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style that features a steeply peaked roofline and a ceiling that is open to the
of judgment, law
of a court judgment that creates a lien against a property when filed with the
Accelerated cost recovery system
calculation that provides greater depreciation in the early years of ownership
of real estate or personal property.
bookkeeping method that depreciates property faster in the early years of
that gives a lender the right to collect the balance of a loan if a borrower
misses a payment.
seller's written approval of a buyer's offer.
by which a person can enter a property.
to which a building or site allows access to people with disabilities.
addition to the shore or bank of a waterway by deposits of sand or silt.
declaration affirming that a person acted voluntarily.
measurement of land equal to 43,560 square feet.
of material needed to cover an acre of land one foot deep.
that utilizes electric pumps or fans to transfer solar energy for storage or
of years a structure has been standing.
interest a borrower pays on the principal for the duration of the loan.
or change to a contract.
Additional principal payment
included in the monthly payment to help reduce the principal and shorten the
term of the loan.
Adjustable-rate mortgage (ARM)
A loan with
an interest rate that is periodically adjusted to reflect changes in a specified
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.
of time between interest rate adjustments in an adjustable-rate mortgage.
given authority to manage and distribute the estate of someone who died without
leaving a will.
document that an administrator of an estate uses to transfer property.
acquisition of title to property through possession without the owner's consent
for a certain period of time.
and use of property without the owner's consent.
is composed of materials deposited by the wind.
who makes a sworn statement.
substitution for an oath granted to people based on religious reasons.
relationship of trust that exists between sellers and buyers and their agents.
The agency is formed through a written contract.
by which a lender uses a title company or other firm as an agent to complete a
licensed by the state to conduct real estate transactions.
compromise boundary to which property owners agree in order to resolve a
Agreement of sale
the buyer initiates and the seller approves that details the price and terms of
section of a room, such as a breakfast nook.
that requires the borrower to pay the balance of the loan in a lump sum after
the property is sold or transferred.
salt found in soil.
contains a higher concentration of mineral salt than natural acid.
behind a row of buildings or between two rows of buildings.
offered by builders of new homes for the purchase of carpeting and fixtures.
loan that does not conform to a standard fixed-rate mortgage.
covering that provides an alternative to paint for owners of wood homes.
windows with aluminum covering the exterior.
swimming pools, health-club facilities, party rooms, bike paths, community
centers and other enticements offered by builders of planned developments.
Society of Home Inspectors
American Society of Home Inspectors is a professional association of independent
home inspectors. Phone: (800) 743-2744.
Americans with Disabilities Act
passed in 1990 that outlaws discrimination against a person with a disability in
housing, public accommodations, employment, government services, transportation
of paying the principal and interest on a loan through regularly scheduled
Mathematical tables that lenders use to calculate a borrower's monthly payment.
strength of an electrical current.
steel bolt anchored in concrete and attached to a building to prevent the
structure from moving.
that happens once a year.
Percentage Rate (APR)
The cost of
the loan expressed as a yearly rate on the balance of the loan.
statement to borrowers that details the remaining principal and amounts paid for
taxes and interest.
of a fixed sum to an investor at regular intervals.
communication that informs a party that the obligations of the original contract
will not be fulfilled.
that details a potential borrower's income, debt and other obligations to
determine credit worthiness.
that a lender charges to process a loan application.
of the value of a property at a given point in time.
that an appraiser charges to estimate the market value of the property.
written report on the value of a property based on recent sales of comparable
sites in the area.
of the current market value of a property.
in the value of a home or other property.
A method of
resolving a dispute in which a third party renders a decision.
shaded by trees, shrubs or vines on a latticework structure.
structure that supports weight over an area, such as a doorway.
professional who designs homes, buildings and other structures.
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.
measurement of land equal to .84625 acres.
purchase or sale of a property in its existing condition.
fire-resistant mineral used for insulation and home products that has been found
to pose a health hazard.
initial price for a property.
assessor's determination of the value of a home in order to calculate a tax
estimated value of a piece of real estate or a levy placed on property in
addition to taxes.
A list of
taxable property compiled by the assessor.
value, which include cash, real estate, securities and investments.
who transfers rights and interests of a property.
that can be transferred to another borrower.
that allows a buyer to take responsibility for the mortgage from a seller.
A fee the
lender charges to process new records for a buyer who assumes an existing loan.
of a home determined by totaling the sales prices of all houses sold in an area
and dividing that number by the number of homes.
over private property near an airport that limits the height of structures and
windows that tilt outward and up.
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to solidify the foundation of a structure.
that a title insurance company gives to an attorney who then examines the title
for insurance purposes.
Arrangements that an owner makes to oversee the sale of one property and the
purchase of another at the same time.
bid for a property that the seller will accept if the first offer fails.
A valve in
a sewer line that prevents sewage from flowing back into a house.
that shows the assets, liabilities and net worth of an individual.
in which monthly installments are not large enough to repay the loan by the end
of the term. As a result, the final payment due is the lump sum of the remaining
lump sum payment due at the end of a balloon mortgage.
A type of
framing used in two-story homes in which studs extend from the ground to the
ceiling of the second floor.
held up by a set of posts on a porch or stairway.
proceeding in which an insolvent debtor can obtain relief from payment of
certain obligations. Bankruptcies remain on a credit record for seven years and
can severely limit a person's ability to borrow.
The sale of
a piece of property for less than market value.
or molding found at the bottom of an interior wall.
Baseboard electric heat
units installed in the floor that can be controlled by a central thermostat.
The area of
a home below ground level.
point is one one-hundredth of one percentage point. For example, the difference
between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis
between two columns or walls that forms a space.
that projects outward in a curve.
A wall that
supports its own weight in addition to other parts of a structure.
income before taxes are deducted.
who makes a loan, also called a mortgagee. The person borrowing money is the
property given to a person through a will.
improvement that increases a property's value as opposed to repairs that
maintain the value.
multiple buyers for a piece of property. Agents also sometimes compete to list a
house for sale.
in which the parties involved give mutual promises. Also called "reciprocal"
that transfers ownership of personal property.
issued by a title insurance company that details the condition of a home's
title. and provides guidelines for a title insurance policy.
that requires payments every two weeks and helps repay the loan over a shorter
that covers more than one person or piece of property.
that covers more than one property owned by the same borrower.
neighborhood that has deteriorated.
driven into a wall and concealed with putty.
on the sale of securities to prevent consumers from investing in fraudulent or
high-risk companies without being informed of the risks.
maintained close to its original condition. Also called mint condition.
of lumber that is the equivalent of 144 cubic inches.
board charged with ensuring that local property taxes are assessed in a uniform
composed of 8- to 12-inch wide wooden boards nailed vertically to create a
language used in deeds, mortgages and other documents. Details can be added by
term that refers to actions or persons that are honest and in good faith.
agreement that insures one party against loss by acts or defaults of another
of a property as a capital asset based on its cost plus any additions, minus
of soil in which holes are bored into the ground and samples are removed.
of a city that has authority over local matters.
gravel or other material used for grading.
The hole at
a site that has been excavated.
lined with trees or constructed with a landscaped median.
dividing line between two adjacent properties.
construction method in two-story homes in which the frame is reinforced with
posts and braces.
to perform provisions of a contract without a legal excuse.
to obey a legal agreement.
inability to pass clear title to a buyer.
in which the owner's rental income matches expenses and debt.
at which the diameter of a tree is measured: four feet, six inches above the
passageway with open sides.
material made from clay molded into oblong blocks and fired in a kiln.
short-term loan for borrowers who need more time to find permanent financing.
licensed by the state to deal in real estate.
The act of
bringing together two or more parties in exchange for a fee or commission.
condition of a building when it is turned over to an owner or tenant.
row house constructed of red sandstone.
