HomesWEB Real Estate Glossary

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Word	Definition
A-frame design	An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.
Abstract of judgment, law	The summary of a court judgment that creates a lien against a property when filed with the county recorder.
Accelerated cost recovery system	A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.
Accelerated depreciation	A bookkeeping method that depreciates property faster in the early years of ownership.
Acceleration Clause	A clause contained in a note & trust deed which gives the beneficiary or payee the right to declare the entire payment of any balance due upon an event such as a sale or transfer of title to Real Property.
Acceptance	The seller's written approval of a buyer's offer.
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.
Accommodation Recording	The recordation of an instrument without consideration and without assumption of responsibility for correctness or validity.
Accretion	The gradual addition to the shore or bank of a waterway by deposits of sand or silt.
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.
Add-on interest	The interest a borrower pays on the principal for the duration of the loan.
Addendum	An addition or change to a contract.
Additional principal payment	Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.
Adjustable Rate Mortgage (arm)	Also regarded as a Variable Rate Mortgage. A Mortgage with an interest rate that may be adjusted up or down, depending on its terms, conditions or specific index.
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.
Agency	A relationship that can be created by one or more persons in which one is authorized to act for another. In a Real Estate listing or sales transaction, a disclosure of Agency Relationships lawfully must be signed by all parties.
Agency closing	The process by which a lender uses a title company or other firm as an agent to complete a loan.
Agent	A person licensed by the state to conduct real estate transactions.
Agreed boundary	A compromise boundary to which property owners agree in order to resolve a dispute.
Agreement of sale	A document the buyer initiates and the seller approves that details the price and terms of the transaction.
Alcove	A recessed section of a room, such as a breakfast nook.
Alienation clause	A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.
Alkali	Mineral salt found in soil.
Alkaline soil	Soil that contains a higher concentration of mineral salt than natural acid.
Alley	A lane behind a row of buildings or between two rows of buildings.
Allowances	Budgets offered by builders of new homes for the purchase of carpeting and fixtures.
Alternative mortgage	Any home loan that does not conform to a standard fixed-rate mortgage.
Aluminum siding	A metal covering that provides an alternative to paint for owners of wood homes.
Aluminum-clad windows	Wooden windows with aluminum covering the exterior.
Amendment	An instrument containing any changes or modifications which the parties agree, after the initial escrow instructions have been executed by the parties.
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.
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	Provision for the payment of a debt as to both principal and interest is paid in equal installments over a period of time.
Amortization tables	Mathematical tables that lenders use to calculate a borrower's monthly payment.
Amperage	The strength of an electrical current.
Anchor bolt	A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.
Annual	Any kind of plant that must be planted every year.
Annual mortgagor statement	A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.
Annual Percentage Rate (APR)	The finance charges for a loan, including points and other loan fees, that are charged in addition to interest on the loan.
Annuity	The payment of a fixed sum to an investor at regular intervals.
Anticipatory breach	A communication that informs a party that the obligations of the original contract will not be fulfilled.
Application	A document that details a potential borrower's income, debt and other obligations to determine credit worthiness.
Application fee	The fee that a lender charges to process a loan application.
Appraisal	An opinion of fair market value of both land and improvements on it. This is not to be confused with a Comparative Market Evaluation which an Agent may make.
Appraisal fee	The fee that an appraiser charges to estimate the market value of the property.
Appraisal report	A detailed written report on the value of a property based on recent sales of comparable sites in the area.
Appraised value	An opinion of the current market value of a property.
Appreciation	An increase in the value of a home or other property..
Appurtenance	Anything belonging to or incidental to land and considered part of Real Property.
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.
As-is condition	The purchase or sale of a property in its existing condition.
Asbestos	A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.
Asking price	A seller's initial price for a property.
Assessed Value	The value of property for taxation purposes.
Assessment	The estimated value of a piece of real estate or a levy placed on property in addition to taxes.
Assessment rolls	A list of taxable property compiled by the assessor.
Assessments	Special or local levies upon property in the immediate vicinity of an improvement. Assessments can be imposed by governmental entities such as flood control districts, street lighting or air pollution districts which serve the area.
Assets	Items of value which include cash, real estate, securities and investments.
Assignment	The transfer, in writing, of a person’s interest to another person of an asset, such as an assignment of stock, a deed of trust or a lease.
Assignor	A person who transfers rights and interests of a property.
Assumable mortgage	A mortgage that can be transferred to another borrower.
Assumption (of a mortgage or deed of trust)	An agreement by one party to another to pay an obligation previously owed by another. For example, the assumption of an existing trust deed loan by a new owner may occur when a property is sold.
Assumption clause	A provision that allows a buyer to take responsibility for the mortgage from a seller.
Assumption fee	The charge imposed by the existing lender when a buyer assumes the seller’s existing loan.
Attorney-in-fact	An agent authorized to act for another (see power of attorney)
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.