Appraisal Glossary of Real Estate and
Appraiser's Terms
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-A-
ABSORPTION
RATE
The
ratio of the number of properties in an area
that have been sold against the number
available. Used to show the volatility of a
market.
ABSTRACTION
METHOD
This method of estimating the value of
property uses similar properties available in
the same market to extract the value of a
parcel of land.
ACCELERATION
CLAUSE
A provision in a mortgage that gives the
lender the right to demand immediate payment
of the outstanding loan balance under certain
circumstances. Usually when the borrower
defaults on the loan.
ACCESSORY
BUILDING
A building separate from the main structure on
a property. Often used for a specific purpose,
such as a workshop, storage shed or garage.
ACCRETION
The natural growth of a piece of land
resulting from forces of nature
ACRE
43,560 square feet. A measurement of area.
ACTUAL
AGE
The amount of time that has passed since a
building or other structure was built. See
also: EFFECTIVE AGE
ADJUSTMENT
DATE
The date the interest rate changes on an
adjustable rate mortgage.
AD
VAL OREM TAX
Taxes assessed based on the value of the land
and improvements
ADDENDUM
A supplement to any document that contains
additional information pertinent to the
subject. Appraisers use an addendum to further
explain items for which there was inadequate
space on the standard appraisal form.
ADJUSTABLE-RATE
MORTGAGE (ARM)
A type of mortgage where the interest rate
varies based on a particular index, normally
the prime lending rate.
ADJUSTED
BASIS
The value of an asset (property or otherwise)
that includes the original price plus the
value of any improvement, and less any
applicable depreciation.
ADJUSTED
SALES PRICE
An opinion of a property's sales price, after
adjustments have been made to account for
differences between it and another comparable
property.
AESTHETIC
VALUE
The additional value a property enjoys based
on subjective criteria such as look or appeal.
AFFIRMATION
A declaration that a certain set of facts are
truthful.
AFFORDABILITY
ANALYSIS
A calculation used to determine an
individual's likelihood of being able to meet
the obligations of a mortgage for a particular
property. Takes into account the down payment,
closing costs and on-going mortgage payments.
AGENT
A person who has been appointed to act on
behalf of another for a particular
transaction.
AMENITY
Any feature of a property that increases its
value or desirability. These might include
natural amenities such as location or
proximity to mountains, or man-made amenities
like swimming pools, parks or other
recreation.
AMERICAN
SOCIETY OF APPRAISERS
An organization of appraisal professionals and
others interested in the appraisal profession.
AMORTIZATION
The repayment of a loan through regular
periodic payment.
AMORTIZATION
SCHEDULE
The breakdown of individual payments
throughout the life of an amortized loan,
showing both principal contribution and debt
service (interest) fees.
AMORTIZATION
TERM
The length of time over which an amortized
loan is repaid. Mortgages are commonly
amortized over 15 or 30 years.
AMPERAGE
A measure of electric current describing the
magnitude.
ANNUAL
PERCENTAGE RATE (APR)
The rate of annual interest charged on a loan.
ANNUITY
A sum of money paid at regular intervals,
often annually.
APPLICATION
A form used to apply for a mortgage loan that
details a potential borrower's income, debt,
savings and other information used to
determine credit worthiness.
APPRAISAL
A ''defensible'' and carefully documented
opinion of value. Most commonly derived using
recent sales of comparable properties by a
licensed, professional appraiser.
APPRAISAL
FOUNDATION
A not-for-profit educational organization
established by the appraisal profession in the
United States in 1987. It is dedicated to the
advancement of professional valuation and
responsible for establishing, improving, and
promoting the Uniform Standards of
Professional Appraisal Practice (USPAP).
APPRAISAL
INSTITUTE
A world-wide organization dedicated to real
estate appraisal education, publication and
advocacy.
APPRAISAL
PRINCIPLES
The basic building blocks of the property
valuation process, including property
inspection, market analysis and basic
economics.
APPRAISAL
REPORT
The end result of the appraisal process
usually consists of one major standardized
form such as, the Uniform Residential
Appraisal Report form 1004, as well as all
supporting documentation and additional detail
information. The purpose of the report is to
convey the opinion of value of the subject
property and support that opinion with
corroborating information.
APPRAISAL
STANDARDS BOARD (ASB)
An independent board of the APPRAISAL
FOUNDATION, which writes, amends, and
interprets USPAP. The ASB is composed of up to
seven appraisers appointed by the Foundation's
Board of Trustees. The ASB holds public
meetings throughout the year to interpret and
amend USPAP.
APPRAISED
VALUE
An opinion of the fair market value of a
property as developed by a licensed, certified
appraiser following accepted appraisal
principals.
APPRAISER
An educated, certified professional with
extensive knowledge of real estate markets,
values and practices. The appraiser is often
the only independent voice in any real estate
transaction with no vested interest in the
ultimate value or sales price of the property.
APPRECIATION
The natural rise in property value due to
market forces.
ARMS
LENGTH TRANSACTION
Any transaction in which the two parties are
unconnected and have no overt common
interests. Such a transaction most often
reflects the true market value of a property.
ASSESSED
VALUE
The value of a property according to
jurisdictional tax assessment.
ASSESSMENT
The function of assigning a value to a
property for the purpose of levying taxes.
ASSESSMENT
RATIO
The comparative relationship of a property's
assessed value to its market value.
ASSESSOR
The jurisdictional official who performs the
assessment and assigns the value of a
property.
ASSET
Any item of value which a person owns.
ASSIGNMENT
Transfer of ownership of a mortgage usually
when the loan is sold to another company.
ASSUMABLE
MORTGAGE
A mortgage that can be taken over by the buyer
when a home is sold.
ASSUMPTION
When a buyer takes over, or
"assumes" the sellers mortgage.
ATTACHED
HOUSING
Any number of houses or other dwellings which
are physically attached to one another, but
are occupied by a number of different people.
The individual houses may or may not be owned
by separate people as well.
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BACKFILL
The slope of the ground around a house.
BALL
COCK VALVE
The valve inside a toilet tank that controls
the filling of the tank.
BALLOON
MORTGAGE
A mortgage loan in which the monthly payments
are not large enough to repay the loan by the
end of the term. So at the end of the term,
the remaining balance comes due in a single
large payment.
BALLOON
PAYMENT
The final large payment at the end of a
balloon mortgage term.
BANKRUPTCY
When a person or business is unable to pay
their debts and seeks protection of the state
against creditors. Bankruptcies remain on
credit records for up to ten years and can
prevent a person from being able to get a
loan.
