Appraisal Definitions

Front 1

The disclaimer, waiver, relinquishment, or surrender of property or rights without vesting the interest in any other person.

Back 1

Abandonment

Front 2

A reduction cut or decreases in taxes approved by the tax authority at the taxpayer’s request.

Back 2

Abatement

Front 3

Having the necessary cash when the title is passed.

Back 3

Able

Front 4

Title that grants exclusive rights to its owner and gives no one else claim, interest, or rights to the same property.

Back 4

Absolute Title

Front 5

The rate at which a real estate market can absorb properties of a given kind.

Back 5

Absorption Rate

Front 6

A part of a waste disposal system used to disburse the waste water into the ground.

Back 6

Absorption Trench

Front 7

A summary of all conveyances and deeds upon which title depends, such as conveyance by deed, will, foreclosure and lawsuits.

Back 7

Abstract of Title

Front 8

An appraisal process where the appraiser selects comparable properties, estimates the value of their improvements, and then subtracts this estimate from the total price to give an estimate of the land

Back 8

Abstraction Method

Front 9

The portion of a wall or column that bears the pressure of an arch or pier

Back 9

Abutment

Front 10

Adjacent properties with a common border

Back 10

Abutting Land

Front 11

A clause in a contract that gives the lender the right to demand total payment when the contract is breached and an installment is not paid.

Back 11

Acceleration Clause

Front 12

The right of a property owner to all additions made to the property either by nature or by humans

Back 12

Accession

Front 13

The small and gradual accumulation of land, such as deposits made by a river or stream, which then becomes the property of the owner of the land on which it has accumulated.

Back 13

Accretion

Front 14

The difference between the cost of replacing a building and its present market value.

Back 14

Accrued Depreciation

Front 15

The total amount of depreciation expense claimed for a specific asset since purchase of the property.

Back 15

Accumulated Depreciation

Front 16

Materials such as tile, cork and fiberglass that are installed in walls to absorb sound.

Back 16

Acoustical Material

Front 17

An appraisal made to estimate market value to establish correct compensation for the owner of the property that is to be taken for public use by a public authority

Back 17

Acquisition Appraisal

Front 18

A unit of land measuring 43,560 square feet, 4,840 square yards, or 160 square rods.

Back 18

Acre

Front 19

The volume of water equal to an acre covered to the depth of one inch

Back 19

Acre-Foot

Front 20

Natural disasters such as floods, winds, etc. which cause damage to property

Back 20

Act of God

Front 21

The actual number of years since a structure was built

Back 21

Actual age

Front 22

The market value of a property

Back 22

Actual Cash Value

Front 23

The purchase price or cost of an asset which can be calculated as the original cost plus any additional capital investment minus accumulated depreciation

Back 23

Adjusted Basis

Front 24

The estimated income of a property assuming it was fully rented at its current rent minus an allowance for vacancies and collection losses (Gross potential income – vacancy and collection loss = Adjusted gross income)

Back 24

Adjusted Gross Income

Front 25

Interest rate is periodically adjusted based on a specified formula

Back 25

Adjustable Rate Mortgage

Front 26

The differences between comparable sales, rentals, listings and the property being appraised

Back 26

Adjustments

Front 27

A person chosen by the court to be the legal representative of a deceased person’s estate in cases where the individual dies without a will or having named an executor.

Back 27

Administrator

Front 28

Materials added to cement to increase its plasticity and workability and help it withstand frost and breakage

Back 28

Admixture

Front 29

A kind of brick made originally by American Indians

Back 29

Adobe Brick

Front 30

Tax based on a fixed percentage of a property’s value.

Back 30

Ad Valorem Tax

Front 31

Special means of acquiring property established by statute. Requires that possession is acquired by open, continuous, hostile physical control of the premises by the adverse possessor

Back 31

Adverse Possession

Front 32

Soil composed of material transported and deposited by the wind.

Back 32

Aeolian Soil

Front 33

Proceeds owners receive from their income-producing property after all the operating expenses are paid.

Back 33

After-tax cash flow

Front 34

Annual rate of return on an investment after the payment of income taxes are paid

Back 34

After-tax equity yield rate

Front 35

The annualized rate of return, after income taxes, on capital that is generated by an investment

Back 35

After-tax internal rate of return

Front 36

The after-tax proceeds from the sale of a property less commissions, taxes paid by the owner, and the payment of all outstanding debts.

Back 36

After-tax net cash proceeds of resale

Front 37

Chronological age of a building

Back 37

Age of Structure

Front 38

Method of estimating the amount of depreciation a property has suffered by calculating the number of years of typical economic life the property is estimated to have divided by the property’s estimated effective age.

Back 38

Age-Life Method

Front 39

Mixture of sand, gravel or stone that makes up about 75% of final composition of concrete

Back 39

Aggregate

Front 40

The rights of an owner to use the air above a property without the right to use the land below

Back 40

Air Rights

Front 41

The effect an alley has on neighboring properties

Back 41

Alley Influence

Front 42

The natural increase to a property made by deposits from rivers or streams.

Back 42

Alluvion

Front 43

Fine sedimentation deposited by flowing water.

Back 43

Alluvium

Front 44

Changes made in the interior or exterior of a building that do not change the exterior dimensions of the building

Back 44

Alterations

Front 45

Instrument containing a non-traditional treatment of an item which usually is fixed throughout the life of the mortgage.

Back 45

Alternative Mortgage Instrument

Front 46

Something other than the construction materials which increases the enjoyment derived from a property

Back 46

Amenity

Front 47

The extra value that a property has because of its amenities

Back 47

Amenity Value

Front 48

The process of paying a debt through a series of equal payments at equal time intervals

Back 48

Amortization

Front 49

The ratio of the amortization payment to the total debt to be amortized

Back 49

Amortization Rate

Front 50

A unit used to measure the flow of electricity through a wire.

Back 50

Ampere

Front 51

Process of finding existing, successful properties that are similar to the subject property

Back 51

Analogue Approach

Front 52

A type of bolt that is set in a concrete foundation and which extends through the sill and holds it down.

Back 52

Anchor Bolt

Front 53

Total mortgage payments including interest and principal required in one year by a particular loan or for a particular property.

Back 53

Annual Debt Service

Front 54

The disclaimer, waiver, relinquishment, or surrender of property or rights without vesting the interest in any other person.

Back 54

Abandonment

Front 55

A reduction cut or decreases in taxes approved by the tax authority at the taxpayer’s request.

Back 55

Abatement

Front 56

Having the necessary cash when the title is passed.

Back 56

Able

Front 57

Title that grants exclusive rights to its owner and gives no one else claim, interest, or rights to the same property.

Back 57

Absolute Title

Front 58

The rate at which a real estate market can absorb properties of a given kind.

Back 58

Absorption Rate

Front 59

A part of a waste disposal system used to disburse the waste water into the ground.

Back 59

Absorption Trench

Front 60

A summary of all conveyances and deeds upon which title depends, such as conveyance by deed, will, foreclosure and lawsuits.

Back 60

Abstract of Title

Front 61

An appraisal process where the appraiser selects comparable properties, estimates the value of their improvements, and then subtracts this estimate from the total price to give an estimate of the land

Back 61

Abstraction Method

Front 62

The portion of a wall or column that bears the pressure of an arch or pier

Back 62

Abutment

Front 63

Adjacent properties with a common border

Back 63

Abutting Land

Front 64

A clause in a contract that gives the lender the right to demand total payment when the contract is breached and an installment is not paid.

Back 64

Acceleration Clause

Front 65

The right of a property owner to all additions made to the property either by nature or by humans

Back 65

Accession

Front 66

The small and gradual accumulation of land, such as deposits made by a river or stream, which then becomes the property of the owner of the land on which it has accumulated.

Back 66

Accretion

Front 67

The difference between the cost of replacing a building and its present market value.

Back 67

Accrued Depreciation

Front 68

The total amount of depreciation expense claimed for a specific asset since purchase of the property.

Back 68

Accumulated Depreciation

Front 69

Materials such as tile, cork and fiberglass that are installed in walls to absorb sound.

Back 69

Acoustical Material

Front 70

An appraisal made to estimate market value to establish correct compensation for the owner of the property that is to be taken for public use by a public authority

Back 70

Acquisition Appraisal

Front 71

A unit of land measuring 43,560 square feet, 4,840 square yards, or 160 square rods.

Back 71

Acre

Front 72

The volume of water equal to an acre covered to the depth of one inch

Back 72

Acre-Foot

Front 73

Natural disasters such as floods, winds, etc. which cause damage to property

Back 73

Act of God

Front 74

The actual number of years since a structure was built

Back 74

Actual age

Front 75

The market value of a property

Back 75

Actual Cash Value

Front 76

The purchase price or cost of an asset which can be calculated as the original cost plus any additional capital investment minus accumulated depreciation

Back 76

Adjusted Basis

Front 77

The estimated income of a property assuming it was fully rented at its current rent minus an allowance for vacancies and collection losses (Gross potential income – vacancy and collection loss = Adjusted gross income)

Back 77

Adjusted Gross Income

Front 78

Interest rate is periodically adjusted based on a specified formula

Back 78

Adjustable Rate Mortgage

Front 79

The differences between comparable sales, rentals, listings and the property being appraised

Back 79

Adjustments

Front 80

A person chosen by the court to be the legal representative of a deceased person’s estate in cases where the individual dies without a will or having named an executor.

Back 80

Administrator

Front 81

Materials added to cement to increase its plasticity and workability and help it withstand frost and breakage

Back 81

Admixture

Front 82

A kind of brick made originally by American Indians

Back 82

Adobe Brick

Front 83

Tax based on a fixed percentage of a property’s value.

Back 83

Ad Valorem Tax

Front 84

Special means of acquiring property established by statute. Requires that possession is acquired by open, continuous, hostile physical control of the premises by the adverse possessor

Back 84

Adverse Possession

Front 85

Soil composed of material transported and deposited by the wind.

Back 85

Aeolian Soil

Front 86

Proceeds owners receive from their income-producing property after all the operating expenses are paid.

Back 86

After-tax cash flow

Front 87

Annual rate of return on an investment after the payment of income taxes are paid

Back 87

After-tax equity yield rate

Front 88

The annualized rate of return, after income taxes, on capital that is generated by an investment

Back 88

After-tax internal rate of return

Front 89

The after-tax proceeds from the sale of a property less commissions, taxes paid by the owner, and the payment of all outstanding debts.

Back 89

After-tax net cash proceeds of resale

Front 90

Chronological age of a building

Back 90

Age of Structure

Front 91

Method of estimating the amount of depreciation a property has suffered by calculating the number of years of typical economic life the property is estimated to have divided by the property’s estimated effective age.

Back 91

Age-Life Method

Front 92

Mixture of sand, gravel or stone that makes up about 75% of final composition of concrete

Back 92

Aggregate

Front 93

The rights of an owner to use the air above a property without the right to use the land below

Back 93

Air Rights

Front 94

The effect an alley has on neighboring properties

Back 94

Alley Influence

Front 95

The natural increase to a property made by deposits from rivers or streams.

Back 95

Alluvion

Front 96

Fine sedimentation deposited by flowing water.

Back 96

Alluvium

Front 97

Changes made in the interior or exterior of a building that do not change the exterior dimensions of the building

Back 97

Alterations

Front 98

Instrument containing a non-traditional treatment of an item which usually is fixed throughout the life of the mortgage.

Back 98

Alternative Mortgage Instrument

Front 99

Something other than the construction materials which increases the enjoyment derived from a property

Back 99

Amenity

Front 100

The extra value that a property has because of its amenities

Back 100

Amenity Value

Front 101

The process of paying a debt through a series of equal payments at equal time intervals

Back 101

Amortization

Front 102

The ratio of the amortization payment to the total debt to be amortized

Back 102

Amortization Rate

Front 103

A unit used to measure the flow of electricity through a wire.

Back 103

Ampere

Front 104

Process of finding existing, successful properties that are similar to the subject property

Back 104

Analogue Approach

Front 105

A type of bolt that is set in a concrete foundation and which extends through the sill and holds it down.

Back 105

Anchor Bolt

Front 106

Total mortgage payments including interest and principal required in one year by a particular loan or for a particular property.

Back 106

Annual Debt Service

Front 107

Effective rate of interest on a loan including all the costs and charges

Back 107

Annual Percentage Rate

Front 108

A series of fixed payments received at regular time intervals

Back 108

Annuity

Front 109

One of the methods used by real estate appraisers to capitalize an income stream into a value.

Back 109

Annuity Method

Front 110

The value of an income property is the present worth of the future income stream plus the present worth of the future sales price.

Back 110

Anticipation Principle

Front 111

A supported estimate of a defined value made by a person knowledgeable about the type of property being appraised

Back 111

Appraisal

Front 112

Created by appraisal trade groups for the purpose of regulating the appraisal industry.

Back 112

Appraisal Foundation

Front 113

Principles explaining the market behavior that affects value.

Back 113

Appraisal Principles

Front 114

The procedure a professional appraiser uses to estimate the value of a property.

Back 114

Appraisal Process

Front 115

A written report of the appraiser’s estimation of the value of the property as well as other data concerning the property and evidence to support the evaluation opinion

Back 115

Appraisal Report

Front 116

An estimation of the value of a property based on a systematic analysis of location, improvements and market conditions

Back 116

Appraised Value

Front 117

An increase in property value due to increase in reproduction cost, elimination of negative factors, greater demand, community growth, improvement or other factors

Back 117

Appreciation

Front 118

The taking of a public property for private and personal use

Back 118

Appropriation

Front 119

Property, articles, interests and rights that are attached to and are transferred with the title of a property

Back 119

Appurtenance

Front 120

Rights to use streams, lakes, rivers, seas, etc and the soil beneath them

Back 120

Aquatic Rights

Front 121

Land suited for cultivation

Back 121

Arable

Front 122

A building’s exterior design based on historical styles

Back 122

Architectural Styles

Front 123

The art and science of designing buildings

Back 123

Architecture

Front 124

The surface of any unit measured in square units

Back 124

Area

Front 125

The most commonly used average found by dividing the sum of a series of values by the number of values in the group

Back 125

Arithmetic Mean

Front 126

Type of house wiring made of insulated wires covered in heavy paper and encased in a wound galvanized steel covering

Back 126

Armored Cable

Front 127

A transaction in which both parties act completely independent from each other and have no connection or relationship to each other

Back 127

Arm’s Length

Front 128

A major highway with many branches

Back 128

Arterial Highway

Front 129

A well drilled through impermeable strata deep enough to reach water that will rise to the surface by its own internal hydrostatic pressure

Back 129

Artesian Well

Front 130

A nonflammable, heat-resistant fiber used in roofing and insulation

Back 130

Asbestos

Front 131

In a fireplace, a hole in the hearth floor into which ash can be conveniently swept and removed below

Back 131

Ash Dump

Front 132

A clause in a sales contract which states that the buyer agrees to accept the property in the exact condition that it is in and the seller makes no representations as to the condition of the property

Back 132

“As Is” Condition

Front 133

The price that the seller is asking for his or her property

Back 133

Asking Price

Front 134

The direction that a building faces, such as northern exposure

Back 134

Aspect

Front 135

A thick, sticky substance used for paving

Back 135

Asphalt

Front 136

Tiles made from limestone fillers, asbestos fibers, resinous asphaltic binders and minerals pigment

Back 136

Asphalt Tiles

Front 137

The act of acquiring two or more abutting properties for ownership

Back 137

Assemblage

Front 138

The extra cost paid to acquire abutting properties in order to combine them into one large parcel

Back 138

Assemblage Cost

Front 139

The additional value that is developed by combining several abutting properties into one larger property

Back 139

Assemblage Value

Front 140

A value assigned to a property by the tax assessor to be used as a basis for taxation

Back 140

Assessed Valuation

Front 141

The ratio of the market value of a property in a community or district to its assessed value

Back 141

Assessment Ratio

Front 142

A public official who estimates property values for ad valorem taxes

Back 142

Assessor

Front 143

Owned property that has value

Back 143

Assets

Front 144

To transfer property from one party to another

Back 144

Assign

Front 145

A person to whom something is transferred

Back 145

Assignee

Front 146

A person who makes an assignment

Back 146

Assignor

Front 147

An established mortgage that is transferred to a new owner when he or she buys a property and assumes the liability

Back 147

Assumed Mortgage

Front 148

An agreement whereby one party agrees to assume the responsibility to make payments that were originally the obligation of another party

Back 148

Assumption Agreement

Front 149

The transfer of title of a property whereby the new owner agrees to take over responsibility for paying the existing mortgage

Back 149

Assumption of a Mortgage

Front 150

An internal area with a translucent ceiling to allow sunlight in for the growth of interior plants

Back 150

Atrium

Front 151

A legal doctrine which states that when a property owner maintains a condition which will attract children the owner is responsible for any injury the children receive while on the property

Back 151

Attractive Nuisance Doctrine

Front 152

A number that sums up and represents a mass of data. Mean, median and mode

Back 152

Average

Front 153

A statistical term for the amount obtained by subtracting the arithmetic mean of all the items in a set of data from each item in the set, adding these differences without regard to their plus or minus signs and dividing by the number of items in the data set

Back 153

Average Deviation

Front 154

An aviation easement over a property that permits aircraft to fly over at low heights and prohibits anything being constructed on the property that would interfere with this right

Back 154

Aviation Easement

Front 155

Urban growth that follows the main transportation routes, making finger-like extensions

Back 155

Axial Growth

Front 156

Piling up dirt and stone around the edge of a foundation and basement wall high enough to make a loop for drainage of water away from the foundation

Back 156

Backfilling

Front 157

An offer made in case the first offer to buy a property fails

Back 157

Backup Offer

Front 158

An economic principle which states that in a free market the supply and demand for items tend to balance over time

Back 158

Balance Principle

Front 159

A balance sheet recording the assets and liabilities of a company, partnership or individual with the total assets equal to the total of the liabilities

Back 159

Balance Sheet

Front 160

A type of framing system where the studs extend unbroken from the sill to the roof

Back 160

Balloon Framing

Front 161

Type of mortgage based on a repayment schedule that does not fully pay off the mortgage during its term with a large lump sum payment required at the end of the mortgage

Back 161

Balloon Mortgage

Front 162

The last and usually largest payment which pays a mortgage in full or is the principle sum in a balloon note

Back 162

Balloon Mortgage Payment

Front 163

A technique to develop a capitalization rate used in the income approach

Back 163

Band of investment

Front 164

The elevated portion of land on the side of a stream or river which holds the water in its natural channel

Back 164

Bank

Front 165

The process by which the court removes a debtor’s property for distribution among creditors

Back 165

Bankruptcy

Front 166

A type of conveyance deed used to transfer the legal ownership of real property, usually containing no warranties

Back 166

Bargain and Sale Deed

Front 167

A type of molding often carved or ornamented that is attached to the projecting edge of a gabled roof

Back 167

Barge Board

Front 168

The exchange of the personal or real property of one person for the personal property, real property or other things of value of another person, usually without the use of money.

