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Select
the
first
letter
of the
word:
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
-
A
-
Abandonment
-
The
voluntary
relinquishment
of
rights
of
ownership
or
other
interest
(such
as
an
easement)
by
failure
to
use
the
property,
coupled
with
an
intent
to
abandon
(give
up
the
interest).
-
Abatement
-
A
reduction
or
decrease.
Usually
applies
to a
decrease
of
assessed
valuation
of
ad
valorem
taxes
after
the
assessment
and
levy.
-
Abstract
-
A
summary,
an
abridgement.
Before
the
use
of
photo
static
copying,
public
records
were
kept
by
abstracts
of
recorded
documents.
-
Abstracter's
Certificate
-
A
certificate
contained
in
an
abstract
which
shows
the
time
period
and
scope
of
the
search
of
public
records
done
by
the
abstracter.
-
Abstract
Of
Judgment
-
A
summary
of
the
essential
provisions
of a
court
judgment,
which
when
recorded
in
the
county
recorder's
office,
creates
a
lien
upon
the
property
of
the
defendant
in
that
county,
both
presently
owned
or
after
acquired.
-
Abstract
Of
Title
-
A
compilation
of
the
recorded
documents
relating
to a
parcel
of
land,
from
which
an
attorney
may
give
an
opinion
as
to
the
condition
of
title.
Still
in
use
in
some
states,
but
giving
way
to
the
use
of
title
insurance.
-
Acceleration
Clause
-
Clause
used
in
an
installment
note
and
mortgage
(or
deed
of
trust),
which
gives
the
lender
the
right
to
demand
payment
in
full
upon
the
happening
of a
certain
event,
such
as
failure
to
pay
an
installment
by a
certain
date,
change
of
ownership
without
the
lender's
consent,
destruction
of
the
property,
or
other
event
which
endangers
the
security
of
the
loan.
-
Accessibility
-
The
location
of a
site
in
terms
of
how
easily
it
may
be
reached
by
customers.
employees,
carriers,
and
others
necessary
to
the
intended
use
of
the
property
-
Accord
-
An
agreement
by
which
one
accepts
something
different
(usually
less)
from
what
is
owed
as
full
satisfaction
The
amount
owed
may
be
in
dispute
or
simply
accepted
as
full
satisfaction
by
the
creditor
or
claimant.
The
agreement
and
acceptance
is
called
"Accord
and
Satisfaction."
-
Accretion
-
The
gradual
addition
to
the
shore
or
bank
of a
waterway.
The
land
generally
becomes
the
property
of
the
owner
of
the
shore
or
bank,
except
where
statutes
specify
otherwise.
-
Accrued
Depreciation
-
(1)
The
amount
reserved
each
year
in
the
accounting
system
for
replacement
of a
building
or
other
asset.
(2)
The
useful
life
of a
property
at
any
given
time.
-
Acknowledgement
-
A
written
declaration
by a
person
executing
an
instrument,
given
before
an
officer
authorized
to
give
an
oath
(usually
a
notary
public),
stating
that
the
execution
is
of
his
own
volition.
-
Acquisition
Costs
-
Costs
of
acquiring
property
other
than
purchase
price:
escrow
fees,
title
insurance,
lenders
fees,
etc.
-
Act
Of
God
-
Damage
caused
by
nature
(floods.
winds.
etc.)
rather
than
destruction
by
man.
-
Add
on
Interest
-
A
method
of
charging
interest
usually
used
in
the
financing
of
automobiles,
but
not
generally
used
in
real
estate
financing.
Interest
is
computed
on
the
total
amount
borrowed
and
added
on
to
the
principal.
Each
payment
is
then
deducted
from
this
total
amount.
Interest
on
real
estate
loans
is
usually
figured
based
on
the
balance
owing
after
each
payment
is
made
(declining
balance).
-
Adjusted
Gross
Income
-
Gross
income
of a
building
it
fully
rented,
less
an
allowance
for
estimated
vacancies.
-
Adjustable
Rate
Mortgages
(arm's)
-
Mortgage
loans
under
which
the
interest
rate
is
periodically
adjusted
to
more
closely
coincide
with
current
rates.
The
amounts
and
times
of
adjustment
are
agreed
to
at
the
inception
of
the
loan.
Also
called:
Adjustable
Rate
Loans,
Adjustable
Mortgage
Loans
(AML'S),
Flexible
Rate
Loans,
Variable
Rate
Loans.
-
Ad
Valorem
-
"According
to
value."
A
method
of
taxation
using
the
value
of
the
thing
taxed
to
determine
the
amount
of
tax.
Taxes
can
be
either
"Ad
Valorem"
or
"Specific."
Example:
A
tax
of
$5.00
per
$1000.00
of
value
per
house
is
"Ad
Valorom,"
A
tax
of
S5.00
per
house
(irrespective
of
value)
is
"Specific."
-
Advance
Fee
-
A
fee
charged
by a
broker
to a
seller
to
cover
all
ora
portion
of
the
broker's
costs
of
promoting
the
property.
The
fee
is
generally
credited
against
commissions
but
is
not
refunded
if
no
commissions
are
received.
Most
frequently
used
in
connection
with
large
offerings
which
require
a
substantial
outlay
of
funds
for
promotion.
-
Agency
-
A
relationship
created
when
one
person
(the
principal)
delegates
to
another
(the
agent)
the
fight
to
act
on
his
or
her
behalf
in
business
transactions.
-
All
inclusive
Trust
Deed
(wrap-around
mortgage)
-
A
financing
technique
which
involves
the
creation
of a
new
trust
deed
which
includes
the
balance
due
on
the
existing
note
plus
any
new
funds
advanced.
-
American
Land
Title
Association
(ALTA)
-
A
national
association
of
title
insurance
companies,
abstractors,
and
agents.
The
association
adopts
standard
title
policy
forms.
-
Amortization
-
Payment
of a
debt
in
equal
installments
of
principal
and
interest,
rather
than
interest
only
payments.
-
Annual
Percentage
Rate
(a.p.r.)
-
The
yearly
interest
percentage
of a
loan,
as
expressed
by
the
actual
rate
of
interest
paid.
For
example:
6%
add-on
interest
would
be
much
more
than
6%
simple
interest,
even
though
both
would
say
6%.
The
A.P.R.
is
disclosed
as a
requirement
of
federal
truth
in
lending
statutes
and
should
include
all
finance
charges.
-
Appel
Loan
(Accelerating
Payoff
Progressive
Equity
Loan)
-
A
residential
property
loan
which
calls
for
a
payment
increase
over
the
first
6
years.
Level
payments
are
made
for
the
remaining
years
and
the
loan
paid
off
during
the
15th
year.
There
is
no
prepayment
penalty
and
P.M.I.
is
required.
-
Appraisal
-
An
opinion
of
value
based
upon
a
factual
analysis.
Legally,
an
estimation
of
value
by
two
disinterested
persons
of
suitable
qualifications.
-
Appraisal
Methods
-
Generally,
three
major
methods
of
appraisal:
Cost
Approach,
Income
Approach,
Market
Value
(comparables)
Approach.
-
Arrears
-
(1)
Payment
made
after
it
is
due
is
in
arrears.
(2)
Interest
is
said
to
be
paid
in
arrears
since
it
is
paid
to
the
date
of
payment
rather
than
in
advance,
as
is
rent.
Example:
A
rental
payment
made
July
1
pays
the
rent
to
August
1.
An
interest
payment
made
July
1
Pays
the
interest
to
July
1.
-
Assumable
-
A
mortgage
loan
which
can
be
transferred
to
another
person
without
a
change
in
the
terms
of
the
loan.
VA
and
FHA
loans
are
assumable,
FHLMC
and
FNMA
are
not.
-
Assumption
of
Note
-
Agreement
by a
buyer
to
assume
the
liability
under
an
existing
note
secured
by a
mortgage
or
deed
of
trust.
The
lender
usually
must
approve
the
new
debtor
in
order
to
release
the
existing
debtor
(usually
the
seller)
from
liability.
-
Avigation
Easement
-
An
easement
over
private
property
abut-ting
an
airport
runway,
which
limits
the
height
of
crops,
trees,
structures.
etc.,
in
the
aircraft's
take
off
and
landing
path.
BACK
TO
TOP
-
B
-
Balloon
Note
-
A
note
calling
for
periodic
payments
which
are
insufficient
to
fully
amortize
the
face
amount
of
the
note
prior
to
maturity,
so
that
a
principal
sum
known
as a
"balloon"
is
due
at
maturity.
-
Balloon
Payment
-
The
unpaid
principal
amount
of a
loan
due
on a
specific
date
in
the
future.
Usually
the
amount
that
must
be
paid
in a
lump
sum
at
the
end
of
the
term.
-
Bankrupt
-
One
who
is
adjudicated
a
bankrupt
by a
court
having
proper
jurisdiction.
The
bankruptcy
may
be
voluntary
(petitioned
by
the
bankrupt)
or
involuntary
(petitioned
by
the
creditors
of
the
bankrupt).
-
Bankruptcy
-
Proceedings
under
federal
bankruptcy
statutes
to
relieve
a
debtor
(bankrupt)
from
insurmountable
debt.
The
bankrupt's
property
is
distributed
by
the
court
to
the
creditors
as
full
satisfactions
of
the
debts,
in
accordance
with
certain
priorities
and
exemptions.
Voluntary
bankruptcy
is
petitioned
by
the
debtor
for,
involuntary
by
the
creditors.
-
Before
And
After
Method
-
An
appraisal
method
used
in
both
condemnation
and
modernization.
In
condemnation
the
method
is
used
in a
partial
taking.
The
value
of
the
total
land
owned
by
A,
for
example,
is
$1.00
per
sq.
ft.
After
a
partial
taking,
the
remaining
land
of A
is
worth
$.75
per
sq.
ft.
A
should
receive
$1.00
per
sq.
ft.
for
the
property
taken
plus
$.25
per
sq.
ft.
for
the
remaining
parcel.
In
the
event
the
remaining
property
is
worth
$1.25
after
the
taking
(increased
value),
the
payment
to A
could
be
less
than
the
value
of
the
property
taken.
In
modernization,
an
appraiser
may
take
the
value
of
property
before
and
after
remodeling
to
determine
if
the
value
increased
more
than
modernization
costs.
-
Beneficiary
-
The
Person
who
is
entitled
to
receive
funds
of
property
under
the
terms
and
provisions
of a
will,
trust,
insurance
policy
or
security
instrument.
In
connection
with
a
mortgage
loan
the
beneficiary
is
the
lender.
-
Bill
Of
Sale
-
An
instrument
by
which
title
to
personal
property
is
transferred
or
conveyed.
-
Biweekly
-
Also
known
as
accelerated
mortgages.
Biweeklies
reduce
interest
expense
and
build
home
equity
faster
than
monthly
payments.
-
Blanket
Mortgage
-
(1)
A
mortgage
covering
more
than
one
property
of
the
mortgagor,
such
as a
mortgage
covering
all
the
lots
of a
builder
in a
subdivision.
(2)
A
mortgage
covering
all
real
property
of
the
mortgagor,
both
present
and
future.
When
used
in
this
meaning
it
is
also
called
a
"general
mortgage".
-
Bona
Fide
Purchaser
-
A
purchaser
in
good
faith.
for
valuable
consideration,
without
notice
or
knowledge
of
adverse
claims
of
others.
Sometimes
abbreviated
B.F.P.
-
Book
Depreciation
-
Depreciation
reserved
(on
the
books)
by
an
owner
for
future
replacement
or
retirement
of
an
asset.
-
Borough
-
A
part
of a
city,
having
authority
over
certain
local
matters.
The
best
known
boroughs
are
the
five
boroughs
of
New
York
City.
-
Breach
Of
Warranty
-
In
real
property,
the
failure
of
the
seller
to
pass
title
as
either
expressed
or
implied
(by
law)
in
the
conveyancing
document.
-
Breast
Height
-
The
height
at
which
the
diameter
of a
tree
is
measured.
A
height
of 4
1/2
feet
above
the
ground
level.
The
abbreviation
D.B.H.
(diameter-breast-height)
is
usually
used.
-
Broker,
Real
Estate
-
One
who
is
licensed
by
the
state
to
carry
on
the
business
of
dealing
in
real
estate.
A
broker
may
receive
a
commission
for
his
or
her
part
in
bringing
together
a
buyer
and
seller,
landlord
and
tenant,
or
parties
to
an
exchange.
-
Building
And
Loan
Association
-
An
organization
for
the
purpose
of
accumulating
a
fund
by
subscription
and
savings
of
its
members,
to
assist
them
with
loans
for
building
or
purchasing
real
estate.
-
Buydown
-
A
payment
to
the
lender
from
the
seller,
buyer,
third
party,
or
some
combination
of
these,
causing
the
lender
to
reduce
the
interest
rate
during
the
early
years
of a
loan.