BEAM
A structural supporting member.
BILL
OF SALE
A physical receipt indicating the sale of
property.
BIWEEKLY
MORTGAGE
A mortgage where you make "half
payments" every two weeks, rather than
one payment per month. This results in making
the equivalent of 13 monthly payments per
year, rather than 12, significantly reducing
the time it takes to pay off a thirty year
mortgage.
BLIGHTED
AREA
Any region of a city or town that has fallen
into disrepair or otherwise has become
undesirable.
BONA
FIDE
Any genuine offer, made without intent to
defraud or deceive.
BRIDGE
FINANCING
An interim loan made to facilitate the
purchase of a new home before the buyer's
current residence sells and its equity is
available to fund the new purchase.
BRIDGING
Structural members used between beams to
strengthen the structure.
BROKER
An individual who facilitates the purchase of
property by bringing together a buyer and a
seller.
BTU
British Thermal Unit. A unit of measurement
used to describe heating or cooling capacity.
BUFFER
ZONE
A segment of land between two disparate
municipal zones which acts as a shield to keep
one zone from encroaching upon the other.
Often used to separate residential districts
from commercial areas.
BUILDING
CODE
Regulations that ensure the safety and
material compliance of new construction within
a municipality. Building codes are localized
to ensure they are adequate to meet the risk
of common hazards.
BUILDING
LINE OR SETBACK
The statutory distance between buildings and
the property line, imposed by municipalities,
home associations, or other agreements.
BUILT-INS
Specific items of personal property which are
installed in a real estate improvement such
that they become part of the building.
Built-in microwave ovens and dishwashers are
common examples.
BUNGALOW
A one-story, home-style dating from the early
twentieth century. Often characterized by a
low-pitched roof.
BUY
DOWN
Extra money paid in a lump sum to reduce the
interest rate of a fixed rate mortgage for a
period of time. The extra money may be paid by
the borrower, in order to have a lower payment
at the beginning of the mortgage. Or paid by
the seller, or lender, as incentive to buy the
property or take on the mortgage.
BX
CABLE
Electrical cable shrouded in a galvanized
steel outer cover.
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CALL
OPTION
A clause in a mortgage which allows the lender
to demand payment of the outstanding balance
at a specific time.
CAP
Associated with Adjustable Rate Mortgages. A
limit on how high monthly payments or how much
interest rates may change within a certain
time period or the life of the mortgage.
CAPE
COD COLONIAL
A single-story house style made popular in New
England. Often characterized by a steep roof
with gables.
CAPITAL
Accumulated goods and money which is most
often used to generate additional income.
CAPITAL
EXPENDITURE
An outlay of funds designed to improve the
income-producing capabilities of an asset or
to extend its economic life.
CASH-OUT
REFINANCE
Refinancing a mortgage at a higher amount than
the current balance in order to transform a
portion of the equity into cash.
CAULKING
A pliable material used to seal cracks or
openings such as around windows.
CAVEAT
EMPTOR
Literally translated: ''Let the buyer
beware.'' A common business tenet whereby the
buyer is responsible for verifying any and all
claims by the seller of property.
CERTIFICATE
OF DEPOSIT
A document showing that the bearer has a
certain amount of money, at a particular
amount interest, on deposit with a financial
institution.
CERTIFICATE
OF DEPOSIT INDEX
An index based on the interest rate of six
month CD's. Used to set interest rates on some
Adjustable Rate Mortgages.
CERTIFICATE
OF ELIGIBILITY
A document issued by the Veterans
Administration that certifies eligibility for
a VA loan.
CERTIFICATE
OF OCCUPANCY
Issued by an appropriate jurisdictional
entity, this document certifies that a
building complies with all building codes and
is safe for use or habitation.
CERTIFICATE
OF REASONABLE VALUE (CRV)
Usually based on an independent appraisal, a
CRV for a particular property establishes the
maximum amount which can be secured by a VA
mortgage.
CERTIFICATE
OF TITLE
A document designating the legal owner of a
parcel of real estate. Usually provided by a
title or abstract company.
CERTIFIED
GENERAL APPRAISER
Generally, any professional who has met the
local or state requirements, and passed the
appropriate certification exam, and is capable
of appraising any type of property.
CERTIFIED
RESIDENTIAL APPRAISER
A sub-classification of appraiser who is only
licensed to appraise residential property,
usually up to four units.
CHAIN
OF TITLE
The complete history of ownership of a piece
of property.
CHATTEL
Any personal property which is not attached to
or an integral part of a property. Chattel is
not commonly taken into consideration when
appraising the value of real property.
CIRCUIT
BREAKERS
Electrical devices which automatically open
electrical circuits if they are overloaded.
CLEAR
TITLE
Ownership of property that is not encumbered
by any counter-claim or lien.
CLOSING
A torturous process designed to induce
cramping in a home buyer's hands by requiring
signature on countless pieces of documentation
that nobody has ever read. Or, the process
whereby the sale of a property is consummated
with the buyer completing all applicable
documentation, including signing the mortgage
obligation and paying all appropriate costs
associated with the sale (CLOSING COSTS).
CLOSING
COSTS
All appropriate costs generated by the sale of
property which the parties must pay to
complete the transaction. Costs may include
appraisal fees, origination fees, title
insurance, taxes and any points negotiated in
the deal.
CLOSING
STATEMENT
The document detailing the final financial
arrangement between a buyer and seller and the
costs paid by each.
CO-BORROWER
A second person sharing obligation on the loan
and title on the property.
COLLATERAL
An asset which is placed at risk to secure the
repayment of a loan.
COLLECTION
The process a lender takes to pursue a
borrower who is delinquent on his payments in
order to bring the mortgage current again.
Includes documentation that may be used in
foreclosure.
CO-MAKER
A second party who signs a loan, along with
the borrower, and becomes liable for the debt
should the borrower default.
COMMON
LAW
As opposed to statute law. Laws that have been
established by custom, usage and courts over
many years.
COMMISSION
A percentage of the sales price or a fixed fee
negotiated by an agent to compensate for the
effort expended to sell or purchase property.
COMMON
AREA ASSESSMENTS
Fees which are charged to the tenets or owners
of properties to cover the costs of
maintaining areas shared with other tenets or
owners. Commonly found in condominium, PUD or
office spaces.
COMMON
AREAS
Any areas, such as entryways, foyers, pools,
recreational facilities or the like, which are
shared by the tenets or owners of property
near by. Commonly found in condominium, PUD or
office spaces.
