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Glossary of Real Estate Terms
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| Abstract of judgment |
| 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 provision that gives the lender the right to collect the balance of a loan if a borrower misses a payment. |
| Acceptance |
| The seller's written approval of a buyer's offer. |
| Access |
| Any means by which a person can enter property. |
| Accessibility |
| The degree in which a building or site allows access to handicapped people. |
| Accretion |
| The gradual addition to the shore or bank of a waterway through 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 ARM. |
| 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 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 consent of the owner. |
| Aeolian soil |
| Soil that is composed of materials deposited by the wind. |
| Affiant. |
| A person who makes a sworn statement. |
| Affirmation |
| A substitution for an oath granted to people based on religious reasons. |
| A-frame design |
| An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters. |
| Agency |
| The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract. |
| Agency closing |
| The process in 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 agreed to by property owners 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 provided an alternative to painting for owners of wood homes. |
| Aluminum-clad windows |
| Wooden windows with aluminum covering the exterior. |
| 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. Information: (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 lenders use to calculate a borrower's monthly payment. |
| Amperage |
| The strength of an electrical current. |
| Anchor bolt |
| A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving. |
| Annual |
| Any kind of plant that must be planted every year. |
| Annual mortgagor statement |
| A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest. |
| Annual Percentage Rate (APR) |
| The cost of the loan expressed as a yearly rate on the balance of the loan. |
| Annuity |
| The payment of a fixed sum at regular intervals to an investor. |
| Anticipatory breach |
| A communication that informs a party that the obligations of the original contract will not be fulfilled. |
| Application |
| A document detailing a potential borrower's income, debt and other obligations to determine credit worthiness. |
| Application fee |
| The fee a lender charges to process a loan application. |
| Appraisal |
| The opinion of the value of a property at a given point in time. |
| Appraisal fee |
| The fee an appraiser charges for an estimate of 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 |
| Licensed professionals who design 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 determination by a tax assessor 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 of the mortgage from a seller. |
| Assumption fee |
| A fee the lender charges for processing new records for a buyer assuming an existing loan. |
| Average price |
| The price of a home determined by totaling the sales prices of all houses sold in an area and divided 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. |
