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.
Affordable
Reasonable value
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
Transfer of property from one person to another.
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.
Animus Testandi
An intention to make a last will and testament.
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.
Annul To
Cancel, Void.
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.
Attestation
The act of witnessing an instrument in writing, at the
request of the party making the same, and sub-scribing it as
a witness.
Auction A
sale of property, conducted in public or after a notice to
the general public, to the highest bidder.
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.
Back fill Soil
used to solidify the foundation of a structure.
Back title letter A
letter that a title insurance company gives to an attorney
who then examines the title for insurance purposes.
Back-to-back escrow Arrangements
that an owner makes to oversee the sale of one property and
the purchase of another at the same time.
Backup offer A
secondary bid for a property that the seller will accept if
the first offer fails.
Backwater valve A
valve in a sewer line that prevents sewage from flowing back
into a house.
Balance sheet A
statement that shows the assets, liabilities and net worth
of an individual.
Balloon-frame construction A
type of framing used in two-story homes in which studs
extend from the ground to the ceiling of the second floor.
Balloon loan A
mortgage in which monthly installments are not large enough
to repay the loan by the end of the term. As a result, the
final payment due is the lump sum of the remaining
principal.
Balloon payment The
final lump sum payment due at the end of a balloon mortgage.
Balustrade Railing
held up by a set of posts on a porch or stairway.
Bankruptcy A
proceeding in which an insolvent debtor can obtain relief
from payment of certain obligations. Bankruptcies remain on
a credit record for seven years and can severely limit a
person's ability to borrow.
Barter A
contract by which parties exchange goods or commodities for
other goods.
Bargain sale The
sale of a piece of property for less than market value.
Baseboard Any
board or molding found at the bottom of an interior wall.
Baseboard electric heat Heating
units installed in the floor that can be controlled by a
central thermostat.
Basement The
area of a home below ground level.
Basis Point A
basis point is one one-hundredth of one percentage point.
For example, the difference between a loan at 8.25 percent
and a mortgage at 8.37 percent is 12 basis points.
Bay The
opening between two columns or walls that forms a space.
Bay window A
window that projects outward in a curve.
Bearing wall A
wall that supports its own weight in addition to other parts
of a structure.
Beneficiary The
lender who makes a loan, also called a mortgagee. The person
borrowing money is the mortgagor.
Before-tax income Total
income before taxes are deducted.
Bequeath
To give personal property by will to another.
Bequest A
gift by will of personal property.
Betterment An
improvement that increases a property's value as opposed to
repairs that maintain the value.
Bidding war Offers
from multiple buyers for a piece of property. Agents also
sometimes compete to list a house for sale.
Bilateral contract A
contract in which the parties involved give mutual promises.
Also called "reciprocal" contracts.
Bill of sale
A written document under seal, by which one
person assigns or transfers his right to or interest in
goods and personal chattels to another.
Binder A
report issued by a title insurance company that details the
condition of a home's title. and provides guidelines for a
title insurance policy.
Biweekly mortgage A
mortgage that requires payments every two weeks and helps
repay the loan over a shorter term.
Blanket insurance policy A
policy that covers more than one person or piece of
property.
Blanket mortgage A
mortgage that covers more than one property owned by the
same borrower.
Blighted area A
neighborhood that has deteriorated.
Blind nailing Nails
driven into a wall and concealed with putty.
Blueprint
Blue-ribbon condition A
house maintained close to its original condition. Also
called mint condition.
Blue sky laws Regulations
on the sale of securities to prevent consumers from
investing in fraudulent or high-risk companies without being
informed of the risks.
Board-and-batten siding Siding
is composed of 8- to 12-inch wide wooden boards nailed
vertically to create a barn-like exterior.
Board foot Measurement
of lumber that is the equivalent of 144 cubic inches.
Board of Equalization A
state board charged with ensuring that local property taxes
are assessed in a uniform manner.