COMMUNITY
PROPERTY
In many jurisdictions, any property which has
been acquired by a married couple. The
ownership of the property is considered equal
unless stipulated otherwise by both parties.
COMPARABLES
An abbreviated term used by appraisers to
describe properties which are similar in size,
condition, location and amenities to a subject
property whose value is being determined.
The Uniform Standards of Professional
Appraisal Practice (USPAP) establish clear
guidelines for determining a comparable
property.
COMPOUND
INTEREST
Interest paid on the principal amount, as well
as any accumulated interest.
CONCESSIONS
Additional value granted by a buyer or seller
to entice another party to complete a deal.
CONDEMNATION
The official process by which a property is
deemed to be uninhabitable or unusable due to
internal damage or other external conditions.
CONDENSATION
The transition of water vapor to liquid.
Typically forms in areas of high humidity.
CONDOMINIUM
A development where individual units are
owned, but common areas and amenities are
shared equally by all owners.
CONDOMINIUM
CONVERSION
Commonly, the conversion of a rental property
such as an apartment complex into a
CONDOMINIUM-style complex where each unit is
owned rather than leased.
CONDUIT
The pipe through which electric wiring is run.
CONSTRUCTION
LOAN
A loan made to a builder or home owner that
finances the initial construction of a
property, but is replaced by a traditional
mortgage one the property is completed.
CONTIGUOUS
Connected to or touching along an unbroken
boundary.
CONTINGENCY
Something that must occur before something
else happens. Often used in real estate sales
when a buyer must sell a current home before
purchasing a new one. Or, when a buyer makes
an offer that requires a complete home
inspection before it becomes official.
CONTRACT
A legally binding agreement, oral or written,
between two parties.
CONVENTIONAL
MORTGAGE
A traditional, real estate financing mechanism
that is not backed by any government or other
agency (FHA, VA, etc.).
CONVERTIBLE
ARM
A mortgage that begins as and adjustable, that
allows the borrower to convert the loan to a
fixed rate within a specific timeframe.
COOPERATIVE
(CO-OP)
A form of ownership where each resident of a
multiunit property owns a share in a
cooperative corporation that owns the
building. With each resident having rights to
a specific unit within the building.
CORPORATE
RELOCATION
A situation where a person's employer pays all
or some of the expenses associated with moving
from one location to another, usually over a
substantial distance. Relocation expenses
often include the amounts, such as brokerage
fees, incurred in the selling and buying of
the employee's primary residence.
COST
OF FUNDS INDEX (COFI)
An index of financial institutions costs used
to set interest rates for some Adjustable Rate
Mortgages.
COVENANT
A stipulation in any mortgage that, if not
met, can be cause for the lender to foreclose.
CREDIT
A loan of money for the purchase of property,
real or personal. Credit is either secured by
an asset, such as a home, or unsecured.
CREDIT
HISTORY
A record of debt payments, past and present.
Used by mortgage lenders in determining credit
worthiness of individuals.
CREDITOR
A person to whom money is owed.
CREDIT
REPORT
A detailed report of an individuals credit,
employment and residence history prepared by a
credit bureau. Used by lenders to determine
credit worthiness of individuals.
CREDIT
REPOSITORY
Large companies that gather and store
financial and credit information about
individuals who apply for credit.
CUL-DE-SAC
A dead-end street. One with only one
entrance/exit.
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DATE
OF APPRAISAL
The specific point in time as of which an
appraiser designates the value of a home.
Often stipulated as the date of inspection.
DEBT
An obligation to repay some amount owed. This
may or may not be monetary.
DEBT
EQUITY RATIO
The ratio of the amount a mortgagor still owes
on a property to the amount of equity they
have in the home. Equity is calculated at the
fair-market value of the home, less any
outstanding mortgage debt.
DEED
A document indicating the ownership of a
property.
DEED-IN-LIEU
(OF FORECLOSURE)
A document given by a borrower to a lender,
transferring title of the property. Often used
to avoid credit-damaging foreclosure
procedures.
DEED
OF TRUST
A document which transfers title in a property
to a trustee, whose obligations and
powers are stipulated. Often used in mortgage
transactions.
DEED
OF RECONVEYANCE
A document which transfers ownership of a
property from a Trustee back to a borrower who
has fulfilled the obligations of a mortgage.
DEED
OF RELEASE
A document which dismisses a lien or other
claim on a property.
DEED
OF SURRENDER
A document used to surrender any claim a
person has to a property.
DEFAULT
The condition in which a borrower has failed
to meet the obligations of a loan or mortgage.
DELINQUENCY
The state in which a borrow has failed to meet
payment obligations on time.
DEPOSIT
Cash given along with an offer to purchase
property, Also called EARNEST MONEY.
DEPRECIATION
The natural decline in property value due to
market forces or depletion of resources.
DETACHED
SINGLE-FAMILY HOME
A single building improvement intended to
serve as a home for one family.
DISCOUNT
POINTS
Points paid in addition to the loan
origination fee to get a lower interest rate.
One point is equal to one percent of the loan
amount.
DISTRESSED
PROPERTY
A mortgaged property which has been foreclosed
on.
DOWNSPOUT
The pipe that water moves through to reach the
ground from the rain gutter.
DUE-ON-SALE
PROVISION
A clause in a mortgage giving the lender the
right to demand payment of the full balance
when the borrower sells the property.
DUPLEX
A single-building improvement which is divided
and provides two units which serve as homes to
two families.
DWELLING
A house or other building which serves as a
home.
DOWN
PAYMENT
An amount paid in cash for a property, with
the intent to mortgage the remaining amount
due.
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EARNEST
MONEY DEPOSIT
A cash deposit made to a home seller to secure
an offer to buy the property. This amount is
often forfeited if the buyer decides to
withdraw his offer.
EASEMENT
The right of a non-owner of property to exert
control over a portion or all of the property.
For example, power companies often own an
easement over residential properties for
access to their power lines.
EAVE
The part of the roof that extends beyond the
exterior wall.
ECONOMIC
DEPRECIATION
The decline in property value caused by
external forces, such as neighborhood blight
or adverse development.
ECONOMIC
LIFE
The amount of time which any income-producing
property is able to provide benefits to its
owner.
EFFECTIVE
AGE
The subjective, estimated age of a property
based on its condition, rather than the actual
time since it was built. Excessive wear and
tear can cause a property's effective age to
be greater than its actual age.