The
buydown
is
usually
for
the
first
1 to
5
years
of
the
loan.
-
Buy-Sell
Offer
-
An
offer
by
one
owner
of a
business
or
real
estate
to
buy
out
the
interest
of
another
owner
of
the
same
business
or
real
estate
(a
partner
or
other
shareholder),
or
to
sell
the
offerer's
interest
at
the
same
price
or
proportionate
price
if
unequal
ownership.
Example:
A
and
B
each
own
a
112
interest
in
lot
1. A
offers
to
buy
B's
interest
for
$10,000
or
to
sell
A's
interest
to B
for
$10,000.
Theoretically
very
fair,
since
B
has
the
option
to
buy
or
sell.
However,
B's
interest
may
be
worth
$12,000,
but
B is
financially
unable
to
buy
A's
interest
(also
worth
$12,000).
BACK
TO
TOP
-
C
-
Califomia
Land
Title
Association
(CLTA)
-
A
statewide
association
of
tide
insurers
and
underwritten
title
companies.
The
association
adopts
standard
title
policy
forms.
-
Call
-
In a
metes
and
bounds
description,
the
angle
and
distance
of a
given
line
or
arc.
Each
call
is
usually
preceeded
by
the
word
then
or
thence.
Example:
N
220
E
100'
(lst.
call),
thence
N
800
E 1W
(2nd.
call).
-
Cancellation
Clause
-
A
clause
in a
lease
or
other
contract,
setting
forth
the
conditions
under
which
each
party
may
cancel
or
terminate
the
agreement.
The
conditions
may
be
as
simple
as
giving
notice
or
complex
and
require
payment
by
the
party
desiring
to
cancel.
-
Cap
-
The
maximum
which
an
adjustable
rate
mortgage
may
increase,
regardless
of
index
changes.
-
Capital
Assets
-
Assets
of a
permanent
nature
used
to
produce
income,
such
as
machinery,
buildings,
equipment,
land,
etc.
Must
be
distinguished
from
inventory.
A
machine
which
makes
pencils,
for
example,
would
be a
capital
asset
to a
pencil
manufacturer,
but
inventory
to
the
company
whose
business
is
to
sell
such
machines.
-
Capital
Gains
-
Gains
realized
from
the
sale
of
capital
assets.
Generally,
the
difference
between
cost
and
selling
price,
less
certain
deductible
expenses.
Used
mainly
for
income
tax
purposes.
-
Caravan
-
An
inspection
of
newly
listed
properties,
either
by
the
entire
sales
staff
of
an
office
or
by
sales
personnel
from
more
than
one
office
in
conjunction
with
a
multiple
listing
group.
Generally
conducted
on a
regular
basis.
-
Carrying
Charges
-
The
costs
involved
in
keeping
a
property
which
is
intended
to
produce
income
(either
by
sale
or
rent)
but
has
not
yet
done
so.
-
Caveat
Emptor
-
"Let
the
buyer
beware."
Legal
maxim
stating
that
the
buyer
takes
the
risk
regarding
quality
or
condition
of
the
item
purchased,
unless
protected
by
warranty
or
there
is
misrepresentation.
Modernly,
consumer
protection
laws
have
placed
more
responsibility
for
disclosure
on
the
seller
and
broker.
-
CC
and
Rs
(Covenants,
Conditions
and
Restrictions)
-
Limitations
placed
on
the
use
and
enjoyment
of
real
property.
These
are
found
most
often
in
condominiums
and
planned
unit
developments.
-
Certificate
Of
Title
-
In
areas
where
attorneys
examine
abstractor
chains
of
title,
a
written
opinion,
executed
by
the
examining
attorney,
stating
that
title
is
vested
as
stated
in
the
abstract.
-
Chain
of
Title
-
A
chronological
list
of
recorded
instruments
tracing
title
to
land,
from
the
original
owner
to
the
present
owner.
-
Chains
And
Links
-
Measurements.
In
real
estate
measurements
(surveying)
a
chain
is
66'
long
or
100
links,
each
link
being
7.92."
The
measurement
may
change
when
used
in
fields
other
than
surveying.
-
Classified
Property
Tax
-
Property
tax
which
varies
in
rate
depending
on
the
use
(zoning
classification)
of
the
property.
-
Clear
Title
-
Title
to
property
which
is
free
from
liens,
defects
or
other
encumbrances.
-
Closing
-
(1)
In
real
estate
sales,
the
final
procedure
in
which
documents
are
executed
and/or
recorded,
and
the
sale
(or
loan)
is
completed.
(2)
A
selling
term
meaning
the
point
at
which
the
client
or
customer
is
asked
to
agree
to
the
sale
or
purchase
and
sign
the
contract.
(3)
The
final
call
in a
metes
and
bounds
legal
description
which
"closes"
the
boundaries
of
the
property.
-
Closing
Costs
-
Expenses,
beyond
the
selling
price,
such
as
loan
fees,
title
fees,
etc.
Paid
when
documents
are
executed
and/or
recorded
and
the
sale
is
complete.
-
Closing
Statement
-
A
summary,
in
the
form
of a
balance
sheet,
showing
the
amounts
of
debits
and
credits
to
which
each
party
to a
real
estate
transaction
is
entitled
upon
closing.
-
Cloud
On
Title
-
An
invalid
encumbrance
on
real
property,
which,
if
valid,
would
affect
the
rights
of
the
owner.
For
example:
A
sells
lot
1,
tract
1.
to
B.
The
deed
is
mistakenly
drawn
to
read
lot
2 by
the
recording
of
the
erroneous
deed.
The
cloud
may
be
removed
by
quitclaim
deed,
or,
it
necessary,
by
court
action.
-
Coinsurance
-
A
sharing
of
the
risk
of
an
insurance
policy
by
more
than
one
insurer.
Usually
one
insurer
is
liable
up
to a
certain
amount,
the
other
liable
over
that
amount.
-
Commercial
Property
-
Property
which
is
zoned
"commercial"
(for
business
use).
Property
such
as
stores,
restaurants,
etc.,
falling
between
residential
and
industrial.
-
Commingling
-
To
mix
funds
held
in
trust
with
other
funds.
For
example:
A
broker
or
builder
mixes
deposits
(should
be
in a
trust
account)
with
his
funds
by
putting
the
deposits
in
his
general
account.
Although
commingling
is
in
itself
a
violation
for
which
a
broker
may
lose
his
license,
it
does
not
mean
that,
by
commingling,
the
broker
or
builder
intended
to
misappropriate
the
funds.
-
Commission
-
Compensation
due
a
real
estate
broker
for
acting
on
behalf
of
the
principal.
-
Community
Property
-
Property
acquired
during
a
marriage
by
either
a
husband
or
wife,
or
both,
which
is
not
separate
property.
-
Comparables
(Comps)
-
An
abbreviation
for
comparable
properties
used
for
comparative
purposes
in
the
appraisal
process.
-
Conditional
Sales
Contract
-
A
sale
in
which
the
title
to
property
or
goods
remains
with
the
seller
until
the
purchaser
has
fulfilled
the
terms
of
the
contract,
usually
payment
in
full.
-
Condominium
-
A
structure
of
two
or
more
units,
the
interior
space
of
which
are
individually
owned:
the
balance
of
the
property
(both
land
and
building)
is
owned
in
common
by
the
owners
of
the
individual
units.
The
size
of
each
unit
is
measured
from
the
interior
surfaces
(exclusive
of
paint
or
other
finishes)
of
the
exterior
walls,
floors,
and
ceiling.
The
balance
of
the
property
is
called
the
common
area.
-
Consideration
-
A
required
element
in
all
contracts
by
which
some-thing
of
value,
including
a
promise,
is
exchanged
for
the
act
or
promise
of
another.
-
Contingency
-
Action
conditioned
upon
a
certain
event.
Acceptance
of
the
terms
of a
contract
based
on
something
else
happening
or
certain
conditions
being
met.
-
Conveyance
-
The
transfer
of
title
or
an
interest
in
real
property
by
means
of a
written
instrument
such
as a
deed
of
trust.
BACK
TO
TOP
-
D
-
Declaration
Of
Trust
-
A
written
acknowledgement
by
one
holding
legal
title
to
property
that
the
property
is
held
in
trust
for
the
benefit
of
another.
-
Declining
Balance
Method
Of
Depreciation
-
Depreciation
by a
fixed
annual
percentage
of
the
balance
after
deducting
each
yearly
depreciation
amount.
-
Deed
-
Actually,
any
one
of
many
conveyancing
or
financing
instruments,
but
generally
a
conveyancing
instrument,
given
to
pass
fee
title
to
property
upon
sale.
-
Deed
Of
Trust
-
An
instrument
used
in
many
states
in
place
of a
mortgage.
Property
is
transferred
to a
trustee
by
the
borrower
(trustor)
in
favor
of
the
lender
(beneficiary),
and
reconveyed
upon
payment
in
full.
-
Defeasible
Title
-
Title
which
is
not
absolute
but
possibly
may
be
annulled
or
voided
at a
later
date.
For
example:
Title
conveyed
to A
with
condition
that
if A
marries
before
age
30,
title
will
go
to
B.
A's
title
may
be
good
(doesn't
marry)
or
may
be
defeated
(marries
before
30).
-
Deficiency
Judgment
-
Commonly
the
amount
for
which
the
borrower
is
personally
liable
on a
note
and
mortgage
if
the
foreclosure
sale
does
not
bring
enough
to
cover
the
debt.
Actually
the
judgment
is
for
the
total
amount
and
not
for
the
deficiency,
the
recovery
from
the
foreclosure
sale
being
deducted
from
this
amount.
-
Delivery
-
In
conveyancing,
the
placing
of
the
property
in
the
actual
or
constructive
possession
of
the
grantee.
Usually
accomplished
by
delivery
of a
deed
to
the
buyer,
or
by
recording
said
deed.
-
Demand
-
The
lender's
statement
of
the
amount
due
to
pay
of a
loan.
-
Demand
Note
-
A
note
having
no
date
for
repayment,
but
due
on
demand
of
the
lender.
-
Deposit
-
(1)
Money
given
by
the
buyer
with
an
offer
to
purchase.
Shows
good
faith.
Also
called
earnest
money.
(2)
A
natural
accumulation
of
resources
(oil,
gold,
etc.)
which
may
be
commercially
recovered
and
marketed.
-
Depreciation
-
(1)
Decrease
in
value
to
real
property
improve-ments
caused
by
deterioration
or
obsolescence.
(2)
A
loss
in
value
as
an
accounting
procedure
to
use
as a
deduction
for
income
tax
purposes.
-
Direct
Reduction
Mortgage
-
An
amortized
mortgage.
One
on
which
principal
and
interest
payments
are
paid
at
the
same
time
(usually
monthly)
with
interest
being
computed
on
the
remaining
balance.
-
Discount
Points
-
The
fee
associated
with
the
note
rate
for
your
loan,
the
more
discount
points
you
pay
the
lower
the
rate
you
can
buy,
the
fewer
you
pay,
the
higher
your
rate.
If
the
rate
is
high
enough,
the
loan
is
priced
above
par
and
these
premium
points
are
available
to
pay
closing
costs
creating
a no
or
low
fee
loan.
-
Disposition
of
Real
Estate
Statement
-
A
statement
that
the
buyer
will
occupy
the
property
being
purchased
even
though
the
buyer
owns
other
property.
The
buyer
states
that
the
other
property
will
be
sold
or
rented.
Particulars
must
be
given
as
to
any
loan
on
the
property
and
the
equity
or
rent
to
payment
amounts.
-
Documentary
Transfer
Tax
-
The
tax,
based
on
sales
price,
less
loans
which
are
being
assumed,
which
is
charged
by
the
city
and/or
county
on
the
transfer
of
real
property.
-
Double
Declining
Balance
Method
Of
Depreciation
-
A
use
of
the
declining
balance
method,
but
with
double
the
depreciation
allowable
by
straight
line.
An
accelerated
method.
-
Double
Escrow
-
Two
concurrent
escrows
on
the
same
property,
having
the
same
party
as
buyer
and
seller
of
the
property.
Example:
Escrow
1 -A
buys
from
B.
Escrow
2 -A
sells
the
same
property
to
C. A
is
using
C's
money
to
buy
B's
property.
The
process
is
illegal
in
many
states
unless
full
disclosure
is
made.
-
Dual
Agency
-
The
representation
of
opposing
principals
(buyer
and
seller)
at
the
same
time.
In
brokerage
many
states
get
around
this
by
saying
that
the
agent
aids
the
buyer
but
is
the
agent
of
the
seller
only.
A
problem
arises
if
both
buyer
and
seller
pay
the
broker,
Then
full
disclosure
must
be
made.
An
escrow
agent
is
the
agent
of
buyer
and
seller
and
usually
paid
by
both.
This
is
why
an
escrow
agent
must
be
neutral.
