not set or negotiated but is derived from a form of open or sealed bidding.
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| Balance Sheet |
A detailed summary of a company's financial condition at a specific point in time.
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| Balloon Payment |
A large principal payment that typically becomes due at the conclusion of the loan term. This final payment is significantly larger than the previous payments of the loan.
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| Bankruptcy |
A process in which an insolvent debtor's assets are liquidated by court order and the debtor is relieved of further liability.
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| Base Rent |
A set amount used as a minimum rent in a lease with provisions for increasing the rent over the term of the lease.
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| Blanket Loan |
A type of loan used to fund the purchase of multiple pieces of real property. This type of loan is frequently used by developers who have purchased a single tract of land intending to subdivide into individual parcels.
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| Blockbusting |
The practice of persuading homeowners in a particular neighborhood to sell their homes quickly, often at a loss, by creating the fear that minority groups will move into their neighborhood causing property values to decline.
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| Breach of Contract |
The violation of any terms or conditions in a contract without having a legal excuse such as the failure to make a loan payment when due.
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| Bridge Loan |
A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation.
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| Build Out |
The space improvements put in place per the tenant's specifications.
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| Build to Suit |
The construction of a building or property that suits the particular needs of the occupant
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| Builder’s Warranty |
A guarantee as to the quality of construction offered by a building contractor.
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| Building Standard |
A list of materials and finishes used in the build-out, repair or restoration of a tenant's suite.
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| Buyer Agency Agreement |
A written contractual agreement in which an agent commits to provide services necessary to secure a transaction and the purchaser commits to working with that agent for a specified time period.
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| Buyer’s Agent |
A real estate broker or salesperson who represents a prospective purchaser or tenant in a real estate transaction.
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| Buyer’s Market |
The condition which exists when a buyer is in a better position as to price and terms because the real property for sale is in greater supply in relation to demand.
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| Cabin |
A small house or cottage, usually constructed out of wood.
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| Cap |
A limit placed on the adjustments in an adjustable rate mortgage to protect the borrower from large increases in the interest rate or the payment level.
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| Capital |
Wealth in the form of money or property owned by a person or business.
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| Capital Gains Tax |
A tax placed on the profits from the sale of real estate or investments.
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| Capitalization Rate (Cap Rate) |
The ratio between the net operating income produced by an asset and its capital cost (the original price paid to buy the asset) or alternatively its current market value.
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| Cash Flow |
The movement of cash into or out of a business, a project, or a financial product. It is usually measured during a specified, finite period of time.
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| Caveat Emptor |
A Latin term meaning "let the buyer beware."
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| Certificate of Occupancy |
Written authorization given by a local municipality that allows a newly completed or substantially completed structure to be inhabited
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| Civil Rights Act |
The Civil Rights Act of 1866 prohibits racial discrimination in the sale and rental of housing.
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| Client |
A buyer or receiver of goods or services
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| Closing |
The specific time and place at which all contracts associated with the equity loan or refinance are signed and notarized.
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| Closing Cost |
The costs associated with the actual transfer of title for money or other consideration.
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| Closing Date |
This is the date that all parties consummate the deal (real estate transaction) and it is usually done by a title company.
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| Clouded Title |
An irregularity or encumbrance that, if valid, would adversely affect or impair the title.
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| Commercial Property |
A property used for business or office purposes intended to operate for profit.
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| Commission |
A fee for services rendered based on a percentage of an amount received or collected.
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| Common Area Maintenance (CAM) |
This is the amount of additional rent charged to the tenant, in addition to the Base Rent, to maintain the common areas of the property shared by the tenants and from which all tenants benefit.
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| Comparables (Comps) |
Properties that are equivalent to a specific piece of real estate, used to help estimate the value of that real estate.
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| Comparative Market Analysis (CMA) |
A study or comparison of recently sold homes, properties that failed to see as well as properties currently on the market, that are substantially equivalent to another home in terms of selling price, location, style and amenities
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| Concessions |
Benefits granted by the landlord or owner to entice a new tenant to lease premises or an existing tenant to remain within their premises. Benefits granted by a seller to entice a buyer.
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| Condominium (Condo) |
A type of housing consisting of a complex of units in which each unit is individually owned
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| Consumer Price Index ("CPI") |
Measures inflation in relation to the change in the price of a fixed market basket of goods and services purchased by a specified population during a "base" period of time.
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| Contingency |
A provision in a contract that requires that a certain act be done or a certain event occur before the contract becomes binding.
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| Conventional Loan |
A loan not insured or guaranteed by a government.