Boilerplate Form
language used in deeds, mortgages and other documents.
Details can be added by individual parties.
Bona fide A
legal term that refers to actions or persons that are honest
and in good faith.
Bond An
agreement that insures one party against loss by acts or
defaults of another party.
Book value The
value of a property as a capital asset based on its cost
plus any additions, minus depreciation.
Boring test An
analysis of soil in which holes are bored into the ground
and samples are removed.
Borough A
section of a city that has authority over local matters.
Borrow Sand,
gravel or other material used for grading.
Borrow pit The
hole at a site that has been excavated.
Boulevard A
street lined with trees or constructed with a landscaped
median.
Boundary The
dividing line between two adjacent properties.
Braced framing A
construction method in two-story homes in which the frame is
reinforced with posts and braces.
Breach of contract The
failure to perform provisions of a contract without a legal
excuse.
Breach of covenant The
failure to obey a legal agreement.
Breach of warranty A
seller's inability to pass clear title to a buyer.
Break-even point The
point in which the owner's rental income matches expenses
and debt.
Breast height The
height at which the diameter of a tree is measured: four
feet, six inches above the ground.
Breezeway A
roofed passageway with open sides.
Brick Building
material made from clay molded into oblong blocks and fired
in a kiln.
Bridge loan A
short-term loan for borrowers who need more time to find
permanent financing.
Brokerage The
act of bringing together two or more parties in exchange for
a fee or commission.
Broker A
person licensed by the state to deal in real estate.
Broom clean The
ideal condition of a building when it is turned over to an
owner or tenant.
Brownstone A
vintage row house constructed of red sandstone.
Buffer strip A
parcel of land that separates two or more properties.
Building and loan association An
organization that raises money to helps its members purchase
real estate or construct a building.
Building code A
comprehensive set of laws that controls the construction or
remodeling of a home or other structure.
Building inspector A
city or county employee who enforces the building code and
ensures that work is correctly performed.
Building moratorium A
halt on home construction to slow the rate of development.
Building paper A
thick, water-resistant paper that serves as insulation.
Building permit A
permit issued by a local government agency that allows the
construction of home or renovation of a house.
Builder upgrades Extra
house features or better finishing materials that a builder
offers.
Building line or setback Guidelines
that limit how close an owner can build to the street or an
adjacent property.
Building restrictions Regulations
that limit the manner in which property can be used.
Built-ins Appliances
or other items that are framed into a home or permanently
attached.
Bulkhead A
retaining wall designed to hold back water from the ocean or
another body of water.
Bundle of rights The
various interests or rights an owner has in a property.
Bungalow A
small one-story house or cottage.
Butterfly roof A
roof formed by two gables that dip in the middle to resemble
a butterfly's wings.
Buy-down mortgage A
home loan in which the lender receives a premium as an
inducement to reduce the interest rate during the early
years of the mortgage.
Buyer broker A
real estate broker who exclusively represents the buyer's
interests in a transaction, Responsible for Due Diligence.
Buyer's market A
slow real estate market in which buyers have the advantage,
more homes for sale than buyers.
Buyer's remorse An
emotion felt by first-time homebuyers after signing a sales
contract or closing the purchase of a house.
Buying a listing
Term used by REALTORS to describe another agent that
purposely inflates a suggested list price in order to
receive the business.
Bylaws The
rules and regulations that a homeowners association or
corporation adopts to govern activities.
Call option A
clause in a loan agreement that allows a lender to ask for
the balance at any time.
Can lights Cylindrical
chambers with bulbs recessed into the ceiling.
Cancellation clause A
clause that details the conditions under which each party
may terminate the agreement.
Cantilever A
projecting structure supported on one end, such as a
balcony.
Cap A
limit on the amount the interest rate or monthly payment can
increase in an adjustable-rate mortgage.
Cape Cod style A
wood-frame or shingled house with a steep roof and several
windows projecting from the second floor.
Capital Money
used to create income, such as funds invested in rental
property.