-
Due
on-Sale-Clause
-
A
clause
in a
mortgage
loan
which
gives
the
lender
the
right
to
demand
payment
in
full
when
the
property
changes
ownership.
Not
applicable
to
FHA
or
VA
loans.
BACK
TO
TOP
-
E
-
Easement
-
A
right
created
by
grant,
reservation,
agreement,
prescription,
or
necessary
implication,
which
one
has
in
the
land
of
another.
It
is
either
for
the
benefit
of
land
(appurtenant),
such
as
right
to
cross
A to
get
to
B.
or
"in
gross,"
such
as a
public
utility
easement.
-
Easement
of
Necessity
-
An
easement
granted
by a
court
when
itis
determined
that
said
easement
is
absolutely
necessary
for
the
use
and
enjoyment
of
the
land.
Commonly
given
to
landlocked
parcels.
-
Egress
-
A
term
concerning
a
right
to
come
and
go
across
the
land
(public
or
private)
of
another.
Usually
part
of
the
term
ingress
and
egress.
-
Eleemosynary
Corporation
-
A
corporation
created
for
charitable
purposes.
There
are
tax
advantages
accorded
to
such
corporations.
The
corporation
may
operate
the
same
as a
profit
making
corporation.
Commonly
called
a
nonprofit
corporation.
-
Encumbrance,
Incumbrance
-
A
claim,
lien,
charge,
or
liability
attached
to
and
binding
real
property.
Any
right
to,
or
interest
in,
land
which
may
exist
in
one
other
than
the
owner,
but
which
will
not
prevent
the
transfer
of
fee
title.
-
Equitable
Conversion
-
A
legal
fiction
applied
to a
land
contract
which
treats
the
vendee's
(buyer's)
interest
as a
real
property
interest
even
though
the
seller
holds
legal
title,
and
the
seller's
interest
as a
security
interest
(personal
property).
This
enables
the
buyer
to
act
as
the
"owner"
of
the
property
without
having
"legal"
title.
-
Equitable
Mortgage
-
(1)
A
lien
against
real
property
(mortgage)which
is
enforceable
in a
court
of
equity,
but
does
not
legally
constitute
a
mortgage.
(2)
A
deed
given
as
security
for
a
debt
will
be
held
to
be a
mortgage
rather
than
a
transfer
of
title.
Also
called
a
constructive
mortgage.
-
Equity
-
The
value
of a
person's
interest
in
real
property
after
all
liens
and
charges
have
been
deducted.
-
Equity
Line
Of
Credit
-
A
combination
of a
line
of
credit
and
equity
loan.
A
maximum
loan
amount
is
established
based
on
credit
and
equity.
A
mortgage
(deed
of
trust)
is
recorded
against
the
potential
borrower's
property
for
said
maximum
loan
amount.
The
potential
borrower
has
the
right
to
borrow,
as
needed,
up
to
the
amount
of
the
mortgage.
-
Escalation
Clause
-
A
clause
in a
lease
providing
for
an
increased
rental
at a
future
time.
May
be
accomplished
by
several
types
of
clauses,
such
as
(1)
Fixed
increase
- A
clause
which
calls
for
a
definite,
periodic
rental
increase.
(2)
Cost
of
living
- A
clause
which
ties
the
rent
to a
government
cost
of
living
index,
with
periodic
adjustments
as
the
index
changes.
(3)
Direct
expense
-
The
rent
is
adjusted
according
to
changes
in
the
expenses
of
the
property
paid
by
the
lessor,
such
as
tax
increases.
increased
maintenance
costs,
etc.
-
Escrow
-
Delivery
of a
deed
by a
grantor
to a
third
party
for
delivery
to
the
grantee
upon
the
happening
of a
contingent
event,
Modernly,
in
some
states,
all
instruments
necessary
to
the
sale
(including
funds)
are
delivered
to a
third
(neutral)
party,
with
instructions
as
to
their
use.
-
Excess
Condemnation
-
Taking
by
right
of
eminent
domain,
more
property
than
actually
necessary
for
the
intended
purpose.
This
happens
frequently,
the
excess
property
being
sold
at
auction
after
completion
of
the
project.
-
Exception
-
A
provision
in a
title
insurance
binder
or
policy
excludes
liability
for
a
specified
title
defect
or
an
outstanding
encumbrance.
-
Exclusive
Listing
-
A
written
contract
between
a
property
ownerand
a
real
estate
broker,
whereby
the
owner
promises
to
pay
a
fee
or
commission
to
the
broker
it
certain
real
property
of
the
owner
is
sold
during
a
stated
period,
regardless
of
whether
the
broker
is
or
is
not
the
cause
of
the
sale.
The
broker
promises
to
put
forth
his
or
her
best
efforts
to
sell
the
property,
and
may
make
specific
promises
as
to
advertising
or
other
promotion
in
certain
instances.
-
Exemplary
Damages
-
Damages
to
punish
(make
an
example
of)
the
offender.
This
is
done
when
the
wrong
is
deliberate
or
grossly
negligent
and
compensatory
damages
do
not
appear
to
be
sufficient.
-
Expert
Testimony
-
Testimony
by
one
acknowledged
to
have
special
training
and
knowledge
in a
particular
subject.
Only
testimony
on
the
subject
in
which
the
witness
is
"expert"
is
considered
expert
testimony.
-
Exposure
-
(1)
The
degree
to
which
a
property
for
sale,
lease,
etc.,
is
made
noticeable
(exposed)
to
potential
buyers,
tenants,
etc.,
through
advertising,
multiple
listing
groups,
etc.
(2)
The
direction
in
which
a
property
faces.
For
example:
Does
a
store
depending
on
walk-in
trade
face
the
sun
in
the
morning
when
people
walk
in
the
sun
to
get
warm
(eastern
exposure),
or
face
the
sun
in
the
afternoon
when
people
walk
in
the
shade
to
keep
cool
(western
exposure).
BACK
TO
TOP
-
F
-
Fair
Market
Value
-
An
appraisal
term
for
the
price
which
a
property
would
bring
in a
competitive
market
given
a
willing
seller
and
willing
buyer,
each
of
whom
has
a
reasonable
knowledge
of
all
pertinent
facts,
with
neither
being
under
any
compulsion
to
buy
or
sell.
-
Fee
Simple
-
An
estate
under
which
the
owner
owns
a
contract
interest
in
the
property
and
is
entitled
to
the
unrestricted
enjoyment
of
the
property,
including
the
right
to
dispose
property.
-
Federal
Deposit
Insurance
Corporation
(f.d.i.c)
-
The
federal
corporation
which
insures
against
loss
of
deposits
in
banks,
up
to a
maximum
amount.
-
Federal
Home
Loan
Banks
-
Banks
created
under
the
Federal
Home
Loan
Bank
Act
of
1932,
in
order
to
keep
a
permanent
supply
of
money
available
for
home
financing.
The
banks
are
controlled
by
the
Federal
Home
Loan
Bank
Board.
Savings
and
loans,
insurance
companies,
and
other
similar
companies
making
long
term
mortgage
loans
may
become
members
of
the
Federal
Home
Loan
Bank
System,
and
thus
may
borrow
from
one
of
the
regional
banks
throughout
the
country.
-
Federal
National
Mortgage
Association
-
(Fannie
Mae):
A
tax
paying
corporation
created
by
Congress
to
support
the
secondary
mortgage
market.
It
purchases
and
sells
residential
mortgages
insured
by
FHA
or
guaranteed
by
VA
as
conventional
home
mortgages.
-
Fee
-
(1)
Modernly,
and
not
in
strict
legal
terms,
synonymous
with
fee
simple
or
"ownership."
(2)
A
charge
made
by a
landlord
to a
tenant,
which
is
not
refundable.
For
example:
A
cleaning
deposit
would
be
refunded
if
the
tenant
left
the
rented
property
reasonably
clean.
A
cleaning
fee
would
be a
charge
by
the
landlord
for
cleaning
the
rented
property
and
would
not
be
refunded
regardless
of
the
condition
of
the
property.
-
FHA
(Federal
Housing
Admininistration)
-
A
federal
agency
which
insures
first
mortgages,
enabling
lenders
to
loan
a
very
high
percentage
of
the
sale
price.
-
FHLMC
(Freddie
Mac)
-
Federal
Home
Loan
Mortgage
Corporation
- A
federal
agency
purchasing
first
mortgages,
both
conventional
and
federally
insured,
from
members
of
the
Federal
Reserve
System,
and
the
Federal
Home
Loan
Bank
System.
-
Finance
Charge
-
A
total
of
all
costs
imposed
directly
or
indirectly
by
the
creditor
and
payable
either
directly
or
indirectly
by
the
customer,
as
defined
by
the
federal
Truth-In-Lending
laws.
-
Financial
Statement
-
An
accounting
statement
showing
assets
and
liabilities
of a
person
or
company.
Used
generally
for
large
loans
or
other
instances
when
the
credit
report
(history
of
payment
of
debts)
in
itself
is
not
sufficient.
-
Finder's
Fee
-
A
fee
paid
to
someone
who
finds
a
buyer
or
property
for
a
broker,
buyer,
etc.
The
term
is
sometimes
used
to
attempt
to
pay
a
commission
to
an
unlicensed
person.
Generally,
a
finder's
fee
is
considered
a
commission
and
may
only
be
paid
to
one
who
holds
a
real
estate
license.
-
First
Mortgage
-
A
mortgage
on
property
that
is
superior
in
position
to
any
other
mortgage.
-
First
Refusal
Right
-
A
right,
usually
given
by
an
owner
to a
lessee,
which
gives
the
lessee
a
first
chance
to
buy
the
property
if
the
owner
decides
to
sell.
The
owner
must
have
a
legitimate
offer
which
the
lessee
can
match
or
refuse.
It
the
lessee
refuses,
the
property
can
then
be
sold
to
the
offeror.
-
First
User
-
A
tax
term
signifying
the
one
who
builds
or
buys
property
and
is
the
first
one
to
put
the
buildings
to
use.
Certain
tax
(depreciation)
advantages
are
given
to a
first
user.
The
term
concerns
only
depreciable
property
(improvements)
and
prior
use
of
the
land
only
(farming)
would
not
be
considered.
-
Fixed
Rate
Loan
-
A
loan
on
which
the
same
rate
of
interest
is
charged
for
the
life
of
the
loan.
-
Fixture
-
Personal
property
which
is
permanently
attached
to
the
property,
and,
as
such,
becomes
part
of
the
real
property.
-
FNMA
Buydown
-
FNMA
(Federal
National
Mortgage
Association)
accepts
loans
containing
a
buy
down
provision
on
single
family
residential,
owner
occupied
properties.
A
prepayment
(points)
will
buy
a
lower
rate
of
interest
during
the
first
one
to
five
years
of
the
loan.
Restrictions
apply
as
to
the
amount
of
the
buydown
and
rise
in
payment
amount
as
the
loan
progresses.
-
Forfiture
-
The
taking
of
an
individual's
properly
by a
government,
because
the
individual
has
committed
a
crime.
In
the
United
States,
private
property
cannot
be
taken,
except
by
eminent
domain
upon
payment
of
just
compensation,
or
for
nonpayment
of
taxes.
-
Franchise
-
(1)
A
statutory
right
which
could
not
be
exercised
in
the
absence
of
the
statute,
such
as
the
statutes
enabling
persons
to
form
a
corporation.
Since
a
corporation
is
created
by
the
statute,
it
could
not
be
formed
except
by
the
grant
of
the
legislature.
(2)
A
combination
of
individual
ownership
and
central
control.
One
may
own
a
fast
food
restaurant,
hotel,
hardware
store,
etc.,
yet
use
the
name
of a
national
company.
Each
individual
owner
pays
for
the
name
use,
advertising,
and
may
be
required
to
make
certain
purchases
(napkins,
buns,
etc.)
from
the
national
company.
The
real
estate
brokerage
business
was
slow
to
use
the
franchise
method,
but
now
has
many
companies
operating
in
this
manner.
-
Front
Foot
Cost
-
A
determination
of
the
value
of
real
property
based
on a
value
per
foot
as
measured
along
the
frontage
of a
parcel.
Usually
used
with
commercial
property
or
waterfront.
-
Full
Disclosure
-
In
real
estate,
revealing
all
the
known
facts
which
may
affect
the
decision
of a
buyer
or
tenant.
A
broker
must
disclose
known
defects
in
the
property
for
sale
or
lease.
A
builder
must
give
to a
potential
buyer
the
facts
of
his
new
development
(are
there
adequate
school
facilities?"
sewer
facilities?
(an
airport
nearby?,
etc.).
A
broker
cannot
charge
a
commission
to
buyer
and
seller
unless
both
know
(disclosure)
and
agree.
-
Future
Acquired
Property
-
Property
acquired
after
a
loan
or
sale.