A parcel of
land that separates two or more properties.
features or better finishing materials that a builder offers.
and loan association
organization that raises money to helps its members purchase real estate or
construct a building.
comprehensive set of laws that controls the construction or remodeling of a home
or other structure.
A city or
county employee who enforces the building code and ensures that work is
line or setback
that limit how close an owner can build to the street or an adjacent property.
A halt on
home construction to slow the rate of development.
water-resistant paper that serves as insulation.
issued by a local government agency that allows the construction of home or
renovation of a house.
that limit the manner in which property can be used.
or other items that are framed into a home or permanently attached.
wall designed to hold back water from the ocean or another body of water.
interests or rights an owner has in a property.
one-story house or cottage.
formed by two gables that dip in the middle to resemble a butterfly's wings.
A home loan
in which the lender receives a premium as an inducement to reduce the interest
rate during the early years of the mortgage.
estate broker who exclusively represents the buyer's interests in a transaction
and whose commission is paid by the buyer rather than the seller.
A slow real
estate market in which buyers have the advantage.
felt by first-time homebuyers after signing a sales contract or closing the
purchase of a house.
and regulations that a homeowners association or corporation adopts to govern
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A clause in
a loan agreement that allows a lender to ask for the balance at any time.
chambers with bulbs recessed into the ceiling.
that details the conditions under which each party may terminate the agreement.
projecting structure supported on one end, such as a balcony.
A limit on
the amount the interest rate or monthly payment can increase in an
wood-frame or shingled house with a steep roof and several windows projecting
from the second floor.
to create income, such as funds invested in rental property.
The cost of
making improvements on a property.
investor makes from the sale of real estate or investments.
placed on the profits from the sale of real estate or investments.
improvement that extends the life or increases the value of a piece of property.
mathematical formula that investors use to compute the value of a property based
on net income.
percentage rate of return estimated from the net income of a piece of property.
A group of
real estate agents who tour a house that has been recently listed for sale.
A roof that
covers a driveway or other parking area.
hinged on its sides to allow it to swing open vertically.
of cash a rental property investor receives after deducting operating expenses
and loan payments from gross income.
refinancing of a mortgage in which the money received from the new loan is
greater than the amount due on the old loan. The borrower can use the extra
funds in any manner.
A check the
bank draws on itself rather than on a depositor's account.
A high open
ceiling formed by finishing exposed roof rafters.
or silicon sealant used to fill cracks, crevices and holes in a home.
notice, that asks a court to suspend action until the party which filed the
challenge can be heard.
principle derived from Latin than means "let the buyer beware."
standard height of a ceiling is eight feet.
that generates cold air through an outside unit that is connected to ductwork
inside the house.
The area of
a city where most large businesses are located.
Certificate of Deposit (CD)
which shows that the bearer has a specified amount of money on deposit with a
bank, stock-brokerage firm or other financial institution.
Certificate of deposit index
based on the interest rates on six-month CDs. It used to determine the interest
rate for some adjustable-rate mortgages.
Certificate of eligibility
issued by the Veterans Administration that verifies the eligibility of a veteran
for a loan program.
Certificate of occupancy
which states that a home or other building has met all building codes and is
suitable for habitation.
Certificate of sale
issued at a judicial sale, which entitles the buyer to receive a deed after
court confirmation of the purchase of the property.
Certificate of title
opinion on the status of a piece of property based on an examination of the
official record that details the ownership history of a piece of property.
trim installed on a wall about 32 inches above the floor, which protects against
scuffs from furniture.
adjustment schedule on an adjustable-rate mortgage.
modification of the construction contract to authorize a change in the work, an
adjustment in the amount of the contract or a change in the contract time. The
owner, architect and contractor must sign the change.
property such as furniture, clothing or a car.
A lien on
personal property used as collateral for a loan.
wall or lining of a fireplace or furnace chimney.
inside a chimney that channels smoke and heat to the outside.
pipe at the top of a chimney that increases ventilation to the fireplace and
made of ash and cement that is used in construction.
used below a basement or around a foundation to promote drainage.
fuse that activates or deactivates a circuit.
A tank used
to store rainwater.
Classified property tax
A tax that
varies in rate depending on the use of the property.
that does not have liens, defects or other legal encumbrances.
procedure in which documents are signed and recorded, and the property is
incidental to the sale of real estate, including loan, title and appraisal fees.
which details the final financial settlement between a buyer and seller and the
costs paid by each party.
encumbrance on real property.
A method of
squeezing more homes into less space.
housing units that are clustered around a common building where residents share
cooking and other activities.
that involves the use of two or more insurers.
who signs a promissory note with the borrower and assumes responsibility for the
party who signs a promissory note and takes responsibility for the debt.
A change to
a will that adds or subtracts provisions or clarifies portions of the document.
cornerstone of a building that differs in shape or color from the rest of the
structural element that connects roof rafters.
security that a borrower supplies to obtain a loan.
of steps a lender takes to bring a delinquent mortgage up to date.
of two or more people to break the law.
Unincorporated communities along the U.S.-Mexico border.
upright structure that consists of a base, a round or square shaft and a
base for a load-bearing column. The footing is usually made of reinforced
door with interchangeable screen and glass panels.
with interchangeable screen and glass panels.
institution that provides a broad range of services, from checking and savings
accounts to business loans and credit cards.
that is zoned for businesses.
of money held in trust with other funds.
negotiable percentage of the sales price of a home that is paid to the agents of
the buyer and seller.
by a lender to make a loan with specific terms for a specified period.
The fee a
lender charges for promising to make a loan.
inside a housing development that is owned by all residents.
A body of
laws based on custom, usage and rulings by courts in various jurisdictions.
by the owners of a condominium project or planned-unit development to maintain,
repair, improve or operate common areas.
composed of individually owned units that share usage and financial
responsibility for common areas.
Community Reinvestment Act
law that encourages financial institutions to loan money in the neighborhoods
where minority depositors live.
accumulated through the joint efforts of husband and wife. It is a
classification of property peculiar to certain states.
distance and time it takes a person to reach the workplace.
used as comparisons to determine the value of a certain property.
Comparative market analysis
of the value of a property based on an analysis of sales of properties with
A term for
a buyer who is legally fit to enter into a sales contract.
interest paid on the principal balance in a mortgage and on the accrued and
unpaid interest of the loan.
of pouring concrete into forms on the ground, allowing the forms to harden and
then raising the material to a vertical position to form walls.
the government uses to take private property for public use without the consent
of the owner.
by a lender to make a loan if the borrower meets certain conditions.
units in a building or development in which owners hold title to the interior
space while common areas such as parking lots, community rooms and
recreational areas are owned by all the residents.
in title from a single owner of an entire project or building to multiple owners
of individual units.
pipe that houses electrical wiring.
written agreement between two parties to have a judgment entered and recorded.
that is legal, has value and induces a person to enter into a contract.
that an owner arranges for the construction of a project.
and specifications from an architect that provide detailed requirements for the
construction of a project.
loans a lender makes for the construction of homes and buildings. The lender
disburses the funds in stages.
Construction to permanent loan
conversion of a construction loan to a longer-term traditional mortgage after
construction has been completed.
Credit Counseling Service (CCCS)
nationwide, nonprofit organization that helps consumers get out of debt and
improve their credit profile. National headquarters: 801 Roeder Road, Suite 900
Silver Spring, MD 20910. Phone: (800) 388-2227.
that features streamlined shapes, large unadorned windows and industrial
property that are adjoined.
specified in a purchase contract, such as a satisfactory home inspection.
listing with a special condition attached.