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| Conveyance |
Most commonly refers to the transfer of title to property between parties by deed. The term may also include most of the instruments by which an interest in real estate is created, mortgaged or assigned.
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| Counter Offer |
A new offer made in response to an offer received on a property.
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| Credit Report |
An evaluation of a person’s history or capacity of debt repayment.
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| Curb Appeal |
The attractiveness of a property’s exterior when viewed from the street. The first impression a property makes.
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| Days On Market |
The period of time a property stays on the market until it is sold or has expired from the time it was listed.
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| Debt |
An obligation to pay something owed such as money, goods or services to a person or organization.
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| Debt Coverage Ratio |
The Net Operating Income divided by Debt Service, measuring the margin of safety for the lender in assuring that money will be available to service his loan.
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| Debt Service |
The repayment of interest and principal of a debt.
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| Debt-to-Income Ratio |
The relationship between monthly income and minimum monthly debt payments; frequently used by financial institutions as an indicator of a borrower's ability to take on additional debt.
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| Deed |
A legal document signed, witnessed, and delivered to show a conveyance or transfer of property.
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| Deed Restrictions |
Limitations placed in the deed that state specific ways the property can or can’t be used.
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| Default |
The general failure to perform a legal or contractual duty or to discharge an obligation when due.
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| Defective Title |
A title that fails to transfer ownership due to a publicly recorded defect or flaw.
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| Demographics |
A statistical view of a population, generally including age, gender, race, income, schooling, occupation, population growth and density etc.
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| Depreciation |
Expense allowance made for wear and tear on an asset over its estimated useful life.
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| Designated Agent |
The party selected to represent a principal/client by the acting Broker of a real estate firm.
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| Detached Housing |
A residential dwelling unit that is surrounded by freestanding walls and is generally sited on a separate lot.
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| Disclosure |
The revealing of all known material facts that may be hidden.
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| Discount Points |
An added loan fee charged by a lender to make the yield on a lower than market value loan competitive with higher interest rate loans. One point is equal to one percent of the loan.
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| Discount Rate |
A rate that expresses the correlation between the dollars transmitted from a lender to a borrower and the amount that must be repaid by the borrower.
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| Distraint |
The legal right of a landlord to seize the property of a tenant in the event of nonpayment of rent.
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| Due Diligence |
To perform in a reasonable and responsible manner. The research and analysis of a business or real estate transaction.
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| Duplex |
A single building improvement that is divided into two living units or residences, usually having separate entrances.
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| Earnest Money |
The monetary advance by a buyer of part of the purchase price to indicate the intention and ability of the buyer to carry out the contract.
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| Easement |
A right, privilege or interest limited to a specific use or control purpose which one party has in the land of another party and which run with the land and are not a personal right of an individual.
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| Effective Rent |
The amount of rent paid after deductions for financial concessions such as no-rent periods during a lease term.
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| Eminent Domain |
The legal process whereby a government can take ownership of a piece of property in order to convert it to public use; often the property owner is paid fair-market value for the property.
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| Encumbrance |
A legal claim upon real property that diminishes the owner's equity or the land's value.
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| Equity |
The difference between the appraised value of a property and the balance of a first mortgage and any other outstanding liens on the property.
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| Escrow |
Money or property put into the custody of a third party for delivery to a grantee only after the fulfillment of the conditions specified.
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| Escrow Account |
An account held in the borrower’s name to pay obligations such as property taxes and insurance premiums.
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| Ethics |
An area of moral study concerned with acceptable standards of right and wrong behavior, fairness, justness and ideals which addresses in writing the duties that members of a profession owe to their clients, their associates and to the general public.
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| Exempt Property |
Property that can be retained by a person when they file for bankruptcy or if they have unsecured debt.
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| Facilitator |
A real estate licensee that acts as an intermediary between a buyer and a seller who assists both parties but does not actually represent either of them.
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| Fair Housing Act |
Federal legislation that prohibits discrimination in the financing, sale, or rental of dwellings based upon race, gender, religious views, sexual preference, disabilities, etc.
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| Fed |
The Federal Reserve Board.
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| Fee Simple |
A complete, unencumbered ownership right in a piece of property.
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| FHA |
Federal Housing Association.
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| FHA Loan |
A federal assistance mortgage loan insured by the Federal Housing Administration. FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford.
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| Fiduciary Duties |
An obligation to act in the best interest of another party.
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| Financial Statement |
A summary of the financial condition of an individual, or a business, at a particular moment in time.