Back 168

Barter

Front 169

A piece of interior trim laid around the walls of a room next to the floor

Back 169

Baseboard

Front 170

A device used to distribute heat into a room

Back 170

Baseboard Convector

Front 171

A system of heating elements installed in the wall along the baseboard

Back 171

Baseboard Heating

Front 172

A type of radiator used with a hot-water heating system which are long and narrow and fit along the bottom of the wall a few inches off the floor.

Back 172

Baseboard Radiators

Front 173

In accordance with the rectangular survey system, base lines are east-west lines that serve as references for other parallels

Back 173

Base Line

Front 174

The lowest story of a building usually below ground

Back 174

Basement

Front 175

A starting period used in making economic and business data indexes

Back 175

Base Periods

Front 176

A plate usually made of metal at the bottom of a column used to distribute the weight more evenly over the supporting footing or surface

Back 176

Base Plate

Front 177

A minimum rent a tenant must pay when he or she has a lease that calls for the rent to be a percentage of the sales of a business

Back 177

Base Rent

Front 178

Those economic activities in a community that bring in money from outside

Back 178

Basic Activities

Front 179

Farm crops that are considered basic necessities

Back 179

Basic Crops

Front 180

Employment in those economic activities in a community that bring in money from outside the community

Back 180

Basic Employment

Front 181

Income brought into a community by its basic economic activities

Back 181

Basic Income

Front 182

A term used in mortgage equity capitalization

Back 182

Basic Rate

Front 183

The original cost of a property plus the value of any improvements made by the seller and minus any depreciation taken

Back 183

Basis

Front 184

A cover installed on the top of a leader to prevent leaves and other debris from clogging the system.

Back 184

Basket Strainer

Front 185

A strip of insulation that fit closely between the studs of a wall.

Back 185

Batt Insulation

Front 186

A style of exterior wall copied from castles, towers, and fortresses.

Back 186

Battlement

Front 187

An open area between two walls or columns which creates a room-like space

Back 187

Bay

Front 188

A type of masonry joint that has a bead cut into it; primarily used for decorative purposes.

Back 188

Beaded Joints

Front 189

A horizontal or vertical load-bearing structure usually made of wood, steel or concrete

Back 189

Beam

Front 190

The space in a wall where the beam rests in place

Back 190

Beam Pocket

Front 191

That portion of a structure which rests upon its support.

Back 191

Bearing

Front 192

A large piece of wood, steel, stone or other material used to support a structure.

Back 192

Bearing Beam

Front 193

A wall that supports the ceiling, floor or roof.

Back 193

Bearing Wall

Front 194

A solid rock layer found beneath the topsoil that makes an excellent foundation support.

Back 194

Bedrock

Front 195

A community near a city where many people who work for that city live.

Back 195

Bedroom Community

Front 196

An appraisal technique used to estimate the value of property taken by condemnation calculated by estimating the value of the whole parcel prior to the taking and then estimating the value of the remaining parcel after the taking.

Back 196

Before and After Method

Front 197

The cash that is available to the owners of a property after all the expenses, including the mortgage, have been paid but before any income tax liability.

Back 197

Before-Tax Cash Flow

Front 198

The annualized rate of return that represents the internal rate of return on equity before taxes.

Back 198

Before-Tax Equity Yield Rate

Front 199

A glass-enclosed, small room on the roof of a house used as a lookout, and often reached through a trap door.

Back 199

Belvedere

Front 200

An owner who has equitable title only to a property without holding legal ownership.

Back 200

Beneficial

Front 201

The increase in value of a property that results when only part of the property is taken by eminent domain and is created by the improvements made as a result of the project that caused the taking

Back 201

Benefits

Front 202

A mound of earth or pavement used to control the flow of surface water.

Back 202

Berm

Front 203

An improvement that is not a restoration or repair but one which increases property value, such as the paving of an adjoining road.

Back 203

Betterment

Front 204

An offer of what one is willing to pay for something or an offer of what fee one will accept for performing a certain task.

Back 204

Bid

Front 205

A written contract or instrument that transfers personal property from one person to another.

Back 205

Bill of Sale

Front 206

A preliminary agreement and down payment certifying the good faith of a purchaser

Back 206

Binder

Front 207

A paving material made of asphalt or coal.

Back 207

Blacktop

Front 208

A deed of trust that covers more than one property

Back 208

Blanket Deed or Trust

Front 209

One mortgage on two or more pieces of property pledged as security for a debt.

Back 209

Blanket Mortgage

Front 210

A type of insulation, usually made of mineral wood, wood fiber, glass fiber and nailed between the studs of an exterior wall

Back 210

Blankets, Batts

Front 211

An interest rate of refinanced mortgaged debt that is lower than current market rates but higher than the interest rate on the existing debt.

Back 211

Blended Rate

Front 212

The decay of physical appearance and condition of property within a neighborhood

Back 212

Blight

Front 213

A type of nailing done in such a way that nails are hammered deep into the surface and covered with putty so they cannot be seen

Back 213

Blind Nailing

Front 214

An illegal practice of persuading homeowners to sell their property because of the fear that people of a different race or religion will move in and lower property values.

Back 214

Blockbusting

Front 215

A plan of a building that is detailed enough to allow workers to build from it.

Back 215

Blueprint

Front 216

A state or county board established for the purpose of adjusting inequitable tax assessments.

Back 216

Board of Equalization

Front 217

The part of a hot water or steam furnace that holds the water being heated by the ignited fuel.

Back 217

Boiler

Front 218

The formal language used for deeds, documents, and contracts where specifics are written in the appropriate place each time.

Back 218

Boiler Plate

Front 219

A metallic screw pin or fastening having a head and an external thread.

Back 219

Bolt

Front 220

Good faith, no intent to defraud

Back 220

Bona Fide

Front 221

A buyer who purchases without the knowledge of adverse claims against the property and protected against claims of third parties unless they are recorded prior to the sale being closed.

Back 221

Bona Fide purchaser

Front 222

A formal written promise by a borrower to pay a lender specified payments at future specified times.

Back 222

Bond

Front 223

The value of a property equal to the cost less depreciation plus additions to value as written in personal or corporate financial books.

Back 223

Book Value

Front 224

Holes drilled in the ground to obtain samples for a soil study.

Back 224

Boring Test

Front 225

A building unit of clay or shale shaped into rectangles and then fired in a kiln

Back 225

Brick

Front 226

A wall with a space between the inner and outer layers of brick

Back 226

Brick Cavity Wall

Front 227

An arrangement of bricks on a wall where some are laid parallel and some perpendicular to give the wall additional strength

Back 227

Brick Masonry Bond

Front 228

A house style which shares one or more walls with its neighboring houses and often covers an entire block.

Back 228

Brick Row House

Front 229

A decorative, non-supportive layer of brick attached as the facing of a wall but not structurally bonded to it.

Back 229

Brick Veneer

Front 230

A type of wall construction consisting of one layer of concrete block and one layer of brick.

Back 230

Brick Veneer on Concrete Block Wall

Front 231

A popular wall type consisting of a frame covered on the outside with a single layer of face brick

Back 231

Brick Veneer on Frame Wall

Front 232

A type of short-term financing used to bridge the time gap between the end of one loan and the beginning of another loan.

Back 232

Bridge Financing

Front 233

Small strips of wood or metal nailed between joists or studs to give them lateral rigidity.

Back 233

Bridging

Front 234

A person licensed to deal in real estate and receive a commission for bringing buyers and sellers, tenants and owners together

Back 234

Broker, Real Estate

Front 235

An expression which means that the floors of a building are clean and swept and ready for a buyer or tenant

Back 235

Broom Clean

Front 236

The second of three coats of plaster that make up a plaster wall.

Back 236

Brown Coat

Front 237

A 19th-century American house style.

Back 237

Brownstone

Front 238

A measurement of heating and cooling capacity

Back 238

BTU (British Thermal Unit)

Front 239

Used in the income approach to convert that portion of the income attributable to the improvements into the value of the improvements.

Back 239

Building Capitalization Rate

Front 240

The set of governmental regulations that specify minimum construction standards.

Back 240

Building Codes

Front 241

A line set a specified distance from the street edge by local ordinance.

Back 241

Building Line

Front 242

A heavy, waterproofed paper used for insulation in roofs or walls.

Back 242

Building Paper

Front 243

Authorization given by local governments for construction, alterations or remodeling

Back 243

Building Permit

Front 244

A technique used by appraisers as part of the income approach

Back 244

Building Residual Technique

Front 245

Limitations made by legislation on the use of property and on what may be constructed on it.

Back 245

Building Restrictions

Front 246

An arrangement where a landlord builds or alters a property to the specifications of the tenant and recovers the cost of the improvements as part of the rent

Back 246

Build to Suit

Front 247

A technique used by appraisers to construct a capitalization rate for use in the income approach.

Back 247

Built-Up Method

Front 248

A roof made of layers of felt paper and asphalt and coated with fine gravel

Back 248

Built-Up Roofing

Front 249

A retaining wall along a waterfront

Back 249

Bulkhead

Front 250

A concept of property ownership from English common law

Back 250

Bundle of Rights Theory

Front 251

An early 20th-century American small, one story house.

Back 251

Bungalow

Front 252

A heavy-duty, rigid rod, tube or bar that conducts electricity

Back 252

Bus

Front 253

A conduit that encloses a bus

Back 253

Bungalow

Front 254

The value of an ongoing business including both tangible and intangible items.

Back 254

Business Value

Front 255

A roof with two sides that rise from the center to the eaves and has a alley so that they resemble a butterfly

Back 255

Butterfly Roof

Front 256

An external support for a wall

Back 256

Buttress

Front 257

A financing technique requiring an annual lump-sum payment made to the lender.

Back 257

Buydown

Front 258

A market condition wherein there are few buyers, many available properties, low prices and other conditions that favor the buyer.

Back 258

Buyer’s Market

Front 259

An agreement among the owners of a business that allows owners who wish to remain in the business to buy the interests of owners who wish to be bought out.

Back 259

Buy-Sell Agreement

Front 260

Prefabricated electrical cable consisting of rubber-insulated wires surrounded in a steel strip and used mostly for wiring houses.

Back 260

B. X. Cable

Front 261

Interior carpentry work of fine quality.

Back 261

Cabinet Work

Front 262

A foundation made by driving a tube into the ground down to bearing soil and then filling it with concrete.

Back 262

Caisson Foundation

Front 263

Soil that contains a significant amount of limestone

Back 263

Calcareous Soil

Front 264

Real estate loans available to armed forces veterans from California at low interest rates.

Back 264

Cal-Vet Loans

Front 265

A slight convex arching that is intentionally built into a beam, truss, girder, etc. to prevent it from sagging when under a load

Back 265

Camber

Front 266

A man-made waterway connecting two bodies of water

Back 266

Canal

Front 267

A truss, girder, bracket or other structural member that is supported at only one end

Back 267

Cantilever Beam

Front 268

Wealth that is accumulated for the purpose of future use.

Back 268

Capital

Front 269

Permanent assets used for the manufacture of income

Back 269

Capital Assets

Front 270

Money spent on additions, betterments or improvements such as buildings, land or equipment

Back 270

Capital Expenditures

Front 271

Gains realized from the sale of capital assets, generally the difference between cost and selling price, less certain deductible expenses

Back 271

Capital Gains

Front 272

A tax applied to gain or profit realized on the sale or exchange of a capital asset

Back 272

Capital Gains Tax

Front 273

The procedure of reflecting future income into the present value of a property-changing income into a value, a process commonly found in the income approach in an appraisal

Back 273

Capitalization

Front 274

A rate that reflects the relationship between the value of a property and its net operating income (NOI)

Back 274

Capitalization Rate

Front 275

The return to an investor in real estate of the capital invested in the property over a period of time.

Back 275

Capital Recapture/Recovery

Front 276

Annual payments needed to give an investor in real estate a return of his or her contemplated lost capital investment

Back 276

Capital Recovery Payments

Front 277

A period of time forecasted to be the holding period of a real estate investment during which an investor should plan to recover his or her capital invested in the project

Back 277

Capital Recovery Period

Front 278

The amount of money required annually to reimburse the investor for the portion of the investment that will be lost during the life of the investment

Back 278

Capital Recovery Rate

Front 279

A piece of wood that covers the tops of a series of vertical structures

Back 279

Cap Plate

Front 280

A viewing conducted of newly listed properties by sales personnel of a real estate company who travel together to gain knowledge about the listings their company has for sale

Back 280

Caravan

Front 281

An open-sided, roofed shelter often made by extending the house roof to one side.

Back 281

Carport

Front 282

An important component of a staircase

Back 282

Carriage

Front 283

Ornamentation on the underside of the front overhand of a Garrison colonial house.

Back 283

Carved Drop

Front 284

A type of window hinged to open at one of its vertical edges

Back 284

Casement Window

Front 285

A price expressed in terms of all cash as opposed to a price that is expressed in terms of cash and securities.

Back 285

Case Equivalent

Front 286

The net income an investor will hold after deducting operating expenses and loan payments from his or her gross income

Back 286

Cash Flow

Front 287

The ratio of cash throw-off to the original cash invested in a real estate investment

Back 287

Cash on Cash

Front 288

The amount of rent paid in cash to the landlord

Back 288

Cash Rent

Front 289

The amount of income received by the owner of a property after all expenses are paid including payment of the mortgage

Back 289

Cash Throw-Off

Front 290

A piece of trim material around the top and sides of doors and windows

Back 290

Casing

Front 291

An iron alloy with high compressive strength

Back 291

Cast Iron

Front 292

A grill or grating used instead of gate placed in the ground over which cattle will not cross

Back 292

Cattle Guard

Front 293

A narrow, elevated walkway that provides access to an area where repairs may be necessary

Back 293

Catwalk

Front 294

A compound used to seal cracks and fill joints

Back 294

Caulking

Front 295

A legal phrase meaning in Latin “Let the buyer beware.”

Back 295

Caveat Emptor

Front 296

A wall usually of brick or stone which has an inner and outer layer separated by an air space.

Back 296

Cavity Wall

Front 297

The total height from the finished surface of the floor to the lower surface of the bottom chord of the roof truss.

Back 297

Ceiling Height

Front 298

Insulation installed in the ceiling often under the flooring of the attic

Back 298

Ceiling Insulation

Front 299

Small beams that carry the ceiling

Back 299

Ceiling Joists

Front 300

The portion of a building that is below the ground and usually used for storage.

Back 300

Cellar

Front 301

A material or mixture of materials which when mixed with water form a cohesive substance

Back 301

Cement

Front 302

The smallest geographic area into which the Metropolitan Statistical Area is divided for statistical purposes.

Back 302

Census Tract

Front 303

A flat fired clay tile that comes in a variety of types

Back 303

Ceramic Tile

Front 304

The portion of an appraisal that contains the limiting conditions, the appraiser’s conclusion and signature signifying that the report is correct and true.

Back 304

Certificate

Front 305

A document required for FHA-insured loans, signed by homeowners affirming their satisfaction with the labor and materials of their home and authorizing the lender to pay the builder

Back 305

Certificate of Completion

Front 306

An amount of money left in a savings institution for a specific length of time that exchanges early withdrawal privileges for higher interest

Back 306

Certificate of Deposit

Front 307

A certificate given by the Veteran’s Administration to a veteran which states that the applicant is eligible for a VA-incurred loan

Back 307

Certificate of Eligibility

Front 308

A document issued to a builder by a local building department which certifies that a building is free of building code violations and fit for occupancy

Back 308

Certificate of Occupancy

Front 309

A document issued by the Veteran’s Administration that states a property’s current market value, based on a VA-approved appraisal

Back 309

Certificate of Reasonable Value

Front 310

A signed document made by a title examiner, usually presented to the buyer along with the deed, certifying that the seller of a property has good title

Back 310

Certificate of Title

Front 311

As specified in the Financial Institution Reform, Recovery and Enforcement Act (FIRREA), an appraiser who has been certified by the appropriate state to value general property.

Back 311

Certified Appraiser

Front 312

A check that a bank has certified as good

Back 312

Certified Check

Front 313

Part of a waste disposal system that functions similarly to a septic tank

Back 313

Cesspool

Front 314

A type of molding installed around a room at chairback height to protect the walls from damage.

Back 314

Chair Rail

Front 315

A real estate principle which contends that economic and social forces continually cause changes.

Back 315

Principal of Change

Front 316

In carpentry or masonry, a groove or gutter

Back 316

Channel

Front 317

Tangible personal property other than real estate, such as furniture

Back 317

Chattel

Front 318

A security device whereby a security interest is taken by the mortgagee in the personal property of the mortgagor

Back 318

Chattel Mortgage

Front 319

A vertical structure that carries smoke and other products of combustion from the fireplace into the air above a building

Back 319

Chimney

Front 320

The sloped metal cap that crowns a chimney

Back 320

Chimney Cap

Front 321

Material placed over a chimney for drainage and to prevent water penetration

Back 321

Chimney Flashing

Front 322

An extension at the top of the chimney made of tile or sheet metal and used to improve the draft

Back 322

Chimney Pot

Front 323

Actual age

Back 323

Chronological Age

Front 324

A lightweight building block made of cinders and concrete

Back 324

Cinder Block

Front 325

A permanent safety device used as a substitute for a fuse which automatically turns off an electric circuit when it is overloaded

Back 325

Circuit Breaker

Front 326

In a hot-water system circulators are devices that pump water through finger size tubes into radiators and baseboards

Back 326

Circulators

Front 327

A tank used for the storage of rainwater

Back 327

Cistern

Front 328

A long board used as siding

Back 328

Clapboard

Front 329

Used in the CTS system to denote the number of families the unit being described will accommodate

Back 329

Class

Front 330

A system of classifying structures according to the degree of fire resistance of materials from which they are constructed

Back 330

Class of Construction

Front 331

A type of fine-grained soil composed mostly of hydrous aluminum silicates.