A fee that
must be paid if a certain event occurs.
agreement between two or more parties that creates or modifies an existing
in which the seller agrees to defer all or part of the purchase price for a
specified period of time.
the buyer initiates which details the purchase price and conditions of the
transaction and is accepted by the seller. Also known as an agreement of sale.
individual who contracts for the construction of a home or project.
obligation such as a mortgage or trust deed.
restrictions imposed on the amount or type of new development in an area.
loan a lender makes for the purchase of a home.
Convertible adjustable-rate mortgage
which starts as an adjustable-rate loan, but allows the borrower to convert the
loan to a fixed-rate mortgage during a specified period of time.
transfer of title of property.
imposed on the transfer of real property.
estate broker who finds a buyer for a property that another broker has listed.
trust that holds the title to a cooperative residential building and grants
occupancy rights to shareholders in the corporation.
related to a cooperative residential project.
in which a corporation holds title and sells shares representing individual
units to buyers who then receive a proprietary lease as their title.
reinforcement placed in the corner where two walls intersect.
on the value of a property because it is situated on a corner or near a corner.
horizontal molding that projects from the top of a structure or wall.
arrangement by which employers pay to transfer and move employees.
or desired repairs to remedy problems uncovered by a home or specialized
construction contract that determines the builder's profit based on a percentage
of the cost of labor and materials.
to an offer.
assurance or promise in a deed or other document, or implied by the law.
Covenants, conditions and restrictions (CC&Rs)
regulations for a development, such as acceptable landscaping or improvements
that can be made to individual units.
architectural style that evolved as part of the Arts and Craft movement near the
turn of the century.
between the ground and the first floor of a home, usually no higher than four
home-financing arrangements that help sell a property.
The money a
lender extends to a buyer for a commitment to repay the loan within a certain
A record of
an individual's current and past debt payments.
that pays off a mortgage in the event of the borrower's death.
of credit worthiness assigned to a person based on credit history and financial
bureau report that shows a loan applicant's history of payments made on previous
debts. Several companies issue credit reports, but the three largest are Trans
Union Corp., Equifax and Experian (formerly TRW).
companies that gather financial and credit information from various sources
about individuals who have applied for credit.
cooperative organizations that provide banking and financial services, including
mortgages, home improvement loans and home equity loans, to their members.
individual or institution to which a debt is owed.
strengthening of a structure by bracing cross members between beams.
A street or
alley that is closed at one end.
structure that sits on top of a roof.
deficiency in a property that is easy or inexpensive to fix, such as chipping
impression of a house as seen from the street.
wall that encloses a yard or other area but does not provide any structural
support to a home.
who constructs a home or building based on plans created by the owner.
designed by an architect hired by the owner.
knows the cost of everything and the value of nothing.
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plate in a fireplace that allows smoke and fumes to travel up the chimney's
of time a property is listed for sale until it is sold or taken off the market
require a key to open from the outside and a turn button from the inside.
one person owes to another.
floored area that adjoins a house.
document that transfers ownership of a piece of property.
that gives a lender the right to foreclose on a piece of property if the
borrower defaults on the loan.
Deep-seal floor drain
used to dispose of water from the basement floor to a sewer line.
to fulfill a duty or promise or discharge an obligation, such as making monthly
or maintenance of a piece of property that has been postponed, resulting in a
decline in property value.
that involves a borrower who is behind on payments. If the borrower cannot bring
the payments up to date within a specified number of days, the lender may begin
of soil to determine if the surface can support the foundation of a house.
rectangular blocks that project from a building, usually under cornices or along
by the buyer with an offer to purchase property. Also called earnest money.
in value of a piece of property.
in which the owner contracts directly with an individual or company to perform
design and construction.
architects, designers are limited to drawing blueprints.
are incorporated into house listings to give potential buyers a view of the
show the layout of a house but are less detailed than full blueprints.
insurance policy that covers an individual's ability to produce income.
to a potential buyer listing information relevant to a piece of property, such
as the presence of radon or lead paint.
Fees that a
borrower pays at the time the lender makes the loan. A point equals 1 percent of
the total loan amount.
that is in poor physical or financial condition.
A list of
documents a lender requires when a potential submits a loan application.. The
required documents range from paycheck stubs to credit card statements.
hemispherical ceiling that projects upward without support.
primary or permanent home.
set upright in a sloping roof.
that consists of two sashes that slide up and down.
lock two pieces of wood together with meshed teeth.
of money a buyer agrees to give the seller when a sales agreement is signed.
Complete financing is later secured with a lender.
gutter that empties water from the roof to the ground.
A system of
gutters and drainpipes that carry water away from the foundation of a house.
made to subcontractors or suppliers from a construction loan.
ceiling built lower than the original ceiling.
decay that causes wood to become brittle and crumble.
construction material composed of gypsum or plaster wrapped in paper and
produced in large sheets that can be nailed to wall studs.
relationship in which a real estate agent or broker represents both parties in a
Any kind of
pipe or channel that carries water, wiring or conditioned air through a house.
language in a mortgage which states that the loan must be paid when a house is
that consists of two separate family units.
that features barn-like gambrel roof, a ground-level front porch, and dormers.
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condition in which buyers can occupy the property before the sale is completed.
buyer gives with an offer to purchase a property. Also called a deposit.
that provides coverage against damage to a home from an earthquake.
given to a third party to use a portion of the property for certain purposes,
such as power lines or water mains.
projecting overhang at the lower edge of a roof.
The age of
a structure estimated by its condition rather than its actual age.
Effective gross income
income that a lender considers when assessing the loan application of a
that transfers power from the utility line into a house to be distributed
through fuses or circuit breakers.
exterior view of a home design that shows the position of the house relative to
the grade of the land.
extension or wing of a house that is at right angles to the main structure.
government's right to condemn private land for public use, such as the routing
of a public highway.
which help employees purchase homes through special plans developed with
buyers who have raised their families and want to move into a smaller home.
other structures that extend into the property of another owner.
A claim or
lien on a property that complicates the title process.
conversion from a construction loan to permanent financing a condominium buyer
secures after all units in a project have been completed.
who signs over ownership of property to another party.
architectural design that features stone or brick exterior walls and exposed
Environmental impact statement
government-mandated evaluation of all aspects and effects a development will
have on the environment of a proposed site.
Environmentally friendly home construction
A method of
construction that utilizes recycled materials.
Credit Opportunity Act.
law that prohibits a lender or other creditor from refusing to grant credit
based on the applicant's sex, marital status, race, religion, national origin or
age. The law also prohibits a creditor from refusing to grant credit because the
applicant receives public assistance.
Credit Information Services, Inc., is one of the "Big Three" credit-reporting
bureaus that operate nationwide. Address: P.O. Box 740249, Atlanta, GA 30374.
determination of the value of a property after existing liens are deducted.
and omissions insurance
that pays for any mistakes a builder or architect makes in a project.
third party holds the documents and money involved in a real estate transaction
and ensures that all conditions of a sale are met.. Escrow also refers to a
special account that a lender establishes to hold monthly installments from the
borrower to cover property taxes and insurance.
that a lender or mortgage servicer establishes to hold funds for the payment of
expenses such as homeowners insurance and property taxes. Also known as an
third party who ensures that all conditions of a real estate transaction are
periodic examination of an escrow account to determine if the lender is
withholding enough funds from a borrower's monthly mortgage payment to pay for
expenses such as property taxes and insurance.
closes when all conditions of a real estate transaction are met and the title of
the property is transferred to the buyer.
act as neutral third parties to ensure that all conditions that the buyer,
seller and lender establish in a real estate transaction are met.
a mortgage servicer withdraws from a borrower's escrow account to pay property
taxes and insurance.
assets of a person, including real property, at the time of death.
procedure to remove a tenant for reasons including failure to pay rent.