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| First Refusal Right or Right Of First Re |
The right of a person or company to purchase something before the offering is made available to others.
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| Fiscal Year |
A business or accounting year that is different from a normal calendar year.
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| Fixed Rate Mortgage |
A mortgage which has a fixed rate of interest over the life of the loan.
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| Fixtures |
Items that are attached to land or improvements and if removed would cause damage. These items are usually considered part of the real property and are not to be removed unless agreed upon prior to purchase.
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| Floodplain |
An area of land subject to periodic flooding from a nearby body of water.
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| Foreclosure |
The legal process by which an owner's right to a property is terminated, usually due to default. Typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.
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| Gap Loan |
A loan that fills the difference between the first loan and the full amount of the permanent loan.
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| Geography |
The physical characteristics of an area. The study of the earth and its features.
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| Grade |
The slope of land around a building.
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| Graduated Lease |
A lease which provides that the rent will vary depending upon future contingencies, such as a periodic appraisal, the tenant’s gross income or simply the passage of time.
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| Graduated Payment Loan |
A loan that provided for partially-deferred payments of principal during the first five years of the loan term after which the principal and interest payment is substantially higher in order to make up for the principal portion of the payments that were partially-deferred.
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| Gross Income |
The total incomes from a property before any expenses are deducted.
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| Gross Lease |
A lease in which the tenant pays a flat sum for rent out of which the landlord must pay all expenses such as taxes, insurance, maintenance, utilities, etc.
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| Gross Sales |
The total amount of sales for a certain period of time before any type of deductions are taken out.
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| Ground Lease |
A legal contract for the lease of land; contains an agreement that the lessee is obligated to pay rent each year for the use of the land for the duration of the contract; the lessee usually builds on the land but the buildings so constructed must be turned over to the land’s owner at the termination of the contract. Also known as Land Lease.
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| Growing-Equity Loan |
A fixed rate mortgage on which the monthly payments increase over time according to a set schedule. The interest rate on the loan does not change, and there is never any negative amortization.
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| Guaranty |
The assurance given by one party that another party will fully perform their contractual duties.
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| Heat Pump |
An electric device that uses compression and decompression of gas to heat and cool a home.
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| Hidden Defect |
A title defect that is not apparent from examination of public records.
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| HOA |
Home Owners Association.
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| HOA Fees |
Pro rated fees set by the Home Owners Association usually used for lawn maintenance, road maintenance, security and common area amenities such as swimming pools.
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| Home Equity Loan |
A type of loan in which the borrower uses the equity in their home as collateral.
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| Home Inspection |
An examination of the structure and mechanical systems to determine a home's safety.
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| Home Warranty |
Private insurance usually paid for by the Seller, insuring a buyer against defects.
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| HUD |
Housing and Urban Development
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| HUD-1 Settlement Statement |
A closing statement that outlines all costs associated with a real estate transaction.
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| Improvement |
Any permanent structure or work on real property, which increases its value or extends its useful life.
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| Income Property |
Real estate that is best suited to generate income through the process of renting or other sources.
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| Income Statement |
A financial document stating the sales, expenses, and net profit for a company or business in a given time period.
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| Index Lease |
A lease in which the rental amount adjusts according to changes in a price index, commonly the consumer price index.
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| Insulation |
Material that reduces or prevents the transmission of heat, sound or electricity.
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| Interest |
Money charged by lenders for borrowing money for a certain period of time.
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| Interest Rate |
The rate that lenders charge their borrowers for the privilege of borrowing money
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| Internal Rate of Return (IRR) |
The rates of return used in capital budgeting to measure and compare the profitability of investments. It can also be called the Discounted Cash Flow Rate of Return (DCFROR) or simply the Rate of Return (ROR).
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| Joint Tenancy |
The combined ownership of real property or estate under the same title name by two or more persons with each person owning an undivided interest and the right to use the property.
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| Jumbo Loan |
A loan which is larger than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
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| Kit Home |
Structures that have prefabricated components that are usually put together onsite by a contractor.
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| Land and Improvement Loan |
A loan obtained by the builder/developer for the purchase of land and to cover expenses for subdividing.
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| Landlord |
The owner of property that is leased.
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| Landscaping |
The process of modifying the plant arrangement or lawn of a lot to improve the appearance.
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| Latent Defects |
A hidden flaw, weakness or imperfection in an article which a seller knows about, but the buyer cannot discover by reasonable inspection
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| Lead-Based Paint |
A hazardous material that is no longer manufactured which is potentially poisonous and the possibility of its presence must be disclosed to buyers and tenants residing in a property built before 1978.