Back 331

Clay

Front 332

Lumber free of knots and other defects

Back 332

Clear Lumber

Front 333

A large open area that does not have posts or columns in it to support the roof

Back 333

Clear Span

Front 334

An unencumbered title

Back 334

Clear Title

Front 335

A wall or portion of a wall to which the roof attaches at a higher level than the other walls or portions of walls of a building often with a window at the top of the wall

Back 335

Clerestory

Front 336

In real estate the date when the seller gives the title to the buyer in exchange for the agreed upon purchase price

Back 336

Closing

Front 337

The costs involved with the sale of real estate such as appraisal fees, attorney’s fees and recording fees

Back 337

Closing Costs

Front 338

A document prepared as part of a real estate closing showing the price being paid for the property, all of the adjustments, the closing costs, the financing, any other charges or credits due the buyer or seller and the net proceeds to be received by the seller

Back 338

Closing Statement

Front 339

A claim or encumbrance on a property that can injure the owner’s title if not removed by a quitclaim deed or court action

Back 339

Cloud on Title

Front 340

A housing system wherein houses are placed close together to create a big common area

Back 340

Cluster Housing

Front 341

An ordinance to limit coastal construction.

Back 341

Coastal Commission

Front 342

Stone used as the corner of a masonry wall

Back 342

Coignes

Front 343

A provision in a standard fire policy which requires that a property be insured to a specified percentage of its value.

Back 343

Coinsurance

Front 344

A beam that unites and stiffens two opposite roof rafters

Back 344

Collar Beam

Front 345

A line of columns at regular intervals usually used to support an architrave

Back 345

Colonnade

Front 346

A long slender structure that serves as support

Back 346

Column

Front 347

The small plate at the bottom of a column that helps to distribute the column load to the supporting structures below

Back 347

Column Base Plate

Front 348

The plate at the top of a column that helps support a load.

Back 348

Column Cap Plate

Front 349

The base, usually made of reinforced concrete, that supports a load-bearing column

Back 349

Column Footing

Front 350

Steel placed inside columns for support and reinforcement

Back 350

Column Steel

Front 351

An outer door frame having an inside removable section for year-round utility.

Back 351

Combination Door

Front 352

A system that handles storm water and sanitary sewage together

Back 352

Combination Sewer

Front 353

A window that can hold interchangeable panels of screen or glass

Back 353

Combination Windows

Front 354

Banks whose primary function is to serve business by providing checking accounts and short-term loans.

Back 354

Commercial Banks

Front 355

Bills and notes used instead of money

Back 355

Commercial Paper

Front 356

Properties intended for business use, such as retail and wholesale stores, offices, restaurants, and hotels

Back 356

Commercial Properties

Front 357

The sum, usually a percentage of the selling or rental price, paid to the real estate broker for his or her services

Back 357

Commission

Front 358

An agreement by a lending institution to give a mortgage on a property either when it is purchased or when it is constructed

Back 358

Commitment

Front 359

The area owned by an association of owners of a condominium or planned unit development

Back 359

Common Area

Front 360

A brick not specially treated for texture or color, used for general building purposes

Back 360

Common Brick

Front 361

Laws within a system that have universal and general application

Back 361

Common Law

Front 362

Capital shares in a corporation that have claim on the net income of the corporation

Back 362

Common Stock

Front 363

A type of ownership that exists in about 10 states, where each spouse is an equal and concurrent co-owner of the property acquired during the period of time they are married to each other

Back 363

Community Property

Front 364

The process of compacting extra soil used as fill in a lot so that it can properly bear the weight of the building

Back 364

Compaction

Front 365

An appraisal term for properties that are similar in value for a particular property and are used to indicate fair market value for that property.

Back 365

Comparables

Front 366

A technique used by appraisers to compare one property with another. Often the comparison is done on the basis of a common unit such as square feet or cubic feet.

Back 366

Comparative Method

Front 367

Certain types of damages caused by the taking of property.

Back 367

Compensable Damages

Front 368

A sum of money paid to make amends for an injury.

Back 368

Compensation

Front 369

Legally qualified and fit.

Back 369

Competent

Front 370

A principle which states that when a situation in a free market produces excess or high profits, competition will soon develop for those profits.

Back 370

Principle of Competition

Front 371

An individual element of construction

Back 371

Component

Front 372

An overall rate used in appraising in the income approach.

Back 372

Composite Rate

Front 373

Shingles covered with a mixture of gravel or stones.

Back 373

Composition Shingles

Front 374

A type of siding material that is prefabricated, often in imitation brick

Back 374

Composition Siding

Front 375

A method of paying interest usually paid on savings accounts where the interest earned during a period of time is added to the principal sum at end of the period.

Back 375

Compound Interest

Front 376

A test to measure the strength of concrete

Back 376

Compression Strength Test

Front 377

A mixture of cement, water, admixtures, and aggregates which is an important building material because it is strong, durable, watertight and workable in its plastic state.

Back 377

Concrete

Front 378

Masonry units, solid or hollow, made out of concrete composed of Portland cement, aggregates, admixtures and water.

Back 378

Concrete Block

Front 379

A type of masonry wall consisting of concrete blocks on a plaster coating.

Back 379

Concrete Block Wall

Front 380

Concrete supports for a floor-framing system

Back 380

Concrete Piers

Front 381

The power of government to take private property by due process of law for public use or benefit.

Back 381

Condemnation

Front 382

The value of property taken by condemnation that must be paid to the owner whose property was condemned

Back 382

Condemnation Value

Front 383

The owner of property taken by condemnation (eminent domain).

Back 383

Condemnee

Front 384

The party taking property by condemnation (eminent domain).

Back 384

Condemner

Front 385

A form of ownership in which each owner owns the fee to the individual unit and a percentage of the fee to the common areas.

Back 385

Condominium

Front 386

The changing of rental units to condominium units and common area.

Back 386

Condominium Conversion

Front 387

In electricity a wire or path through which electric current flows

Back 387

Conductor

Front 388

A metal pipe through which electric wire runs

Back 388

Conduit

Front 389

A contract, memorandum or deliberate act which validates a previous agreement that might otherwise have been void.

Back 389

Confirmation

Front 390

The seizure of property by the government from a private owner without paying the owner just compensation.

Back 390

Confiscation

Front 391

An appraisal principle which holds that uniformity of properties in a neighborhood produces maximum value.

Back 391

Principle of Conformity

Front 392

Damages caused to a property by the taking of a nearby property of another owner or the construction of improvements on nearby properties.

Back 392

Consequential Damages

Front 393

The preservation and protection of natural resources so they will not be destroyed

Back 393

Conservation

Front 394

The actual selling price of a property

Back 394

Consideration

Front 395

An appraisal theory which maintains that when a property is evaluated, the land and the improvements must be evaluated on the assumption that they are both being used for the same purpose.

Back 395

Consistent Use Theory

Front 396

A factor or percentage that expresses the relationship between the principal amount of a mortgage and the payments

Back 396

Constant

Front 397

A type of mortgage by which the borrower pays a fixed amount each month with part to be applied to repayment of principal and part to payment of interest.

Back 397

Constant Payment Mortgage

Front 398

The total cost of constructing a building including the price of land, labor, materials and profit

Back 398

Construction Cost

Front 399

A short-term loan used to finance improvements to real estate, often with a long-term commitment for more permanent financing

Back 399

Construction Loan

Front 400

A short-term mortgage often made by a commercial bank to a developer to provide funds during the construction of a real estate project.

Back 400

Construction Loan Mortgage

Front 401

A property that is touching, bordering, or very near to another property.

Back 401

Contiguous

Front 402

Possible occurrences that are conditioned on the precipitation of a future event.

Back 402

Contingencies

Front 403

A line on a map that connects points of equal elevation or outlines a water body

Back 403

Contour Line

Front 404

A written or oral agreement between two or more parties to perform or not perform specified obligations.

Back 404

Contract

Front 405

The actual rent paid for the use of a property.

Back 405

Contract Rent

Front 406

An economic principle used by real estate appraisers which states that each portion of a property contributes to the property’s ability to produce income.

Back 406

Principle of Contribution

Front 407

A term used in farm appraising to express the amount of value the buildings add to the value of the property

Back 407

Contributory Value of Improvements

Front 408

The transfer of heat by the heating of the air

Back 408

Convection

Front 409

A type of heat distribution system consisting of pipes with many fins attached at short intervals.

Back 409

Convector Radiator

Front 410

Electrical outlets which have two receptacles that accept three-pronged plugs

Back 410

Convenience Outlets

Front 411

A mortgage that is made by a lender who is not insured by a government agency.

Back 411

Conventional Mortgage

Front 412

Changing the use or ownership of a property from its existing use or ownership to another.

Back 412

Conversion

Front 413

A mortgage in which the lender may convert his debt position into equity by decreasing or foregoing cash amortization payments at some time during the life of the loan

Back 413

Convertible Mortgage

Front 414

A written instrument that transfers an interest in real estate from any party to another

Back 414

Conveyance

Front 415

A water tower in which water is cooled by evaporation and is part of an air conditioning system

Back 415

Cooling Tower

Front 416

A form of ownership in which each owner shares in a corporation that owns and entire property and has the exclusive right to occupy part of the property

Back 416

Cooperative

Front 417

An apartment in cooperative ownership.

Back 417

Cooperative Apartment

Front 418

A protective top of a wall, chimney, pilaster or parapet usually sloped to allow the run-off of water

Back 418

Coping

Front 419

A brick that has up to and over 20 holes and still classified as solid

Back 419

Cored Brick

Front 420

A type of tile made from cork.

Back 420

Cork Tile

Front 421

A strip of iron with metal lath that is placed in corners before plastering to provide reinforcement

Back 421

Corner Bead

Front 422

The boards covering the external corners of a frame building

Back 422

Corner Boards

Front 423

Braces nailed diagonally to the studs as reinforcement at corners

Back 423

Corner Braces

Front 424

A special entity created by law that is treated as an individual unit with its own rights and liabilities, usually owned by stockholders

Back 424

Corporation

Front 425

Siding composed of sheet metal or asbestos cement composition board

Back 425

Corrugated Siding

Front 426

The expenditure made to produce the improvements.

Back 426

Cost

Front 427

One of the three traditional approaches to value used by real estate appraisers based on the theory that the value of a property is the sum of the value of the land plus the reproduction cost of all the improvements less depreciation from all causes

Back 427

Cost Approach to Value

Front 428

The ratio of the return from improvement to the cost of the improvement

Back 428

Cost Benefit Ratio

Front 429

A study made of a proposed development or of an addition or alteration to determine whether the benefits received are sufficient to warrant the cost of the project

Back 429

Cost Benefit Study

Front 430

The process of breaking a building down into its components, estimating the value of each component and adding the results together to obtain an estimated cost of the building

Back 430

Cost Estimating

Front 431

A government estimation of the living cost per person per month

Back 431

Cost of Living Index

Front 432

A contract which specifies that the amount to be paid for services received is the provider’s actual cost plus an agreed upon profit

Back 432

Cost Plus Contract

Front 433

The dollar amount needed to restore an item of deferred maintenance to a new or reasonably new condition.

Back 433

Cost to Cure

Front 434

A form of common ownership or possession

Back 434

Co-Tenancy

Front 435

A real estate professional who specializes in giving real estate advice

Back 435

Counselor

Front 436

A new offer made to counter and cancel an original offer.

Back 436

Counter Offer

Front 437

A continuous horizontal layer of tile, brick, shingles, etc.

Back 437

Course

Front 438

A covered area, entirely or partly surrounded by walls

Back 438

Court

Front 439

A concave corner or molding

Back 439

Cove

Front 440

Lighting that is behind a concave molding near the ceiling

Back 440

Cove Lighting

Front 441

A small, concave, faced molding used to cover a narrow gap or angle

Back 441

Cove Molding

Front 442

A special clause in a deed or an agreement whereby the grantor guarantees that the grantee will have the right to a property free from the interference of other parties who may claim an interest in the property

Back 442

Covenant of Quiet Enjoyment

Front 443

An adjustment used in leases in which the rent payment is periodically adjusted by a percentage of the increase in the consumer price index

Back 443

CPI Adjustment

Front 444

The open space between the underside of the floor joists and the ground

Back 444

Crawl Space

Front 445

A record, prepared by a credit reporting organization of a loan applicant’s past capability to pay installment loan payments and other debts

Back 445

Credit Report

Front 446

A cooperative organization of workers created for the purpose of lending money to members.

Back 446

Credit Union

Front 447

Diagonal bracing between joists that gives support and stops the joists from shifting laterally

Back 447

Cross Bridging

Front 448

A lightweight brace used between rafters on opposite roof slopes

Back 448

Cross Tie

Front 449

A survey made to find and evaluate the standing timber in a given area

Back 449

Cruise

Front 450

A uniform method describing houses developed for the Realtors National Marketing Institute (Class, Type, Style)

Back 450

CTS

Front 451

Cost per cubic foot for construction

Back 451

Cubic Foot Cost

Front 452

A dead-end street that is enlarged at the end to allow cars to make a u-turn

Back 452

Cul-de-sac

Front 453

A curable deficiency.

Back 453

Curable Depreciation

Front 454

The raised rim of concrete, stone, or wood that edges a sidewalk, street, floor, or well opening.

Back 454

Curb

Front 455

The portion of a curb that goes down to street level to make the apron of a driveway

Back 455

Curb Cut

Front 456

A wall that encloses but does not support

Back 456

Curtain Wall

Front 457

The right that a husband has to his deceased wife’s estate under common law

Back 457

Curtsey

Front 458

Bounded by curved lines

Back 458

Curvilinear

Front 459

Records and information on real properties kept by appraisers, lenders, etc.

Back 459

DataPlant

Front 460

The date to which an appraisal is applicable.

Back 460

Date of Appraisal

Front 461

A street that is closed at one end and does not have an enlarged space for U turns as a cul-de-sac does

Back 461

Dead End Street

Front 462

The permanent weight that structural parts of a building must support.

Back 462

Dead Load

Front 463

Money owned that must be repaid

Back 463

Debt

Front 464

The ratio of annual net operating income divided by the annual debt service.

Back 464

Debt Coverage Ratio

Front 465

Light-gauge sheets that are used in the construction of a floor or roof

Back 465

Decking

Front 466

A document required by state statute to be filed as part of the process of establishing a condominium form of ownership for a property.

Back 466

Declaration of Condominium

Front 467

A legal, written instrument that conveys title to a described real property.

Back 467

Deed

Front 468

A portion of a deed that describes the property being conveyed.

Back 468

Deed Description

Front 469

Limitations on the use of property for a specified period or forever that are written in a deed, which apply even after the property is sold.

Back 469

Deed Restrictions

Front 470

Failure to fulfill a legal obligation.

Back 470

Default

Front 471

A judgment made against a party who does not appear in court at the appropriate time.

Back 471

Default Judgment

Front 472

Repairs that need to be done to rehabilitate a property but which have not yet been done.

Back 472

Deferred Maintenance

Front 473

Payments to commence at a future time.

Back 473

Deferred Payments

Front 474

The part of a mortgage debt that is not recovered by the sale of the mortgaged property

Back 474

Deficiency

Front 475

The judgment for the portion of debt a borrower is responsible for if a foreclosure sale does not recover all the money due for the foreclosure mortgage

Back 475

Deficiency Judgment

Front 476

A falling short in necessary funds

Back 476

Deficit

Front 477

A lessening in money supply.

Back 477

Deflation

Front 478

The transfer of a deed from buyer to seller so that the seller cannot recall the deed

Back 478

Delivery

Front 479

A note that is repayable on the demand of the holder

Back 479

Demand Mortgage

Front 480

A term used by the Federal Home Loan Mortgage Corporation to describe a PUD in which the common property has a relatively insignificant influence upon the enjoyment of the premises or has little or no effect upon the value of the property

Back 480

Deminimis PUD

Front 481

Relating to a population structure

Back 481

Demographic

Front 482

The number of houses, people, etc per square mile

Back 482

Density

Front 483

Alternate square blocks and blank spaces and comice that give the appearance of teeth.

Back 483

Dentil

Front 484

A decrease in the value of an asset due to exhaustion of resources, such as the taking of oil from a well.

Back 484

Depletion

Front 485

The percentage of a wasting asset that is used up yearly.

Back 485

Depletion Rate

Front 486

A deposit is given by the potential purchaser along with an offer to buy

Back 486

Deposit

Front 487

A simple form of contract used to make an offer to buy real estate in some areas.

Back 487

Deposit Receipt

Front 488

A real property which has a determinable lifespan that can be measured for depreciation

Back 488

Depreciable Property

Front 489

Cost new of a property less accrued depreciation from all causes

Back 489

Depreciated Cost

Front 490

The difference between the reproduction cost of improvements and their value.

Back 490

Depreciation

Front 491

The amount of depreciation in a specific property at a specific date.

Back 491

Depreciation Accrued

Front 492

The rate of percentage at which a property depreciates.

Back 492

Depreciation Rate

Front 493

This method of depreciation is based on estimating the useful life of the asset being depreciated and determining the rate of depreciation by dividing the amount of depreciation to be taken into equal parts to be taken over the estimated useful life.

Back 493

Straight Line Depreciation

Front 494

The low point of a business and economic cycle where unemployment skyrocket and production, prices and demand are low

Back 494

Depression

Front 495

To pass real estate title by succession or to pass title without a will

Back 495

Descent

Front 496

A plan of a building showing all facets of the building’s appearance and purpose

Back 496

Design

Front 497

A gradual worsening in the condition of a property through wear and tear, the elements and disintegration.

Back 497

Deterioration

Front 498

Someone who readies raw land for construction and then either sells it to a builder or acts as a builder and proceeds to construct improvements on the property.

Back 498

Developer

Front 499

A preplanned construction project where the buildings are usually related in some way

Back 499

Development

Front 500

A loan to buy land or make site improvements.

Back 500

Development Loan

Front 501

An appraisal technique for estimating the value of land.

Back 501

Development Method

Front 502

To take a right, estate, or interest away from somebody.

Back 502

Divest

Front 503

Real property given by last will and testament.

Back 503

Devise

Front 504

Someone to whom land is left in a will

Back 504

Devisee

Front 505

Someone who leaves real estate by will

Back 505

Devisor

Front 506

A levee

Back 506

Dike

Front 507

A deposit of soil created by a flood or glacier

Back 507

Diluvium

Front 508

Lumber cut to a specified size and stocked by lumberyards for the building industry.