For
example:
A
loan
agreement
may
state
that
the
loan
is a
lien
on
all
property
presently
owned
or
which
the
borrower
may
acquire
in
the
future.
-
Future
Interest
-
A
present
interest,
but
only
a
future
right
to
possession
and
enjoyment
of
the
land,
such
as a
remainder
interest,
reversionary
interest,
etc.
BACK
TO
TOP
-
G
-
Garnishment
-
A
legal
proceeding
under
which
a
person's
money
in
control
of
another
(such
as
salary)
is
taken
for
payment
of a
debt.
The
amount
which
may
be
taken
is
set
by
statute
(usually
as a
percentage),
and,
in
most
states,
a
judgment
is
necessary
before
garnishment.
-
General
Lien
-
(1)
A
lien
such
as a
tax
lien
or
judgment
lien
which
attaches
to
all
property
of
the
debtor
rather
than
the
lien
of,
for
example,
a
trust
deed,
which
attaches
only
to
specific
property.
(2)
The
right
of a
creditor
to
hold
personal
property
of a
debtor
for
payment
of a
debt
not
associated
with
the
property
being
held.
Must
be
done
under
an
agreement
since
against
general
precepts
of
law.
-
General
Membership
-
A
partnership
made
up
of
general
partners,
without
special
(limited)
partners.
-
Georgian
Architecture
-
A
colonial
style
of
architecture
dating
back
to
the
eighteenth
century.
Characterized
by
first
floor
windows
extending
to
the
ground,
its
exterior
placements
(windows,
doors.
etc.)
are
simple
and
well
balanced
yet
formal
in
appearance.
-
Gerrymander
-
To
divide
an
area
into
districts,
against
the
obvious
natural
divisions,
in
order
to
accomplish
an
unlawful
purpose.
For
example:
To
divide
a
school
district
to
keep
out
certain
people
for
reasons
of
race
or
religion,
to
divide
a
political
voting
district
so
as
to
give
power
to a
political
party.
-
Gnma
(government
National
Mortgage
Association)
Options
-
A
method
of
purchasing
GNMA
securities
through
"puts"
and
calls."
A
GNMA
Call
Option
is
the
right
to
buy
GNMA
securities
at a
specific
yield
for
a
specified
time,
A
Put
Option
is
the
right
to
sell
GNMA
securities
at a
specific
yield
for
a
specified
time.
The
buyer
pays
for
the
option
and
may
exercise
it,
not
exercise
it,
or
sell
it.
-
Graduated
Payment
Mortgage
-
A
mortgage
or
deed
or
trust
calling
for
increasingly
higher
payments
over
the
term
of
the
loan.
This
allows
the
buyer
low
beginning
payments.
The
payments
then
increase
as
(theoretically)
the
buyer's
earnings
increase.
-
Grantee
-
One
to
whom
a
grant
is
made.
The
purchaser
of
real
property.
-
Grantor
-
One
who
has
made
a
grant.
The
seller
of
real
property.
-
Grantor
Grantee
Index
-
The
record
of
the
passing
of
title
to
all
the
properties
in a
county
as
kept
by
the
county
recorder's
office.
Property
is
checked
by
tracing
the
names
of
the
sellers
and
buyers
(chain
of
title).
Title
companies
usually
have
more
efficient
methods
by
keeping
records
according
to
property
description,
rather
than
peoples
names.
-
Gross
Income
-
The
scheduled
(total)
income,
either
actual
or
estimated,
derived
from
a
business
or
property.
-
Gross
Income
Multiplier
-
A
figure
which,
when
multiplied
by
the
annual
gross
income,
will
theoretically
determine
the
market
value.
A
general
rule
of
thumb
which
varies
with
specific
properties
and
areas.
-
Gross
Lease
-
A
lease
which
obligates
the
lessor
to
pay
all
or
part
of
the
expenses
of
the
leased
property,
such
as
taxes,
insurance,
maintenance.
utilities,
etc.
-
Grout
-
(1)
Thin
mortar
used
in
masonry
work
to
fill
joints
between
bricks,
blocks,
tiles.
etc.
(2)
A
variety
of
plaster
used
to
finish
ceilings
of
superior
quality.
-
Growing
Equity
Mortgage
(g.e.m.)
-
A
fixed
rate,
graduated
payment
loan
allowing
low
beginning
payments
and
a
shorter
term
because
of
higher
payments
as
the
loan
progress.
Based
on
the
theory
of
increasing
income
by
the
buyer
and,
therefore.
ability
to
make
higher
future
payments.
When
state
law
applies,
usury
laws
in
some
states
may
not
presently
allow
such
loans
when
less
than
interest
only
payments
create
interest
on
interest.
-
Guaranty
-
Agreement
to
pay
the
debt
or
perform
the
obligation
of
another
in
the
event
the
debt
is
not
paid
or
obligation
not
performed.
Differs
from
a
surety
agreement
in
that
there
must
be a
failure
to
pay
or
perform
before
the
guaranty
can
be
in
effect.
BACK
TO
TOP
-
H
-
Hard
Money
Mortgage
-
A
mortgage
given
in
return
for
cash,
rather
than
to
secure
a
portion
of
the
purchase
price,
as
with
a
purchase
money
mortgage.
-
Heir
-
One
who
by
law,
rather
than
by
will,
receives
the
estate
of a
deceased
person.
-
Hereditaments
-
(1)
Anything
which
could
be
considered
real
property.
(2)
Anything
which
may
be
inherited.
-
Hidden
Defect
-
An
encumbrance
on a
title
that
is
not
apparent
in
the
public
records;
for
example,
unknown
heirs,
secret
marriages
and
forged
instruments.
-
Holdback
-
Portion
of a
loan
held
back
by
the
lender
until
a
contingency
is
met.
In
the
sale
of a
home
insured
by
V.A.
or
F.H.A.,
funds
may
be
held
back
to
make
necessary
improvements
to
bring
the
property
to
V.A.
or
F.H.A.
standards.
The
money
to
make
"these"
repairs
may
not
be
available
until
closing.
One
and
one
halt
to
double
the
estimated
amount
necessary
is
held
back.
If
repairs
are
not
made
in
the
time
allowed.
these
funds
are
used
to
make
the
repairs.
In
construction
financing,
funds
are
held
back
until,
for
example,
a
certain
percentage
of a
subdivision
has
been
sold,
or a
certain
portion
of a
building
has
been
constructed.
-
Holder
In
Due
Course
-
A
holder
of a
check
or
note
who
takes,
for
value
and
in
good
faith,
the
note
before
it
is
overdue
or
the
check
without
knowledge
that
it
has
bounced,
if,
in
fact
it
has.
-
Holding
Period
-
The
time
period
used
by
the
IRS
to
determine
along
or
short
term
capital
gain.
The
period
during
which
the
taxpayer
owns
the
capital
asset.
-
Homestead
-
The
dwelling
(house
and
contiguous
land)
of
the
head
of a
family.
Some
states
grant
statutory
exemptions,
protecting
homestead
property
(usually
to a
set
maximum
amount)
against
the
rights
of
creditors.
Property
tax
exemptions
(for
all
or
part
of
the
tax)
are
also
available
in
some
states.
Statutory
requirements
to
establish
a
homestead
may
include
a
formal
declaration
to
be
recorded.
-
Home
Warranty
Insurance
-
Private
insurance
insuring
a
buyer
against
defects
(usually
in
plumbing,
heating,
and
electrical)
in
the
home
he
has
purchased.
The
period
of
insurance
varies
and
both
new
and
used
homes
may
be
insured.
-
Housing
Starts
-
Number
of
houses
on
which
construction
has
begun.
The
figures
are
used
to
determine
the
availability
of
housing,
need
for
real
estate
loans,
need
for
labor
and
materials,
etc.
-
Hypothecate
-
To
mortgage
or
pledge
without
delivery
of
the
security
to
the
lender.
BACK
TO
TOP
-
I
-
Impound
Account
-
Account
held
by a
lender
for
payment
of
taxes,
insurance,
or
other
periodic
debts
against
real
property.
The
mortgagor
or
trustor
pays
a
portion
of,
for
example,
the
yearly
taxes,
with
each
monthly
payment.
The
lender
pays
the
tax
bill
from
the
accumulated
funds.
-
Improvements
-
Generally,
buildings,
but
may
include
any
permanent
structure
or
other
development.
such
as a
street,
utilities.
etc.
-
Inchoate
Instrument
-
An
unrecorded
instrument
(such
as a
deed)
which
is
valid
only
between
the
parties
and
those
having
actual
notice:
but
not
against
"the
world"
as
it
would
be
after
recording.
-
Income
Averaging
-
A
method
of
figuring
income
tax
by
paying
tax
on
the
average
income
per
year
for
the
past
five
years.
For
example:
A, a
real
estate
salesperson,
earns
$10,000
taxable
income
for
4
years.
In
the
fifth
year,
A
sells
a
shopping
center
and
earns
$100,000
taxable
income.
A-could
take
the
total
income
for
5
years
($140,000),
divide
by 5
($28,000),
and
pay
tax
on
$28,000
for
the
past
5
years,
less
what
A
has
already
paid.
-
Increasing
And
Diminishing
Returns
-
An
economic
theory
that
an
increase
in
capital
or
manpower
will
not
increase
production
proportionately
(five
workers
may
do
less
than
five
times
the
work
of
one
worker;
and
two
workers
may
do
more
than
twice
the
work
of
one
worker).
When
the
increase
in
production
is
proportionately
greater
than
the
addition,
there
is
an
increasing
return,
when
production
is
proportionately
less
than
the
addition.
the
return
diminishes.
-
Industrial
Tax
Exemption
-
An
exemption
from
local
property
taxes
granted
to
encourage
industries
to
come
into
an
area.
Has
been
used
successfully
in
the
South.
Usually
granted
for
a
definite
period.
-
Inheritance
Tax
-
A
tax
on
the
transfer
of
property
from
a
deceased
person:
based
on
the
right
to
acquire
the
property
rather
than
the
property
itself.
-
Installment
Contract
-
A
method
of
purchasing
by
installment
(usually
monthly)
payments.
When
referring
to
real
property,
it
is
usually
called
a
land
contract.
-
Institutional
Lenders
-
Banks,
savings
and
loan
associations
and
other
businesses
which
make
loans
to
the
public
in
the
ordinary
course
of
business,
rather
than
individuals,
or
companies
which
may
make
loans
to
employees.
-
Insured
Mortgage
-
A
mortgage
insured
against
loss
to
the
mortgagee
in
the
event
of
default
and
a
failure
of
the
mortgaged
property
to
satisfy
the
balance
owing
plus
costs
of
foreclosure.
May
be
insured
by
F.H.A.,
V.A.,
or
by
private
mortgage
insurance
companies.
-
Interest
Cap
-
The
maximum
interest
rate
increase
of
an
Adjustable
Mortgage
Loan.
For
example:
a
120%
loan
with
a 5%
interest
rate
cap
would
have
maximum
interest
for
the
life
of
the
loan
which
would
not
exceed
17%.
-
Interpleader
-
A
court
action
which
may
be
filed
in
an
existing
case
to
be
the
initial
action.
One
holding
funds
which
are
in
dispute,
but
not
having
an
interest
in
the
funds,
would
file
an
inter-
pleader.
For
example:
An
escrow
agent
is
holding
a
deposit
of a
buyer
which
funds
both
buyer
and
seller
claim
to
be
entitled.
Escrow
is
willing
to
give
the
funds
to
either
buyer
or
seller
but
does
not
want
to
be
liable
for
giving
the
funds
to
the
wrong
party.
The
interpleader
filed
by
the
escrow
agent
asks
the
court
to
determine
to
whom
the
funds
should
be
awarded.
-
Interstate
Land
Sales
-
Sales
of
land
to a
buyer
in
another
state.
Because
the
buyer
is
usually
totally
dependent
on
the
seller
for
information
regarding
the
property,
federal
disclosure
laws
have
been
passed
to
aid
the
buyer.
The
buyer
also
has
a
period
(now
3
days)
after
singing
a
purchase
agreement,
in
which
to
rescind.
The
laws
were
passed
because
of
the
large
promotional
land
sales
of
the
50's
and
early
60's,
some
of
which
sold
worthless
desert
and
swamp
land.
-
Involuntary
Conversion
-
Conversion
of
real
property
to
personal
property
(money)
without
the
voluntary
act
of
the
owner.
This
occurs
when
property
is
taken
by
eminent
domain
(condemnation).
The
owner
is
allowed
to
convert
back
to
real
property
(buy
another
property)
without
paying
tax
on
the
gain
from
the
condemnation.
This
must
be
done
within
a
set
time
(3
years)
and
the
prices
of
the
old
and
new
property
are
considered
to
form
a
new
tax
base.
-
IRA
(individual
Retirement
Account)
-
Savings
programs
available
to
individuals.
The
plans
allow
for
a
certain
amount
to
be
deposited
each
year.