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| Lease |
A contract conveying from one entity to another the use of real or personal property for a designated period of time in return for payment or other consideration.
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| Lease Purchase Agreement |
An agreement between a tenant and landlord that a portion of monthly rent may be credited toward eventual purchase of the rental property.
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| Lease Renewal Option |
An option included in the lease that gives the tenant the irrevocable right to renew the lease term at a predetermined rent rate.
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| Leasehold Interest |
An ownership in realty held under a lease; a use of that real estate for a fixed term. In some states it is actually considered to be personal property.
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| Lessee |
A person who leases a property from its owner. Commonly referred to as the Tenant.
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| Lessor |
A person or entity that grants a lease to another. Commonly referred to as the Landlord.
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| Letter of Intent (LOI) |
A preliminary agreement stating the proposed terms for a final contract. They can be binding or non-binding.
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| Lien |
A legal claim against a property which is used to secure a loan and which must be paid when the property is sold. Court judgments become liens against a person’s real property. Liens and judgments are recorded at the county clerk's office and are considered public information.
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| Listing |
Written contract between a property owner and a real estate firm authorizing them to advertise the property for sale or lease for a certain period of time.
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| Listing Agent |
The sales agent who had obtained the right from a seller to handle the marketing of a piece of property.
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| Loan Origination Fee |
A payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan.
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| Loan to Value (LTV) |
A ratio determined by dividing the sales price or appraised value into the loan amount, expressed as a percentage.
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| Log Cabin |
An early American style house constructed using unfinished logs as the exterior walls.
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| Long Term Lease |
In most markets, this refers to a lease whose term is at least three years from initial signing until the date of expiration or renewal option.
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| Manufactured Home |
A house that is put together in standardized sections that are built off-site in a factory then delivered to the building site for assembly.
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| Market Value |
The actual value of property at a specific time.
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| Marketable Title |
A title which is free from liens, encumbrances and other defects that may be transferred to another party.
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| Master Deed |
A title document used in common area projects like condominiums that divides a single property into individually owned units, includes restrictions on their use and provides for ownership of common areas. Also known as a Matrix Deed.
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| Mechanics Lien |
The right of the contractor, craftsman, architect etc to have a lien on the property to recover the payment for his services.
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| Meeting of the Minds |
Mutual agreement by all parties involved to enter into a contract, upon specified terms.
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| Metes and Bounds |
The oldest known form of land surveying that defines land parcels according to visible natural landscape features and distance.
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| Mineral Rights |
The ownership of all rights to gas, oil, or other minerals located on or below the property.
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| Mini Storage (or Mini Warehouse) |
A building separated into relatively small lockable individual storage units that are typically rented from month-to-month.
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| Mortgage |
A type of loan that conveys a security interest in real estate property to the lender as an assurance that the loan obligation will be fulfilled.
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| Negotiable |
The ability to be transferred or assigned to the ownership of another. Flexible on price.
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| Net Lease |
A lease in which there is a provision for the tenant to pay, in addition to rent, certain costs associated with the operation of the property. These costs may include property taxes, insurance, repairs, utilities, and maintenance. There are also “NN” (double net) and “NNN” (triple net) leases. The difference between the three is the degree to which the tenant is responsible for operating costs.
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| Net Operating Income |
Gross income after deducting for operating expense but before deducting for income taxes and interest.
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| Net Present Value |
Net Present Value Is a standard method for using the time value of money to appraise long-term projects. Used for capital budgeting, and widely throughout economics, it measures the excess or shortfall of cash flows, in present value terms, once financing charges are met.
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| Net Profit |
The profit from a business after subtracting all operating expenses from the Net Operating Income.
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| Non-Compete Clause |
A clause that can be inserted into a lease specifying that the business of the tenant is exclusive in the property and that no other tenant operating the same or similar type of business can occupy space in the building.
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| Novation |
An action that substitutes a new party and discharges one of the original parties to a contract, by agreement of all parties.
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| Obsolescence |
A decline in property value due to reduced desirability or usefulness because its design and construction have become out dated or there are cheaper alternatives but it is not do to physical deterioration.
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| Occupancy Rate |
The percentage of all rental units (as in hotels or mini storage) that are occupied or rented at a given time
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| Office Park |
A planned development specifically designed for office buildings and supportive facilities, such as day care centers and restaurants.
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| Open House |
A planned event where prospective buyers come to view and inspect a house without the need for an appointment.