Back 508

Dimension Lumber

Front 509

A room, separate from the kitchen, used primarily for the serving of meals

Back 509

Dining Room

Front 510

An appraisal technique whereby a capitalization rate is developed by abstracting it from the market.

Back 510

Direct Capitalization

Front 511

One of the classes of costs of a real estate development or project.

Back 511

Direct Costs

Front 512

Labor cost related to a specific building project

Back 512

Direct Labor

Front 513

A mortgage that is to be paid by amortization.

Back 513

Direct Reduction Mortgage

Front 514

A denial and renunciation of an interest or estate

Back 514

Disclaimer

Front 515

To reduce the proceeds of a loan to a borrower and thereby increases the effective interest yield to the lender

Back 515

Discount

Front 516

An appraisal technique that analyzes an income property by discounting the future each flow using a rate of return the appraiser estimates is required to attract an investor to the type of investment being appraised

Back 516

Discounted Cash Flow

Front 517

A rate of return that is required to attract investment capital to a particular investment.

Back 517

Discounted Rate of Return

Front 518

Giving a borrower less than the face value of the note or mortgage

Back 518

Discounting

Front 519

A one-percent discount

Back 519

Discount Point

Front 520

The relationship between dollars loaned by a lender and dollars that the borrower repays

Back 520

Discount Rate

Front 521

When investors remove their money from thrift institutions to reinvest where the rates of return are thought to be higher.

Back 521

Disintermediation

Front 522

The spread of building and other improvements from a central point on the property

Back 522

Dispersion

Front 523

Household money left after taxes; spendable income

Back 523

Disposable Income

Front 524

A drainage area made of clay tiles and gravel used to filter and disperse waste from septic tanks.

Back 524

Disposal Field

Front 525

A relinquishment or alienation of property

Back 525

Disposition

Front 526

Property that is producing income insufficient to pay the expenses of ownership

Back 526

Distress Property

Front 527

When a seller sells a property under great pressure to sell

Back 527

Distress Sale

Front 528

A load that is evenly distributed and measured in tons per square foot

Back 528

Distributed Load

Front 529

A method used by appraisers to estimate the value of a property.

Back 529

Distribution Method

Front 530

In an electrical system a metal box containing the fuses or circuit breakers

Back 530

Distribution Panel Box

Front 531

The concrete or clay tile sued for drainage in a disposal field

Back 531

Distribution Tile

Front 532

A device that keeps water from roots from flowing onto uncovered steps or platforms

Back 532

Diverter

Front 533

An interest in some part of a whole property

Back 533

Divided Interest

Front 534

Money divided among shareholders

Back 534

Dividend

Front 535

The ratio of cash flow to cash invested expressed in a percentage

Back 535

Dividend Yield

Front 536

A wall that is shared by two buildings but which does not belong to either or a load bearing interior wall

Back 536

Division Wall

Front 537

A loading plat for ships, railroad cars or trucks or a land pier for boats

Back 537

Dock

Front 538

A mechanical system designed to produce hot water for household purposes

Back 538

Domestic Hot Water System

Front 539

A legal term meaning someone’s permanent home

Back 539

Domicile

Front 540

The vertical pieces surrounding a door opening

Back 540

Door Jamb

Front 541

The framing member at the bottom of a door opening that serves as a threshold

Back 541

Door Sill

Front 542

A projection built out from the slop of a roof.

Back 542

Dormer

Front 543

A vertical window in a small gable that projects from a sloping roof

Back 543

Dormer Window

Front 544

A double layer of shingles or similar material

Back 544

Double Courses

Front 545

A wooden floor and subfloor

Back 545

Double Floor

Front 546

A way of increasing strength by doubling the usual number of framing members

Back 546

Double Framing

Front 547

A window with two sashes that move up and down independently in tracks

Back 547

Double-Hung Window

Front 548

A projecting end of a piece that has a fan or dovetailed shape

Back 548

Dovetail

Front 549

The legal rights that a widow has to her husband’s estate

Back 549

Dower

Front 550

A portion of the sales price to be paid by the purchaser from his or her own funds and not from any financing he or she may have received

Back 550

Down Payment

Front 551

A pipe used for carrying rainwater from the roof of a house to the ground or into a dry well or sewer connection

Back 551

Downspout

Front 552

A system that removes surface water through tiles and pipes.

Back 552

Drainage

Front 553

A geographic area where the local government controls the construction and operation of the drainage systems.

Back 553

Drainage District

Front 554

Hollow tile used to drain water-saturated soil or disperse liquid into the ground.

Back 554

Drain Tile

Front 555

A piece of molding placed at the edge of a door or window to divert water away from the opening so it will fall free to the ground.

Back 555

Drip

Front 556

A projection from the vertical face of an exterior wall used to make rainwater drip from the outer edge of the wall rather than run down the wall face.

Back 556

Drip Cap

Front 557

The thickened part of a concrete slab that surrounds a column or bracket.

Back 557

Drop Panel

Front 558

A type of tongue-and-grooved exterior board siding.

Back 558

Drop Siding

Front 559

A device used to dehydrate farm crops before storage.

Back 559

Dryer

Front 560

Decay of seasoned wood caused by fungus.

Back 560

Dry Rot

Front 561

A masonry wall put up without mortar

Back 561

Drywall

Front 562

Interior wall construction that uses wallboard, plywood and other sheet materials.

Back 562

Drywall Construction

Front 563

A hole in the ground lined with stone used to disburse waste or rainwater into the ground.

Back 563

Dry Well

Front 564

Pipes of metal, plastic or other material used for distributing or collecting air.

Back 564

Ducts

Front 565

A building having two dwelling units either side by side or one above the other.

Back 565

Duplex

Front 566

An electrical outlet that can receive two plugs.

Back 566

Duplex Outlet

Front 567

Long-lasting goods that can be used again and again.

Back 567

Durable Capital Goods

Front 568

Unlawful pressure to coerce someone to do something against his or her will.

Back 568

Duress

Front 569

A door that is divided horizontally in the middle so that the halves may be opened and closed independently or together.

Back 569

Dutch Door

Front 570

A building designed or used as living quarters for one or more families.

Back 570

Dwelling

Front 571

Money paid in advance to demonstrate good faith when an offer to buy is submitted to a property owner by a prospective purchaser.

Back 571

Earnest Money

Front 572

Money earned from labor or personal services rather than money received as return on capital.

Back 572

Earnings

Front 573

A liberty, privilege or right that one has to use land for a specific purpose distinct from ownership of the soil.

Back 573

Easement

Front 574

An easement attached to the dominant estate.

Back 574

Easement Appurtenant

Front 575

The part of the handrail that curves parallel to the floor.

Back 575

Easing

Front 576

Metal strips attached to eaves and gutters to prevent water absorption and provide drainage.

Back 576

Eave Flashing

Front 577

The lowest projecting part of the roof.

Back 577

Eaves

Front 578

A vent located under the eaves of the house.

Back 578

Eave Vent

Front 579

The science of the relationship between living things and their environment.

Back 579

Ecology

Front 580

The major economic activities of a community that provide it support by bringing in funds from outside the community.

Back 580

Economic Base

Front 581

A technique for the analysis of the macro economic supports of a community. It is used as a means of predicting income and population or other variables that affect real estate value.

Back 581

Economic Base Analysis

Front 582

The length of time improvements can be profitability utilized. It is the length of time the improvements contribute value for the property.

Back 582

Economic Life

Front 583

A decrease in desirability or value resulting from economic forces off the property, such as change in zoning, in traffic patterns, or in supply/demand relationships.

Back 583

Economic Obsolescence

Front 584

The rent that a property would command in the market at any given time.

Back 584

Economic Rent

Front 585

The age an improvement appears to be as compared to other improvements in the market.

Back 585

Effective Rage

Front 586

The desire to purchase combined with the ability to pay.

Back 586

Effective Demand

Front 587

The total estimated potential income produced by a property including rents and all miscellaneous income less an allowance for the income that will not be collected because of vacancies and collection losses.

Back 587

Effective Gross Income

Front 588

The actual rate of interest paid on a loan or mortgage.

Back 588

Effective Rate

Front 589

The taxes on a property expressed as a ratio between the market value of the property and the annual taxes.

Back 589

Effective Tax Rate

Front 590

The ratio of rentable square feet of office space to gross square footage.

Back 590

Efficiency Rate

Front 591

Liquid sewage after some stage of treatment.

Back 591

Effluent

Front 592

An electronic device that charges dust particles with electricity and removes them by attracting the particles to metal collecting rods.

Back 592

Electric Air Cleaner

Front 593

A heating system run by converting electricity into heat.

Back 593

Electric Heat

Front 594

One of the major mechanical systems of most buildings.

Back 594

Electric System

Front 595

Height above sea level or height measured from any point.

Back 595

Elevation

Front 596

A capitalization process used to convert the projected income stream of a property into a value.

Back 596

Ellwood

Front 597

The movement of soil caused by water in the soil.

Back 597

Eluviations

Front 598

The right of the government to acquire private property for public use by condemnation with just compensation.

Back 598

Eminent Domain

Front 599

Land enclosed within a visible boundary such as a fence used to protect a property from encroachment by animals.

Back 599

Enclosure

Front 600

An intrusion of one person’s property upon the property of another.

Back 600

Encroachment

Front 601

Any claim, charge or lien attached to a real property that does not prevent conveyance.

Back 601

Encumbrance

Front 602

The market value of a property less the amount of the existing mortgages.

Back 602

Equity

Front 603

The ratio of down payment to total price.

Back 603

Equity Ratio

Front 604

The return on the equity from all sources.

Back 604

Equity Yield

Front 605

The effective rate of return on an equity capital investment including the annual dividends and the effect of any gain or loss as a result of the sale of the investment.

Back 605

Equity Yield Rate

Front 606

The wearing away of rock and earth caused by running water.

Back 606

Erosion

Front 607

A clause in a lease that adjusts the rent during the term of the lease to reflect changing conditions.

Back 607

Escalation Clause

Front 608

The ownership of property reverts to the State when it is abandoned or when an owner dies without any heirs.

Back 608

Escheat

Front 609

The process of depositing money with a third party.

Back 609

Escrow

Front 610

A special bank account established by an agent in which funds being held in escrow are deposited.

Back 610

Escrow Account

Front 611

An interest in property.

Back 611

Estate

Front 612

An estate that takes effect some time in the future when another estate ends.

Back 612

Estate in Reversion

Front 613

An appraisal term for an opinion that is based on the analysis of adequate data about a property.

Back 613

Estimate

Front 614

A legal doctrine which states that a person is forbidden to contradict or deny his or her own previous statement, act or deed when an innocent third party has relied on the statement act or deed.

Back 614

Estoppels

Front 615

A court action for the physical removal of a person from real property.

Back 615

Eviction

Front 616

A document showing ownership of property.

Back 616

Evidence of Title

Front 617

A hole dug to provide safe and adequate support for footings and foundations.

Back 617

Excavation

Front 618

Rent that exceeds the fair market rent.

Back 618

Excess Rent

Front 619

A value greater than market value that is created when a property is leased to a good tenant at a rental that exceeds the fair market rent of the property.

Back 619

Excess Value

Front 620

A contract that gives the agent will receive a commission if a property is sold as a result of his or her efforts but not as an agent exclusive right to sell a property.

Back 620

Exclusive Agency

Front 621

A contract which states that the agent will receive a commission if a property is sold as a result of his or her efforts but not as the result of the efforts of the principal.

Back 621

Exclusive Agency Listing

Front 622

A written contract between a property owner and a real estate broker wherein the owner promises the broker a fee or commission if the property is sold during a stated period.

Back 622

Exclusive Listing

Front 623

A listing agreement between the owner of a property and a real estate broker giving the broker the exclusive right to sell the property and receive the agreed upon commission.

Back 623

Exclusive Right to Sell

Front 624

To make a document valid.

Back 624

Execute

Front 625

A court order allowing an official of the court to put into effect a judgment of the court.

Back 625

Execution of Judgment

Front 626

A person who is appointed as the one to carry out requests in a will.

Back 626

Executor

Front 627

A court-approved deed where the grantor is the executor

Back 627

Executor’s Deed

Front 628

The mortgage belonging to the seller of a property which is assumed by the buyer.

Back 628

Existing Mortgage

Front 629

The ratio of expenses to gross income.

Back 629

Expense Ratio

Front 630

The direction in which a property faces.

Back 630

Exposure

Front 631

The act of taking private property for public use.

Back 631

Expropriation

Front 632

A document that extends the term of a mortgage

Back 632

Extension Agreement

Front 633

The outside coating or covering of a building.

Back 633

Exterior Finish

Front 634

Any outer vertical surface that enclosed the entire structure.

Back 634

Exterior Wall

Front 635

A federal law designed to protect the consumer.

Back 635

Fair Credit Reporting Act

Front 636

Land used to grow crops raising dairy products.

Back 636

Farm

Front 637

The analysis of a project before construction.

Back 637

Feasibility Study

Front 638

The federal agency that insures against loss of deposits in commercial and savings banks.

Back 638

Federal Deposit Insurance Corporation

Front 639

Forbids discrimination on the basis of race, color, sex, religion or national origin.

Back 639

Federal Fair Housing Law

Front 640

Freddie Mac whose purpose is to buy conventional mortgages from savings and loan associations.

Back 640

Federal Home Loan Mortgage Corporation

Front 641

FHA, a federal agency that is now a division of the Dept of Housing and Urban Development. To promote good housing by insuring residential mortgage loans.

Back 641

Federal Housing Association

Front 642

Fannie Mae created as a federal agency to buy and sell FHA and VA guaranteed mortgage loans.

Back 642

Federal National Mortgage Association

Front 643

A lien placed on a property because the owner has failed to pay some kind of federal tax.

Back 643

Federal Tax Lien

Front 644

An ownership in land that can be inherited.

Back 644

Fee

Front 645

The best and most complete title an owner can have to a piece of real estate.

Back 645

Fee Simple

Front 646

Unconditional ownership and control.

Back 646

Fee Simple Absolute

Front 647

A fee that rests on a certain condition.

Back 647

Fee Simple Conditional

Front 648

An ownership that will terminate if some condition is no longer met.

Back 648

Fee Simple Defeasible

Front 649

A person who acts in a relationship of trust or confidence with respect to another person.

Back 649

Fiduciary

Front 650

A relationship where a person is put in a position of trust.

Back 650

Fiduciary Relationship

Front 651

Land not suitable for building because of its typography, wetness or poor bearing quality that is improved by dumping dirt.

Back 651

Filled Land

Front 652

An appraisal term for the process of choosing the most appropriate data and selecting from among alternative conclusions developed in the approaches to value to estimate a final value for the property being appraised.

Back 652

Final Reconciliation

Front 653

An opinion made by an appraiser after all of the steps of the appraisal process and alter the final reconciliation as to what the appraiser feels the value of a property is.

Back 653

Final Value Estimate

Front 654

A statement listing the assets and liabilities of a person or company.

Back 654

Financial Statement

Front 655

A promise by a lending institution to make a mortgage on a property when specified conditions are met.

Back 655

Firm Commitment

Front 656

A term used by the Federal Home Loan Mortgage Corporation to describe a lien meeting the requirements of any investment statute or regulation issued.

Back 656

First Lien

Front 657

A mortgage that has priority over all other voluntary liens on that property.

Back 657

First Mortgage

Front 658

A right usually granted by an owner to a lessee that gives the lessee the first chance to purchase the property if the owner decides to sell.

Back 658

First Refusal Right

Front 659

Permanent assets not readily converted into cash that are necessary for the operation of a business.

Back 659

Fixed Assets

Front 660

Personal property accessory to the real estate and part and parcel of it.

Back 660

Fixture

Front 661

Metal or composition used to protect, cover or deflect water in places where two materials join or form angles.

Back 661

Flashing

Front 662

A note secured by a mortgage where amortization of principal is not required during an initial period.

Back 662

Flexible Payment Loan

Front 663

The flat surfaces on the banks of rivers and streams that are subject to flooding.

Back 663

Flood Plain

Front 664

A type of hot air heating unit that is installed directly under the floor.

Back 664

Floor Furnace

Front 665

A horizontal framing lumber which supports the flooring to which it is attached.

Back 665

Floor Joists

Front 666

The live load support capacity of a floor that is measured in pounds per square foot that the floor may safely support.

Back 666

Floor Load

Front 667

An easement that provides the right to let water flow over the land and even to flood the land under prescribed circumstances.

Back 667

Flowage Easement

Front 668

An enclosed passageway in a chimney through which smoke and gases pass upward.

Back 668

Flue

Front 669

A concrete support under a foundation, chimney or column that usually rests on solid ground and is wider than the structure being supported.

Back 669

Footings

Front 670

A furnace that uses a fan to force the warm air through the ducts instead of relying on gravity to circulate the air

Back 670

Forced Air Furnace

Front 671

A sale that is made under compulsion such as to satisfy a debt.

Back 671

Forced Sale

Front 672

The legal proceedings by which a mortgagee, after default by the mortgagor, makes the mortgagor sell the property in order to recover the loan.

Back 672

Foreclosure

Front 673

When a property is sold upon court order to satisfy a debt.

Back 673

Foreclosure Sale

Front 674

When personal property is taken by the government because an individual has violated the law.

Back 674

Forfeiture

Front 675

Construction, usually below or partly below grade that provides support for exterior walls or other structural parts of a building.

Back 675

Foundation

Front 676

A part of the building process that consists of putting together the lumber skeleton of the building.

Back 676

Framing

Front 677

Real property that has no liens against it.

Back 677

Free and Clear

Front 678

An estate held for at least the life of the owner in real property.

Back 678

Freehold

Front 679

The length of the boundary line that touches the street

Back 679

Frontage

Front 680

A street that runs parallel to a limited access highway to service abutting properties without direct access to the highway and to gather and control the traffic entering and exiting from the highway.

Back 680

Frontage Road

Front 681

A measure of one foot wide along a property frontage.

Back 681

Front Foot

Front 682

The value of a piece of property expressed in terms of front foot units.

Back 682

Front Foot Value

Front 683

Money a developer must expend prior to knowing for sure that the project will go forward and that financing will be available.

Back 683

Front money

Front 684

The broker’s, builder’s and owner’s obligation to tell a buyer all of the known pertinent facts about the property being sold or rented.

Back 684

Full Disclosure

Front 685

Impairment or defects in functional capacity or efficiency.