Examination of title
inspection by a title company of public records and other documents to determine
the chain of ownership of a property.
of clearing trees, removing topsoil and grading land before the foundation is
that gives an agent the exclusive right to market a property for a specific
period of time.
appointed to carry out the instructions in a will. If there is no will, a
probate court will appoint an executor.
devices that remove water vapor, undesired smells or smoke.
formerly known as TRW Information Systems & Services, is one of the "Big Three"
credit-reporting bureaus.. Address: 505 City Parkway West, Orange, CA 92868.
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that are insured by the Federal Housing Administration. The FHA's 203(b) loan
program provides low-rate mortgages to buyers who make a down payment as small
as 3 percent. The agency also operates loan plans for investors and purchasers
of rural property.
The part of
a building facing the street or a courtyard.
Credit Billing Act
law that governs credit and charge card billing errors. If a credit or charge
card company violates any provision, consumers can sue to recover damages.
Credit Reporting Act.
law passed in 1971 that regulates the activity of credit bureaus. It is designed
to prevent inaccurate or obsolete information from staying in a consumer's
credit file and requires credit bureaus to have reasonable procedures for
gathering, maintaining and disseminating credit information. The act also
requires credit bureaus to show a consumer their credit file if the consumer
presents proper identification, although the bureau reserves the right to charge
a fee for doing so.
Debt Collection Practices Act.
law passed in 1977 which outlaws debtor harassment and other types of collection
practices. The act regulates collection agencies, original creditors who set up
a separate office to collect debts, and lawyers hired by the creditor to help
collect overdue bills. An original creditor--the company or individual that
originally granted the credit--is not covered by the act, but may be covered by
similar measures approved by state governments.
federal law passed in 1965 and amended in 1988 that makes it illegal to deny
rent or refuse to sell to anyone based on race, color, religion, sex or national
origin. The 1988 amendment expanded the protections to include family status and
official name of the Federal National Mortgage Association, it is a
congressionally chartered, shareholder-owned company that buys mortgages from
lenders and resells them as securities on the secondary mortgage market.
Department of Agriculture agency that provides credit to farmers and rural
that connects the ends of the roof rafters and provides a surface to support
Home Loan Mortgage Corporation, law
Home Loan Mortgage Corporation, commonly known as Freddie Mac. The company buys
mortgages from lending institutions, pools them with other loans and then sells
shares to investors.
Housing Administration (FHA)
government agency operates a variety of home-loan programs. Its most popular is
the Sec. 203(b), program, which provides low-rate mortgages to buyers who make a
down payment as small as 3 percent.
National Mortgage Association
officially dubbed Fannie Mae, this federally chartered agency buys mortgages
from lending institutions, pools them with other loans and sells shares to
A group of
economists and other experts who set the nation's monetary policy. Its chief
tool to control inflation is the power to control interest rates.
government agency responsible for regulating a variety of companies and
industries, from credit bureaus and collection agencies to timeshare operators
and certain types of creditors. National headquarters: Sixth and Pennsylvania
Avenue NW, Washington, D.C. 20580. Phone: (202) 326-2222.
all-American home architecture style that evolved after the Revolutionary War.
Details include bigger windows and a front doorway surrounded by glass and
topped with an arched window.
of ownership is the maximum interest a person can have in a piece of real
estate. It entitles the owner to use the property in any manner they see fit, in
accordance with state and local laws.
of the property holds a fee simple title contingent upon certain conditions.
Chinese belief that the physical characteristics of a house and the positioning
of the home will affect the fortunes of the owner.
relationship of trust that buyers and sellers expect from a real estate agent.
The term also applies to legal and business relationships.
Modifications made on the construction site that do not match blueprints.
brought in to solidify a finished foundation.
where the ground has been raised by adding dirt, gravel or other fill material.
A fee in
any amount that is paid to someone.
that prepares a lot for landscaping.
composed of fire-resistant material.
made by a lender when it agrees to loan money for the purchase of property.
mortgage on a property that has priority over all other voluntary liens.
payment on a home loan.
specific weeks in a year an owner of a timeshare arrangement has access to
A home loan
with an interest rate that will remain at a specific rate for the term of the
loan. About 75 percent of all home mortgages have fixed rates.
that needs refurbishment or remodeling It usually sells at a below-market price.
property permanently attached to a house, such as drapery rods, toilets,
built-in bookcases or a furnace.
strips placed around chimneys, skylights, vents, windows, doors, beneath
shingles and along seams in the roof to prevent water seepage.
A set fee
charged by a broker instead of a commission.
A roof with
a level surface.
that diverts water from the basement to a collection area. Water is then removed
with a sump pump.
to withstand movement in the basement floor.
coverage that is required in designated flood areas.
flood-prone areas located along waterways.
calculation of the floor area of all homes or buildings in a project. It is used
in the planning and development of a site.
porches built on the side or back of a home.
foundations that support a structure.
By Owner (FSBO)
acts as the agent to avoid paying a sales commission.
A course of
action a lender may pursue to delay foreclosure or legal action against a
process reserved by a lender to terminate the borrower's interest in a property
after a loan has been defaulted. When the process is completed, the lender may
sell the property and keep the proceeds to satisfy its mortgage and any legal
costs. Any excess proceeds may be used to satisfy other liens or be returned to
relinquishing of property rights by a delinquent borrower.
structure of a house.
entrance hall to a home or building.
construction of the skeletal framework of a house.
name for the Federal Home Loan Mortgage Corporation, a congressionally chartered
institution that buys mortgages from lenders and resells them as securities on
the secondary mortgage market.
these types of lots may hire any builder to construct their home.
adjoining doors inlaid with glass that open from the middle.
of property that borders a roadway or body of water.
amortized adjustable-rate mortgage
that amortizes, or pays down, the balance of a loan.
heating device powered by coal, oil, propane or natural gas.
that allows power to be channeled into a home.
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triangular wall enclosed by the sloping ends of a ridged roof or a triangular
roof that forms a triangle at each end.
in contracts signed by new buyers that prohibits the owners from publicizing
complaints about the builder.
A roof with
two slopes, often seen on barns.
who hires all of the subcontractors and suppliers for a project.
government's long-range land-use plan.
constructed of lightweight bars forming a grid of polygons.
throughout the 18th century, this type of architecture is distinguished by a
symmetrical facade, prominent front entrance and quoins-decorative blocks of
masonry or wood set in the corners of the house.
A cash gift
a buyer receives from a relative or other source. Lenders usually require a
"gift letter" stating that the money will not have to be repaid.
intricate, almost lacy, wood trim.
that support floor joists.
from an institutional lender that shows the costs a borrower will incur,
including loan-processing charges and inspection fees.
Government National Mortgage Association
known as Ginnie Mae, this agency buys home loans from lenders, pools them with
other loans and sells shares to investors. Ginnie Mae differs from its cousins,
Fannie Mae and Freddie Mac, in that it only purchases loans backed by the
amount of time to make a loan payment after its due date without penalty.
elevation of land above level ground.
The flat or
sloping surface upon which a house is built.
Graduated-payment mortgage (GPM)
that requires a borrower to make larger monthly payments over the term of the
loan. The payment is unusually low for the first few years but gradually rises
until year three or five, then remains fixed.
for a separate unit in a house or above the garage, which in the past may have
been occupied by an elderly relative.
conveyed an interest in a piece of property.
who conveys an interest in a piece of property to another person.
introduced in the U.S. at the end of the 18th century. Its most prominent
feature is a pillar-anchored pediment forming a portico in the front of the
of park, open space or other natural setting in a community.
income of a household before taxes or expenses are subtracted.
fault circuit interrupter
that detect leakage of electrical current to the ground and prevent accidental
of money paid for the use of a piece of property when it is a leasehold estate.
single-family residence used as a living space for unrelated, developmentally
disabled or mentally disabled people.
rate mortgage that increases payments over a specific period of time. The extra
funds are applied to the principal.
guaranteed by a third party, such as a government institution.
channels installed at the edge of a roof to carry rainwater or melted snow away
from the house.