Capital expenditure The
cost of making improvements on a property.
Capital gains Profits
an investor makes from the sale of real estate or
investments.
Capital gains tax A
tax placed on the profits from the sale of real estate or
investments.
Capital improvement Any
improvement that extends the life or increases the value of
a piece of property.
Capitalization A
mathematical formula that investors use to compute the value
of a property based on net income.
Capitalization rate The
percentage rate of return estimated from the net income of a
piece of property.
Caravan A
group of real estate agents who tour a house that has been
recently listed for sale.
Carport A
roof that covers a driveway or other parking area.
Casement window A
window hinged on its sides to allow it to swing open
vertically.
Cash flow The
amount of cash a rental property investor receives after
deducting operating expenses and loan payments from gross
income.
Cashier's check A
check the bank draws on itself rather than on a depositor's
account.
Cash-out refinance The
refinancing of a mortgage in which the money received from
the new loan is greater than the amount due on the old loan.
The borrower can use the extra funds in any manner.
Cathedral ceiling A
high open ceiling formed by finishing exposed roof rafters.
Caulk An
acrylic or silicon sealant used to fill cracks, crevices and
holes in a home.
Cavedium A
courtyard or atrium.
Caveat A
formal notice, that asks a court to suspend action until the
party which filed the challenge can be heard.
Caveat emptor Latin.
"Let the buyer take care."
Ceiling height The
standard height of a ceiling is eight feet.
Central air conditioning A
device that generates cold air through an outside unit that
is connected to ductwork inside the house.
Central business district The
area of a city where most large businesses are located.
Certificate of Deposit (CD) A
document which shows that the bearer has a specified amount
of money on deposit with a bank, stock-brokerage firm or
other financial institution.
Certificate of deposit index An
index based on the interest rates on six-month CDs. It used
to determine the interest rate for some adjustable-rate
mortgages.
Certificate of eligibility A
document issued by the Veterans Administration that verifies
the eligibility of a veteran for a loan program.
Certificate of occupancy A
document which states that a home or other building has met
all building codes and is suitable for habitation.
Certificate of sale A
document issued at a judicial sale, which entitles the buyer
to receive a deed after court confirmation of the purchase
of the property.
Certificate of title A
written opinion on the status of a piece of property based
on an examination of the public record.
Chain of title The
official record that details the ownership history of a
piece of property.
Chair railing Decorative
trim installed on a wall about 32 inches above the floor,
which protects against scuffs from furniture.
Change order A
modification of the construction contract to authorize a
change in the work, an adjustment in the amount of the
contract or a change in the contract time. The owner,
architect and contractor must sign the change.
Change frequency The
adjustment schedule on an adjustable-rate mortgage.
Chattel Personal
property such as furniture, appliances, clothing or a car.
Chattel mortgage A
lien on personal property used as collateral for a loan.
Chimney back The
back wall or lining of a fireplace or furnace chimney.
Chimney flue The
passage inside a chimney that channels smoke and heat to the
outside.
Chimney pot A
short pipe at the top of a chimney that increases
ventilation to the fireplace and reduces smoke.
Cinder block A
block made of ash and cement that is used in construction.
Cinder fill Cinders
used below a basement or around a foundation to promote
drainage.
Circuit breaker An
electric fuse that activates or deactivates a circuit.
Cistern A
tank used to store rainwater.
Classified property tax A
tax that varies in rate depending on the use of the
property.
Clear title A
property that does not have liens, defects or other legal
encumbrances.
Closing The
final procedure in which documents are signed and recorded,
and the property is transferred.
Closing costs Expenses
incidental to the sale of real estate, including loan, title
and appraisal fees.
Closing statement A
document which details the final financial settlement
between a buyer and seller and the costs paid by each party.
Cloud on title An
invalid encumbrance on real property.
Cluster development A
method of squeezing more homes into less space.
Codicil A
change to a will that adds or subtracts provisions or
clarifies portions of the document.