Back 685

Functional Obsolescence

Front 686

The total of a property’s attractiveness and usefulness

Back 686

Functional Utility

Front 687

An interest that a party has in a property that will not become effective until the future.

Back 687

Future Interest

Front 688

The vertical triangular portion of a building formed by the inclining edges of a pitched roof

Back 688

Gable

Front 689

A two-pitched roof style that has its slope broken by an obtuse angle so that the lower slope is steeper than the upper slope.

Back 689

Gambrel Roof

Front 690

A special type of loan made to developers when their project fails to meet the conditions of their original mortgage commitment.

Back 690

Gap Loan

Front 691

In condemnations, benefits to the surrounding property and community caused by the project being developed that was the cause of the taking.

Back 691

General Benefits

Front 692

A person who contracts for the construction of an entire project.

Back 692

General Contractor

Front 693

A member in a partnership who shares in the profits and losses and has authority to bind the partnership.

Back 693

General Partner

Front 694

A partnership made up of only general partners who are responsible for the management of their partnerships and are personally liable for the debts and obligations of the partnership

Back 694

General Partnership

Front 695

Restrictions imposed on an entire subdivision

Back 695

General Plan Restrictions

Front 696

A system that consists of a network of surveyor’s marks located by latitude and longitude

Back 696

Geodetic System

Front 697

A deed that is given without the grantor receiving any consideration

Back 697

Gift Deed

Front 698

A special state or federal tax on transfers of property that are made without significant consideration

Back 698

Gift Tax

Front 699

A large horizontal beam often carrying other beams and joist on which the floor is laid

Back 699

Girder

Front 700

Gross Living Area

Back 700

GLA

Front 701

A federal agency that is part of the FHA.

Back 701

GNMA Ginnie Mae Government National Mortgage Association

Front 702

The special value that a property or business has while it is in operation.

Back 702

Going Concern Value

Front 703

The system of land division and description used in parts of the United States where land is divided into townships six miles square containing six sections of 640 acres.

Back 703

Government Survey

Front 704

Plowing and raking a lot to give it a desired contour and drainage

Back 704

Grading

Front 705

A lease that provides for a certain rent or an initial period following by an increase or decrease in rent over a stated period

Back 705

Graduated Lease

Front 706

A clause in a law that permits people or businesses established prior to the law to continue their operations without complying with the provisions of the law

Back 706

Grandfather Clause

Front 707

A person who receives a transfer of real property by deed

Back 707

Grantee

Front 708

Someone who transfers real property by deed

Back 708

Grantor

Front 709

Total with no deductions

Back 709

Gross

Front 710

The total revenue from operating sources before deducting expenses incurred for gaining such revenues

Back 710

Gross Earnings

Front 711

A system of measuring the size of a house that is widely used by appraisers

Back 711

Gross Living Area

Front 712

Total income before the deduction of any expenses.

Back 712

Gross Income

Front 713

A figure which when multiplied by a property’s annual gross income will produce an estimate of the value of that property.

Back 713

Gross Income Multiplier

Front 714

A version of the income approach used by appraisers mostly for estimating the value of residences

Back 714

Gross Rent Multiplier Approach

Front 715

Total sales before the deduction of returns, allowances, etc.

Back 715

Gross Sales

Front 716

A lease for land only, exclusive of any buildings that may be on it.

Back 716

Ground Lease

Front 717

Rent paid for the use of vacant land.

Back 717

Ground Rent

Front 718

A person who makes a guaranty that some act will be performed or a payment will be made.

Back 718

Guarantor

Front 719

A contract, either written or verbal, in which the guarantor promises that someone else will perform an act or pay a debt.

Back 719

Guaranty

Front 720

One of the standard clauses in a deed that defines the extent of the ownership of the grantee

Back 720

Habendum

Front 721

A framing member that goes across the top of an opening and carries the load above it.

Back 721

Header

Front 722

A system employed to transfer heat into a space or substance.

Back 722

Heat Pump

Front 723

The utilization of a property to its best and most profitable use.

Back 723

Highest and Best Use

Front 724

An easement that is crated for the purpose of the construction of a highway.

Back 724

Highway Easement

Front 725

The junction of three sloping sides of a hip roof

Back 725

Hip

Front 726

A roof that rises by inclined plans from all four sides of the house.

Back 726

Hip Roof

Front 727

The actual cost of the construction of a structure when it was originally built.

Back 727

Historical Cost

Front 728

A portion of a mortgage loan that is withheld by the lender from the borrower at the time of the closing to be disbursed later, after the borrower has met specified conditions set forth in the mortgage document.

Back 728

Holdback

Front 729

The act of maintaining possession of a property without the owner’s consent after the lease has expired.

Back 729

Holding Over

Front 730

A tenant who retains possession of a leased property after his or her lease has expired.

Back 730

Holdover Tenant

Front 731

An association of property owners in a residential area formed for the purpose of improving the area both physically and socially. The association may own or maintain some physical facilities

Back 731

Homeowner’s Association

Front 732

A multi-peril policy that combines a group of insurance policies needed by homeowners.

Back 732

Homeowner’s Insurance

Front 733

The fixed residence of a family, including the surrounding land and buildings.

Back 733

Homestead

Front 734

State laws that allow a family to have a home and some land which are protected against the claims of general creditors

Back 734

Homestead Exemption Laws

Front 735

Insurance that protects the homeowner against mechanical system failures and structural failures.

Back 735

Home Warranty Insurance

Front 736

Similar or the same.

Back 736

Homogeneous

Front 737

A tank in which water is heated for domestic, commercial or industrial use.

Back 737

Hot Water Heater

Front 738

A heating system that uses hot water circulating from a boiler and flowing through a series of pipes to the areas to be heated and back to the boiler

Back 738

Hot Water Heating System

Front 739

Drawings usually in scale of a house showing all the design and construction details

Back 739

House Plans

Front 740

Responsible for major government housing programs.

Back 740

Housing and Urban Development Department

Front 741

Department of Housing and Urban Development

Back 741

HUD

Front 742

A hot water heating system

Back 742

Hydronic System

Front 743

To pledge a property as security for a mortgage loan without actually delivering title

Back 743

Hypothecate

Front 744

Land that has been improved by the creation of some structure.

Back 744

Improved Land

Front 745

Additions made to a property or utilities that are intended to increase the value of the property

Back 745

Improvements

Front 746

One of the approaches to value used by real estate appraisers based on the theory that the present value of the property is equal to the present value of its future capacity to produce income

Back 746

Income Approach

Front 747

Property that has the primary purpose of producing income from rents or business profits.

Back 747

Income Property

Front 748

The amount of risk estimated to exist that a future income stream projected for a property will occur as estimated

Back 748

Income Risk

Front 749

The income taxes that will be due on the net operating income produced by the property less the mortgage interest and depreciation

Back 749

Income Tax Liability

Front 750

A valuation principle which states that an increase in such things as the amount of labor, materials, or any other factor of production may not increase the value of the property equal to the cost of the added items

Back 750

Increasing and Decreasing Returns

Front 751

A steadily increasing net operating income of a property forecasted over a long period of time.

Back 751

Increasing Annuity

Front 752

An increase often used in reference to increases on land value

Back 752

Increment

Front 753

A defect of design, material, condition of a property that is not prudent to cure because t cost to effect the cure would be greater than the value added to the property caused by curing the defect

Back 753

Incurable Deprecation

Front 754

A defect in property that reduces its value as a result of its design, materials, condition, etc.

Back 754

Incurable Functional Obsolescence

Front 755

A number used to express the difference between the value, price, cost, etc. of a group of items at two or more different points of time.

Back 755

Index Number

Front 756

Costs to an owner to develop a property that would not typically be included in a general construction contract

Back 756

Indirect Costs

Front 757

The network of public facilities located within a community

Back 757

Infrastructure

Front 758

A right to enter upon and pass through land

Back 758

Ingress and Egress

Front 759

Property that is received or will be received by an heir from an estate

Back 759

Inheritance

Front 760

Tax paid for the privilege of inheriting property rather than for the right to transmit property upon death

Back 760

Inheritance Tax

Front 761

A court order that restrains a party from acting or continuing some action

Back 761

Injunction

Front 762

All bodies of water exclusive of the open seas

Back 762

Inland Waters

Front 763

A narrow waterway extending inland

Back 763

Inlet

Front 764

Payments received by a community, county or state from property owners who are not required to pay ad valorem because of an exemption.

Back 764

In Lieu Tax

Front 765

Forever

Back 765

In Perpetuity

Front 766

A situation when someone or some organization cannot pay their debts.

Back 766

Insolvency

Front 767

The examination of a property for a specific purpose

Back 767

Inspection

Front 768

A term used by the IRS to describe a sale where sellers receive less than 100% of the cash due to them in the first calendar year of the sale

Back 768

Installment Sale

Front 769

Banks, insurance companies, pension funds, savings and loan associations and other non-profit institutions who make loans on a regular basis

Back 769

Institutional Lender

Front 770

Property owned and run by nonprofit organizations

Back 770

Institutional Property

Front 771

A formal legal document such as a sales contract, deed, mortgage, etc.

Back 771

Instrument

Front 772

Two pieces of double or single strength glass sealed together with an air space between them

Back 772

Insulating Glass

Front 773

Any material used to reduce the transmission of heat and cold or to reduce fire hazard

Back 773

Insulation

Front 774

An insurance term which expresses the concept that only people or organizations that have an interest in a property may insure the property and receive benefits

Back 774

Insurable Interest

Front 775

A mortgage in which payments to the mortgagee are guaranteed in the event the mortgagor fails to make them

Back 775

Insured Mortgage

Front 776

Personal property that has value but cannot be physically touched.

Back 776

Intangible Property

Front 777

A right or share in something

Back 777

Interest

Front 778

A loan for which the lender is repaid the principal in one lump sum at the end of the loan term and is paid interest only during the term of the loan.

Back 778

Interest Only Loan

Front 779

A percentage of a principal sum that is paid for by the borrower for its use.

Back 779

Interest Rate

Front 780

A temporary or short-term loan usually secured by a mortgage

Back 780

Interim Financing

Front 781

Temporary use of a property to produce some income during the period in which development is postponed.

Back 781

Interim Use

Front 782

The effective annual rate of return on an investment.

Back 782

Internal Rate of Return

Front 783

A person who dies without leaving a will or who leaves a will that is invalid

Back 783

Intestate

Front 784

A legal process wherein an owner of a property may sue for damages caused as a result of a condemning that has been publicly announced but has not been performed by the condemning body within a reasonable period from the time of the announcement

Back 784

Inverse Condemnation

Front 785

Property acquired for the purpose of making a profit

Back 785

Investment Property

Front 786

A company established specifically for the purpose of being used as vehicle for investors to pool their money and make investments in stocks

Back 786

Investment Trust

Front 787

Value to an investor based on his or her individual needs and income tax bracket.

Back 787

Investment Value

Front 788

Value to an investor based on his or her individual needs and income tax bracket

Back 788

Investment Value

Front 789

The gain from a real estate investment expressed as an annual percentage that includes all of the income and the capital gain or loss from the resale.

Back 789

Investment Yield

Front 790

An income tax term that describes the conversion of real property into personal property by condemnation.

Back 790

Involuntary Conversion

Front 791

That which cannot be annulled, abrogated, revoked or withdrawn

Back 791

Irrevocable

Front 792

The artificial watering of crops in times of drought or in dry areas

Back 792

Irrigation

Front 793

Windows and doors made of movable glass louvers that can be adjusted to slope upward to admit light and air yet exclude rain or snow

Back 793

Jalousies

Front 794

The framing pieces that line doors and windows

Back 794

Jamb

Front 795

A pier or other stone or pile structure placed in a body of water to protect a harbor by hindering currents

Back 795

Jetty

Front 796

The space between two adjacent surfaces.

Back 796

Joint

Front 797

An estate or tenancy shared equally by two or more parties with the right to survivorship.

Back 797

Joint Tenancy

Front 798

People hooding under joint tenancy

Back 798

Joint Tenants

Front 799

When two or more people combine their property, skills and funds and become partners in a single business purpose

Back 799

Joint Venture

Front 800

A series of parallel timber beams used to support floors and ceilings

Back 800

Joists

Front 801

The final decision of a court after a trial or hearing

Back 801

Judgment

Front 802

A lien placed on a property as a result of the decision of a court

Back 802

Judgment Lien

Front 803

The sale of property to satisfy the debt in a mortgage foreclosure

Back 803

Judicial Sale

Front 804

Money which is loaned on real estate that is secured with mortgages which do not have first claim on the property.

Back 804

Junior Financing

Front 805

A lien placed on a property that is subordinate to a lien that has been previously recorded.

Back 805

Junior Lien

Front 806

A mortgage that is legally subordinate to another mortgage

Back 806

Junior Mortgage

Front 807

The amount paid to a property owner when a property is condemned

Back 807

Just Compensation

Front 808

A lot that has one side adjacent to the rear of other lots.

Back 808

Key Lot

Front 809

The kit-shaped steps in a stairway at the place where the stairway changes direction

Back 809

Kit Winder

Front 810

As defined by appraisers it is the solid portion of the earth’s surface substantially in its undisturbed condition.

Back 810

Land

Front 811

A contract for the sale of real estate by which the buyer pays only a portion of the purchase price when the contract is executed

Back 811

Land Contract

Front 812

A five-step process that is used to estimate the value of land.

Back 812

Land Residual Technique

Front 813

A map prepared by assessors indicating the use of the land and its value.

Back 813

Land Value Map

Front 814

A joint formed by placing one board of piece of material partly over the other and fastening them together.

Back 814

Lap Joint

Front 815

Situated at or on the side.

Back 815

Lateral

Front 816

The right of a property owner to have his land supported by the land of his neighbors.

Back 816

Lateral Support

Front 817

The distance in degrees north or south of the equator measured along a meridian on a map or globe

Back 817

Latitude

Front 818

The process of absorbing water into the ground from a waste disposal system

Back 818

Leaching

Front 819

A hole in the ground lined with stones.

Back 819

Leaching Cesspool

Front 820

A part of a waste disposal system used to disburse the waste water into the ground

Back 820

Leaching Field

Front 821

A contract that transfers the right to use or occupy a property from the owner to the tenant in exchange for payments called rent.

Back 821

Lease

Front 822

The interest in a property that remains with the owner after he has granted someone else the right to occupy the property

Back 822

Leased Fee

Front 823

The interest in a property of a tenant created by a lease.

Back 823

Leasehold

Front 824

A non-freehold estate in a property created by a lease

Back 824

Leasehold Estate

Front 825

Additions, alterations and improvements to a property made by a tenant in anticipation of their use during the period the tenant has the right to use the property

Back 825

Leasehold Improvements

Front 826

The value of a tenant’s interest in a lease

Back 826

Leasehold Value

Front 827

An agreement whereby a tenant can acquire ownership of a property through a series of payments specified in a lease

Back 827

Lease-Purchase Agreement

Front 828

A horizontal framing member supported by hangers or by upright posts that supports the joists

Back 828

Ledger

Front 829

A special gift of money or other personal property made in a will to a recipient

Back 829

Legacy

Front 830

The inherent right of the owner of property immediately adjacent to a highway to enter onto the highway from the property

Back 830

Legal Access

Front 831

A method of identifying the boundaries of a property

Back 831

Legal Description

Front 832

The party to a lease who receives the right to use or occupy a property in return for the payment of rent

Back 832

Lessee

Front 833

The party to a lease who owns the fee title and gives a tenant the right to use or occupy the property in return for the payment of rent

Back 833

Lessor

Front 834

A raised embankment along the edge of a river that prevents the river from overflowing

Back 834

Levee

Front 835

A comprehensive term that includes all the obligations a person has as require by law or equity

Back 835

Liability

Front 836

A right granted by the owner of a property to someone to do some act o series of acts on the property without obtaining and interest in the property

Back 836

License

Front 837

Laws created by legislative bodies that prohibit the practice of specified professions or business enterprises without obtaining a license from the government granting permission to practice.

Back 837

License Laws

Front 838

A claim or charge upon property which encumbers the property and makes it security for the payment of debt

Back 838

Lien

Front 839

The owner of a property that is encumbered by a line

Back 839

Lienee

Front 840

The person who has the right of lien against a property to secure the payment of debt.

Back 840

Lienor

Front 841

A legal distinction which states that the holder of a mortgage has only a lien against the mortgaged property rather than a true title interest

Back 841

Lien Theory

Front 842

A legal theory which states that the true title of a property rests on the borrower and that the lender has only a lien on the property

Back 842

Lien Theory of Mortgage

Front 843

Notice that a lawsuit is pending.

Back 843

Lis Pendens

Front 844

A contest in a court of justice for the purpose of enforcing a right.

Back 844

Litigation

Front 845

Property abutting a large body of water such as an ocean, sea, bay or large lake

Back 845

Littoral Property

Front 846

The rights of owners of littoral property to enjoy the use of the body of water to which their property abuts.

Back 846

Littoral Rights

Front 847

A one-time payment made to a lender at the time of the initial loan and in addition to the regular loan interest

Back 847

Loan Fee

Front 848

The length of time the lender loans the money to the borrower

Back 848

Loan Maturity

Front 849

The percentage the amount of a loan is to the value of the property or other security pledged to secure the loan.

Back 849

Loan-to-value ratio

Front 850

A parcel of land that is distinctly designated

Back 850

Lot

Front 851

A map that divides a parcel of land into lots

Back 851

Lot and Block Description

Front 852

The border of a lot as described in the title documents

Back 852

Lot Line

Front 853

A lease 10 years or longer in duration

Back 853

Long-term Lease

Front 854

A mortgage clause that prohibits prepayment of the loan during a specified period of time

Back 854

Locked-in Period

Front 855

Off-site built housing moved and permanently attached to a fixed site.

Back 855

Manufactured Housing

Front 856

The salability of a property at a specific time and price

Back 856

Marketability

Front 857

A study to discover how a particular piece of property can be marketed

Back 857

Marketability Study

Front 858

A study made of general market conditions for the product proposed to be marketed

Back 858

Market Analysis

Front 859

The geographic territory within which a product being marketed can reasonably expect to find a buyer.

Back 859

Market Area

Front 860

The actual price paid for a property

Back 860

Market Price

Front 861

The amount of rent a property should bring if it were being currently offered for rent under competitive market conditions.

Back 861

Market Rent

Front 862

The price that a property will sell for in a competitive market when all the conditions for a fair sale exist.

Back 862

Market Value

Front 863

The date when an instrument comes due.