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Uniform Settlement Statement
statement or settlement sheet that outlines all closing costs on a real estate
transaction or refinancing.
a powder room, a half-bath contains a toilet and a sink but no bathtub or shower
provision of homeowners insurance covers damage by fire, wind or other disaster.
It is required by all lenders before a loan is approved.
above windows and doors.
cooling and heating system.
equivalent of 2.471 acres.
concentration of housing units in a specific area or on a specific property.
building higher than six stories.
roof with sloping sides.
physical rehabilitation of a historic home or building, and the movement of the
same name begun in the 1960s in the U.S. to preserve and protect landmarks and
A home or
building listed in the National Register of Historic Places and certified as
historic by the U.S. Secretary of the Interior.
equity conversion mortgage
to older owners who want to convert equity into money. Because borrowers are
qualified on the basis of the value of their home, e, the loan is not the same
as a home equity loan. Also known as reverse mortgages.
A loan that
allows owners to borrow against the equity in their homes.
examination of a home's construction, condition and internal systems by an
inspector or contractor prior to purchase.
of a local government to adopt its own land-use regulations.
A type of
insurance that covers repairs to certain parts of a house and some fixtures.
that governs a modern subdivision or planned community. An association collects
monthly fees from all owners to pay for maintenance of common areas, handle
legal and safety issues, and enforce the covenants, conditions and restrictions
set by the developer.
insurance includes hazard coverage for any damages that may affect the value of
a house, in addition to personal liability and theft coverage.
insurance policies that cover certain home repairs for a specified amount of
that to protects some of a home's equity from lawsuits.
that contains a single sash that tilts inward.
faucet connection for devices such as a washing machine.
polyethylene barrier wrapped around a house to save energy.
practice of denying an individual or group the right to buy or rent a home based
on race, color, religion, national origin, sex, disability or family status.
percentage of gross monthly income devoted to housing costs.
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collected from developers of new homes to pay for schools, parks and other
warranty of habitability
which determined that all new homes are assumed to be fit for human habitation
and meet all building codes.
of the monthly mortgage payment that is placed in an account and used to pay for
hazard insurance, property taxes and private mortgage insurance.
Computer-generated reports drawn from credit repositories that are generally
regarded as objective histories.
that is not occupied by the owner but is used to generate income.
A defect in
a property that cannot be fixed, such as an adjacent hazardous waste site, or
that would cost too much to repair relative to the value of the property.
tables used by lenders to calculate interest rates on adjustable mortgages and
on Treasury bills.
Individual Retirement Account
Tax-deferred savings accounts that allow people to accrue retirement funds.
significant new construction in an established area.
construction in established areas.
occurs when there is more money available than there are goods and services to
be purchased. Mortgage rates, which are determined by the marketplace and the
actions of the Federal Reserve Board and Wall Street, are sensitive to inflation
schools, parks, utilities, bridges and communications systems in a community.
original interest rate on an adjustable mortgage.
examination of a home's exterior, foundation, framing, plumbing, electrical
system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and
agreement in which the buyer does not receive title to the property until all
installments are paid.
including cellulose, glass fiber, rock wool, polystyrene, urethane foam and
vermiculite that slow heat loss.
property that a company agrees to insure against defects and disputes.
buyers can purchase various types of insurance: hazard, private mortgage and
earthquake. The policies guarantee compensation for specific losses.
insurance arrangement usually put in force until a permanent policy can be
borrowers pay to obtain a loan. It is calculated based on a percentage of the
The rate at
which interest accrues on a mortgage.
expressed as a percentage, charged for a loan. Interest payments on most home
loans are tax- deductible.
rate buy-down plans
cash-short buyers, some sellers are willing to advance funds from the sale of
the home to buy down the interest rate and reduce the buyer's monthly
A limit on
the amount that can be charged to the monthly payment of an adjustable-rate
mortgage during an adjustment period.
interest a lender can charge for an adjustable-rate mortgage.
only the interest that accrues on the loan balance each month. Because each
payment goes toward interest, the outstanding balance of the loan does not
decline with each payment.
that generates income, such as an apartment building or a rental house.
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that consists of vertical rows of horizontal glass slats that operate together
by a crank mechanism that connects all the slats.
responsibility of two or more people to fulfill the terms of a home loan or
by two or more people that gives equal shares of a piece of property. Rights
pass to the surviving owner or owners.
A floor or
ceiling support member supported by foundation walls, piers or beams.
Subflooring is connected to floor joists.
decision of a court or law. If a court decides that a person must repay a debt,
a lien may be placed against that person's property.
to handle foreclosure proceedings as civil matters.
exceed limits set by Fannie Mae and Freddie Mac. The current limit is $214,600.
A loan that
subordinate to the primary loan.
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that contains prefabricated components and is put together by a contractor.
structure that supports roof rafters.
old-fashioned wiring system that has been replaced by fuses and circuit
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surroundings can range from a shrub-studded emerald lawn to a native-plant
xeriscape. It is a major component of curb appeal.
professional who holds a degree in landscape architecture, which involves
training in horticulture, landscape design and planning.
professional who carries out the plans of a landscape architect or a landscape
designer has training in horticulture and landscape planning, but does not
necessarily hold a degree.
A fee a
lender imposes on a borrower when the borrower does not make a payment on time.
A payment a
lender receives after the due date has passed.
invisible problem in a piece of property such as bad wiring, termite damage or
chemical element present in older dwellings, primarily in the form of lead-based
paint and lead plumbing. Exposure to lead has been found to be a health risk.
agreement that contains the terms and conditions of a renter's occupancy.
that contains the right to purchase the property for a specific price within a
certain time frame.
arrangement in which the borrower does not own a specific piece of property but
possesses a long-term lease.
on a piece of property, such as a zoning violation or fraudulent title claim.
way of identifying and locating a piece of real estate that is acceptable to a
savings institution or mortgage company that offers home loans.
statement that the buyer intends to purchase the property for a certain price on
a certain date.
The use of
a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece
borrower's debts and financial obligations.
that protects owners against any claims of negligence, personal injury or
laid by one person or company on the property of another as security for money
A limit on
the amount that a loan rate can move during the term of the mortgage. For
example, the rate on an adjustable-rate mortgage that begins at 5 percent and
has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if
rates on fixed-rate mortgages soar to 20 percent.
Life-cycle cost analysis
of a building project's expected operating, maintenance and replacement costs,
calculated by an architect.
syndicates and other investment groups use this type of ownership.. A general
partner makes the group's investment decisions, oversees the investment and is
principally liable for any losses.
horizontal piece over a door or window that carries the weight of the structure
all other assets that can be converted to cash relatively quickly. Liquid assets
can include money in savings and checking accounts, money-market accounts, and
most certificates of deposit.
When a real
estate deal goes awry, one party often is entitled to liquidated damages, a sum
of money set out in the purchase contract in that event.
A piece of
property placed on the market by a listing agent.
number of houses for sale within a given market.
arrangement in which two unrelated people purchase a home.
officially designated dwelling in which the occupant conducts a home-based
business or enterprise.
A wall that
supports not only its own weight, but the weight of other parts of a home. Also
called a bearing wall.
measure used by lenders to assess the relationship of the loan amount to the
value of the property
step toward submitting a home loan requires the borrower to itemize basic
charged by lenders to for making a loan application.
by a lender or other financial institution to make or insure a loan for a
specified amount and on specific terms.
representative of a lending institution who is empowered to act on behalf of the
lender within certain limits.
lenders charge borrowers an origination fee--or points--for processing a loan. A
point is 1 percent of the total loan amount.
charged by some lenders for gathering information to enable the lender to
process the loan.
of a time set by the lender for a buyer to pay a mortgage. Most conventional
loans have 30-year or 15-year terms.
interest rates are volatile, many borrowers want to "lock in" an interest rate
and many lenders will oblige, setting a limit on the amount of time the lock-in
is in effect.
space not partitioned into rooms or a small space built above a larger room.
constructed of rough-hewn timbers and a standard housing form in the early
European settlement of the U.S.
concentration of housing units in a specific area.
made to a seller that is substantially below market value. The longer a property
stays on the market, the more likely there are to be such offers.
that requires only minimal verification of income and assets.