Co-housing Individual
housing units that are clustered around a common building
where residents share cooking and other activities.
Coign The
cornerstone of a building that differs in shape or color
from the rest of the wall.
Co-insurance Coverage
that involves the use of two or more insurers..
Collar beam The
structural element that connects roof rafters.
Collateral security Additional
security that a borrower supplies to obtain a loan.
Collection The
series of steps a lender takes to bring a delinquent
mortgage up to date.
Collusion The
action of two or more people to break the law.
Colonia Unincorporated
communities along the U.S.-Mexico border.
Column A
slender upright structure that consists of a base, a round
or square shaft and a capital.
Column footing The
support base for a load-bearing column. The footing is
usually made of reinforced concrete.
Co-maker A
person who signs a promissory note with the borrower and
assumes responsibility for the loan.
Combination door An
outer door with interchangeable screen and glass panels.
Combination window A
window with interchangeable screen and glass panels.
Commercial bank A
financial institution that provides a broad range of
services, from checking and savings accounts to business
loans and credit cards.
Commercial property An
area that is zoned for businesses.
Commingling The
mixing of money held in trust with other funds.
Commission The
percentage of the sales price of a home that is paid to the
agents of the buyer and seller.
Commitment A
promise by a lender to make a loan with specific terms for a
specified period.
Commitment fee The
fee a lender charges for promising to make a loan.
Common area An
area inside a housing development that is owned by all
residents.
Common-area assessments Fees
paid by the owners of a condominium project or planned-unit
development to maintain, repair, improve or operate common
areas.
Common-interest development A
project composed of individually owned units that share
usage and financial responsibility for common areas.
Common law A
body of laws based on custom, usage and rulings by courts in
various jurisdictions.
Community property Property
accumulated through the joint efforts of husband and wife.
It is a classification of property peculiar to certain
states.
Community Reinvestment Act A
federal law that encourages financial institutions to loan
money in the neighborhoods where minority depositors live.
Commute The
distance and time it takes a person to reach the workplace.
Comparables Properties
used as comparisons to determine the value of a certain
property.
Comparative market analysis An
estimate of the value of a property based on an analysis of
sales of properties with similar characteristics.
Competent A
term for a buyer who is legally fit to enter into a sales
contract.
Compound interest The
interest paid on the principal balance in a mortgage and on
the accrued and unpaid interest of the loan.
Concrete tilt-up The
process of pouring concrete into forms on the ground,
allowing the forms to harden and then raising the material
to a vertical position to form walls.
Condemnation The
process the government uses to take private property for
public use without the consent of the owner.
Conditional commitment A
promise by a lender to make a loan if the borrower meets
certain conditions.
Condominium Individual
units in a building or development in which owners hold
title to the interior space while common areas such as
parking lots, community rooms and recreational areas are
owned by all the residents.
Condominium conversion The
change in title from a single owner of an entire project or
building to multiple owners of individual units.
Conduit A
metal pipe that houses electrical wiring.
Conflict of interest
An opposition, conflict, or antagonism between different
interests.
Consanguinity
Kinship, blood relative, the connection or relation of
persons.
Consent judgment A
binding written agreement between two parties to have a
judgment entered and recorded.
Conservator A
guardian of an incompetent person's estate.
Consideration Anything
that is legal, has value and induces a person to enter into
a contract.
Construction budget The
funding that an owner arranges for the construction of a
project.
Construction documents Drawings
and specifications from an architect that provide detailed
requirements for the construction of a project.
Construction loan Short-term
loans a lender makes for the construction of homes and
buildings. The lender disburses the funds in stages.
Construction to permanent loan The
conversion of a construction loan to a longer-term
traditional mortgage after construction has been completed.
Consumer Credit Counseling Service
(CCCS) A nationwide, nonprofit
organization that helps consumers get out of debt and
improve their credit profile. National headquarters: 8701
Georgia Avenue., Suite 507, Silver Springs, MD 20910. Phone:
(800) 388-2227.