Back 863

Maturity

Front 864

A statistical term for a measure of central tendency of a set of data.

Back 864

Mean

Front 865

A special lien created to protect those who work on real estate and provide material and labor for construction, improvement and repairs

Back 865

Mechanic’s Lien

Front 866

A statistical term for the middle number of a set of numbers when the total number of items in the set is odd and they are arranged in ascending or descending order according to their size.

Back 866

Median

Front 867

The boundary lines of a property including terminal points and angles.

Back 867

Metes and Bounds

Front 868

An intermediate floor between two floors that does not have the same area as the rest of the floors.

Back 868

Mezzanine

Front 869

The rights to minerals beneath the ground such as coal, iron and gold with or without ownership of the surface of the land.

Back 869

Mineral Rights

Front 870

In real estate terminology minerals that may be mined.

Back 870

Minerals

Front 871

A statistical term for the most frequent number that appears in an array of numbers

Back 871

Mode

Front 872

Prefabricated rooms that are built in a factory and shipped to their eventual location

Back 872

Modular Construction

Front 873

Material used to slow down or stop the buildup of condensation in walls

Back 873

Moisture Barrier

Front 874

Tenant rents for one month at a time.

Back 874

Month-to-Month Tenancy

Front 875

The pledge of property to a lender to secure the payment of the debt.

Back 875

Mortgage

Front 876

A person or organization that makes loans secured by mortgages from their own funds and then sells the mortgages.

Back 876

Mortgage Banker

Front 877

A person who brings together a borrower and lender for a fee and manages the necessary papers for a borrower to secure a loan against a property by giving a deed of trust or mortgage as security.

Back 877

Mortgage Broker

Front 878

A certificate issued by the Federal Home Loan Mortgage Corporation.

Back 878

Mortgage Certificate

Front 879

A written notice given by a lending institution that promises a mortgage loan for the future and specifies the conditions and terms of the loan.

Back 879

Mortgage Commitment

Front 880

A written document verifying that a real property has been given as security for a loan.

Back 880

Mortgage Deed

Front 881

The lender who loans money.

Back 881

Mortgagee

Front 882

A technique used by appraisers as part of the income capitalization process

Back 882

Mortgage Equity

Front 883

Insurance available to mortgage lenders from the Mortgage Guaranty Insurance Corporation that is issued against financial loss

Back 883

Mortgage Guaranty Insurance

Front 884

An independent insurance company organized in 1956 that will insure a percentage of loans made by approved mortgage lenders to qualified buyers to help protect mortgage lenders from financial loss.

Back 884

Mortgage Guaranty Insurance Corporation (MGIC)

Front 885

A document which states that in addition to the property being security for the repayment of the mortgage the borrower also personally guarantees the mortgage repayment

Back 885

Mortgage Note

Front 886

A title insurance policy that guarantees to the mortgagee that the title to the property being used as mortgage security is a good title

Back 886

Mortgage Policy

Front 887

Maintaining the responsibilities of a mortgage such as paying taxes and insurance and collecting payments

Back 887

Mortgage Servicing

Front 888

The value of the property for mortgage security purposes

Back 888

Mortgage Value

Front 889

The accumulation by a mortgage banker of a portfolio of mortgages in his own account for the purpose of selling them in a package to a lending institution

Back 889

Mortgage Warehousing

Front 890

The person who borrows money secured by a mortgage

Back 890

Mortgagor

Front 891

A statistical technique for measuring the effect that a number of independent variables have on one dependent variable.

Back 891

Multiple Regression Analysis

Front 892

A figure used to estimate the value of a property based on its gross income.

Back 892

Multiplier

Front 893

A general term that may mean a body of water able to carry commerce or a body of water large enough to ebb and flow

Back 893

Navigable Waters

Front 894

A situation which occurs when the income from an investment does not pay for the expenses and the owner must periodically furnish the extra cash to meet these expenses

Back 894

Negative Cash Flow

Front 895

Any separately identifiable cohesive area within a community with some community interest shared by its occupants

Back 895

Neighborhood

Front 896

Growth, stability, decline and renewal

Back 896

Neighborhood Life Cycle

Front 897

The balance remaining after deducting all operating expenses, maintenance, taxes and losses from the gross income.

Back 897

Net Income

Front 898

A factor obtained by dividing the selling price by the net income used to estimate the value of other properties whose net income is known by multiplying the net income by the factor.

Back 898

Net Income Multiplier

Front 899

The gross operating income of the property less the fixed expenses, variable expenses and reserves for replacement not including deductions for deprecation, debt service or any expenses not directly related to the property.

Back 899

Net Operating Income -NOI

Front 900

A use that does not currently conform to the zoning regulations of an area.

Back 900

Non-Conforming Use

Front 901

A property that does not conform in usage or physical appearance to its neighboring properties

Back 901

Non-Conforming

Front 902

An estate in real estate without ownership.

Back 902

Non-Freehold Estate

Front 903

A notice that is filed when a borrower is in default on a mortgage or a deed of trust.

Back 903

Notice of Default

Front 904

A notice filed to void notice of default of a mortgage or deed of trust

Back 904

Notice of Recision

Front 905

A written notice given by a landlord to a tenant advising the tenant that the landlord wants possession of the premises at some stated time.

Back 905

Notice to Quit

Front 906

In order to obtain title by adverse possession, possession must be so open and exclusive that the owner is presumed to be aware of it.

Back 906

Notorious Possession

Front 907

The substitution of a new obligation, contract or debt for an existing one.

Back 907

Novation

Front 908

The amount that someone would pay for a property because it is a nuisance as currently run or is actually damaging the prospective buyer.

Back 908

Nuisance Value

Front 909

Not legally binding.

Back 909

Null and Void

Front 910

A person to whom a debt or favor is owed.

Back 910

Obligee

Front 911

A person who owes a debt.

Back 911

Obligor

Front 912

Forms of depreciation that are caused by things other than physical deterioration.

Back 912

Obsolescence

Front 913

Being no longer useful or desirable.

Back 913

Obsolete

Front 914

A proposal subject to another’s acceptance to do a specified deed when the other party in turn performs a specified deed.

Back 914

Offer

Front 915

The person to whom an offer is made.

Back 915

Offeree

Front 916

A person making an offer

Back 916

Offeror

Front 917

The development and construction of improvements, such as streets and sewers to make adjacent property fit for construction

Back 917

Off-Site Improvement

Front 918

A listing to sell or rent property that is given to more than one broker.

Back 918

Open Listing

Front 919

Relationship between operating expenses and projected gross income expressed as a percentage of the gross income.

Back 919

Operating Expense Ratio

Front 920

A legal opinion stating that a property is free, clear and marketable

Back 920

Opinion of Title

Front 921

An agreement that grants the right to purchase or lease a property during a specified period of time at stipulated terms

Back 921

Option

Front 922

A person who received an option

Back 922

Optionee

Front 923

A person who gives an option for a fee

Back 923

Optionor

Front 924

A verbal agreement

Back 924

Oral Contract

Front 925

A fee charged by a lender for making a loan or taking a mortgage, usually a percentage of the mortgage

Back 925

Origination Fee

Front 926

The ratio between annual net operating income and value or sales price

Back 926

Overall Rate

Front 927

An improvement that is not the highest and best use for a property

Back 927

Overimprovement

Front 928

The ownership of a property as shown in the land records.

Back 928

Owner of Record

Front 929

A broad term that describes the ownership of property.

Back 929

Ownership

Front 930

A heating system that places the electric coils, steam pipes and other heating devices into walls or ceilings to serve as heating panels and transmit heat by radiation.

Back 930

Panel Heating

Front 931

The taking of a portion of a property by the government’s power of eminent domain.

Back 931

Partial Taking

Front 932

An association of two or more persons who carry on a business for profit as co-owners

Back 932

Partnership

Front 933

A common wall in a building that separates two units in separate ownership.

Back 933

Party Wall

Front 934

A test made to determine the capacity of the soil to absorb water, often required to establish the location of the leaching fields of a septic system.

Back 934

Percolation Test

Front 935

One of the two broad classifications of property which is distinguished by its movability versus being permanently affixed.

Back 935

Personal Property

Front 936

Loss in value of a property caused by wear, tear, age and use.

Back 936

Physical Deterioration

Front 937

The projected typical life of an improvement that is correctly maintained and cared for.

Back 937

Physical Life

Front 938

Masonry or concrete column supporting foundations of the floor structure in basementless spaces, freestanding or bonded at its sides to other masonry or concrete.

Back 938

Pier

Front 939

A mortgage loan made by two or more lenders on the same property.

Back 939

Piggyback Mortgage

Front 940

A type of land development that is specifically provided for in a community’s zoning regulations, allowing the developer more flexible use of the land.

Back 940

Planned Unit Development – PUD

Front 941

A map that indicates the boundary lines of real estate.

Back 941

Plat Map

Front 942

A record book that holds the plat maps together with the names of the owners of the property in a designated area.

Back 942

Plat Book

Front 943

A drawing that indicates the position of the improvement on a lot which may also show the contours of the land and the location of the underground pipes.

Back 943

Plot Plan

Front 944

The increase in value that takes place when two or more small lots under different ownership are assembled into one common ownership to produce a larger lot that has increased utility over the separately owned smaller lots.

Back 944

Plottage

Front 945

Mortgage insurance that is written by companies not part of the federal government.

Back 945

Private Mortgage Insurance

Front 946

One percent of the face amount of a mortgage that is charged by a lender at the time of the closing as a fee for making the mortgage loan.

Back 946

Point

Front 947

The power of the government to control the use of real estate for the general welfare of the public.

Back 947

Police Power

Front 948

A penalty imposed on a borrower for repaying a loan, note or mortgage before it is due.

Back 948

Prepayment Penalty

Front 949

The right to use another’s property acquired by long, continuous use which must have been continuous, open, and exclusive and for a period of time set by state statute.

Back 949

Prescriptive Easement

Front 950

In real estate the sum of money for which a property is sold or listed (asking price)

Back 950

Price

Front 951

The lowest interest rate on short-term loans charged by a commercial bank to is most creditworthy customers

Back 951

Prime Lending Rate

Front 952

The capital portion of a debt or investment as distinguished from interest, income or profit

Back 952

Principal

Front 953

A broad term for income produced by an investment or business enterprise

Back 953

Profit

Front 954

A statement made from the books and records of a business or other profit-making enterprise that shows its income, expenses and profits or loses.

Back 954

Profit and Loss Statement

Front 955

A document that is a promise by one party to pay a specified amount to a second party

Back 955

Promissory Note

Front 956

A broad term for an area of land under one legal ownership together with all the buildings and other improvements

Back 956

Property

Front 957

The recorded boundary of a property

Back 957

Property Line

Front 958

A person or organization who performs specified functions on behalf of a property’s owner which often include renting, collecting rents, making repairs and any other functions an owner would be expected to perform.

Back 958

Property Manager

Front 959

An appraisal technique that is part of the income approach to value combining all of the income produced by the property capitalized into a single property value.

Back 959

Property Residual Technique

Front 960

A tax levied by the government on real and personal property, determined by multiplying the assessed value of the property by the tax rate.

Back 960

Property Tax

Front 961

A form of business ownership usually unincorporated and owned by one person

Back 961

Proprietorship

Front 962

The process of dividing prepaid or unpaid expenses such as taxes, insurance and rent proportionately between buyers and sellers at the time of closing

Back 962

Prorate

Front 963

A document that describes the details of a specific property, company or partnership.

Back 963

Prospectus

Front 964

Land that is owned by the federal government

Back 964

Public Domain Land

Front 965

Housing that is owned by the government which is usually used to accommodate low income or elderly families

Back 965

Public Housing

Front 966

Land owned by the federal government not intended for use by the government and subject to sale or lease

Back 966

Public Lands

Front 967

Records which the government is required to keep in order for someone or some organization to give notice that is required by law such as deeds, mortgages and other real estate related documents required to be filled to satisfy a variety of statutory requirements

Back 967

Public Records

Front 968

A mortgage given by the seller of a property to the buyer to reduce the amount of cash needed to complete the sale

Back 968

Purchase Money Mortgage

Front 969

A pie shaped 90 degree quarter of a circle

Back 969

Quadrant

Front 970

A method of estimating the cost of a new building or the replacement cost of an existing building by making a detailed estimate of quality and quantity of necessary materials as well as labor costs to install them.

Back 970

Quantity Survey Method

Front 971

In public land survey a quarter of a full section of 640 acres

Back 971

Quarter

Front 972

The right of owners to the use and possession of their property without interference

Back 972

Quiet Enjoyment

Front 973

A deed that conveys all of the ownership of the seller to the buyer without guaranteeing the quality of the title.

Back 973

Quitclaim Deed

Front 974

A colorless, odorless naturally occurring gas produced by natural radioactive minerals in the ground which can be a health hazard when trapped in a structure in large amounts

Back 974

Radon

Front 975

Used in the government survey system a six mile wide row of township running north and south

Back 975

Range

Front 976

The amount of interest paid on borrowed money

Back 976

Rate of Interest

Front 977

The annual net income from an investment expressed as a percentage

Back 977

Rate of Return

Front 978

A term often used or implied in a listing agreement which describes the buyer that must be produced by the broker in order to earn a commission

Back 978

Ready, Willing and Able

Front 979

The place of commercial activity in which real estate is bought and sold.

Back 979

Real Estate Market

Front 980

A federal law designed to protect buyers of real estate requiring lenders provide buyers with detailed information about closing and financing costs prior to closing

Back 980

Real Estate Settlement Procedures Act – RESPA

Front 981

The changing of unusable land into developable sites

Back 981

Reclamation

Front 982

A series of steps throughout the appraisal process of selecting the most significant data from a variety of data.

Back 982

Reconciliation

Front 983

A map or survey of a property that is recorded

Back 983

Recorded Map

Front 984

The process of recording a copy of certain legal instruments such as deeds, mortgages, leases, liens, etc to make public record of the document.

Back 984

Recording

Front 985

The right of a lender to seek payment personally for a borrower or endorser of a note secured by a mortgage

Back 985

Recourse

Front 986

The regaining of a property lost in a foreclosure sale or other legal process by the original owner upon payment of the debt plus interest and cost

Back 986

Redemption

Front 987

A statistical technique used to analyze the effect independent variables have upon dependent variables such as sales price

Back 987

Regression Analysis

Front 988

States that all credit purchasers must be informed in writing of all costs associated with the credit portion of the purchase

Back 988

Regulation Z

Front 989

The removal of blight and the restoration of deteriorating properties and public facilities in an urban renewal area

Back 989

Rehabilitation

Front 990

Instrument that discharges a lien when payment of the old debt is made together with interest and cost

Back 990

Release of Lien

Front 991

A future estate in real property create in any person other than the grantor that commences in the future after the end of another estate

Back 991

Remainder

Front 992

The period of time from the date of appraisal until the improvements become economically valueless

Back 992

Remaining Economic Life

Front 993

The process of trying to agree on new terms to an existing contract, lease, mortgage, requiring agreement by both parties

Back 993

Renegotiation

Front 994

A provision in a lease that gives the tenant the right but not the obligation to extend the lease for a specified period of time

Back 994

Renewal Option

Front 995

A general term for substantially improving a property through rehabilitation, modernization and remodeling

Back 995

Renovation

Front 996

The amount of money a tenant is warranted in paying for the right to occupy or use a property for a given time under certain prescribed or assume conditions

Back 996

Rental Value

Front 997

The control by a government agency of the amount of rent a landlord can charge for property

Back 997

Rent Controls

Front 998

To estimate the value the rent is multiplied by the selected multiplier

Back 998

Rent Multiplier

Front 999

A payment made by a government agency or charitable organization

Back 999

Rent Subsidy

Front 1000

A category of property used to describe real property acquired through foreclosure by financial institutions

Back 1000

REO

Front 1001

The total cost to replace an improvement at current costs with modern materials and using current design standards.

Back 1001

Replacement Cost

Front 1002

Money set aside for the replacement of equipment and short-lived building components by landlords

Back 1002

Replacement Reserves

Front 1003

The total cost to reproduce an exact replica of an improvement at current costs using the same materials and the same design as the original structure

Back 1003

Reproduction Cost

Front 1004

Money set aside from earnings for future taxes, maintenance or to pay future claims or possible liabilities

Back 1004

Reserve

Front 1005

Money set aside to provide for the necessary replacement of short-lived items that wear out from normal wear and tear before the main structure wears out.

Back 1005

Reserve for Depreciation

Front 1006

Money set aside to provide for the necessary replacement of short-lived items that wear out from normal wear and tear before the main structure wears out.

Back 1006

Reserve for Replacement

Front 1007

A portion of the net operating income is allocated either to the site or the improvements. The remaining income is capitalized into an estimated value of that portion of the property the remaining income is attributed to.

Back 1007

Residual Process

Front 1008

A type of private restriction on the use or transfer of property

Back 1008

Restrictive Covenant

Front 1009

Interest earned by investors for the use of their money for a period of time

Back 1009

Return on Investment

Front 1010

A clause in a type of lease that provides for specified periodic adjustments of the rent based on the appraisal of the property at the designated time.

Back 1010

Revaluation Clause

Front 1011

A mortgage which elderly homeowners use to borrow against equity in their residence.

Back 1011

Reverse Annuity Mortgage

Front 1012

The return to the owner of real estate of rights granted to others for a specified period.

Back 1012

Reversion

Front 1013

A factor that is used to discount the value of a single payment received in the future to present value.

Back 1013

Reversion Factor

Front 1014

The right of the surviving partner to automatically acquire the interest of a decreased joint owner.

Back 1014

Right of Survivorship

Front 1015

Legally enforceable claims to any interest or title in property

Back 1015

Rights

Front 1016

The rights of owners of property that is bounded or traversed by a body of water.

Back 1016

Riparian Rights

Front 1017

The measure of a slope

Back 1017

Rise

Front 1018

The part of a stair that is the vertical board under the stair top

Back 1018

Riser

Front 1019

The portion of the return on an investment that is attributed to the investment risk

Back 1019

Risk Factors

Front 1020

A measure of ability to retard heat flow

Back 1020

“R” Thermal Resistance

Front 1021

The price for which a property actually sells

Back 1021

Sale Price

Front 1022

The value of a building or a portion of the building such as plumbing fixture which could be removed from the premises to be used at another site.

Back 1022

Salvage Value

Front 1023

The completion of an obligation such as a mortgage by the payment of the amount due.