EMINENT
DOMAIN
The legal process whereby a government can
take ownership of a piece of property in order
to convert it to public use. Often, the
property owner is paid fair-market value for
the property.
ENCROACHMENT
A building or other improvement on one
property which invades another property or
restricts its usage.
ENCUMBRANCE
A claim against a property. Examples are
mortgages, liens and easements.
ENERGY
EFFICIENCY RATIO
An efficiency rating system for air
conditioning units that corresponds to the
number of BTU's output per watt of electricity
used.
EQUAL
CREDIT OPPORTUNITY ACT (ECOA)
U.S. federal law requiring that lenders afford
people equal chance of getting credit without
discrimination based on race, religion, age,
sex etc
EQUITY
The difference between the fair market value
of a property and that amount an owner owes on
any mortgages or loans secured by the
property.
EQUITY
BUILDUP
The natural increase in the amount of equity
an owner has in a property, accumulated
through market appreciation and debt
repayment.
ERRORS
AND OMISSIONS INSURANCE
An insurance policy taken out by appraisers to
cover their liability for any mistakes made
during the appraisal process.
ESCROW
An amount retained by a third party in a trust
to meet a future obligation. Often used in the
payment of annual taxes or insurance for real
property.
ESCROW
ACCOUNT
An account setup by a mortgage servicing
company to hold funds with which to pay
expenses such as homeowners insurance and
property taxes. An extra amount is paid with
regular principal and interest payments that
go into the escrow account each month.
ESCROW
ANALYSIS
An analysis performed by the lender usually
once each year to see that the amount of money
going into the escrow account each month is
correct for the forecasted expenses.
ESCROW
DISBURSEMENTS
The payout of funds from an escrow account to
pay property expenses such as taxes and
insurance.
ESTATE
The total of all property and assets owned by
an individual.
EXAMINATION
OF TITLE
The report on the title of a property from the
public records or an abstract of the title.
EXCLUSIVE
LISTING
An agreement between the owner of a property
and a real estate agent giving the agent
exclusive right to sell the property.
EXECUTOR
The person named in a will to administer the
estate.
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FACADE
The front exposure of any building. Often used
to describe an artificial or false front which
is not consistent with the construction of the
rest of the building.
FAIR
CREDIT REPORTING ACT
A federal law regulating the way credit
agencies disclose consumer credit reports and
the remedies available to consumers for
disputing and correcting mistakes on their
credit history.
FAIR
MARKET VALUE
The price at which two unrelated parties,
under no duress, are willing to transact
business.
FANNIE
MAE
A private, shareholder-owned company that
works to make sure mortgage money is available
for people to purchase homes. Created by
Congress in 1938, Fannie Mae is the nation's
largest source of financing for home
mortgages.
FASCIA
The boards that enclose the eaves.
FEDERAL
DEPOSIT INSURANCE CORPORATION (FDIC)
The U.S. Government agency created in 1933
which maintains the stability of and public
confidence in the nation's financial system by
insuring deposits and promoting safe and sound
banking practices.
FEDERAL
HOUSING ADMINISTRATION (FHA)
A sub-agency of the U.S. Department of Housing
and Urban Development created in the 1930's to
facilitate the purchase of homes by
low-income, first-time home buyers. It
currently provides federally-subsidized
mortgage insurance for private lenders.
FEE
APPRAISER
A certified, professional appraiser who forms
an opinion of the fair market value of
property and receives a set fee in exchange.
FEE
SIMPLE
A complete, unencumbered ownership right in a
piece of property.
FEE
SIMPLE ESTATE
A form or ownership, or holding title to real
estate. It is the most complete form of title,
having an unconditional and unlimited interest
of perpetual duration.
FHA
MORTGAGE
A mortgage that is insured by the Federal
Housing Administration (FHA).
FINAL
VALUE ESTIMATE
The opinion of value of a piece of property
resulting from an appraisal following the
USPAP guidelines.
FIRST
MORTGAGE
The primary loan or mortgage secured by a
piece of property.
FIXED-RATE
MORTGAGE (FRM)
A mortgage which has a fixed rate of interest
over the life of the loan.
FIXTURE
Any piece of personal property which becomes
permanently affixed to a piece of real
property.
FLASHING
The metal used around the base of roof mounted
equipment, or at the junction of angles used
to prevent leaking.
FLOOD
INSURANCE
Supplemental insurance which covers a home
owner for any loss due to water damage from a
flood. Often required by lenders for homes
located in FEMA-designated flood zones.
FLOOR
PLAN
The representation of a building which shows
the basic outline of the structure, as well as
detailed information about the positioning of
rooms, hallways, doors, stairs and other
features. Often includes detailed information
about other fixtures and amenities.
FLUE
The furnace exhaust pipe, usually going
through the roof.
FLUSH
VALVE
The valve between the toilet bowl and the
tank.
FOOTING
The partially buried support for a vertical
structural member such as a post.
FORECLOSURE
The process whereby a lender can claim the
property used by a borrower to secure a
mortgage and sell the property to meet the
obligations of the loan.
FORFEITURE
The loss of property or money due to the
failure to meet the obligations of a mortgage
or loan secured by that property.
FOUNDATION
The solid structural element upon which a
structure is built.
FRONTAGE
The segment of a property that runs along a
point of access, such as a street or water
front.
FUNCTIONAL
OBSOLESCENCE
A decrease in the value of property due to a
feature or lack thereof which renders the
property undesirable. Functional obsolescence
can also occur when the surrounding area
changes, rendering the property unusable for
its originally intended purpose.
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GABLE
ROOF
A steeply angled, triangular roof.
GALVANIZED
PIPE
Iron pipe with a galvanized (zinc) coating.
GAMBREL
ROOF
A ''barn-like'' roof, where the upper portion
of the roof is less-steeply angled than the
lower part.
GENERAL
LIEN
A broad-based claim against several properties
owned by a defaulting party.
GEORGIAN
A classic, English-style hose characterized by
simple rectangular shape and multiple stories.
GFI
Ground Fault Interrupter. A type of circuit
breaker required in areas where water is
present.
GINNIE
MAE
A wholly owned corporation created in 1968
within the U.S. Department of Housing and
Urban Development to serve low-to
moderate-income homebuyers.
GIRDER
A main supporting beam.
GOVERNMENT
MORTGAGE
Any mortgage insured by a government agency,
such as the FHA or VA.
GRADE
The slope of land around a building. Also
ground level.
GRANTEE
Any person who is given ownership of a piece
of property.