A home loan
that requires the borrower to make only a small down payment before obtaining
the financing needed to purchase a house.
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water shut-off valve
valve that halts the flow of water from the water meter into a home.
assessment members of a homeowners' association pay for the repair and
maintenance of common areas.
which buyers choose between one of several builders.
A roof with
four sides that slope upward from the roof edge to the square peak.
of stone, marble or other material around a fireplace.
Prefabricated homes that can range from simple trailers to larger dwellings.
lender's "retail markup" on the mortgage. For example, if the index rate for an
adjustable-rate mortgage is 5 percent but the lender has a 2.5 percentage-point
margin, the rate the borrower will pay is 7.5 percent.
affecting the sale and purchase of homes at a particular point in time.
that a piece of property sells for at a particular point in time.
or stone work on a building.
plan that includes homes and commercial, work, educational and community
amount within 5 percent of the highest loan-to-value ratio allowed for a
Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's
lien, against a property to seek payment.
plumbing, wiring, heating and cooling systems.
of the house that falls in the middle of the total number of homes for sale in
dispute-resolution process in which a neutral party works to resolve contract
that draws information from the Big Three credit-reporting companies: Equifax,
Experian and TransUnion Corp.
time-honored land surveying method of describing land in terms of shape and
condition, or blue-ribbon condition, refers to a house that looks as close to
new as possible.
neighborhood that contains houses of widely varying prices.
that combines several different functions, such as residential space above a
commercial establishment or an entire development combining commercial,
residential and public accommodations.
A change in
any of the terms of the loan agreement.
trim elements applied to walls, ceilings, and window and door openings.
that work like money market funds and allow individual investors to participate
in certain managed investments and withdraw funds under most conditions.
fund that pools the resources of individuals to invest in certain managed
document specifying a certain amount of money to purchase a home at a certain
interest rate, and using the property as collateral.
which allows a lender to demand that the entire balance of the loan be repaid in
a lump sum under certain circumstances. The acceleration clause is usually
triggered if the home is sold, title to the property is changed, the loan is
refinanced or the borrower defaults on a scheduled payment.
that provides home loans using its own money. The loans are usually sold to
investors such as insurance companies and Fannie Mae.
that matches lenders with prospective borrowers who meet the lender's criteria.
The mortgage broker does not make the loan, but receives payment from the lender
lenders in some loans to protect them from a possible default . All conventional
loans with less than a 20 percent down payments require private mortgage
insurance, or PMI.
type of insurance that will pay off a mortgage if the borrower dies before the
debt is retired.
write-off that the Internal Revenue Service allows most owners to claim for the
annual interest payments they make on their real estate loans.
A bank or
other financial institution that lends money to the borrower. The borrower is
considered the mortgagor.
who borrows money to purchase a house. The lender is called the mortgagee.
with a strong incentive to make a purchase.
with a strong incentive to make a deal.
that is ready for a new occupant.
A buyer who
has purchased a home before and is looking for a bigger or more expensive home.
dividing bar between window lights or panels.
that contains individual units for several households but carries only one
on a multifamily dwelling with more than four families, typically an apartment
listing service (MLS)
combines the listings for all available homes in an area, except
For-Sale-By-Owner (FSBO) properties, in one directory or database.
purchase offers occur in hot markets or hot neighborhoods.
Municipal housing inspector
employed by cities or counties to check all construction sites and verify that
contractors are meeting building codes.
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(Not In My Back Yard)
response sometimes given by neighborhoods and communities to proposed changes or
load-bearing parts of new homes that pop out slightly because of settling of the
asking price that is based on factors such as the required funds to pay off the
mortgage, the cost of remodeling or the purchase of another house.
situation occurs when a borrower's monthly payment is not large enough to cover
both the principal and interest of a loan. As a result, the outstanding balance
of the loan actually grows larger with each payment rather than smaller. Most
fixed-rate loans are not subject to negative amortization, but many
adjustable-rate mortgages are susceptible.
that drops from street level to the garage.
a community that favors the return of new-home development with such traditional
features as grid-street patterns, prominent front porches, backyard garages,
multi-use buildings and housing clustered near commercial service areas.
property that generates income after expenses such as principal, interest, taxes
and insurance are subtracted.
of a person or company based on the difference between total assets and
design philosophy that favors the return of new-home development with such
traditional features as prominent front porches, backyard garages, multi-use
buildings and housing clustered near commercial service areas.
recessed area in a wall, traditionally arched at the top.
of the new mortgage covers the remaining balance of the first loan, closing
costs, any liens and cash no more than 1 percent of the principal on the new
A lot in
which the buyer's home will be constructed by a particular builder.
application that does not require verification of income but typically is
granted in cases of large down payments.
provision that prohibits the transfer of a mortgage to another borrower without
such as a house that is not easily turned into cash.
Non-recurring closing costs
are one-time only fees for such items as an appraisal, loan points, credit
report, title insurance and a home inspection.
document that requires a borrower to repay a mortgage at a certain interest rate
over a specified period of time.
interest rate specified in a mortgage note.
initial action when a mortgage payment is late and attempts to reconcile the
issue out of court have failed.
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real estate listings
listed for sale on the Internet.
tool in which a listing agent opens a house for view.
given to a number of brokers to market at the same time.
land or common areas in a planned community reserved for parks, walking paths or
other natural uses.
in which a buyer puts down money for the right to purchase a piece of real
estate within a set time period but does not have an obligation to buy.
arrangements that are not in writing and are usually not legally binding.
of principal owed on a loan before a borrower makes any payments.
charged by most lenders--also called points--for processing a loan. A point is 1
percent of the total
protruding structural feature.
transaction in which the seller of a property agrees to finance all or part of
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(Principal, Interest, Taxes, Insurance)
buyer applies for a loan, the lender will calculate the principal, interest,
taxes and insurance. The figure is designed to represent the borrower's actual
monthly mortgage-related expenses.
or division of a wall, ceiling or a flat piece of building material that forms
the part of the surface of a wall, door or cabinet.
wood or wood material applied as a finish to a wall.
officially described piece of land.
of grass between the sidewalk and the street in front of a house.
Any kind of
structure dividing one room or space from another.
several partnership options for unmarried individuals to buy a piece of
property, such as live-in partnerships (in which both buyers share the
residence) or a shared-equity partnership (in which one buyer lives in the home
and the other is an investor in the property).
A tax term
that refers to any loss from a passive activity, such as the ownership but not
the operation of a piece of rental real estate.
that supplies solar heat without the use of electric fans or pumps.
deficiency in a piece of property, such as a cracked basement slab or a sagging
courtyard or a paved backyard area.
limit on the amount a monthly payment can increase on an adjustable-rate
charged or accrued daily.