Back 1023

Satisfaction

Front 1024

The proportion between a representation and that which it represents.

Back 1024

Scale

Front 1025

Limited availability of real estate in relation to its demand

Back 1025

Scarcity

Front 1026

An easement granted to nearby property owners which restricts construction on the property to those improvements that will not detract from the attractiveness of the area.

Back 1026

Scenic Easement

Front 1027

A loan secured by a mortgage or trust deed which is secondary to another deed or mortgage

Back 1027

Secondary Financing

Front 1028

The selling of first mortgages and trust deeds by primary lenders to Freddie Mac, Fannie Mae and other organizations who raise their capital in the bond market.

Back 1028

Secondary Mortgage Market

Front 1029

A mortgage with a security interest in a property that is junior to another mortgage on the same property

Back 1029

Second Mortgage

Front 1030

In the rectangular survey system a section of land one mile square containing 640 acres

Back 1030

Section

Front 1031

Real property or personal property pledged by a debtor to a creditor with power to sell if the debt is not paid

Back 1031

Security

Front 1032

A deposit that a landlord requires of a tenant as security for payment of rent

Back 1032

Security Deposit

Front 1033

An economic situation whereby a seller can sell his property at higher prices than properties sold in a recent preceding period

Back 1033

Seller’s Market

Front 1034

The agent who obtains the buyer and effects the sale rather than the agent who listed the property for sale

Back 1034

Selling Agent

Front 1035

A sewage system consisting of a septic tank, distribution box and field, used in areas where sewers have not been installed

Back 1035

Septic System

Front 1036

A covered watertight sewage settling tank to retain the solids in the sewage long enough for decomposition by bacterial action to take place.

Back 1036

Septic Tank

Front 1037

The zoning ordinance which regulates the distance that a building must be set back from the street or the portion where improvements may be constructed

Back 1037

Setback Ordinance

Front 1038

A statement drawn up by a broker, escrow agent, attorney, etc. that provides a breakdown of all the costs involved in a real estate sale.

Back 1038

Settlement Statement

Front 1039

Compression of the soil due to the weight of the newly built structure upon it

Back 1039

Settling

Front 1040

A property owned by one person alone

Back 1040

Severalty

Front 1041

Sole ownership

Back 1041

Severalty Ownership

Front 1042

Partition or separation

Back 1042

Severance

Front 1043

The decrease in value of a property which commonly results from the taking of a piece of the property for subsequent construction of a road or building

Back 1043

Severance Damage

Front 1044

A deed given to a buyer at a sheriff’s mortgage foreclosure sale

Back 1044

Sheriff’s Deed

Front 1045

The portions of a structure that have a shorter expected economic life than the rest of the structure.

Back 1045

Short-Lived Items

Front 1046

A lease with a term under five years and usually not over ten years

Back 1046

Short-Term Lease

Front 1047

An easement that protects the line of sight over an adjoining property from being obstructed by a building

Back 1047

Sight Line Easement

Front 1048

A framing member placed on top of the foundation wall that serves as a level base for the wall studs and floor joists

Back 1048

Sill

Front 1049

Soil grains ranging from 0.5 to .002 mm in diameter

Back 1049

Silt

Front 1050

The interest computed on the original principal alone, not on accrued interest.

Back 1050

Simple Interest

Front 1051

Money set aside to be used for necessary replacement of improvements

Back 1051

Sinking Fund

Front 1052

A factor that is used to calculate the amount per period that will have to be deposited at a given interest rate in order to obtain a specified amount in a given number of years

Back 1052

Sinking Fund Factor

Front 1053

A way to recover the value of an asset by establishing a sinking fund

Back 1053

Sinking Fund Method

Front 1054

A plot of land that is improved or is suitable for building purposes

Back 1054

Site

Front 1055

The study of a site and its surroundings to determine its suitability for a specific purpose

Back 1055

Site Analysis

Front 1056

Improvements such as utility installation that must be made to a site to make it suitable for construction

Back 1056

Site Development

Front 1057

The cost involved in preparing a site for use

Back 1057

Site Development Cost

Front 1058

Location

Back 1058

Situs

Front 1059

A concrete ground-level floor that is part of the foundation

Back 1059

Slab

Front 1060

The incline of a slope expressed in terms of horizontal distance per unity of vertical rise or fill

Back 1060

Slope Ratio

Front 1061

The exposed undersurface of an arch, stairway, balcony, lintel or vault

Back 1061

Soffit

Front 1062

A map that shows the location and type of soils in a given area

Back 1062

Soil Map

Front 1063

A charge against a real estate made by a public authority to help pay for improvements such as sidewalks and sewers

Back 1063

Special Assessment

Front 1064

Special exceptions in typical zoning codes to allow certain uses in a zone that do not fit the predominant permitted use.

Back 1064

Special Exception

Front 1065

A building such a s a hospital or church limited by its design to one purpose

Back 1065

Special Purpose Property

Front 1066

Detailed instructions to show a contractor how to proceed with construction

Back 1066

Specification

Front 1067

An action taken in a court to require one of the parties to a contract to perform as agreed to in the contract

Back 1067

Specific Performance

Front 1068

A person who buys real estate in order to make a profit through a rise or fall in price

Back 1068

Speculator

Front 1069

Net income after taxes

Back 1069

Spendable Income

Front 1070

An appraisal term for a capitalization rate that is made up of two different rates.

Back 1070

Split Rate

Front 1071

A change in zoning that permits non-conforming use in an area zoned for a different specific purpose

Back 1071

Spot Zoning

Front 1072

A method for estimating the cost to reproduce or replace improvements where the square foot area of the improvements is multiplied by their cost per square foot

Back 1072

Square Foot Method

Front 1073

An appraisal term for the projected expenses shown in the operating statement used in the cost approach to value which are adjusted to show the expenses for a typical year rather than for a specified year.

Back 1073

Stabilized Expenses

Front 1074

The projected income of a property in a typical year rather than in any specific year

Back 1074

Stabilized Income

Front 1075

A statistical term used to describe the extent of dispersion in a frequency distribution

Back 1075

Standard Deviation

Front 1076

State laws that require certain contracts to be in writing to be enforceable

Back 1076

Statute of Frauds

Front 1077

Statutes that prevent all right of court action after a certain specified period from the time when the action occurred

Back 1077

Statute of Limitations

Front 1078

A method of depreciating assets over their estimated life in equal annual amounts

Back 1078

Straight Line of Depreciation

Front 1079

An area of land that has been subdivided into parcels suitable for building

Back 1079

Subdivision

Front 1080

A map that must be submitted to the proper authority for approval in order to establish a subdivision

Back 1080

Subdivision Map

Front 1081

An owner’s right to have the surface of his land supported by the land under it to prevent collapse

Back 1081

Subjacent Support

Front 1082

A lease executed by the lessee of a property to a third person for a period of time shorter than the lessee holds it

Back 1082

Sublease

Front 1083

A person who subleases

Back 1083

Sublessee

Front 1084

To make subject to

Back 1084

Subordinate

Front 1085

Makes the lease subordinate to a mortgage that is placed on the property after the date of the lease

Back 1085

Subordination Clause

Front 1086

Housing for low to moderate income families for which families and the government pay for part of the rent or the government aids the developer with his loan interest cost

Back 1086

Subsidized Housing

Front 1087

A payment made by the government to help the party pay part of the cost

Back 1087

Subsidy

Front 1088

A basic economic principle stating that all other things being approximately equal a buyer will purchase the product offered at the lowest price when there is a choice

Back 1088

Principle of Substitution

Front 1089

Rights in the form of ownership or easements at specified depths below the ground

Back 1089

Subsurface Rights

Front 1090

The area around a city that is usually residential

Back 1090

Suburban

Front 1091

Those improvements made to a property that add less value than their cost because they result in an overimprovement of the property

Back 1091

Superadequacy

Front 1092

A theory which holds that price varies directly with supply

Back 1092

Law of Supply and Demand

Front 1093

The right to use only the surface of the land

Back 1093

Surface Easement

Front 1094

Easements that allow owners of such rights to use the surface of the land in order to obtain access to subsurface elements

Back 1094

Surface Rights

Front 1095

Water from any source that appears in a diffused state

Back 1095

Surface Water

Front 1096

Extra profit from a business or property that is above what is usually earned by similar properties

Back 1096

Surplus Profits

Front 1097

The process of measuring the size of a piece of land and its quality

Back 1097

Survey

Front 1098

The gaining of sole interest in a joint interest by outliving the other who had an interest

Back 1098

Survivorship

Front 1099

A program that allows a purchaser or borrower to do work on the property

Back 1099

Sweat Equity

Front 1100

The appraisal value of the physical property to be distinguished from intangible value such as a favorable lease.

Back 1100

Tangible Value

Front 1101

The decrease in the amount of tax improperly levied

Back 1101

Tax Abatement

Front 1102

Income that is subject to income tax

Back 1102

Taxable Income

Front 1103

The sum of all the assessed values of properties in a community

Back 1103

Tax Base

Front 1104

The type of deed in some jurisdictions that is given when a property is sold for unpaid taxes

Back 1104

Tax Deed

Front 1105

Exemption or partial exemption from the payment of property taxes granted to educational, religious and similar groups and in certain states, to veterans and senior citizens

Back 1105

Tax Exemption

Front 1106

Cash income produced by a property that is tax free because it is sheltered by paper losses caused by depreciation

Back 1106

Tax Free Cash Flow

Front 1107

The geographical area over which a taxing authority can levy taxes

Back 1107

Taxing District

Front 1108

The total income produced by a specified type of tax, such as a real estate tax

Back 1108

Tax Levy

Front 1109

A lien taken for nonpayment of property taxes

Back 1109

Tax Lien

Front 1110

An assessment map showing the boundaries of individual lots within an assessment jurisdiction

Back 1110

Tax Map

Front 1111

A condition in a lease which states that the lessee pays all or part of the property taxes

Back 1111

Tax Participation

Front 1112

A clause in a lease that requires the tenant to share tax increases levied against the property during the term of the lease.

Back 1112

Tax Participation Clause

Front 1113

A sum to be paid due to nonpayment of taxes

Back 1113

Tax Penalty

Front 1114

The ratio of dollars to tax to the value of the tax base

Back 1114

Tax Rate

Front 1115

The sale of property for unpaid taxes after a certain duration of delinquent payment

Back 1115

Tax Sale

Front 1116

Property that provides the owner with income tax deductions because it entails a financial loss

Back 1116

Tax Shelter

Front 1117

A tenancy that is created when a tenant fails to vacate the premises at the end of a lease and remains in possession with the landlord’s consent

Back 1117

Tenancy At Sufferance

Front 1118

A tenancy that can be cancelled at any time by either party giving notice to the other. It is for an unspecified period of time and often for an unspecified amount of rent.

Back 1118

Tenancy At Will

Front 1119

A special tenancy specifically created for ownership by a married couple of property acquired after their marriage. Both spouses have an equal undivided interest in the property

Back 1119

Tenancy By The Entirety

Front 1120

A tenancy shared by two or more parties with separate and distinct titles

Back 1120

Tenancy in Common

Front 1121

A form of ownership specifically created by state statues that permits partnerships to own property in the name of the partnership

Back 1121

Tenancy in Partnership

Front 1122

Ownership of the property is vested in only one person or one corporation

Back 1122

Tenancy in Severalty

Front 1123

A person who uses and occupies a real property with the owner’s permission

Back 1123

Tenant

Front 1124

A tenancy of unspecified duration with permission of the property owner at an agreed upon rent.

Back 1124

Tenant at Will

Front 1125

Changes or improvements made to suit the needs of the tenants

Back 1125

Tenant Improvements

Front 1126

A length of time such as the term of a mortgage

Back 1126

Term

Front 1127

The considerations and conditions in a contract or mortgage

Back 1127

Terms

Front 1128

A will

Back 1128

Testament

Front 1129

The clause in a deed that recites the date on which the instrument was executed and by whom

Back 1129

Testimonium Clause

Front 1130

Someone who is not a party to an agreement but is affected by the agreement

Back 1130

Third Party

Front 1131

A clause placed in a contract to indicate that timely performance is a condition and performance not at that time can be entirely rejected

Back 1131

Time is of the Essence

Front 1132

Evidence of ownership of property

Back 1132

Title

Front 1133

A corporation whose basic function is to insure and issue title to real property

Back 1133

Title Company

Front 1134

An insurance policy issued to a property owner or mortgage that indemnifies him against losses caused by defects in the title that are discovered after the closing

Back 1134

Title Insurance

Front 1135

A company that provides insurance regarding title to real property

Back 1135

Title Insurance Company

Front 1136

A report made prior to the issuance of title insurance that states the condition of said title

Back 1136

Title Report

Front 1137

A procedure of reviewing all public records and legal proceedings to determine the current state of the property’s ownership

Back 1137

Title Search

Front 1138

A system used in some states to register the title of real property and record liens on the property.

Back 1138

Torrens System

Front 1139

A subdivision used in the Rectangular Survey System that is 6 miles long, 6 miles wide and has 36 sections, each 1 mile square

Back 1139

Township

Front 1140

Lines that divide townships at their northern and southern borders

Back 1140

Township Lines

Front 1141

A piece of land

Back 1141

Tract

Front 1142

One of many similar houses built using the plan of a builder

Back 1142

Tract House

Front 1143

The conveyance of title to property from one person to another

Back 1143

Transfer

Front 1144

Rights in real estate or other property held by one party for the benefit of another party.

Back 1144

Trust

Front 1145

An account in which a broker is required by state law to deposit all monies that he or she is holding in trust for another separate from a broker’s personal funds

Back 1145

Trust Account

Front 1146

A deed that conveys title of a property to a trustee

Back 1146

Trust Deed

Front 1147

A person or organization that holds property in trust for another party

Back 1147

Trustee

Front 1148

An arrangement between a contractor and a property owner whereby the contractor takes complete responsibility for the design and construction of a property and turns it over to the owner ready for use

Back 1148

Turnkey

Front 1149

Denotes the structural nature of a house

Back 1149

Type

Front 1150

An improvement which is deficient in that it does not serve the highest and best use for the site on which it is located

Back 1150

Underimprovement

Front 1151

Fractional ownership which occurs when two or more people have an interest in the same property

Back 1151

Undivided Interest

Front 1152

Free and clear

Back 1152

Unencumbered

Front 1153

A contract that is valid but will not be enforced by the courts because of some special barrier

Back 1153

Unenforceable Contract

Front 1154

A term usually used to describe land without buildings or lacking in essential improvements necessary to serve a useful purpose

Back 1154

Unimproved

Front 1155

An appraisal method of estimating construction costs by figuring the cost of each component section including labor cost and overhead

Back 1155

Unit Cost in Place Method

Front 1156

A general rule used in condemnation proceedings to determine what constitutes the whole property and what property may potentially suffer severance damages.

Back 1156

Unit Rule

Front 1157

An appraisal technique that divides properties into units such as front foot, square foot, dwelling unit, and number of beds.

Back 1157

Units of Comparison

Front 1158

The value of a whole property divided into the value of a portion of the property known as a unit

Back 1158

Unit Value

Front 1159

A requirement of the joint tenancy of ownership that all interests must be acquired by the same conveyance

Back 1159

Unity of Interest

Front 1160

A title that has serious defects and is not saleable except at a discount to somebody who is willing to risk the potential problems of owning a property with a defective title

Back 1160

Unmarketable Title

Front 1161

A deed or mortgage not recorded in a county recorder’s office. It is valid between the parties involved but is not protected under recording statutes nor valid against innocent third parties

Back 1161

Unrecorded Instrument

Front 1162

An appraisal form

Back 1162

URAR

Front 1163

A set of professional appraisal standards

Back 1163

USPAP

Front 1164

Pertaining to a city or town

Back 1164

Urban

Front 1165

A controlled method of redeveloping and rehabilitating urban areas by demolishing, renovating or repairing existing structures, roadways, etc. through federal, state, local or private redevelopment efforts.

Back 1165

Urban Renewal

Front 1166

Urban real estate, both land or buildings whose value stems directly from its location

Back 1166

Urban Space

Front 1167

The relationship of the number of buildings of a specific use to a given unit of area

Back 1167

Use Density

Front 1168

The length of time a structure can be expected to perform the function for which it was intended

Back 1168

Useful Life

Front 1169

An estimate of the value of property in its present use rather than the value if it were used for its highest and best use

Back 1169

Use Value Assessment

Front 1170

The usefulness of a real property

Back 1170

Utility

Front 1171

A building or rental unit that is unrented

Back 1171

Vacancy

Front 1172

A projection made of the future percentage of occupancy of a property.

Back 1172

Vacancy Factor

Front 1173

Legally binding

Back 1173

Valid

Front 1174

A group of economic principles that apply to the valuation of real estate

Back 1174

Valuation Principles

Front 1175

The monetary worth of a property being appraised

Back 1175

Value

Front 1176

The value of an investment or commodity relative to its power to purchase other goods

Back 1176

Value in Exchange

Front 1177

An annuity whose future periodic payments are not fixed but rather depend upon the value of the assets in the funding

Back 1177

Variable Annuity

Front 1178

Those expenses in an income and expense statement projected by an appraiser that tend to vary with the occupancy of the property

Back 1178

Variable Expenses

Front 1179

An interest rate that changes with the prevailing rate

Back 1179

Variable Interest Rate

Front 1180

A mortgage with an interest rate that is not fixed but rather changes based on some other interest rate

Back 1180

Variable Rate Mortgage

Front 1181

An authorization generally granted by a board of zoning appeals that gives the right to improve or develop a specific property that is not authorized by the prevailing zoning ordinance

Back 1181

Variance

Front 1182

The process of confirming the correctness of data about a comparable property with either the buyer, seller or broker

Back 1182

Verification

Front 1183

The buyer of property, particularly a real property

Back 1183

Vendee

Front 1184

A person who sells a property

Back 1184

Vendor

Front 1185

Placed in possession and control

Back 1185

Vested

Front 1186

Breach of any law or contract

Back 1186

Violation

Front 1187

Not legally binding

Back 1187

Void

Front 1188

Provisions in a contract that may make the contract voidable should either party break it

Back 1188

Voidable

Front 1189

A title that is valid until voided by the party who has a right to nullify it.