GRANTOR
Any person who gives away ownership of a piece
of property.
GROSS
AREA
The sum total of all floor space, including
areas such as stairways and closet space.
Often measured based on external wall lengths.
GROUTING
Material used around ceramic tile.
GUTTER
The trough around the edge of the roof that
catches and diverts rain.
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HALF-SECTION
320 acres.
HAZARD
INSURANCE
Insurance covering damage to a property caused
by hazards such as fire, wind and accident.
HEADER
The framing elements above an opening such as
a window or door.
HEARTH
The floor of a fireplace or the area
immediately in front of it.
HEIGHT
ZONING
A municipal restriction on the maximum height
of any building or other structure.
HIDDEN
AMENITIES
Assets of a property which contribute to its
value, but are not readily apparent. Examples
might include upgraded or premium building
materials.
HIGHEST
AND BEST USE
The most profitable and likely use of a
property. Selected from reasonably probable
and legal alternative uses, which are found to
be physically possible, appropriately
supported and financially feasible to result
in the highest possible land value.
HOME
EQUITY CONVERSION MORTGAGE (HECM)
Also known as a reverse annuity mortgage. It
allows home owners (usually older) to convert
equity in the home into cash. Normally paid by
the lender in monthly payments. HECM's
typically do not have to be repaid until
the borrower is no longer occupying the home.
HOME
EQUITY LINE OF CREDIT
A type of mortgage loan that allows the
borrower to draw cash against the equity in
his home.
HOME
INSPECTION
A complete examination of a building to
determine its structural integrity and uncover
any defects in materials or workmanship which
may adversely affect the property or decrease
its value.
HOME
INSPECTOR
A person who performs professional home
inspections. Usually, with an extensive
knowledge of house construction methods,
common house problems, how to identify those
problems and how to correct them.
HOMEOWNER'S
ASSOCIATION
An organization of home owners in a particular
neighborhood or development formed to
facilitate the maintenance of common areas and
to enforce any building restrictions or
covenants.
HOMEOWNER'S
INSURANCE
A policy which covers a home owner for any
loss of property due to accident, intrusion or
hazard.
HOMEOWNER'S
WARRANTY
An insurance policy covering the repair of
systems and appliances within the home for the
coverage period.
HUD
MEDIAN INCOME
Median family income for a particular county
or metropolitan statistical area (MSA), as
estimated by the Department of Housing and
Urban Development (HUD).
HUD-1
STATEMENT
A standardized, itemized list, published by
the U.S. Department of Housing and Urban
Development (HUD), of all anticipated CLOSING
COSTS connected with a particular property
purchase.
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IMPROVED
LAND
Any parcel of land which has been changed from
its natural state through the creation of
roads, buildings or other structures.
IMPROVEMENTS
Any item added to vacant land with the intent
of increasing its value or usability.
IMPROVEMENT
RATIO
The comparative value of an improved piece of
land to its natural, unaltered state.
INCOME
APPROACH
The process of estimating the value of
property by considering the present value of a
stream of income generated by the property.
INCOME
PROPERTY
A piece of property whose highest and best use
is the generation of income through rents or
other sources.
INDEPENDENT
APPRAISAL
An estimation of value created by a
professional, certified appraiser with no
vested interest in the value of the property.
INSPECTION
The examination of a piece of property, its
buildings or other amenities.
INSURABLE
TITLE
The title to property which has been
sufficiently reviewed by a title insurance
company, such that they are willing to insure
it as free and clear.
INTEREST
RATE
A percentage of a loan or mortgage value that
is paid to the lender as compensation for
loaning funds.
INVESTMENT
PROPERTY
Any piece of property that is expected to
generate a financial return. This may come as
the result of periodic rents or through
appreciation of the property value over time.
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JAMB
The side of a door frame.
JOINT
TENANCY
A situation where two or more parties own a
piece of property together. Each of the owners
has an equal share, and may not dispose of or
alter that share without the consent of the
other owners.
JOISTS
Horizontal beams laid on edge to support
flooring or a ceiling.
JUDGMENT
An official court decision. If the judgment
requires payment from one party to another,
the court may put a lien against the payee's
property as collateral.
JUDICIAL
FORECLOSURE
A type of foreclosure conducted as a civil
suit in a court of law.
JUMBO
LOAN
A mortgage loan for an amount greater than the
limits set by Fannie Mae and Freddie Mac.
Often called non-conforming loans.
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LALLY
COLUMN
A concrete filled steel pipe used to support
beams.
LATE
CHARGE
An extra charge, or penalty added to a regular
mortgage payment when the payment is made late
by an amount of time specified in the original
loan document.
LATENT
DEFECTS
Any defect in a piece of property which is not
readily apparent, but which has an impact of
the value. Structural damage or termite
infestation would be examples of latent
defects.
LEASE
A contract between a property owner and a
tenant specifying the payment amount, terms
and conditions, as well as the length of time
the contract will be in force.
LEASEHOLD
ESTATE
A type of property ''ownership'' where the
buyer actually has a long-term lease on the
property.
LEASE
OPTION
A lease agreement that gives the tenant an
option to buy the property. Usually, a portion
of the regular monthly rent payment will be
applied towards the down payment.
LEGAL
DESCRIPTION
The description of a piece of property,
identifying its specific location in terms
established by the municipality or other
jurisdiction in which the property resides.
Often related in specific distances from a
known landmark or intersection.
LENDER
The person or entity who loans funds to a
buyer. In return, the lender will receive
periodic payments, including principal and
interest amounts.
LIABILITIES
A person's outstanding debt obligations.
LIABILITY
INSURANCE
Insurance that covers against potential
lawsuit brought against a property owner for
alleged negligence resulting in damage to
another party.
LIEN
Any claim against a piece of property
resulting from a debt or other obligation.
LIFE
CAP
A limit on how far the interest rate can move
for an Adjustable Rate Mortgage.
LIKE-KIND
PROPERTY
Any property which is substantially similar to
another property.
LINE
OF CREDIT
An extension of credit for a certain amount
for a specific amount of time. To be used by
the borrower at his discretion.
LIQUID
ASSET
Any asset which can be quickly converted into
cash at little or no cost, or cash itself.
LOAN
Money borrowed, to be repaid with interest,
according to the specific terms and conditions
of the loan.
LOAN
OFFICER
A person that "sells" loans,
representing the lender to the borrower, and
the borrower to the lender.
LOAN
ORIGINATION
How a lender refers to the process of writing
new loans.