A test used
to determine the ability of soil to accommodate a septic system.
that produces leaves, flowers and seeds from year to year, such as irises or
with an open roof of rafters supported by posts or columns.
moveable property in a house such as furniture or appliances.
pest-control inspection is a termite inspection, which is required in some
states, such as California.
rectangular masonry support column.
began in the 19th century and describes any town or neighborhood built with
certain guidelines and goals.
own the home and the land, and share the use and financial responsibility for
labor-intensive and more costly wall finish.
door that retreats into the wall when opened.
charged by lenders at the time a loan is originated. A point is equal to 1
percent of the total loan amount.
structure can be a simple covered entrance to a home or a fully enclosed room on
the outside of a residence.
porch-like roof extending over a driveway.
who makes loans with its own funds and keeps the loans on the company's
books--in other words, inside the institution's "portfolio"--rather than selling
the loan on the secondary market.
supported by a row of columns.
buyer signs the papers and receives the keys to the house, the buyer officially
that authorizes an individual to act on behalf of someone else.
from a lender that informs a seller about the amount of money that a potential
buyer can obtain.
are sold before they are built.
for taxes, insurance and assessments paid before the due date.
paid before it is due. For example, at the close of a real estate transaction
borrowers usually pay for the interest on their loan that falls between the
closing period and the first monthly payment.
impose a penalty on a borrower who pays a loan off before its expected end date.
lenders will prequalify a borrower who is shopping for a loan by completing a
preliminary assessment of the buyer's ability to pay for a home.
vent that relieves excess pressure in a water heater.
of how much a buyer is willing to pay for a home.
coat of paint that is applied before the final topcoat.
of money that the borrower owes on a mortgage.
Principle of conformity
that a house will more likely appreciate in value if its size, age, condition
and style are similar to, or conform to, other houses in the neighborhood.
Principle of progression
appraisal term which states that real estate of lower value is enhanced by the
proximity of higher-end properties.
Principle of regression
appraisal term which states that the value of higher-end real estate can be
brought down by the proximity of too many lower-end properties.
erected between two pieces of property.
mortgage insurance (PMI)
type of loan insurance that many lenders require borrowers to purchase if the
borrower's down payment is less than 20 percent of the home's purchase price.
estate sale triggered by the death of the owner, with proceeds to be divided
among heirs or creditors.
are mass-produced by one builder in a project.
summation by an architect of a project's design objectives, constraints and
outline that includes the construction budget and all costs for land, furniture,
equipment, financing, professional services, contingencies and owner-furnished
goods and services.
official dividing line between properties.
disclosure issued by the state when a time-share project is located or sold.
taxes are calculated at about 1.5 percent of the current market value.
tax code allows homeowners to deduct the amount they have paid in property
of a piece of property is based on the price a buyer will pay at a certain time.
percentages of certain expenses associated with a piece of property that must be
paid by the buyer or the seller at the time of closing.
compile a punch list during the final walk-through detailing items to be fixed
which details the purchase price and conditions of the transaction.
that a borrower obtains to acquire a property.
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compute qualifying ratios to determine how much a potential buyer can borrow.
Victorian-era style that originated in San Francisco.
that releases a party from any interest in a piece of real estate.
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construction term that refers to the resistance of to heat loss. The higher the
R-value, the slower the rate of heat loss.
ground-generated radioactive gas that seeps into some homes through sump pumps,
cracks in the foundation and other inlets. A leading cause of lung cancer ,
radon is found in mostly the northern half of the country.
form the slope of a pitched roof and are analogous to floor joists.
alternative building process in which dirt is compacted into large structural
frames to create walls.
ranch-style homes, popularized in the 1950s, were championed by such
architectural giants as Frank Lloyd Wright.
interest rates are volatile, many borrowers want to "lock in" an interest rate
and many lenders will oblige, setting a limit on the amount of time the
guaranteed interest rate is in effect.
A loan with
a clause that entitles a borrower to a one-time cut in the interest rate without
going through refinancing.
Estate Settlement Procedures Act (RESPA)
law designed to make sellers and buyers aware of settlement fees and other
transaction-related costs. RESPA also outlaws kickbacks in the real estate
anything permanently affixed to it, including buildings, fences and other items
attached to the structure.
estate agent has a state license to represent a buyer or a seller in a real
estate transaction in exchange for a commission. Most agents work for real
who specializes in real estate transactions.
estate agent who is licensed by the state to represent a buyer or seller in a
real estate transaction in exchange for a commission. Most brokers also have
agents working for them, and are entitled to a portion of their commissions.
estate investment trusts (REITs)
are publicly traded companies that own, develop and operate commercial
any permanent fixtures on it, including buildings, trees and minerals.
designation for an agent or broker who is a member of the National Association
of Real Estate Brokers.
designation for an agent or broker who is a member of the National Association
cancellation of a contract by law or consent by the parties involved.
borrower completely pays off the mortgage, the property is reconveyed to them
from the lender.
official responsible for keeping the records of all real estate transactions.
of a specific document to the appropriate government entity.
charged by real estate agents for conveying the sale of a piece of property into
the public record.
practice by a bank or insurance company to deny credit or insurance to people
based on ethnic background or neighborhood.
of replacing an older loan with a new mortgage that has better terms.
code issued under the Truth-in-Lending Act which requires that a borrower be
advised in writing of all costs associated with the credit portion of a
that provides for the costs of repairing and improving a resale home or
provided by employers for new workers and can include moving costs,
reimbursement for temporary housing and transportation, real estate agent
assistance and discounted loans.
A firm that
administers all aspects of moving in new employees to the community.
of unpaid principal on a home loan.
original loan term minus the number of payments made.
that covers any loss of rent or rental value in the event of fire or other
damage that renders the property uninhabitable.
that covers the replacement value of possessions.
borrower falls behind in mortgage payments, many lenders will negotiate a
repayment plan rather than go to court.
Replacement reserve fund
is set aside from homeowners' assessments to replace common property, such as
furniture in a planned development's community room.
house is repossessed, it is taken back by the lender holding the mortgage.
value of a piece of property that can be affected by many factors, including the
surrounding neighborhood, school scores, and economic and housing market
homeowners associations set aside a certain amount of money for major repairs or
in which new terms are negotiated.
of profit a property generates.
type of loan available to equity-rich, older owners. Repayment is not necessary
until the borrower sells the property or moves into a retirement community.
horizontal board that serves as the apex of the roof structure.
located along the ridge board of the roof that allows moisture to escape.
agreement by a property owner to give another person the right to buy or rent
the property before it goes on the open market.
in the federal Truth-in-Lending Act that allows borrowers to cancel certain
kinds of loans within three days of signing.
installation of plumbing, electrical and other mechanical systems.
Department of Agriculture program that provides financing to farmers and certain
borrowers to purchase rural property when other funds are not available.
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transaction in which the buyer leases back the property to the seller for a
specified period of time.
signed by the buyer and sellerthat details the terms of a home purchase.
that dates to colonial times and takes its name from the shape of saltboxes.
line in a house that carries away food and human wastewater to a municipal sewer
system or a septic system.
One of two
windows in a double-hung window.
of floor plans and the exterior of a house.
loan placed upon a piece of property.
Secondary mortgage market
A market of
packaged home loans that are resold as securities to investors. Major players
are Fannie Mae and Freddie Mac.
backed by collateral.
property designated as collateral.
broker represents the interest of the seller.
agreement in which the seller provides financing for a home purchase.
agreement in which the seller provides financing for a home purchase.
A hot real
estate market in which sellers have the advantage and multiple offers are
of a semi-custom home is free to make some design changes but not to the home's
self-contained sewage treatment system that distributes wastewater to an
underground storage area and relies on bacterial action to decompose solid waste
A firm that
collects mortgage payments and manages borrowers' escrow accounts.
distance a house or buildings must be from the lot line.
that details who has paid what to whom.
A loan that
allows a lender or other party to share in the borrower's profits when the home
transaction in which two buyers purchase a property, one as a resident co-owner
and the other as an investor co-owner.
ceiling pitches upward at one end.