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| Operating Expenses |
The annual expenses associated with operating a business or maintaining a property such as rent, property taxes, employee salaries and wages, maintenance and utilities.
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| Option |
A right, given for a consideration, to purchase or lease a property, upon specified terms and within a specified time period, and placing no obligation on the party receiving the option to purchase the property.
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| Owner Financing |
A type of financing in which the seller of a tangible item accepts a promissory note as a portion of the purchase price. This is also often called seller financing.
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| P&L |
Profit and loss statement.
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| Package Loan |
A real estate loan used to finance the purchase of both real property and personal property.
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| Parcel |
A plot of land.
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| Participation Loan |
A loan that is shared by a group of banks that join to make a loan too big for any one of them alone.
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| Partition |
A vertical structure that subdivides spaces in a building or room.
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| Pass Through Expense |
Refers to the tenant's pro rated share of operating expenses like property taxes and insurance, paid in addition to the base rent.
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| Percentage Lease |
A lease whose rental is based on a percentage of monthly or annual gross sales made on the premise.
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| Planned Unit Development (PUD) |
A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity. Planned Unit Development zones generally set an overall density limit for the entire subdivision, allowing the dwelling units to be clustered to provide for common open space.
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| Planning Commission |
A body of local government delegated to propose and approve plans for future activities and developments in the community.
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| Plat |
A map of a town, section, or subdivision indicating the location and boundaries of individual properties.
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| Pre-Qualification |
A process where a lender determines how large a monthly payment a purchaser can afford. Also known as Pre Approval.
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| Predatory Lending |
The practice of lending by deceptive means in the name of risk-based pricing. The lender deceptively convinces borrowers to agree to unfair loan terms and violates those terms in future loan period.
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| Principal |
The amount of debt, not including interest, outstanding on a loan.
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| Private Mortgage Insurance (PMI) |
Insurance provided by a private company to protect the mortgage lender against mortgage default. Generally this insurance is required by the lender when the down payment is less than 20% of the property value.
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| Pro Rata |
An equal or proportionate share as compared to others of the group, usually in the distribution of assets or the amount of voluntary payments.
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| Property Management |
The range of functions concerned with looking after buildings, including collection of rents, payment of outgoings, maintenance including repair, provision of services, insurance and supervision of staff employed for services, together with negotiations with tenants or prospective tenants.
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| Quadruplex |
A building with four individual units designed to house four families.
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| Quitclaim Deed |
A deed relinquishing all interest, title or claim an owner has in a property but making no warranty whatsoever.
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| Radon Gas |
An odorless, radioactive gas which may enter a home through cracks in the foundation or drains in the floor.
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| Ranch House |
A unique type of house native to America which usually consists of a single story, low roofline, L or U shaped design, open floor plans and attached garages. This type of architecture was popular in the 1940s-1970s and is still being used today. Also known as Ranch Style or Ranch Style House.
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| Real Property |
Property in the form of land together with fixtures and improvements as opposed to personal possessions.
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| Realtor |
A trademark name for a real estate representative who is a member of the National Association of Realtors and is bound by a strict code of ethics in the business of buying and selling real estate.
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| Recession |
A general decline in economic activity over a sustained period of time.
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| Redlining |
The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood.
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| Regulation Z |
A federal regulation requiring creditors to provide full disclosure of the terms of a loan including the terms or the loan and the annual percentage rate (APR).
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| Renegotiable Rate Mortgage |
A loan secured by a long-term mortgage of up to 30 years, which provides for renegotiation at equal stated intervals of the interest rate for a maximum variation of 5 percent over the life of the mortgage.
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| Renewal Option |
A clause giving a tenant the right to extend the term of a lease, usually for a stated period of time rent amount.
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| Rent Commencement Date |
The date upon which the rent and usually the term of the lease begins.
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| Rescission |
The cancellation of a transaction or contract by law or by mutual consent.
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| Residential |
Pertaining to a place where people live, such as a home, townhouse, apartment or other type family dwelling.
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| Restrictive Covenant |
A private agreement, usually contained in a deed, which restricts the use and occupancy of real property.
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| Return On Investment (ROI) |
A measurement calculated to evaluate the financial return on a particular investment during a specified period of time.
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| Reverse Annuity Mortgage |
A loan under which the homeowner receives monthly payments based on his or her accumulated equity rather than a lump sum. Also known as a Senior Loan.
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| Right Angle |
The 90 degree angle between to perpendicular lines.
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| Riparian Rights |
The rights of land owners whose property border bodies of water which relate to the water and its use or distribution.