This
money
is
not
subject
to
income
tax
for
that
year
or
following
years
as
long
as
it
is
not
withdrawn.
The
money
is
taxed
as
withdrawn
upon
retirement,
usually
when
the
depositor
is
in a
lower
tax
bracket.
During
the
life
of
the
account,
the
money
may
be
put
into
various
interest
bearing
investments.
Securities
dealers
as
well
as
banking
institutions
now
offer
IRA'S.
BACK
TO
TOP
-
J
-
Jetty
-
(1)
A
pier
or
other
structure
(usually
of
stones),
built
out
into
a
body
of
water
to
hinder
the
currents
and
so
protect
a
harbor.
(2)
A
part
of a
building
which
projects
out
beyond
the
exterior
walls,
such
as
an
overhanging
second
story,
a
balcony,
etc.
-
Joint
Appraisal
-
An
appraisal
by
more
than
one
appraiser,
but
one
which
states
common
conclusions
of
all.
-
Joint
Tenancy
-
An
undivided
interest
in
property,
taken
by
two
or
more
joint
tenants.
The
interests
must
be
equal,
accruing
under
the
same
conveyance,
and
beginning
at
the
same
time.
Upon
the
death
of a
joint
tenant,
the
interest
passes
to
the
surviving
joint
tenants,
rather
than
to
the
heirs
of
the
deceased.
-
Judgment
(judgement)
-
The
decision
of a
court
of
law.
Money
judgments,
when
recorded,
become
a
lien
on
real
property
of
the
defendant.
-
Judgment
Lien
-
A
lien
against
the
property
of a
judgment
debtor.
An
involuntary
lien.
-
Judgment
Proof
-
One
against
whom
a
judgment
creditor
cannot
collect
(no
assets).
If
one
can
show
he
was
defrauded
by a
"judgment
proof"
real
estate
licensee,
he
may
recover
from
the
state
fund
in
states
having
such
a
fund,
-
Jumbo
Va
Loan
-
A
loan
for
an
amount
greater
than
the
allowable100%
financed
amount.
It
is
determined
by
subtracting
the
maximum
allowable
100%
financed
amount
from
the
purchase
price
and
financing
75%
of
the
difference.
Example:
maximum
allowable
VA
Loan-$110,000.
Sale
price-$130.000.
Difference
$20,000:
75%
of
the
difference
is
$15,000.
Total
jumbo
loan-$110,000
plus
$15.000
=
$125,000.
Required
down
payment-$5,000.
-
Just
Compensation
-
In
condemnation
the
amount
paid
to
the
property
owner.
The
theory
is
that
in
order
to
be
"just,"
the
property
owner
should
be
no
richer
or
poorer
than
before
the
taking.
BACK
TO
TOP
-
K
-
Keene's
Cement
-
An
unusually
tough
and
durable
gypsum
plaster
to
which
alum
has
been
added.
Used
primarily
for
walls
of
commercial
buildings.
-
Keogh
Plan
-
A
retirement
plan
whereby
a
self-employed
person
may
set
aside
a
certain
portion
of
income
(tax
deferred)
into
a
retirement
account.
The
money
is
taxable
upon
withdrawal
at
retirement
when
the
person's
tax
bracket
is
often
lower.
-
Keyman
Insurance
-
Insurance
through
loss
(through
death
or
disability)
of a
"key"
(important)
person
in a
company.
The
liability
is
the
estimated
cost
of
the
loss
(in
business
lost,
and
replacement
of
the
individual).
Some
lenders
require
this
insurance
before
lending
to
small
companies
which
rely
on
one
or a
few
"key"
people.
-
Knock
Down
-
Any
parts
of a
building
which
can
be
easily
assembled,
installed,
or
removed,
such
as
certain
types
of
window
frames,
partitions,
etc.
-
Knot
-
(1)The
hard,
irregular
shaped
defects
in
boards,
caused
by
cutting
at
the
point
where
the
branch
of
the
tree
meets
the
trunk.
(2)
A
measure
of
speed,
equal
to
one
nautical
mile
(approximately
6,076
ft.)
per
hour.
BACK
TO
TOP
-
L
-
Laches
-
An
unreasonable
delay
by a
party
making
a
claim
or
bringing
an
action,
so
that
the
rights
of
said
party
are
waived.
Laches
are
not
controlled
by a
statute
of
limitations.
-
Landowner's
Royalty
-
In
oil
and
gas
leases,
the
portion
of
the
value
of
each
barrel
of
oil
which
goes
to
the
property
owner.
-
Land
Residual
Technique
-
An
appraisal
technique
by
which
land
value
is
determined
by
first
determining
the
net
return
attributable
to
the
building
only,
and
deducting
it
from
the
total
return
to
the
property
(may
be
estimated),
the
residual
amount
is
capitalized
to
find
the
land
value.
The
building
value
may
be
determined
by
construction
costs
(new
building),
depreciated
construction
costs
(it
only
a
few
years
old),
or
estimated
present
construction
costs
(if
an
older
building).
-
Late
Charge
-
A
penalty
for
failure
to
pay
an
installment
payment
on
time.
Usually
not
allowed
as
interest
for
tax
deductions.
May
or
may
not
be
included
as
usury.
If
not,
the
amount
of
late
charge
is
either
set
by
statute
or
must
be
"reasonable."
-
Lateral
Support
-
The
right
of a
landowner
to
the
natural
support
of
his
land
by
adjoining
land.
The
adjoining
owner
has
the
duty
not
to
change
his
land
(such
as
lowering
it)
so
as
to
cause
this
support
to
be
weakened
or
removed.
-
Lease
With
Option
To
Purchase
-
A
lease
under
which
the
lessee
has
the
right
to
purchase
the
property.
The
price
and
terms
of
the
purchase
must
be
set
forth
for
the
option
to
be
valid.
The
option
may
run
for
the
length
of
the
lease
or
only
for
a
portion
of
the
lease
period.
Legal
Description:
A
description
by
which
property
can
be
definitely
located
by
reference
to
surveys
or
recorded
maps.
Sometimes
referred
to
simply
as
the
legal.
-
Legal
Owner
-
The
term
has
come
to
be
used
as a
technical
difference
from
the
equitable
owner,
and
not
as
opposed
to
an
illegal
owner.
The
legal
owner
has
title
to
the
property,
although
the
title
may
actually
carry
no
rights
to
the
property
other
than
a
lien.
-
Lessee's
Interest
-
In
appraising
the
value
of a
lessees
interest
to
determine
the
value
of a
potential
sublease
of
assignment
(sale)
of
the
lease,
the
value
is
the
market
value
of
the
property,
less
the
interest
of
the
lessor.
The
lessor's
interest
would
be
largely
determined
by
the
ratio
of
the
return
on
the
lease
to
the
market
value
without
the
lease.
Lien:
A
recorded
document
which
claims
an
interest
in
real
property
as
security
for
a
debt
owed.
Such
liability
may
be
created
by
contract,
such
as a
deed
of
trust,
or
by a
court
judgment.
-
Lien
Waiver
(waiver
Of
Liens)
-
For
our
purposes,
a
waiver
of
mechanic's
lien
rights,
signed
by
subcontractors
so
that
the
owner
or
general
contractor
can
receive
a
draw
on a
construction
loan.
-
Liquidated
Damages
-
A
definite
amount
of
damages,
set
forth
in a
contract,
to
be
paid
by
the
party
breaching
the
contract.
A
predetermined
estimate
of
actual
damages
from
a
breach.
-
Lis
Pendens
-
Legal
notice
that
a
lawsuit
is
pending.
Also
called
a
notice
of
action.
-
Loan
Constant
-
The
yearly
percentage
of
interest
which
remains
the
same
over
the
life
of
an
amortized
loan,
based
on
the
monthly
payment
in
relation
to
the
principal
originally
loaned.
For
example:
A
$1000
loan
at
9%
interest
for
20
years
can
be
amortized
at
$9.00
per
month.
The
constant
interest
rate
is
figured
by
finding
one
year's
payments
($9.00
x 12
months
=
$108,00),
and
expressing
this
amount
as a
percentage
of
the
principal
originally
borrowed
(10.8%
of
$1000).
-
Loan
Policy
-
A
title
insurance
policy
insuring
a
mortgagee,
or
beneficiary
under
a
deed
of
trust,
against
loss
caused
by
invalid
title
in
the
borrower,
or
loss
caused
by
invalid
title
in
the
borrower,
or
loss
of
priority
of
the
mortgage
or
deed
of
trust.
-
Loan
Ratio
-
The
ratio,
expressed
as a
percentage,
of
the
amount
of a
loan
to
the
value
or
selling
price
of
real
property.
Usually,
the
higher
the
percentage,
the
greater
the
interest
charged.
Maximum
percentages
for
banks,
savings
and
loans,
or
government
insured
loans,
is
set
by
statute.
-
Loan
toValue
Ratio
-
The
ratio
of
the
mortgage
loan's
principal
to
the
property's
appraised
value
or
its
sales
price,
whichever
is
lower.
-
Long
Term
Capital
Gain
-
Gain
on
the
sale
of a
capital
asset
which
has
been
held
for
a
specified
time
or
longer.
Long
term
capital
gain
is
taxed
at a
special
rate
and
not
as
ordinary
income.
BACK
TO
TOP
-
M
-
Made
Land
-
Artificially
formed
land,
either
by
filling
or
dredging.
-
Marketable
Title
-
Title
which
can
be
readily
marketed
(sold)
to a
reasonably
prudent
purchaser
aware
of
the
facts
and
their
legal
meaning
concerning
liens
and
encumbrances.
-
Market
Value
-
The
highest
price
a
willing
buyer
would
pay
and
a
willing
seller
accept,
both
being
fully
informed,
and
the
property
exposed
for
a
reasonable
period
of
time.
The
market
value
may
be
different
from
the
price
a
property
can
actually
be
sold
for
at a
given
time
(market
price),
-
Market
Value
Approach
-
Appraising
the
value
of a
property
by
comparing
the
price
of
similar
properties
(comparables)
recently
sold.
The
degree
of
simiality
of
the
properties
and
circumstances
of
the
sale
are
the
important
characteristics
to
consider,
-
Maturity
-
(1)
Termination
period
of a
note.
For
example:
A 30
year
mortgage
has
maturity
of
30
years.
(2)
In
sales
law,
the
date
a
note
becomes
due.
-
Mechanic's
Lien
-
A
lien
created
by
statute
for
the
purpose
ofsecuring
priority
of
payment
for
the
price
or
value
of
work
performed
and
materials
furnished
in
construction
or
repair
of
improvements
to
land,
and
which
attaches
to
the
land
as
well
as
the
improvements.
-
Merger
Of
Title
-
A
lesser
interest
in
real
property
being
merged
(absorbed)
into
a
greater
interest.
For
example:
A
lessee
purchases
the
property
being
leased.
The
interest
as a
lessee
is
merged
into
the
interest
as
an
owner,
thus
ending
the
leasehold
interest.
-
Metes
and
Bounds
-
A
form
of
land
description
in
which
boundaries
are
described
by
courses,
directions,
distances
and
monuments.
-
Mile
-
A
linear
measurement
equal
to
5280
feet
on
land
and
6076
feet
across
water
(nautical
mile).
-
Money
Market
Mutual
-
Funds
which
invest
in
the
"Money
Market,"
a
variety
of
interest
bearing
securities
such
as
treasury
bills
and
bank
certificates
of
deposit.
None
is
invested
directly
into
real
property
or
real
property
securities.
-
Month
To
Month
Tenancy
-
A
tenancy
where
no
written
lease
is
involved,
rent
being
paid
monthly.
Some
obligations
as
to
notice
of
moving
or
eviction
may
exist
by
statute.
-
Mortgage
-
(1)
To
hypothecate
as
security,
real
property
for
the
payment
of a
debt.
The
borrower
(mortgagor)
retains
possession
and
use
of
the
property.
(2)
The
instrument
by
which
real
estate
is
hypothecated
as
security
for
the
repayment
of a
loan.
-
Mortgage
Banker
-
A
company
providing
mortgage
financing
with
its
own
funds
rather
than
simply
bringing
together
lender
and
borrower,
as
does
a
mortgage
broker.
Although
the
mortgage
banker
used
its
own
funds,
these
funds
are
generally
borrowed
and
the
financing
is
either
short
term
or,
it
long
term,
the
mortgages
are
sold
to
investors
(many
times
insurance
companies)
within
a
short
time.
-
Mortgage
Bonds
-
Bonds
issued
by
corporations,
which
offer
first
mortgages
on
real
property
of
the
corporation
as
security
for
the
payment
of
the
bonds.
-
Mortgage
Broker
-
One
who,
for
a
fee,
brings
together
a
borrower
and
lender,
and
handles
the
necessary
applications
for
the
borrower
to
obtain
a
loan
against
real
property
by
giving
a
mortgage
or
deed
of
trust
as
security.