A shed roof
pitches up longer on one side than the other.
alternative style of Victorian homes that evolved in the late 19th century to
simplify the complexity of the traditional Victorian house.
wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber,
glass fiber or composition asphalt installed on a roof to prevent water seepage.
unobtrusive finish trim between the floor and the baseboard designed to hide any
irregularities in the seam between the floor and wall or baseboard.
threaded faucet connection for garden hoses that provides water outside a home.
horizontal piece of wood placed on top of the foundation.
A window in
a roof that allows natural light to illuminate a room.
foundation built directly on soil with no basement or crawl space.
that is composed of two windows, or sashes, that glide open and closed on a
area under the overhang of a roof.
A test of
the subsoil to ensure that foundations can be safely constructed.
that is derived from the original missions established by the Spanish in the
homeowners' association needs or wants extra funds, it levies a special
assessment upon the owners.
Rehabilitation mortgages require a special deposit account from which
restoration and remodeling funds included in the loan are disbursed to the
appropriate contractors as work is completed.
requirements for materials, equipment, construction systems and standards.
A home that
has been built without a buyer.
block used to divert runoff water from a downspout away from the foundation.
A home that
is a ranch-style house stacked to fit on a smaller lot and perhaps to
accommodate a garage.
of square feet of livable space in a home or building.
Metropolitan Statistical Area
designated by the U.S. Office of Management and Budget that contain a city of
50,000 or more.
calculation that is used to determine the monthly payment necessary to repay the
balance of a home loan in equal installments.
fall within the lower price range of a typical first-time buyer.
construction method used by commercial and residential builders.
A loan that
allows a gradual increase in the interest rate during the first few years of the
line, which is not connected to the sewer line, removes all other wastewater
from a home.
windows and screens that are installed on older double-hung windows.
transaction in which the buyer gives a new-home builder a deposit to begin
building and the balance when the sale of the house closes.
part of a lock that is anchored to the doorframe and holds the door closed.
of sand and cement used to cover the exterior surface or interior walls of a
home or building.
pieces of lumber or steel in a wall to which panels, siding, drywall or other
coverings are attached.
sheathing, usually made of plywood, placed on top of floor joists and covered by
agent brings a buyer to a property, they in effect act as a subagent to the
construction companies hired by the general contractor to perform certain tasks.
in which the owner of a large piece of property divides it into smaller parcels.
A second or
A pump that
moves water from a basement sump pit.
measurement of a piece of property by a licensed surveyor.
non-cash value put into a piece of property by the owner, such as do-it-yourself
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companies charge a tap fee for hooking up utilities.
A tax break
given by the government. Mortgage interest, loan points and property taxes can
impediment placed against a property, such as back taxes.
sale of a property by the government for nonpayment of taxes.
often applied to real estate investment and refers to various tax advantages.
that requires the entire interior to be rebuilt.
short-term rate offered on a mortgage to entice the borrower.
by the entirety
married couple owns a home, it is usually considered tenancy by the entirety If
the property must be sold to pay the debts of one spouse, both must agree.
Two or more
owners who share interest in a specific property.
can be several things: an unroofed paved area right next to a house; a roofed
balcony; a veranda; or a raised bed of earth constructed to enhance a landscape.
buyer has a house to sell before they can purchase another home, most sellers
insist on a 72-hour clause. In the event of a better offer coming in before the
contingency is settled, this clause entitles the seller to give the buyer 72
hours to remove the contingency or lose the house.
third-party origination transaction, the lender has another institution
originate all or part of a mortgage.
that involves the acquisition of a specific period of time, or that percentage
of interest, in a vacation home or resort.
legal document conferring ownership of a piece of real estate.
ensure that the title to a piece of property is clear and provide title
issued to lenders and buyers to protect any losses because of a dispute over the
ownership of a piece of property.
impediments to the transfer of a title from one owner to another.
A check of
public title records to ascertain that the seller is the legal owner and that
there are no claims or liens against the property.
state industry term that refers to agents and brokers who sell a high volume of
layer of soil that is removed when lots are graded in preparation for
percentage of monthly debt obligations relative to gross monthly income.
home that is not a condominium.
term for a production home, a mass-produced house constructed by one builder in
estate or assets a buyer gives to a seller as part of the down payment.
to buyers who purchase a home that is less expensive than their current house.
to buyers who purchase a home that is more expensive home than their current
Corp. is one of the "Big Three" credit-reporting bureaus that operate
nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390.
Phone: (312) 408-1400.
means by which a piece of real estate changes hands.
assessment by state or local authorities at the time a piece of property changes
hinged window directly above a door.
ceiling has edges that slant toward the middle from the walls.
issued by the Treasury Department that have the full backing of the U.S.
used to determine interest rate changes for adjustable rate mortgages.
decorative landscape structure made of thin strips of wood or plastic.
finishing of doors, doorways, window frames and floors.
prefabricated framework of girders, struts and other items used to support a
roof or other load-bearing elements.
accounts used by brokers and escrow agents to safeguard funds for a buyer or
empowered person who holds or controls a piece of property for another person.
law that protects consumers in a variety of ways. One of its key provisions
allows a consumer to cancel a home-improvement loan, second mortgage or other
loan if the home was pledged as security (except for a first mortgage or first
trust deed) until midnight of the third business day after the contract was
of removing old mortar from between bricks and replacing it with new mortar.
A piece of
property that is owned by one person but provides housing for up to four
adjustable mortgage with two interest rates, one for the first five or seven
years of the loan, and the other for the remainder of the loan term.
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Department. of Housing and Urban Development (HUD)
agency that oversees the Federal Housing Administration and a variety of housing
and community development programs.
A layer of
wood between the subfloor and the floor.
that lenders go through to evaluate the risks posed by a particular borrower and
to set appropriate conditions for the loan.
who claims the right to a piece of property after the death of an owner without
unidentified marital partner who can claim the right to a piece of property.
unrecorded deed transfers ownership from one party to another without being
that is not backed by collateral.
than the standard carpeting, lighting, finish carpentry and other amenities
offered to all buyers in a new-home project.
in which a property is zoned from a lower to a higher use.
unplanned expansion of development over a large area.
to illegally excessive interest charged on any loan.
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that allows most veterans to purchase a house without a down payment.
A loan rate
that moves up and down based on factors including changes in the rate paid on
bank certificates of deposit or Treasury bills.
rate that changes with fluctuations in such indexes as the U.S. Treasury bill
A loan with
an interest rate that hinges on factors such as the rate paid on bank
certificates and Treasury bills.
elongated half-cylinder that arches above the floor.
Verification of deposit
Part of the
loan process, in which a lender will ask a borrower's bank to sign a statement
verifying the borrower's account balances and history.
Verification of employment
Part of the
loan process, in which a lender asks the borrower's employer for confirmation of
the borrower's position and salary.
entrance hall or room.
Department of Veterans Affairs operates a variety of programs to help veterans.
One of the key plans it oversees is the VA loan program, which allows most
veterans to purchase a house without a down payment.
architectural style that dates from the mid-19th century.
windows sheathed in vinyl on the outside.
A lien that
a homeowner willingly gives to a lender.
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paneling, tongue-and-groove boards or similar material installed between a
baseboard and a chair rail.
relinquishing of certain rights or claims.
that allows a door to open onto ground level.
final inspection of the home to determine if conditions in the purchase
agreement have been satisfied.
binding promise to do something in the future.
areas such as swamps, marshes and floodplains.
improperly recorded deed.
basic legal document outlining the disposition of a person's estate in the event
individual pane of glass.
built under an interior window.
corrugated steel insert used to isolate basement windows from moisture if
they're below the soil line.
plastic covers designed to be installed on top of a window well to cover the
A loan to a
buyer for the remaining balance on a seller's first mortgage and an additional
amount requested by the seller. Payments on both loans are made to the lender
who holds the wraparound loan.
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at this time
at this time
built without space between them and with little or no yard.
that control the use of land within a jurisdiction.
modification of existing zoning law.
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