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| Sale Leaseback |
An arrangement by which the owner occupant of a property agrees to sell all or part of the property to an investor and then lease it back and continue to occupy space as a tenant. Although the lease technically follows the sale, both will have been agreed to as part of the same transaction.
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| Second Mortgage |
A mortgage registered against real property which is already encumbered with one mortgage.
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| Section 8 Housing |
A federal housing assistance program that uses rent subsidies to allow leasing to low income families.
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| Security Deposit |
A deposit of money by a tenant to a landlord to secure performance of a lease.
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| Seller’s Market |
A market condition where demand is greater than supply; sellers can set prices and terms of sale, and prices are high or rising.
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| Selling Agent |
The agent that brings a buyer to a real estate transaction. The listing agent can be the selling agent but it is more common for the buyer’s agent to be the selling agent.
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| Septic Tank |
An underground receptacle used to dispose of raw sewage by breaking it down and allowing it to drain off.
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| Severalty |
Individual ownership of real property.
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| Sharecropping |
A type of lease that allows the tenant (farmer) to split the crop or proceeds from the sale of the crop with the property owner (landlord) for use of the property.
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| Short Sale |
A sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the mortgagor.
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| Sky Lease |
A lease of air rights, or the right to build a structure that, except for its supports, is constructed above a plane over a specified property.
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| Specific Performance |
A legal action brought in a court of equity to compel a party to carry out the terms of a contract.
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| Steering |
The illegal funneling of home buyers to a particular area based on the desire to keep the makeup of that neighborhood the same or intentionally change it.
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| Sublease |
A lease by a tenant or lessee of part or all of leased premises to another person but with the original tenant retaining some right or interest under the original lease.
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| Subsurface Rights |
Landowner's rights to the water, minerals and other substances below the surface of land. These rights may be sold or transferred to another party like other land rights.
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| Tax Credit |
An allowed reduction in tax liability.
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| Tax Lien |
A claim imposed by the federal government to liquidate a person's property until the tax and debt owed is fully paid.
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| Tenant |
A person who pays rent for the right to use property that is owned by someone else.
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| Tenant Improvements |
Work done on the interior of a space can be paid for by landlord, tenant, or some combination of both, depending on the terms of the lease.
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| Timeshare |
A property that is purchased or leased for different intervals of time throughout the year.
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| Title |
Evidence of ownership.
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| Title Company |
A firm that verifies ownership of real property, often done in connection with a conveyance of real property from buyer to seller.
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| Title Insurance |
Insurance that protects the lender against any claims that arise from arguments about ownership of the property; also available for homebuyers.
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| Topography |
The description of surface features for an area of land. Example: hilly, mountainous, gently rolling and level.
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| Trade Fixtures |
Articles installed by a tenant under terms of a lease and removable by the tenant before the lease expire.
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| Trust Deed |
An instrument that conveys title to the trustee which holds it in security often for an obligation such as a mortgage or promissory note.
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| Truth In Lending Act |
A law requiring lenders to disclose the terms of their credit offers accurately so that consumers are not misled and are able to compare the various credit terms available. The Truth in Lending Act requires lenders to disclose the terms and costs of all loan plans.
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| Turnkey |
A product or service which can be implemented or utilized with no additional work required by the buyer.
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| Unimproved Land |
Bare land which has not been improved with a structure.
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| Usury |
An excessive or illegally high rate of interest charged on borrowed money.
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| Utilities |
The services provided by utility companies like gas, water, electricity, internet and telephone
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| VA Loan |
A loan that is guaranteed by the Department of Veterans Affairs available for qualified military and ex-military personnel.
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| Vacancy Rate |
The percentage of all units or space that is unoccupied or not rented.
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| Valuation |
The process of determining the value of an asset or company.
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| Variable Rate |
An interest rate that fluctuates over the life of the loan.
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| Void Contract |
An unenforceable contract that lacks at least one of the four essential elements of valid contract and is therefore non-binding.
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| Voluntary Lien |
A lien that the home owner willingly allows to placed on his property
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| Waiver |
A voluntary surrender of a known right or privilege.
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| Warranty Deed |
A deed which guarantees title.
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| Water Rights |
The legal rights to use water from a natural source such as a river, stream, pond or lake.
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| X–bracing |
A system of bracing where the diagonals intersect forming an x.
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| Yield |
The income or profit from a business, the sale of land or other property
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| Zoning |
A designation given to a particular geographic area to regulate the type of use and the density of development permitted for properties in that area.
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