Also
called
a
loan
broker.
-
Mortgage
Company
-
A
company
authorized
to
service
real
estate
loans,
charging
a
fee
for
this
service.
-
Mortgagee
-
The
party
lending
the
money
and
receiving
the
mortgage.
Some
states
treat
the
mortgagee
as
the
"legal"
owner,
entitled
to
rents
from
the
property.
Other
states
treat
the
mortgagee
as a
secured
creditor,
the
mortgagor
being
the
owner.
The
latter
is
the
more
modern
and
accepted
view.
-
Mortgage
Insurance
-
Insurance
written
by a
private
mortgage
insurance
company
(referred
to
as
an
'PIC')
protecting
the
mortgage
lender
against
loss
incurred
by a
mortgage
default,
thus
enabling
the
lender
to
lend
a
higher
percentage
of
the
sale
price.
The
Federal
Government
writes
this
form
of
insurance
through
the
FHA
and
the
VA.
-
Mortgage
Life
Insurance
-
A
term
life
insurance
policy
for
theamount
of
the
declining
balance
of a
loan
secured
by a
mortgage
or
deed
of
trust.
The
beneficiary
under
the
policy
is
the
mortgagee.
In
the
event
of
death
(some
policies
also
cover
disability)
of
the
insured
(mortgagor),
the
mortgage
is
paid
in
full.
-
Mortgage
Servicing
-
Controlling
the
necessary
duties
of a
mortgagee,
such
as
collecting
payments,
releasing
the
lien
upon
payment
in
full,
foreclosing
if
in
default,
and
making
sure
the
taxes
are
paid,
insurance
is
in
force,
etc.
Servicing
may
be
done
by
the
lender
or a
company
acting
for
the
lender,
for
a
servicing
fee.
-
Mutual
Savings
Bank
-
An
institution
owned
by
its
depositors,
as
evidenced
by
certificates
of
deposit
rather
than
stock.
These
institutions
are
active
in
long
term
real
estate
financing,
as
opposed
to
commercial
banks,
which
concentrates
more
on
short
term
loans.
BACK
TO
TOP
-
N
-
Negative
Amortization
-
A
condition
created
when
a
loan
payment
is
less
than
interest
alone.
Even
though
payments
are
made
on
time,
the
amount
owing
increases.
-
Negotiable
Instrument
-
According
to
the
Uniform
Negotiable
Instruments
Act,
an
instrument
is
negotiable
when
it
is
in
writing
and
signed,
containing
an
unconditional
promise
or
order
to
pay
a
certain
amount
of
money,
on
demand,
or
at a
definite
future
date,
to
the
bearer,
to
order,
or
to a
named
or
certain
drawee.
-
Net
Lease
-
A
lease
requiring
the
tenant
to
pay,
in
addition
to a
fixed
rental,
the
expenses
of
the
property
leased,
such
as
taxes,
insurance,
maintenance,
etc.
In
some
states
the
terms
net
net,
net
net
net,
triple
net,
and
other
such
repetitions
are
used.
-
Net
Worth
-
The
difference
between
total
assets
and
liabilities
of
an
individual,
corporations,
etc.
-
No
Bonus
Clause
-
A
clause
under
the
eminent
domain
section
of a
lease,
giving
the
lessee
the
right
to
recover
only
the
value
of
his
physical
improvements
in
the
event
of a
taking,
and
not
the
value
of
the
leasehold
interest
(the
difference
between
the
fixed
rent
of
the
lease
and
current
market
rental
value).
Not
applicable
in
all
states.
-
Nonbearing
Wall
-
A
wall
used
only
to
separate
areas,
and
which
carries
only
its
own
weight
-
Nonexclusive
Listing
-
A
listing
under
which
the
real
estate
broker
has
an
exclusive
listing
as
opposed
to
other
agents,
but
the
owner
may
sell
the
property
without
using
an
agent,
and
not
be
liable
to
pay
a
commission.
Also
called
an
agency
agreement.
-
Nonrecourse
Loan
-
A
loan
not
allowing
for
a
deficiency
judgment.
The
lender's
only
recourse
in
the
event
of
default
is
the
security
(property)
and
the
borrower
is
not
personally
liable.
-
Notarization
-
The
certification
by a
Notary
Public
that
a
person
signing
a
document
has
been
properly
identified.
Notarization
does
not
certify
the
content
of a
document,
only
validity
of
signature.
-
Notice
Of
Cessation
-
A
notice
stating
that
work
has
stopped
on a
construction
project.
Done
to
accelerate
the
period
for
filing
a
mechanic's
lien.
-
Notorious
Possession
-
A
requirement
for
adverse
possession.
Possession
so
open
(notorious)
that
the
owner
is
presumed
to
have
notice
of
it
and
its
extent.
-
Nuncupative
Will
-
An
oral
will,
usually
in a
deathbed
situation,
before
witnesses
who
later
testify
to
its
authenticity.
BACK
TO
TOP
-
O
-
Oath
-
An
attestation
by a
person
which
binds
him
or
her
legally
and
morally.
Usually
attesting
to
the
truth
of
something,
as
an
affidavit,
or
the
validity
of
one's
signature.
A
promise
to
tell
the
truth.
Also,
a
promise
to
carry
out
a
duty
with
high
morality
(oath
of
office),
An
oath
has
religious
connotations
and
usually
involves
the
word
"swear,"
and
may
contain
the
phrase
"so
help
me
God,"
or
require
the
one
taking
the
oath
to
put
his
or
her
hand
on a
bible.
An
affirmation
(see
which)
is
still
legally
binding.
-
Office
-
A
zoning
designation
allowing
businesses
to
carry
on
their
paperwork
rather
than
manufacturing
of
sale
of
inventory
to
the
public
on
the
site.
Some
businesses
may
be
conducted
entirely
out
of
such
space,
when
only
paperwork
is
involved,
such
as
insurance
companies,
law
firms,
accounting
firms,
etc.
-
Offset
Statement
-
(1)
A
statement
given
to a
buyer
of
rental
property
by a
tenant,
setting
forth
the
amount
of
rent
and
terms
of
the
rental
agreement.
(2)
A
statement
by
an
owner
or
lien-holder
to a
buyer,
setting
forth
the
balance
due
on
existing
liens
against
the
property
being
purchased.
-
"Once
in a
Lifetime"
Tax
Exclusion
-
A
forgiveness
of a
portion
of
the
tax
due
on
the
sale
of a
residence
by a
senior
citizen.
As
the
term
denotes,
the
exclusion
can
be
taken
only
once.
-
"One,
Two,
Three"
Financing
-
A
method
of
creative
financing
by
which
the
buyer
(1)
assumes
an
existing
loan,
(2)
secures
a
second
loan
from
a
third
party
lender,
(3)
takes
a
third
loan
from
the
seller.
-
Open
End
Mortgage
-
A
mortgage
permitting
the
mortgagor
to
borrow
additional
money
under
the
same
mortgage,
with
certain
conditions,
usually
as
to
the
assets
of
the
mortgage.
-
Origination
Fee
-
The
fee
that
the
lender
charges
to
originate
the
loan,
this
fee
is
typically
1
point.
-
Override
-
A
rental
amount
paid
due
to
sales
of
the
tenant.
For
example:
A
lease
for
a
service
station
may
contain
a
provision
for
a
certain
addition
to
the
rent
for
every
gallon
of
gasoline
over
a
certain
amount
sold
each
month.
The
amount
over
is
called
the
override,
such
as
two
cents
per
gallon
for
every
gallon
over
fifty
thousand
sold
each
month.
-
Ownership
-
Rights
to
the
use,
enjoyment,
and
alienation
of
property,
to
the
exclusion
of
others.
Concerning
real
property,
absolute
rights
are
rare,
being
restricted
by
zoning
laws,
restrictions,
liens,
etc.
-
Owner
Will
Carry
Mortgage
-
A
term
used
to
indicate
that
the
seller
is
willing
to
take
back
a
purchase
money
mortgage.
BACK
TO
TOP
-
P
-
Partial
Release
-
A
release
of a
portion
of
property
covered
by a
mortgage.
A
subdivider
will
obtain
a
partial
release
as
each
lot
is
sold,
upon
payment
of
an
agreed
upon
amount.
In
areas
where
the
subdivider
is
not
usually
the
builder,
it
may
be
necessary
to
sell
groups
of
lots
to
obtain
a
partial
release.
In
areas
where
deeds
of
trust
are
used
instead
of
mortgages,
a
"partial
reconveyance"
is
the
document
used.
-
Participation
Certificates
-
Mortgage
securities,
rather
than
mortgages.
The
advantage
of
the
certificate
is
that
it
is
readily
marketable
or
pledgeable.
-
Partition
-
(1)
Any
division
of
real
or
personal
property
between
co-owners,
resulting
in
individual
ownership
of
the
interests
of
each.
(2)
A
wall,
sometimes
moveable,
and
not
load-bearing,
used
to
divide
a
room
or
building.
-
Patent
Defect
-
A
defect
plainly
visible
or
as
would
be
discovered
by
the
exercise
of
ordinary
care.
A
patent
defect
in a
legal
description
is
one
which
cannot
be
corrected
on
its
face,
and
a
new
description
must
be
used.
-
Payment
Cap
-
A
maximum
amount
for
a
payment
under
an
Adjustable
Mortgage
Loan,
regardless
of
the
increase
in
the
interest
rate.
If
the
payment
is
less
than
the
interest
alone,
negative
amortization
is
created.
-
Payoff
-
The
payment
in
full
of
an
existing
loan
or
other
lien.
-
Payoff
Escrow
-
An
escrow,
specifically
for
the
purpose
of
paying
off
an
existing
lien.
Usually
part
of
an
existing
escrow,
and
called
a
sub
escrow.
-
Perfecting
Title
-
Process
involving
the
elimination
of
any
adverse
claims
against
a
title.
-
Personal
Property
Loan
-
A
loan
which
is
secured
by
both
real
and
personal
property.
The
minimum
ratio
of
personal
to
real
property
is
set
by
law.
The
credit
of
the
borrower
is a
major
consideration
in
making
the
loan.
-
PITI
-
Refers
to
principal,
interest,
taxes
and
insurance,
the
four
major
components
of a
usual
monthly
mortgage
payment.
-
PITI
Ratio
-
The
principal,
interest,
tax
and
insurance
payment
to
income
ratio.
Used
in
mortgage
lending
decisions.
-
Plaintiff
-
The
party
bringing
a
civil
action
against
a
defendant.
-
Planned
(unit)
Development
(PUD)
-
A
subdivision
of
five
or
more
individually
owned
lots
with
one
or
more
other
parcels
owned
in
common
or
with
reciprocal
rights
in
one
or
more
other
parcels.
The
lots
are
generally
small,
being
the
exact
size
of
the
improvements,
or
slightly
larger.
-
Point
-
One
percent.
When
referring
to
mortgages
or
deeds
of
trust,
the
term
is
used
to
describe
the
percentage
of
discount
rather
than
interest
(for
which
the
word
"percent"
is
used).
The
points
are
paid
by
the
seller
in
F.H.A.
and
V.A.
insured
loans,
and
by
either
buyer
or
seller
(or
both)
in
conventional
loans.
-
Points
-
A
fee
charged
by
the
lender
to
fund
a
loan,
in
addition
to
and
separate
from
other
fees
charged.
One
Point
equals
one
percent
of
the
amount
of
the
loan.
Discount
points
are
charged
or
are
received
based
on
the
note
rate
the
borrower
selects.
Additionally
a
one
point
origination
fee
is
typically
charged
by a
lender
to
underwrite
a
residential
loan.
-
Possibility
of
Reverter
-
The
term
shows
no
estate
(interest)
in
property,
but
only
the
chance
that
an
estate
will
exist
at a
future
time.
If a
property
were
sold
on
the
condition
that
it
be
used
for
a
park,
and,
it
not
used
for
a
park,
would
revert
back
to
the
seller,
the
seller
would
have
a
possibility
of
reverter.
-
Power
of
Attorney
-
An
authority
by
which
one
person
(principal)
enables
another
(attorney
in
fact)
to
act
for
him.
(1)
General
power
-
Authorizes
sale,
mortgaging,
etc.
of
all
property
of
the
principal.
Invalid
in
some
jurisdictions.
(2)
Special
power
-
Specifies
property,
buyers,
price
and
terms.
How
specific
it
must
be
varies
in
each
state.
-
Prescriptive
Easement
-
The
granting
of
an
easement
by a
court,
based
on
the
presumption
that
a
written
easement
was
given
(although
none
existed),
after
a
period
of
open
and
continuous
use
of
land.
-
Principal
-
The
sum
of
money
outstanding
upon
which
interest
is
payable.
Also
refers
to
one
who
is
served
by
an
agent.