Contemporary style A
design that features streamlined shapes, large unadorned
windows and industrial materials.
Contiguous lots Pieces
of property that are adjoined.
Contingency A
condition specified in a purchase contract, such as a
satisfactory home inspection.
Contingency listing A
property listing with a special condition attached.
Contingent fee A
fee that must be paid if a certain event occurs.
Contract An
agreement between two or more parties that creates or
modifies an existing relationship.
Contract for deed A
contract in which the seller agrees to defer all or part of
the purchase price for a specified period of time.
Contract to purchase A
contract the buyer initiates which details the purchase
price and conditions of the transaction and is accepted by
the seller. Also known as an agreement of sale.
Contractor The
individual who contracts for the construction of a home or
project.
Contractual lien A
voluntary obligation such as a mortgage or trust deed.
Controlled growth Any
restrictions imposed on the amount or type of new
development in an area.
Conventional loan A
long-term loan a lender makes for the purchase of a home.
Convertible adjustable-rate mortgage A
mortgage which starts as an adjustable-rate loan, but allows
the borrower to convert the loan to a fixed-rate mortgage
during a specified period of time.
Conveyance The
transfer of title of property.
Conveyance tax A
tax imposed on the transfer of real property.
Cooperating broker A
real estate broker who finds a buyer for a property that
another broker has listed.
Cooperative corporation A
business trust that holds the title to a cooperative
residential building and grants occupancy rights to
shareholders in the corporation.
Cooperative mortgages Any
loans related to a cooperative residential project.
Cooperative project A
project in which a corporation holds title and sells shares
representing individual units to buyers who then receive a
proprietary lease as their title.
Cornice A
horizontal molding that projects from the top of a structure
or wall.
Corporate relocation An
arrangement by which employers pay to transfer and move
employees.
Co-signer A
second party who signs a promissory note and takes
responsibility for the debt.
Counteroffer A
response to an offer.
Corner bead A
reinforcement placed in the corner where two walls
intersect.
Corner influence The
effect on the value of a property because it is situated on
a corner or near a corner.
Corrective work Necessary
or desired repairs to remedy problems uncovered by a home or
specialized inspection.
Cost-plus contract A
construction contract that determines the builder's profit
based on a percentage of the cost of labor and materials.
Cottage A
small, one-story house.
Covenant A
legal assurance or promise in a deed or other document, or
implied by the law.
Covenants, conditions and restrictions
(CC&R's) Rules and regulations
for a development, such as acceptable landscaping or
improvements that can be made to individual units.
Craftsman style An
architectural style that evolved as part of the Arts and
Craft movement near the turn of the century.
Crawl space The
space between the ground and the first floor of a home,
usually no higher than four feet.
Creative financing Innovative
home-financing arrangements that help sell a property.
Credit The
money a lender extends to a buyer for a commitment to repay
the loan within a certain time frame.
Credit history A
record of an individual's current and past debt payments.
Creditor An
individual or institution to whom a debt is owed.
Credit life insurance Insurance
that pays off a mortgage in the event of the borrower's
death.
Credit rating The
degree of credit worthiness assigned to a person based on
credit history and financial status.
Credit report A
credit bureau report that shows a loan applicant's history
of payments made on previous debts. Several companies issue
credit reports, but the three largest are Trans Union Corp.,
Equifax and Experian (formerly TRW ).
Credit repository Large
companies that gather financial and credit information from
various sources about individuals who have applied for
credit.
Credit union Nonprofit
cooperative organizations that provide banking and financial
services, including mortgages, home improvement loans and
home equity loans, to their members.
Cross-bridging The
strengthening of a structure by bracing cross members
between beams.
Cul de sac A
street or alley that is closed at one end.
Cupola A
dome-like structure that sits on top of a roof.
Curable defect A
deficiency in a property that is easy or inexpensive to fix,
such as chipping paint.