LOAN
SERVICING
The processing of payments, mailing of monthly
statements, management and disbursement of
escrow funds etc Typically carried out by the
company you make payments to.
LOAN-TO-VALUE
RATIO (LTV)
The comparison of the amount owed on a
mortgaged property to its fair market value.
LOCK-IN
An agreement between a lender and a borrower,
guaranteeing an interest rate for a loan if
the loan is closed within a certain amount of
time.
LOCK-IN
PERIOD
The amount of time the lender has guaranteed
an interest rate to a borrower.
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MAJOR
DEFICIENCY
A deficiency that strongly impacts the
usability and habitability of a house. Or a
deficiency that may be very expensive to
repair.
MANUFACTURED
HOUSING
Once known as ''mobile homes,'' manufactured
housing is any building which has been
constructed off site, then moved onto a piece
of real property.
MARGIN
The difference between the interest rate and
the index on an adjustable rate mortgage.
MARGINAL
LAND
Land whose value has been diminished due to
some internal defect or external condition. In
most cases, the cost to correct the flaw or
condition is as much or more than the expected
return from the property.
MASTER
ASSOCIATION
An umbrella organization that is made up of
multiple, smaller home owner's associations.
Often found in very large developments or
condominium projects.
MATURITY
The date on which the principal balance of a
financial instrument becomes due and payable.
MERGED
CREDIT REPORT
A credit report derived from data obtained
from multiple credit agencies.
METES
AND BOUNDS
A traditional way of describing property,
generally expressed in terms of distance from
a known landmark or intersection, and then
following the boundaries of the property back
to its origin.
METROPOLITAN
AREA
The accumulated land in and around a city or
other municipality which falls under the
political and economic influence of that
entity.
MINERAL
RIGHTS
The legal right to exploit and enjoy the
benefits of any minerals located below the
surface of a parcel of land.
MISREPRESENTATION
A statement by one party in a transaction that
is incorrect or misleading. Most
misrepresentations are deemed to be
intentional and thus may constitute fraud.
Others, however, some are rendered through
simple mistakes, oversights or negligence.
MORTGAGE
A financial arrangement wherein an individual
borrows money to purchase real property and
secures the loan with the property as
collateral.
MORTGAGE
BANKER
A financial institution that provides primary
and secondary mortgages to home buyers.
MORTGAGE
BROKER
A person or organization that serves as a
middleman to facilitate the mortgage process.
Brokers often represent multiple mortgage
bankers and offer the most appropriate deal to
each buyer.
MORTGAGEE
The entity that lends money in a real estate
transaction.
MORTGAGE
INSURANCE
A policy that fulfills those obligations
of a mortgage when the policy holder defaults
or is no longer able to make payments.
MORTGAGE
INSURANCE PREMIUM (MIP)
A fee that is often included in mortgage
payments that pays for mortgage insurance
coverage.
MORTGAGE
LIFE INSURANCE
A policy that fulfills the obligations of a
mortgage when the policy holder dies.
MORTGAGOR
The entity that borrows money in a real estate
transaction.
MULTI-FAMILY
PROPERTIES
Any collection of buildings that are designed
and built to support the habitation of more
than four families.
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NATIONAL
ASSOCIATION OF MASTER APPRAISERS (NAMA)
A non profit professional association
organized in 1982, dedicated to the
advancement of professionalism in real estate
appraisal.
NATIONAL
SOCIETY OF REAL ESTATE APPRAISERS
An organization founded in 1956 which promotes
standards of professionalism in its members.
NATURAL
VACANCY RATE
The percentage of vacant properties in a given
area that is the result of natural turnover
and market forces.
NEGATIVE
AMORTIZATION
When the balance of a loan increases instead
of decreases. Usually due to a borrower making
a minimum payment on an Adjustable Rate
Mortgage during a period when the rate
fluctuates to a high enough point that the
minimum payment does not cover all of the
interest.
NEIGHBORHOOD
LIFE-CYCLE
The evolution of neighborhood use and
demographics over time. Economic fluctuations,
municipal zoning changes and population shifts
can effect the life cycle.
NEIGHBORHOOD
A subsection of a municipality that has been
designated by a developer, economic forces or
physical formations.
NET
LEASABLE AREA
The space in a development, outside of the
common areas, that can be rented to tenants.
NEW
ENGLAND COLONIAL
An architectural style dating from early
American history typified by a two-story
building with clapboard siding.
NO-COST
LOAN
Many lenders offer loans that you can obtain
at "no cost." You should inquire
whether this means there are no
"lender" costs associated with the
loan, or if it also covers the other costs you
would normally have in a purchase or refinance
transactions, such as title insurance, escrow
fees, settlement fees, appraisal, recording
fees, notary fees, and others. These are fees
and costs which may be associated with buying
a home or obtaining a loan, but not charged
directly by the lender. Keep in mind that,
like a "no-point" loan, the interest
rate will be higher than if you obtain a loan
that has costs associated with it.
NO-POINT
LOAN
A loan with no "points". The
interest rate on such a loan will be higher
than a loan with points paid. Also sometimes
refers to a refinance loan where closing costs
are included in the loan.
NON-CONFORMING
USE
The use of land for purposes contrary to the
applicable municipal zoning specifications.
Often occurs when zoning changes after a
property is in use.
NONLIQUID
ASSET
Any asset which can not be quickly converted
into cash at little or no cost.
NOTE
A legal document that obligates a borrower to
repay a mortgage loan at a stated interest
rate during a specified period of time.
NOTE
RATE
The interest rate stated on a mortgage note.
NOTICE
OF DEFAULT
Formal written notice from a lender to a
borrower that default has occurred.
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OBSOLESCENCE
The process of an assets value diminishing due
to the development of more desirable
alternatives or because of the degradation of
its capabilities.
OCCUPANCY
A physical presence within and control of a
property.
OCCUPANCY
RATE
The percentage of properties in a given area
that are occupied.
OCTOPUS
RECEPTACLE
An outlet with too many devices plugged into
it, using a power strip or other device to
multiply the outlets.
OFF-SITE
IMPROVEMENTS
Buildings, structures or other amenities which
are not located on a piece of property, but
are necessary to maximize the use of the
property or in some way contribute to the
value of the property.
OFF-STREET
PARKING
Designated parking spaces associated with a
particular building or other structure which
are not located on public streets.
OLD
TERMITE ACTIVITY
Where no termites are currently active, but
indications of past activity can be seen.