Private
Mortgage
Insurance
(PMI):
Insurance
written
by a
private
mortgage
insurance
company
protecting
the
mortgage
lender
against
loss
occasioned
by a
mortgage
default
and
foreclosure.
-
Private
Mortgage
Insurance
-
Insurance
against
a
loss
by a
lender
in
the
event
of
default
by a
borrower
(mortgagor).
The
insurance
is
similar
to
insurance
by a
governmental
agency
such
as
FHA,
except
that
it
is
issued
by a
private
insurance
company.
The
premium
is
paid
by
the
borrower
and
is
included
in
the
mortgage
payment.
-
Property
Management
-
The
branch
of
the
real
estate
business
dealing
with
the
management
of
property.
The
property
may
be a
rented
house
or a
large
office
or
industrial
complex.
The
duties
may
range
from
merely
collecting
rents
to
complete
management
of
all
maintenance
and
may
also
include
being
leasing
agent
or
sales
agent.
-
Proration
-
The
method
used
in
dividing
charges
into
that
portion
which
applies
only
to a
party's
ownership
up
to
particular
date.
BACK
TO
TOP
-
Q
-
Quadrant
-
(1)
A
quarter
section
of a
circle.
(2)
One
of
the
quarters
created
by
two
intersecting
roads
or
streets.
-
Qualification
-
The
process
of
reviewing
a
prospective
borrower's
credit
and
payment
capacity
prior
to
approving
a
loan.
-
Quantity
Survey
Method
-
Also
called
"price
take-off"
method.
A
process
of
arriving
at
an
estimate
of
new
construction
costs
by a
detailed
estimate
of
quantities
of
necessary
building
materials
plus
labor
costs.
-
Quarter
Section
-
One
quarter
of a
section.
A
quarter
section
(commonly
called
a
quarter)
contains
160
acres.
-
Question
Of
Law
-
Given
the
facts,
what
laws,
it
any,
are
applicable
-
decided
by a
judge,
even
in a
jury
trial.
-
Quietus
-
Final
disposition
of a
claim
or
debt.
-
Quitclaim
Deed
-
A
deed
operating
as a
release,
intended
to
pass
any
title,
interest,
or
claim
which
the
grantor
may
have
in
the
property,
but
not
containing
any
warranty
of a
valid
interest
or
title
in
the
grantor.
BACK
TO
TOP
-
R
-
Rate
Index
-
An
index
used
to
adjust
the
interest
rate
of
an
adjustable
mortgage
loan.
For
example:
the
change
in
U.S.
Treasury
securities
(T-Bills)
with
a 1
year
maturity.
The
weekly
average
yield
on
said
securities,
adjusted
to a
constant
maturity
of
one
year,
which
is
the
result
of
weekly
sales,
may
be
obtained
weekly
from
the
Federal
Reserve
Statistical
Release
H.15
(519).
This
change
in
interest
rates
is
the
"index"
for
the
change
in
the
specific
Adjustable
Mortgage
Loan.
-
Rate
Of
Return
-
The
annual
percentage
of
return
on
investment
on
income
property.
-
Ratification
-
Affirming
a
prior
act
which
was
not
legally
binding;
the
affirmation
gives
the
act
legal
effect.
Occurs
when
an
unauthorized
agent
acts,
and
the
principal
later
affirms
the
action,
giving
authority
retroactively.
-
Real
Estate
-
(1)
Land
and
anything
permanently
affixed
to
the
land.
such
as
buildings,
fences,
and
those
things
attached
to
the
buildings,
such
as
light
fixtures,
plumbing
and
heating
fixtures,
or
other
such
items
which
would
be
personal
property
it
not
attached.
The
term
is
generally
synonymous
with
real
property,
although
in
some
states
a
fine
distinction
may
be
made.
(2)
May
refer
to
rights
in
real
property
as
well
as
the
property
itself.
-
Real
Estate
Settlement
Procedures
Act
(RESPA)
-
A
federal
statute
requiring
disclosure
of
certain
costs
in
the
sale
of
residential,
improved
property
which
is
to
be
financed
by a
federally
insured
lender.
-
Rebate
-
A
discount
or
reduction
in
price
of a
product
or
interest,
not
given
in
advance,
but
handed
back
because
of
prompt
payment
or
other
reason.
Many
states
regulate
gifts
and
educational
aids
given
to
real
estate
brokers
by
supporting
companies
such
as
title
companies,
calling
these
in
effect,
a
price
discount
(rebate).
-
Recapture
Of
Depreciation
-
Taxing
as
ordinary
income,
upon
the
sale
of
property,
the
amount
of
depreciation
taken
above
straight
line
depreciation.
-
Reconveyance
-
The
conveyance
to
the
landowner
of
the
title,
held
by a
trustee
under
a
deed
of
trust,
when
the
performance
of
the
debt
is
satisfied.
-
Recordation
-
Involves
filing
for
record
in
the
office
of
the
county
recorder
for
the
purpose
of
giving
constructive
notice
of
title,
claim
or
interest
in
real
property.
-
Record
Owner
-
The
owner
of
property
as
shown
by
an
examination
of
the
public
record.
-
Redemption
-
The
process
of
canceling
a
defeasable
title
to
land,
such
as
is
created
by a
mortgage
foreclosure
or
tax
sale.
-
Redemption
Period
-
A
time
period
during
which
a
mortgage,
landcontract,
deed
of
trust,
etc.,
can
be
redeemed.
Usually
set
by
statute,
and
after
judicial
foreclosure.
-
Refinance
-
(1)
The
renewing
of
an
existing
loan
with
the
same
borrower
and
lender.
(2)
A
loan
on
the
same
property
by
either
the
same
lender
or
borrower.
(3)
The
selling
of
loans
by
the
original
lender.
-
Reinstatement
-
(1)
Payment
of a
note,
mortgage,
deed
of
trust,
etc.,
to
bring
it
from
default
to
good
standing.
(2)
Restoring
the
previously
used
entitlement
of a
veteran
to
enable
the
veteran
to
purchase
property
under
a VA
program.
(Also
called
Restoration
of
Eligibility).
-
Reinsurance
-
The
transferring
of a
portion
of
the
liability
to
other
insurers.
Example:
Insurer
A
insures
for
$200,000,
A
insures
for
$100,000
and
reinsures
the
"second"
$100,000
through
B
insurer,
The
"first"
$100,000
is
called
"primary
liability."
-
Renegotiable
Rate
Mortgage
-
A
real
property
loan
calling
for
an
adjustment
in
the
interest
rate
at a
given
time.
Example:
A
loan
with
a 15
year
amortization
is
adjusted
to
current
interest
rates
after
2
years.
The
lender
agrees
to
make
the
adjusted
loan
at
the
new
rate
as
long
as
the
old
loan
is
not
in
default.
The
Federal
Reserve
Board
allows
the
original
loan
to
be
treated
either
as a
balloon
payment
loan
or a
variable
rate
loan.
However,
points
must
be
figured
into
the
A.P.R.
based
on
the
time
or
renegotiation
(2
years
rather
than
15).
-
Reservation
-
(1)
A
right
created
and
retained
by a
grantor.
The
reservation
may
be
temporary
(such
as a
life
estate)
or
permanent
(such
as
an
easement
running
with
the
land).
(2)
Public
land
reserved
for
a
special
purpose,
such
as
an
Indian
reservation.
-
Restraint
of
Alienation
-
Restrictions
placed
against
the
transfer
(vesting)
or
sale
of
property.
Certain
restrictions
are
allowed
but
must
conform
to
the
rule
against
perpetuities
and
free
right
of
an
owner
to
sell.
For
example:
Selling
on
the
condition
that
the
grantee
could
resell
only
to
members
of a
certain
family
would
be
too
restrictive
and
not
valid.
-
Right
Of
Way
-
A
strip
of
land
which
is
used
as a
roadbed,
either
for
a
street
or
railway.
The
land
is
set
aside
as
an
easement
or
in
fee,
either
by
agreement
or
condemnation.
May
also
be
used
to
describe
the
right
itself
to
pass
over
the
land
of
another.
BACK
TO
TOP
-
S
-
Safety
Clause
-
A
clause
in a
listing
protecting
the
broker
from
having
buyer
and
seller
wait
until
the
listing
expires
to
make
a
deal,
thereby
avoiding
the
payment
of
commission.
The
clause
states
that
if
the
property
is
sold
during
a
specified
period
after
the
expiration
of
the
listing
(or
any
extension
thereof)
to a
buyer
provided
during
the
listing
period
by
the
broker,
the
commission
shall
be
paid.
-
Savings
And
Loan
Association
-
Originally
an
association
chartered
to
hold
savings
and
make
real
estate
loans.
Federally
insured
and
regulated.
Active
in
long
term
financing
rather
than
construction
loans.
Recent
changes
in
federal
controls
have
enabled
these
associations
to
offer
checking
accounts,
consumer
loans,
and
other
services
traditionally
offered
by
banks.
-
Secondary
Financing
-
A
loan
secured
by a
mortgage
or
trust
deed,
which
lien
is
junior
(secondary)
to
another
mortgage
or
trust
deed.
-
Secondary
Mortgage
Market
-
The
buying
and
selling
of
first
mortgages
of
trust
deeds
by
banks,
insurance
companies,
government
agencies,
and
other
mortgagees.
This
enables
lenders
to
keep
an
adequate
supply
of
money
for
new
loans.
The
mortgages
may
be
sold
at
full
value
(par)
or
above,
but
are
usually
sold
at
discount.
The
secondary
mortgage
market
should
not
be
confused
with
second
mortgage.
-
Second
Mortgage
-
A
mortgage
which
ranks
after
a
first
mortgage
in
priority.
Properties
may
have
two,
three,
or
more
Mortgages,
deeds
of
trust,
or
land
contracts,
as
liens
at
the
same
time.
Legal
priority
would
determine
whether
they
are
called
a
first,
second,
third,
etc.
lien.
-
Sequestration,
Writ
Of
-
The
taking
custody
of
one's
property
(real
or
personal)
to
force
compliance
with
a
court
order.
-
Shared
Appreciation
-
The
gaining
or
retaining
of
equity
in a
property
by
someone
other
than
the
buyer.
For
example:
the
seller
retains
a
25%
interest
in
the
property.
This
makes
the
buyer
responsible
for
only
75%
of
the
purchase
price
and,
therefore,
lowers
the
necessary
financing
by
25%.
This
obviously
makes
the
property
more
affordable.
By
agreement,
expenses
are
shared
as
well
as
any
increase
in
value
when
the
property
is
sold.
Statement
of
Information
(SI):
A
confidential
information
statement
completed
by
the
buyer,
seller
and
borrower
in
every
transaction
where
a
policy
or
policies
of
title
insurance
are
requested.
Allows
the
title
company
to
competently
search
documents
affecting
the
property
to
be
insured,
documents
which
may
not
refer
to
said
property.
Allows
title
companies
to
differentiate
between
parties
with
similar
names
when
searching
matters
such
as
liens
and
court
decrees.
-
"Subject
To"
Clause
-
A
clause
in a
deed,
stating
that
the
grantee
takes
title
"subject
to"
an
existing
mortgage.
The
original
mortgagor
is
alone
responsible
for
any
deficiency,
should
there
be
foreclosure
of
the
mortgage.
Differs
from
an
"assumption"
clause,
whereby
the
grantee
"assumes"
and
agrees
to
pay
the
existing
mortgage.
-
Surface
Rights
-
The
rights
(easements)
to
use
the
surface
of
land,
including
the
right
to
drill
or
mine
through
the
surface
when
subsurface
rights
are
involved.
-
Sweat
Equity
-
A
program
which
allows
a
purchaser
to
do
work
on
the
property
in
place
of
all
or
part
of
the
down
payment
and
other
costs
of
purchase.
-
Subordination
Agreement
-
An
agreement
under
which
a
prior
or
superior
lien
is
made
inferior
or
subject
to
an
otherwise
junior
lien.
-
Survey
-
The
measurement
of
the
boundaries
of a
parcel
of
land,
its
area,
and
sometimes
its
topography.
-
Syndicate
-
An
association
of
individuals,
formed
for
the
purpose
of
carrying
on
some
particular
business
venture
in
which
the
members
are
mutually
interested.
BACK
TO
TOP
-
T
-
Tacking
-
(1)
Annexing
a
lien
to
one
superior
to
it
in
order
to
gain
the
priority
of
the
superior
lien
and
defeat
an
intermediate
lien.
Generally
not
allowed.
(2)
Annexing
periods
of
possession
to
add
up
to
enough
time
for
successful
adverse
possession.
For
example;
A
begins
adverse
possession,
A
dies
and
A's
son
takes
up
possession,
adding
A's
time
to
his
own.
Not
always
allowed.
-
Take
Out
Commitment
-
Agreement
by a
lender
to
place
a
long
term
(take
out)
loan
on
real
property
after
completion
of
construction.