Curb appeal The
first impression of a house as seen from the street.
Curtain wall An
exterior wall that encloses a yard or other area but does
not provide any structural support to a home.
Custom builder A
builder who constructs a home or building based on plans
created by the owner.
Custom home A
structure designed by an architect hired by the owner.
Damper A
movable plate in a fireplace that allows smoke and fumes to
travel up the chimney's flue.
Days on the market The
period of time a property is listed for sale until it is
sold or taken off the market
Deadbolt lock Locks
that require a key to open from the outside and a turn
button from the inside.
Debt Any
amount one person owes to another.
Deck A
roofless, floored area that adjoins a house.
Deed The
legal document that transfers ownership of a piece of
property.
Deed of trust A
document that gives a lender the right to foreclose on a
piece of property if the borrower defaults on the loan.
Deep-seal floor drain A
drain used to dispose of water from the basement floor to a
sewer line.
Default The
failure to fulfill a duty or promise or discharge an
obligation, such as making monthly mortgage payments.
Deferred maintenance Any
repair or maintenance of a piece of property that has been
postponed, resulting in a decline in property value.
De Jure
Latin. Of right; legitimate; lawful; by right and just
title.
Delinquent mortgage A
mortgage that involves a borrower who is behind on payments.
If the borrower cannot bring the payments up to date within
a specified number of days, the lender may begin foreclosure
proceedings.
Demise A
conveyance of an estate to another for life, for years, or
at will; lease.
Density test An
analysis of soil to determine if the surface can support the
foundation of a house.
Dentils Small
rectangular blocks that project from a building, usually
under cornices or along rooflines.
Deposit Money
given by the buyer with an offer to purchase property. Also
called earnest money.
Deposition
The testimony of a witness taken upon
interrogatories, not in court, but intended to be used in
court.
Depreciation The
decline in value of a piece of property.
Design/build A
project in which the owner contracts directly with an
individual or company to perform design and construction.
Designer Unlike
architects, designers are limited to drawing blueprints.
Devise A
testamentary disposition of land or realty; a gift of real
property by the last will and testament of the donor.
Digital images Images
that are incorporated into house listings to give potential
buyers a view of the property.
Dimension plans Plans
which show the layout of a house but are less detailed than
full blueprints.
Disability insurance An
insurance policy which covers an individual's ability to
produce income.
Disclosure A
statement to a potential buyer listing information relevant
to a piece of property, such as the presence of radon or
lead paint.
Discount points Fees
that a borrower pays at the time the lender makes the loan.
A point equals 1 percent of the total loan amount.
Distressed property Property
that is in poor physical or financial condition.
Document needs list A
list of documents a lender requires when a potential submits
a loan application.. The required documents range from
paycheck stubs to credit card statements.
Domed ceiling A
hemispherical ceiling that projects upward without support.
Domicile A
person's primary or permanent home.
Dormer A
window set upright in a sloping roof.
Double-hung window A
window that consists of two sashes that slide up and down.
Dovetail joints Joints
that lock two pieces of wood together with meshed teeth.
Dower rights
An estate for life of the widow in certain
portion of the estate of her husband, to which she has not
relinquished her right during the marriage.
Down payment The
amount of money a buyer agrees to give the seller when a
sales agreement is signed. Complete financing is later
secured with a lender.
Down spouts A
vertical gutter that empties water from the roof to the
ground.
Drainage A
system of gutters and drainpipes that carry water away from
the foundation of a house.
Draw A
payment made to subcontractors or suppliers from a
construction loan.
Dropped ceiling A
flat ceiling built lower than the original ceiling.
Dry rot A
fungal decay that causes wood to become brittle and crumble.
Drywall A
construction material composed of gypsum or plaster wrapped
in paper and produced in large sheets that can be nailed to
wall studs.
Dual agency A
relationship in which a real estate agent or broker
represents both parties in a transaction.