ON-SITE
IMPROVEMENTS
Buildings, structures or other amenities that
are erected on a piece of property and
contribute to its value.
OPEN
SPACE
Any land which has not had any significant
buildings or structures erected on it. Most
often used to describe desirable neighborhood
features like parks.
OPEN
SPLICE
An uncovered electrical connection.
ORIGINAL
EQUITY
The amount of cash a home buyer initially
invests in the home.
ORIGINAL
PRINCIPAL BALANCE
The total amount of principal owed on a
mortgage loan at the time of closing.
ORIGINATION
FEE
Refers to the total number of points paid by a
borrower at closing.
OWNER
FINANCING
A transaction where the property owner
provides all or part of the financing.
OWNER
OCCUPIED
The state of property wherein the owner
occupies at least some portion of the
property.
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PARGING
The cement coat applied to block foundations.
PARTIAL
INTEREST
A shared ownership in a piece of property. May
be divided among two or more parties.
PARTIAL
PAYMENT
A payment of less than the regular monthly
amount. Usually, a lender will not accept
partial payments.
PERIODIC
PAYMENT CAP
The limit on how much regular monthly payments
on an Adjustable Rate Mortgage can change
during one adjustment period.
PERIODIC
RATE CAP
The limit on how much the interest rate on an
Adjustable Rate Mortgage can change during any
one adjustment period.
PERSONAL
PROPERTY
Owned items which are not permanently affixed
to the land.
PERSONAL
RESIDENCE
The primary domicile of a person or family.
PLANNED
UNIT DEVELOPMENT (PUD)
A coordinated, real estate development where
common areas are shared and maintained by an
owner's association or other entity.
PLAT
A plan or chart of a piece of land which lays
out existing or planned streets, lots or other
improvements.
POINT
A percentage of a mortgage amount (one point =
1 percent).
PRE-APPROVAL
The process of applying for a mortgage loan
and becoming approved for a certain amount at
a certain interest rate before a property has
been chosen. Pre-approval allows the borrower
greater freedom in negotiations with sellers.
PREFABRICATED
Any building or portion thereof which is
manufactured and assembled off site, then
erected on a property.
PREPAYMENT
Payment made that reduces the principal
balance of a loan before the due date and
before the loan has become fully amortized.
PREPAYMENT
PENALTY
A fee that may be charged to a borrower who
pays off a loan before it is due.
PRE-QUALIFICATION
Less formal that pre-approval,
pre-qualification usually means a written
statement from a loan officer indicating his
or her opinion that the borrower will be able
to become approved for a mortgage loan.
PRIME
RATE
The interest rate that banks and other lending
institutions charge other banks or preferred
customers.
PRINCIPAL
The amount owed on a mortgage which does not
include interest or other fees.
PRINCIPAL
BALANCE
The outstanding balance of principal on a
mortgage. Does not included interest due.
PRINCIPAL,
INTEREST, TAXES, AND INSURANCE (PITI)
The most common constituents of a monthly
mortgage payment.
PRIVATE
MORTGAGE INSURANCE (PMI)
A form of mortgage insurance provided by
private, non-government entities. Normally
required when the LOAN TO VALUE RATIO is less
that 20%.
PROPERTY
Any item which is owned or possessed.
PURCHASE
AGREEMENT
A written contract signed by the buyer and
seller stating the terms and conditions under
which a property will be sold.
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QUADRAPLEX
Any building designed to accommodate four
families.
QUALIFYING
RATIOS
Two ratios used in determining credit
worthiness for a mortgage loan. One is the
ratio of a borrower's monthly housing costs to
monthly income. The other is a ratio of all
monthly debt to monthly income.
QUITCLAIM
DEED
A legal document which transfers any ownership
an individual has in a piece of property.
Often used when the amount of ownership is not
known or is unclear.
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RAFTER
A structural element of the roof, sloping from
the peak to the outer walls.
RANCH
HOUSE
An architectural style typified by a
single-story, low-roof construction. Popular
in the western U.S.
RATE
LOCK
A guarantee from a lender of a specific
interest rate for a period of time.
RAW
LAND
Any land which has not been developed.
REAL
ESTATE
A piece of land and any improvements or
fixtures located on that land.
REAL
ESTATE AGENT
A licensed professional who facilitates the
buying and selling of real estate.
REAL
ESTATE SETTLEMENT PROCEDURES ACT (RESPA)
A federal law requiring lenders to give full
disclosure of closing costs to borrowers.
REAL
PROPERTY
Land, improvements and appurtenances, and the
interest and benefits thereof.
REALTOR®
A real estate agent or broker who is a member
of the NATIONAL ASSOCIATION of REALTORS®.
RECEPTACLE
An electrical outlet to plug into.
RECORDER
A local government employee whose role it is
to keep records of all real estate
transactions within the jurisdiction.
RECORDING
The filing of a real estate transaction with
the appropriate government agent (normally the
RECORDER). A real estate transaction is
considered final
when
it is recorded.
REFINANCE
TRANSACTION
A new loan to pay off an existing loan.
Typically to gain a lower interest rate or
convert equity into cash.
REGISTER
Where air from a furnace or air conditioning
system enters the room.
RELOCATION
SERVICE
Any company or agency that assists corporate
employees in relocating from one place to
another. Services may include hiring and
coordinating real estate agents, moving
companies, utilizes and the like.
REMAINING
BALANCE
The amount of principal, interest and other
costs that has not yet been repaid.
REMAINING
TERM
The amount of time remaining on the original
amortization schedule.
REMODEL
An activity designed to improve the value or
desirability of a property through rebuilding,
refurbishing, redecorating or adding on to it.
REPAYMENT
PLAN
A plan to repay delinquent payments, agreed
upon between a lender and borrower, in an
effort to avoid foreclosure.
REPLACEMENT
RESERVE FUND
An account, or fund, setup for the replacement
of short life items, such as carpeting, in the
common areas of a cooperative property.
RESIDENTIAL
PROPERTY
A piece of property whose highest and best use
is the maintenance of a residence.
REVOLVING
DEBT
A type of credit that allows the
borrower/customer to make charges against a
predetermined line of credit. The customer
then pays monthly installments on the amount
borrowed, plus interest.
RIDGE
BOARD
The structural member of a roof where the
rafters join at the top.
RIGHT
OF FIRST REFUSAL
An agreement giving a person the first
opportunity to buy or lease a property before
the owner offers it for sale to others.
ROOF
PITCH
The degree of slope in a roof.