-
Tax
Base
-
The
assessed
valuation
of
real
property,
which
is
multiplied
by
the
tax
rate
to
determine
the
amount
of
tax
due.
-
Tax
Deed
-
(1)
Deed
from
tax
collector
to
governmental
body
after
a
period
of
non-payment
of
taxes
according
to
statute.
(2)
Deed
to a
purchaser
at a
public
sale
of
land
taken
for
delinquent
taxes.
The
purchaser
receives
only
such
title
as
the
former
owners
had
and
strict
procedures
must
be
followed
to
prevent
attachment
of
prior
liens.
-
Tax
Lien
-
A
statutory
lien
imposed
against
real
property
for
nonpayment
of
taxes.
-
Tenancy
In
Common
-
An
undivided
ownership
in
real
estate
by
two
or
more
persons.
The
interests
need
not
be
equal.
and,
in
the
event
of
the
death
of
one
of
the
owners,
no
right
of
survivorship
in
the
other
owners
exists.
-
Tenant
At
Will
-
One
who
holds
possession
of
premises
by
permission
of
the
owner
or
landlord,
but
without
agreement
for
a
fixed
term
of
possession.
-
Terra
Cotta
Lumber
-
Very
porous
earthenware
which
can
hold
a
nail
and
be
cut
without
breaking
or
shattering.
-
Title
Plant
-
The
information
warehouse
of a
fide
company
in
which
it
has
accumulated
and
is
constantly
updating
the
records
of
properties
in
its
area
which
it
can
use
to
search
title
to
real
property.
-
Time
Sharing
-
A
concept
of
ownership
increasing
in
popularity
as
real
estate
prices
rise.
The
purchase
of
an
undivided
interest
(usually
in a
resort
area
condominium)
for
a
fixed
or
variable
time
period.
For
example:
Fifty-two
different
purchasers
buy
one
condominium:
each
agrees
to
possession
for
one
week
per
year.
Costs
(taxes,
insurance,
maintenance,
etc.)
are
shared
equally.
Possession
may
be
fixed,
or
by
reservation,
by
lease,
license,
etc.
Some
developers
provide
several
projects
in
different
parts
of
the
world,
so
that
a
person
owning
one
week
in a
project
in
Hawaii
could
elect
to
spend
that
week
in a
connected
project
in
France
or
other
area.
-
Ton
-
(1)
A
measure
of
weight;
two
thousand
pounds.
(2)
A
measure
of
capacity
of
an
air
conditioner.
One
ton
equally
twelve
thousand
British
thermal
units
(B.T.U.'s).
-
Townhouse
-
Originally
a
house
in a
city
as
opposed
to a
country
estate.
More
recently
the
term
is
applied
to
certain
types
of
row
houses,
whether
planned
unit
developments
or
condominiums.
-
Transfer
Tax
-
State
tax
on
the
transfer
of
real
property.
Based
on
purchase
price
or
money
changing
hands.
Check
statutes
for
each
state.
Also
called
documentary
transfer
tax.
-
Treasury
Bills
-
Interest
bearing
U.S.
Government
obligations
sold
at a
weekly
sale.
The
change
in
interest
rates
paid
on
these
obligations
is
frequently
used
as
the
Rate
Index
of
Adjustable
Mortgage
Loans.
-
Trustee
-
A
person
who
holds
title
in
trust
for
the
benefit
of
another.
In a
deed
of
trust,
the
trustee
is
the
person
named
to
hold
title
in
trust
for
the
benefit
of
the
lender
until
the
loan
is
paid
off.
-
Trustee
In
Bankruptcy
-
One
appointed
by a
bankruptcy
court,
and
in
whom
the
property
of
the
bankrupt
vests.
The
trustee
holds
the
property
in
trust,
not
for
the
bankrupt,
but
for
the
creditors.
-
Trustor
-
The
borrower
under
a
deed
of
trust.
One
who
deeds
their
property
to a
trustee
as
security
for
repayment
of a
loan.
BACK
TO
TOP
-
U
-
Unavoidable
Cause
-
A
cause
which
reasonable
prudence
and
care
could
not
have
prevented,
such
as
death,
illness,
papers
lost
in
the
mail,
etc.
-
Underlying
Financing
-
A
mortgage,
deed
of
trust,
etc.,
prior
to
(underlying)
a
land
contract,
mortgage,
etc
, on
the
same
property.
-
Undisclosed
Principal
-
A
principal
whose
identity
is
not
revealed
by
an
agent.
-
Uniform
Laws
-
Laws
approved
by
the
National
Conference
of
Commissioners
on
Uniform
State
Laws.
Many
have
been
adopted
in
one
or
more
states.
Among
these
are
the
Uniform
Commercial
Code,
Uniform
Negotiable
Instruments
Act,
Uniform
Partnership
Act,
Uniform
Residential
Landlord
and
Tenant
Act,
etc.
-
Uniform
Settlement
Statement
-
The
Standard
HUD
Form
1
required
to
be
given
to
the
borrower,
lender
and
seller
at,
or
prior
to,
settlement.
-
Unilateral
Contract
-
A
contract
under
which
one
party
expressly
makes
a
promise,
the
other
party,
although
making
no
reciprocal
promise,
may
be
obligated
by
law
or
may
have
already
given
consideration.
-
Unity
Of
Possession
-
In
joint
tenancy,
the
joint
tenants
must
have
equal
rights
to
posesion.
-
Unmarketable
Title
-
Title
which
contains
defects
that
would
allow
a
purchaser
to
be
released
from
his
obligation
to
purchase.
-
Unrecorded
Instrument
-
A
deed,
mortgage,
etc.,
which
is
not
recorded
in
the
county
recorder's
office
and,
therefore,
not
protected
under
recording
statutes.
Valid
between
the
parties
involved,
but
not
against
innocent
third
parties.
-
Useful
Life
-
(1)
In
appraisal
for
sale
purposes,
the
true
economic
value
of a
building
in
terms
of
years
of
use
to
the
owner.
(2)
For
tax
purposes,
the
life
set
for
depreciation.
At
any
time
during
that
period,
a
new
life
could
begin
for
a
new
owner.
BACK
TO
TOP
-
V
-
Vacancy
Factor
-
The
estimated
percentage
of
vacancies
in a
rental
project.
May
be
based
on
past
records
of
the
property,
or a
professional
guess
if a
new
project.
Surrounding
area
buildings,
it
similar,
may
be
used
for
comparison.
-
Variable
Interest
Rate
-
An
interest
rate
which
fluctuates
as
the
prevailing
rate
moves
up
or
down.
In
mortgages
there
are
usually
maximums
as
to
the
frequency
and
amount
of
fluctuation.
Also
called
"flexible
interest
rate."
-
Veneered
Construction
-
The
placing
of a
facing
material
over
the
external
surface
of a
structure.
-
Venue
-
(1)
The
county
(or
other
geographical
division)
in
which
an
action
or
prosecution
is
brought
for
trial
and
which
is
to
furnish
the
panel
of
jurors.
(2)
The
county
in
which
an
acknowledgement
(notorization)
is
made.
-
Vesting
-
Denotes
the
manner
in
which
title
is
held.
Examples
of
common
vestings
are:
Community
Property,
Joint
Tenancy
and
Tenancy
in
Common.
-
Vital
Statistics
-
Data
regarding
births,
deaths,
marriages,
health
records,
etc.,
and
usually
kept
by a
governmental
bureau.
Federally,
the
Bureau
of
Vital
Statistics.
-
Volt
-
A
term
in
electronics,
being
the
force
necessary
to
cause
one
ampere
to
flow
through
a
conductor
with
a
resistance
of
one
ohm.
Common
household
current
is
110
volts,
with
a
220
volt
circuit
used
for
some
heavy
appliances.
Industrial
uses
may
require
higher
voltage.
-
Voluntary
Lein
-
A
lien
placed
against
real
property
by
the
voluntary
act
of
the
owner.
Most
commonly,
a
mortgage
or
deed
of
trust
BACK
TO
TOP
-
W
-
Waive
-
To
knowingly
abandon,
relinquish,
or
surrender
a
right,
benefit,
or
claim.
-
Wall
Bearing
Construction
-
Weight
of
roofs
and
floors
supported
entirely
by
the
exterior
walls,
with
no
load-bearing
partitions.
Posts
and
pillars
are
used
at
points
where
the
span
is
too
wide
for
exterior
wall
support.
-
Warranty
-
A
legal,
binding,
promise,
given
at
the
time
of a
sale,
whereby
the
seller
gives
the
buyer
certain
assurances
as
to
the
condition
of
the
property
being
sold.
Warranties
as
to
real
property
have
taken
on a
lessor
role
with
the
increase
of
the
use
of
title
insurance.
-
Warranty
Deed
-
A
deed
used
in
many
states
to
convey
fee
title
to
real
property.
Until
the
wide
spread
use
of
title
insurance,
the
warranties
by
the
grantor
were
very
important
to
the
grantee.
When
title
insurance
is
purchased,
the
warranties
become
less
important
as a
practical
means
of
recovery
by
the
grantee
for
defective
title.
-
Wasting
Assets
-
Assets
which,
by
use
or
lapse
of
time,
are
consumed
or
reduced
in
book
value,
irrespective
of
market
fluctuation.
Includes
oil,
minerals,
patent
rights,
franchises
for
a
fixed
term,
etc.
Also
called
"diminishing
assets",
"wasting
property."
-
Watt
Hour
-
The
basis
used
to
determine
electric
bills.
Example:
A
100
watt
light
bulb
means
if
the
bulb
burns
for
one
hour,
it
will
use
100
watts
of
electricity.
-
Weep
Holes
-
Small
holes
in a
retaining
wall
or
other
wall
where
it
may
be
necessary
to
drain
off
excess
water
to
avoid
pressure
build-up.
-
Wild
Interest
-
An
interest
of
record
which
cannot
be
traced
in
the
chain
of
title.
Frequently
occurs
when
an
incorrect
legal
description
appears
on a
document.
An
apparent
wild
interest
may
occur
if a
woman
who
changes
her
name
through
marriage
after
acquiring
property,
sells
the
property
using
her
married
name
only.
-
Without
Recourse
-
A
finance
term.
A
mortgage
or
deed
of
trust
securing
a
note
without
recourse
allows
the
lender
to
look
only
to
the
security
(property)
for
repayment
in
the
event
of
default,
and
not
personally
to
the
borrower.
-
Working
Drawing
-
Drawing
used
by
workman
in
construction.Shows
all
structural
detail
such
as
electric,
plumbing,
partitions,
etc.
-
Wrap-Around
Mortgage
-
A
second
or
junior
mortgage
with
a
face
value
of
both
the
amount
it
secures
and
the
balance
due
under
the
first
mortgage.
The
mortgagee
under
the
wrap-around
collects
a
payment
based
on
its
face
value
and
then
pays
the
first
mortgagee.
It
is
most
effective
when
the
first
has
a
lower
interest
rate
than
the
second,
since
the
mortgagee
under
the
wrap-around
gains
the
difference
between
the
interest
rates,
or
the
mortgagor
under
the
wrap-around
may
obtain
a
lower
rate
then
if
refinancing.
-
Wrought
Iron
-
An
easily
molded
form
of
iron
used
for
decorative
railings,
gates,
furniture,
etc.
The
term
is
loosely
used
to
describe
steel
or
aluminum
used
in
the
same
manner.
BACK
TO
TOP
-
Y
-
Yacht
Basin
-
A
system
of
docks
and
channels
used
for
the
keeping
of
yachts
and
similar
boats.
-
Yard
-
(1)
A
measure
of
36".
(2)
The
area
between
the
building
and
property
line
of a
residential
property
(back
yard,
side
yard,
front
yard).
(3)
An
enclosure,
in
or
out
of a
building,
used
for
a
business
purpose
(lumber
yard,
etc.)
-
Yard
Lumber
-
Lumber
generally
found
in a
lumber
yard,
that
is,
lumber
graded
for
general
building
purposes.
-
Yield
-
Ratio
of
income
from
an
investment
to
the
total
cost
of
the
investment
over
a
given
period
of
time.
BACK
TO
TOP
-
Z
-
Zero
Lot
Line
-
The
consruction
of a
building
on
any
of
the
boundary
lines
of a
lot.
Usually
built
on
the
front
line
such
as a
store
built
to
the
sidewalk.
-
Zero
Side
Yard
-
The
building
of a
subdivision
with
each
house
built
on a
side
boundary
line.
This
gives
more
usable
yard
space
on
narrow
lots.
An
easement
for
maintenance
is
given
over
a
portion
of
the
lot
adjoining
each
house.
-
Zone
-
(1)
An
area
of a
county
or
city
in
which
the
use
of
the
land
is
restricted
by
law
(zoning
ordinance).
(2)
An
area
designated
by a
number
for
the
delivery
of
mail.
Zip
codes
incorporate
the
zones.
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