Duct Any
kind of pipe or channel that carries water, wiring or
conditioned air through a house.
Due Diligence
The act of responsibility to another.
Due-on-sale clause Standard
language in a mortgage which states that the loan must be
paid when a house is sold.
Duplex A
structure that consists of two separate family units.
Duress
Unlawful constraint exercised upon a person, whereby he is
forced to do some act against his will.
Dutch colonial style A
design that features barn-like gambrel roof, a ground-level
front porch, and dormers.
Early occupancy The
condition in which buyers can occupy the property before the
sale is completed.
Earnest money Money
a buyer gives with an offer to purchase a property. Also
called a deposit.
Earthquake insurance A
policy that provides coverage against damage to a home from
an earthquake.
Easement A
right given to a third party to use a portion of the
property for certain purposes, such as power lines or water
mains.
Eaves The
projecting overhang at the lower edge of a roof.
Effective age The
age of a structure estimated by its condition rather than
its actual age.
Effective gross income Additional
income that a lender considers when assessing the loan
application of a potential borrower.
Electric service panel A
panel that transfers power from the utility line into a
house to be distributed through fuses or circuit breakers.
Elevations The
exterior view of a home design that shows the position of
the house relative to the grade of the land.
Ell An
extension or wing of a house that is at right angles to the
main structure.
Emblements
Vegetables chattels, growth of the earth
which are produced annually, not spontaneously, but by labor
and industry, and thence are called "fructus industriales"
Eminent domain The
right of the people or government's to condemn private land
for public use, such as the routing of a public highway.
Employer-assisted housing Programs
which help employees purchase homes through special plans
developed with lenders.
Empty nesters Potential
buyers who have raised their families and want to move into
a smaller home.
Encroachment Fences
or other structures that extend into the property of another
owner.
Encumbrance A
claim or lien on a property which complicates the title
process.
End loan The
conversion from a construction loan to permanent financing a
condominium buyer secures after all units in a project have
been completed.
Endorser A
person who signs over ownership of property to another
party.
English Tudor style An
architectural design that features stone or brick exterior
walls and exposed beams.
Environmental impact statement A
government-mandated evaluation of all aspects and effects a
development will have on the environment of a proposed site.
Environmentally friendly home
construction A method of
construction that utilizes recycled materials.
Equal Credit Opportunity Act. A
federal law that prohibits a lender or other creditor from
refusing to grant credit based on the applicant's sex,
marital status, race, religion, national origin or age. The
law also prohibits a creditor from refusing to grant credit
because the applicant receives public assistance.
Equifax Equifax
Credit Information Services, Inc., is one of the "Big Three"
credit-reporting bureaus that operate nationwide. Address:
P.O. Box 740249, Atlanta, GA 30374.
Equity A
determination of the value of a property after existing
liens are deducted.
Errors and omissions insurance A
policy that pays for any mistakes a builder or architect
makes in a project.
Escrow A
neutral third party holds the documents and money involved
in a real estate transaction and ensures that all conditions
of a sale are met.. Escrow also refers to a special account
that a lender establishes to hold monthly installments from
the borrower to cover property taxes and insurance.
Escrow account An
account that a lender or mortgage servicer establishes to
hold funds for the payment of expenses such as homeowners
insurance and property taxes. Also known as an impound
account.
Escrow agent A
neutral third party who ensures that all conditions of a
real estate transaction are met.
Escrow analysis A
lender's periodic examination of an escrow account to
determine if the lender is withholding enough funds from a
borrower's monthly mortgage payment to pay for expenses such
as property taxes and insurance.
Escrow closing Escrow
closes when all conditions of a real estate transaction are
met and the title of the property is transferred to the
buyer.
Escrow company Firms
that act as neutral third parties to ensure that all
conditions that the buyer, seller and lender establish in a
real estate transaction are met.
Escrow payment Funds
that a mortgage servicer withdraws from a borrower's escrow
account to pay property taxes and insurance.