RURAL
An area outside of an established urban area
or metropolitan district.
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SALE
PRICE
The actual price a property sells for,
exclusive of any special financing
concessions.
SALES
COMPARISON APPROACH
An appraisal practice which estimates the
value of a property by comparing it to
comparable properties which have sold
recently.
SCARCITY
An economic principal that dictates the price
of a good or service through the interaction
of supply and demand. When an item is scarce,
its price
tends
to rise, given a constant demand. Real Estate
is a classic example of scarcity.
SECOND
MORTGAGE
A loan secured by the equity in a home, when a
primary mortgage already exists.
SECONDARY
MORTGAGE MARKET
An economic marketplace where mortgage bankers
buy and sell existing mortgages.
SECURED
LOAN
A loan that is backed by collateral. In the
case of a mortgage loan, the collateral is the
house.
SECURITY
The property used as collateral for a loan.
SEMIDETACHED
HOUSING
Two residences which share a common wall.
SERVICER
A financial institution which collects
mortgage payments from borrowers and applies
the appropriate portions to principal,
interest and any escrow accounts.
SERVICING
The processing of payments, mailing of monthly
statements, management and disbursement of
escrow funds etc Typically carried out by the
company you make payments to.
SHEATHING
The covering on outside walls beneath the
siding or exterior finish such as stucco.
SHEETROCK
Also called drywall, the gypsum board commonly
used on interior walls.
SILL
PLATE
The lumber used around the foundation to
support exterior wall framing.
SILL
COCK
Garden hose pipe connection.
SINGLE-FAMILY
PROPERTY
A property designed and built to support the
habitation of one family.
SOFFIT
The underside of a cornice at the eaves.
STUCCO
A textured plaster exterior (and occasionally
interior) wall finish.
STUD
A vertical framing piece in a wall, generally
2x4 lumber in interior walls.
SUBDIVISION
A residential development that is created from
a piece of land which has been subdivided into
individual lots.
SUBJECT
PROPERTY
A term which indicates a property which is
being appraised.
SUMP
A basin into which water drains and from which
the water is pumped out.
SURVEY
A specific map of a piece of property which
includes the legal boundaries and any
improvements or features of the land. Surveys
also depict any rights-of-way, encroachments
or easements.
SWEAT
EQUITY
The method whereby a home owner develops
equity in a property, either during the
purchase or throughout its life, by personally
constructing improvements rather than paying
to have them built.
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TAX-EXEMPT
PROPERTY
Any property which is not taxed.
TENANCY
The right to occupy a building or unit.
TENANCY
IN COMMON
A form of holding title, whereby there are two
or more people on title to a property,
ownership does not pass on to the others upon
the death of one individual.
THIRD
PARTY ORIGINATION
When a lender uses a third party to originate
and package loans for sale to the secondary
market (Fannie Mae, Freddie Mac).
TITLE
A specific document which serves as proof of
ownership.
TITLE
COMPANY
An organization which researches and certifies
ownership of real estate before it is bought
or sold. Title companies also act at the
facilitator ensures all parties are paid
during the real estate transaction.
TITLE
INSURANCE
A policy which insures a property owner should
a prior claim arise against the property after
the purchase has been completed. This also
covers a lender should a question of ownership
arise.
TITLE
SEARCH
The process whereby the TITLE COMPANY
researches a properties title history and
ensures that no outstanding claims exist.
TRANSFER
OF OWNERSHIP
Any means by which the ownership of a property
changes hands.
TRANSFER
OF TAX
Taxes payable when title passes from one owner
to another.
TRAP
A bend in water pipe.
TRUSTEE
A fiduciary that holds or controls
property for the benefit of another.
TRUTH
IN LENDING
A federal law requiring full disclosure by
lenders to borrowers of all terms, conditions
and costs of a mortgage.
TUDOR
A style of architecture typified by exposed
stone, wood and brick construction. Similar in
style to English manor homes.
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UNDER
IMPROVED LAND
A piece of land which has been improved, but
not to the full extent of its potential.
UNENCUMBERED
PROPERTY
Any property which has no outstanding claims
or liens against it.
UNIFORM
STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP)
Developed in 1986 by the Ad Hoc Committee on
Uniform Standards and copyrighted in 1987 by
The Appraisal Foundation, USPAP forms the
guidelines followed by every licensed and
certified real estate appraiser in the United
States. The purpose of these Standards is to
establish requirements for professional
appraisal practice, which includes appraisal,
appraisal review, and appraisal consulting.
The intent of these Standards is to promote
and maintain a high level of public trust in
professional appraisal practice.
USEFUL
LIFE
The span of time over which a property can be
used or can provide benefits to its owner.
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VACANCY
RATE
The current percentage of vacant properties in
a given area, regardless of why they are
vacant.
VA
MORTGAGE
A mortgage that is guaranteed by the
Department of Veterans Affairs (VA).
VARIANCE
An exception to municipal zoning regulations
granted for a specific time period to allow
for non-conforming use of the land.
VENT
PIPE
A pipe allowing gas to escape.
VESTED
Having the right to use a portion of a fund
such as an IRA. Typically vesting occurs over
time. If you are 100% vested, you have a right
to 100% of the fund.
VETERANS
AFFAIRS, DEPARTMENT OF (VA)
The successor to the Veteran's Administration,
this government agency is responsible for
ensuring the rights and welfare of our
nation's veterans and their dependents. Among
other duties, the VA insures home loans made
to veterans.
VOLTAGE
An expression of electric force, or pressure.
One volt being the force needed to move one
amp against one ohm resistance.
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WALK-THROUGH
INSPECTION
A process whereby an appraiser examines a
property in preparation for estimating its
value. Also, the process of inspecting a
property for any damage prior to that property
being bought or sold.
WARRANTY
An affidavit given to stipulate the condition
of a property. The person giving the warranty
assumes liability if the condition turns out
to be untrue.
WATT
An expression of amount of electrical power.
Volt times amps equals watts.
WEAR
AND TEAR
A term used to indicate the normal damage
inflicted on a property through every-day use.
WEATHER
STRIPPING
Material used around windows and doors to
prevent drafts.
WEEP
HOLE
Drainage hole that allows water to escape.
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ZERO
LOT LINE
A municipal zoning category wherein a building
or other fixture may abut the property line.
ZONE
A specific area within a municipality or other
jurisdiction which conforms to certain
guidelines regarding the use of property in
the zone. Typical zones include single-family,
multi-family, industrial, commercial and
mixed-use.
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