Back 1189

Voidable Contract

Front 1190

A title that has no legal force and is not binding so that it is actually no title at all

Back 1190

Void Title

Front 1191

A lien placed on a property with the voluntary consent of the owner

Back 1191

Voluntary Lien

Front 1192

The intentional relinquishment of a known right, benefit or claim

Back 1192

Waiver

Front 1193

To attest that a title is good

Back 1193

Warrant

Front 1194

An assurance by the seller that the property is as represented or will be as promised

Back 1194

Warranty

Front 1195

A type of deed used to convey the title of property that provides for the grantor to guarantee that the title be granted good and unencumbered.

Back 1195

Warranty Deed

Front 1196

The height of a body of water measured by a shore point

Back 1196

Water Level

Front 1197

Being ready to proceed

Back 1197

Willing

Front 1198

To sign a note, deed or other document to verify to its truth

Back 1198

Witness

Front 1199

A written order to carry out the judgment or decree of a court

Back 1199

Writ of Execution

Front 1200

A unit of 36 inches

Back 1200

Yard

Front 1201

Income from a property or other investment often expressed as an annual percentage of the capital or investment

Back 1201

Yield

Front 1202

A term often used to express the true yield of a bond or other investment that is purchased at a discount

Back 1202

Yield to Maturity

Front 1203

A provision in a zoning regulation or building code that permits construction of the improvements up to the edge of the lot

Back 1203

Zero Lot Line

Front 1204

An area where the use of land is restricted by a zoning ordinance for a specific use

Back 1204

Zone

Front 1205

The division and separation of a community into separate areas

Back 1205

Zoning

Front 1206

A map illustrating how a community is divided into zones of permitted use under the zoning ordinance

Back 1206

Zoning Map

Front 1207

Law restricting, regulating and controlling the use of real estate for the general welfare

Back 1207

Zoning Ordinance

Front 1208

An inaccurate measure of land

Back 1208

Zygocephalum

Front 1209

The disclaimer, waiver, relinquishment, or surrender of property or rights without vesting the interest in any other person.

Back 1209

Abandonment

Front 1210

A reduction cut or decreases in taxes approved by the tax authority at the taxpayer’s request.

Back 1210

Abatement

Front 1211

Having the necessary cash when the title is passed.

Back 1211

Able

Front 1212

Title that grants exclusive rights to its owner and gives no one else claim, interest, or rights to the same property.

Back 1212

Absolute Title

Front 1213

The rate at which a real estate market can absorb properties of a given kind.

Back 1213

Absorption Rate

Front 1214

A part of a waste disposal system used to disburse the waste water into the ground.

Back 1214

Absorption Trench

Front 1215

A summary of all conveyances and deeds upon which title depends, such as conveyance by deed, will, foreclosure and lawsuits.

Back 1215

Abstract of Title

Front 1216

An appraisal process where the appraiser selects comparable properties, estimates the value of their improvements, and then subtracts this estimate from the total price to give an estimate of the land

Back 1216

Abstraction Method

Front 1217

The portion of a wall or column that bears the pressure of an arch or pier

Back 1217

Abutment

Front 1218

Adjacent properties with a common border

Back 1218

Abutting Land

Front 1219

A clause in a contract that gives the lender the right to demand total payment when the contract is breached and an installment is not paid.

Back 1219

Acceleration Clause

Front 1220

The right of a property owner to all additions made to the property either by nature or by humans

Back 1220

Accession

Front 1221

The small and gradual accumulation of land, such as deposits made by a river or stream, which then becomes the property of the owner of the land on which it has accumulated.

Back 1221

Accretion

Front 1222

The difference between the cost of replacing a building and its present market value.

Back 1222

Accrued Depreciation

Front 1223

The total amount of depreciation expense claimed for a specific asset since purchase of the property.

Back 1223

Accumulated Depreciation

Front 1224

Materials such as tile, cork and fiberglass that are installed in walls to absorb sound.

Back 1224

Acoustical Material

Front 1225

An appraisal made to estimate market value to establish correct compensation for the owner of the property that is to be taken for public use by a public authority

Back 1225

Acquisition Appraisal

Front 1226

A unit of land measuring 43,560 square feet, 4,840 square yards, or 160 square rods.

Back 1226

Acre

Front 1227

The volume of water equal to an acre covered to the depth of one inch

Back 1227

Acre-Foot

Front 1228

Natural disasters such as floods, winds, etc. which cause damage to property

Back 1228

Act of God

Front 1229

The actual number of years since a structure was built

Back 1229

Actual age

Front 1230

The market value of a property

Back 1230

Actual Cash Value

Front 1231

The purchase price or cost of an asset which can be calculated as the original cost plus any additional capital investment minus accumulated depreciation

Back 1231

Adjusted Basis

Front 1232

The estimated income of a property assuming it was fully rented at its current rent minus an allowance for vacancies and collection losses (Gross potential income – vacancy and collection loss = Adjusted gross income)

Back 1232

Adjusted Gross Income

Front 1233

Interest rate is periodically adjusted based on a specified formula

Back 1233

Adjustable Rate Mortgage

Front 1234

The differences between comparable sales, rentals, listings and the property being appraised

Back 1234

Adjustments

Front 1235

A person chosen by the court to be the legal representative of a deceased person’s estate in cases where the individual dies without a will or having named an executor.

Back 1235

Administrator

Front 1236

Materials added to cement to increase its plasticity and workability and help it withstand frost and breakage

Back 1236

Admixture

Front 1237

A kind of brick made originally by American Indians

Back 1237

Adobe Brick

Front 1238

Tax based on a fixed percentage of a property’s value.

Back 1238

Ad Valorem Tax

Front 1239

Special means of acquiring property established by statute. Requires that possession is acquired by open, continuous, hostile physical control of the premises by the adverse possessor

Back 1239

Adverse Possession

Front 1240

Soil composed of material transported and deposited by the wind.

Back 1240

Aeolian Soil

Front 1241

Proceeds owners receive from their income-producing property after all the operating expenses are paid.

Back 1241

After-tax cash flow

Front 1242

Annual rate of return on an investment after the payment of income taxes are paid

Back 1242

After-tax equity yield rate

Front 1243

The annualized rate of return, after income taxes, on capital that is generated by an investment

Back 1243

After-tax internal rate of return

Front 1244

The after-tax proceeds from the sale of a property less commissions, taxes paid by the owner, and the payment of all outstanding debts.

Back 1244

After-tax net cash proceeds of resale

Front 1245

Chronological age of a building

Back 1245

Age of Structure

Front 1246

Method of estimating the amount of depreciation a property has suffered by calculating the number of years of typical economic life the property is estimated to have divided by the property’s estimated effective age.

Back 1246

Age-Life Method

Front 1247

Mixture of sand, gravel or stone that makes up about 75% of final composition of concrete

Back 1247

Aggregate

Front 1248

The rights of an owner to use the air above a property without the right to use the land below

Back 1248

Air Rights

Front 1249

The effect an alley has on neighboring properties

Back 1249

Alley Influence

Front 1250

The natural increase to a property made by deposits from rivers or streams.

Back 1250

Alluvion

Front 1251

Fine sedimentation deposited by flowing water.

Back 1251

Alluvium

Front 1252

Changes made in the interior or exterior of a building that do not change the exterior dimensions of the building

Back 1252

Alterations

Front 1253

Instrument containing a non-traditional treatment of an item which usually is fixed throughout the life of the mortgage.

Back 1253

Alternative Mortgage Instrument

Front 1254

Something other than the construction materials which increases the enjoyment derived from a property

Back 1254

Amenity

Front 1255

The extra value that a property has because of its amenities

Back 1255

Amenity Value

Front 1256

The process of paying a debt through a series of equal payments at equal time intervals

Back 1256

Amortization

Front 1257

The ratio of the amortization payment to the total debt to be amortized

Back 1257

Amortization Rate

Front 1258

A unit used to measure the flow of electricity through a wire.

Back 1258

Ampere

Front 1259

Process of finding existing, successful properties that are similar to the subject property

Back 1259

Analogue Approach

Front 1260

A type of bolt that is set in a concrete foundation and which extends through the sill and holds it down.

Back 1260

Anchor Bolt

Front 1261

Total mortgage payments including interest and principal required in one year by a particular loan or for a particular property.

Back 1261

Annual Debt Service

Front 1262

Effective rate of interest on a loan including all the costs and charges

Back 1262

Annual Percentage Rate

Front 1263

A series of fixed payments received at regular time intervals

Back 1263

Annuity

Front 1264

One of the methods used by real estate appraisers to capitalize an income stream into a value.

Back 1264

Annuity Method

Front 1265

The value of an income property is the present worth of the future income stream plus the present worth of the future sales price.

Back 1265

Anticipation Principle

Front 1266

A supported estimate of a defined value made by a person knowledgeable about the type of property being appraised

Back 1266

Appraisal

Front 1267

Created by appraisal trade groups for the purpose of regulating the appraisal industry.

Back 1267

Appraisal Foundation

Front 1268

Principles explaining the market behavior that affects value.

Back 1268

Appraisal Principles

Front 1269

The procedure a professional appraiser uses to estimate the value of a property.

Back 1269

Appraisal Process

Front 1270

A written report of the appraiser’s estimation of the value of the property as well as other data concerning the property and evidence to support the evaluation opinion

Back 1270

Appraisal Report

Front 1271

An estimation of the value of a property based on a systematic analysis of location, improvements and market conditions

Back 1271

Appraised Value

Front 1272

An increase in property value due to increase in reproduction cost, elimination of negative factors, greater demand, community growth, improvement or other factors

Back 1272

Appreciation

Front 1273

The taking of a public property for private and personal use

Back 1273

Appropriation

Front 1274

Property, articles, interests and rights that are attached to and are transferred with the title of a property

Back 1274

Appurtenance

Front 1275

Rights to use streams, lakes, rivers, seas, etc and the soil beneath them

Back 1275

Aquatic Rights

Front 1276

Land suited for cultivation

Back 1276

Arable

Front 1277

A building’s exterior design based on historical styles

Back 1277

Architectural Styles

Front 1278

The art and science of designing buildings

Back 1278

Architecture

Front 1279

The surface of any unit measured in square units

Back 1279

Area

Front 1280

The most commonly used average found by dividing the sum of a series of values by the number of values in the group

Back 1280

Arithmetic Mean

Front 1281

Type of house wiring made of insulated wires covered in heavy paper and encased in a wound galvanized steel covering

Back 1281

Armored Cable

Front 1282

A transaction in which both parties act completely independent from each other and have no connection or relationship to each other

Back 1282

Arm’s Length

Front 1283

A major highway with many branches

Back 1283

Arterial Highway

Front 1284

A well drilled through impermeable strata deep enough to reach water that will rise to the surface by its own internal hydrostatic pressure

Back 1284

Artesian Well

Front 1285

A nonflammable, heat-resistant fiber used in roofing and insulation

Back 1285

Asbestos

Front 1286

In a fireplace, a hole in the hearth floor into which ash can be conveniently swept and removed below

Back 1286

Ash Dump

Front 1287

A clause in a sales contract which states that the buyer agrees to accept the property in the exact condition that it is in and the seller makes no representations as to the condition of the property

Back 1287

“As Is” Condition

Front 1288

The price that the seller is asking for his or her property

Back 1288

Asking Price

Front 1289

The direction that a building faces, such as northern exposure

Back 1289

Aspect

Front 1290

A thick, sticky substance used for paving

Back 1290

Asphalt

Front 1291

Tiles made from limestone fillers, asbestos fibers, resinous asphaltic binders and minerals pigment

Back 1291

Asphalt Tiles

Front 1292

The act of acquiring two or more abutting properties for ownership

Back 1292

Assemblage

Front 1293

The extra cost paid to acquire abutting properties in order to combine them into one large parcel

Back 1293

Assemblage Cost

Front 1294

The additional value that is developed by combining several abutting properties into one larger property

Back 1294

Assemblage Value

Front 1295

A value assigned to a property by the tax assessor to be used as a basis for taxation

Back 1295

Assessed Valuation

Front 1296

The ratio of the market value of a property in a community or district to its assessed value

Back 1296

Assessment Ratio

Front 1297

A public official who estimates property values for ad valorem taxes

Back 1297

Assessor

Front 1298

Owned property that has value

Back 1298

Assets

Front 1299

To transfer property from one party to another

Back 1299

Assign

Front 1300

A person to whom something is transferred

Back 1300

Assignee

Front 1301

A person who makes an assignment

Back 1301

Assignor

Front 1302

An established mortgage that is transferred to a new owner when he or she buys a property and assumes the liability

Back 1302

Assumed Mortgage

Front 1303

An agreement whereby one party agrees to assume the responsibility to make payments that were originally the obligation of another party

Back 1303

Assumption Agreement

Front 1304

The transfer of title of a property whereby the new owner agrees to take over responsibility for paying the existing mortgage

Back 1304

Assumption of a Mortgage

Front 1305

An internal area with a translucent ceiling to allow sunlight in for the growth of interior plants

Back 1305

Atrium

Front 1306

A legal doctrine which states that when a property owner maintains a condition which will attract children the owner is responsible for any injury the children receive while on the property

Back 1306

Attractive Nuisance Doctrine

Front 1307

A number that sums up and represents a mass of data. Mean, median and mode

Back 1307

Average

Front 1308

A statistical term for the amount obtained by subtracting the arithmetic mean of all the items in a set of data from each item in the set, adding these differences without regard to their plus or minus signs and dividing by the number of items in the data set

Back 1308

Average Deviation

Front 1309

An aviation easement over a property that permits aircraft to fly over at low heights and prohibits anything being constructed on the property that would interfere with this right

Back 1309

Aviation Easement

Front 1310

Urban growth that follows the main transportation routes, making finger-like extensions

Back 1310

Axial Growth

Front 1311

Piling up dirt and stone around the edge of a foundation and basement wall high enough to make a loop for drainage of water away from the foundation

Back 1311

Backfilling

Front 1312

An offer made in case the first offer to buy a property fails

Back 1312

Backup Offer

Front 1313

An economic principle which states that in a free market the supply and demand for items tend to balance over time

Back 1313

Balance Principle

Front 1314

A balance sheet recording the assets and liabilities of a company, partnership or individual with the total assets equal to the total of the liabilities

Back 1314

Balance Sheet

Front 1315

A type of framing system where the studs extend unbroken from the sill to the roof

Back 1315

Balloon Framing

Front 1316

Type of mortgage based on a repayment schedule that does not fully pay off the mortgage during its term with a large lump sum payment required at the end of the mortgage

Back 1316

Balloon Mortgage

Front 1317

The last and usually largest payment which pays a mortgage in full or is the principle sum in a balloon note

Back 1317

Balloon Mortgage Payment

Front 1318

A technique to develop a capitalization rate used in the income approach

Back 1318

Band of investment

Front 1319

The elevated portion of land on the side of a stream or river which holds the water in its natural channel

Back 1319

Bank

Front 1320

The process by which the court removes a debtor’s property for distribution among creditors

Back 1320

Bankruptcy

Front 1321

A type of conveyance deed used to transfer the legal ownership of real property, usually containing no warranties

Back 1321

Bargain and Sale Deed

Front 1322

A type of molding often carved or ornamented that is attached to the projecting edge of a gabled roof

Back 1322

Barge Board

Front 1323

The exchange of the personal or real property of one person for the personal property, real property or other things of value of another person, usually without the use of money.

Back 1323

Barter

Front 1324

A piece of interior trim laid around the walls of a room next to the floor

Back 1324

Baseboard

Front 1325

A device used to distribute heat into a room

Back 1325

Baseboard Convector

Front 1326

A system of heating elements installed in the wall along the baseboard

Back 1326

Baseboard Heating

Front 1327

A type of radiator used with a hot-water heating system which are long and narrow and fit along the bottom of the wall a few inches off the floor.

Back 1327

Baseboard Radiators

Front 1328

In accordance with the rectangular survey system, base lines are east-west lines that serve as references for other parallels

Back 1328

Base Line

Front 1329

The lowest story of a building usually below ground

Back 1329

Basement

Front 1330

A starting period used in making economic and business data indexes

Back 1330

Base Periods

Front 1331

A plate usually made of metal at the bottom of a column used to distribute the weight more evenly over the supporting footing or surface

Back 1331

Base Plate

Front 1332

A minimum rent a tenant must pay when he or she has a lease that calls for the rent to be a percentage of the sales of a business

Back 1332

Base Rent

Front 1333

Those economic activities in a community that bring in money from outside

Back 1333

Basic Activities

Front 1334

Farm crops that are considered basic necessities

Back 1334

Basic Crops

Front 1335

Employment in those economic activities in a community that bring in money from outside the community

Back 1335

Basic Employment

Front 1336

Income brought into a community by its basic economic activities

Back 1336

Basic Income

Front 1337

A term used in mortgage equity capitalization

Back 1337

Basic Rate

Front 1338

The original cost of a property plus the value of any improvements made by the seller and minus any depreciation taken

Back 1338

Basis

Front 1339

A cover installed on the top of a leader to prevent leaves and other debris from clogging the system.

Back 1339

Basket Strainer

Front 1340

A strip of insulation that fit closely between the studs of a wall.

Back 1340

Batt Insulation

Front 1341

A style of exterior wall copied from castles, towers, and fortresses.

Back 1341

Battlement

Front 1342

An open area between two walls or columns which creates a room-like space

Back 1342

Bay

Front 1343

A type of masonry joint that has a bead cut into it; primarily used for decorative purposes.

Back 1343

Beaded Joints

Front 1344

A horizontal or vertical load-bearing structure usually made of wood, steel or concrete

Back 1344

Beam

Front 1345

The space in a wall where the beam rests in place

Back 1345

Beam Pocket

Front 1346

That portion of a structure which rests upon its support.

Back 1346

Bearing

Front 1347

A large piece of wood, steel, stone or other material used to support a structure.

Back 1347

Bearing Beam

Front 1348

A wall that supports the ceiling, floor or roof.

Back 1348

Bearing Wall

Front 1349

A solid rock layer found beneath the topsoil that makes an excellent foundation support.

Back 1349

Bedrock

Front 1350

A community near a city where many people who work for that city live.

Back 1350

Bedroom Community

Front 1351

An appraisal technique used to estimate the value of property taken by condemnation calculated by estimating the value of the whole parcel prior to the taking and then estimating the value of the remaining parcel after the taking.

Back 1351

Before and After Method

Front 1352

The cash that is available to the owners of a property after all the expenses, including the mortgage, have been paid but before any income tax liability.

Back 1352

Before-Tax Cash Flow

Front 1353

The annualized rate of return that represents the internal rate of return on equity before taxes.

Back 1353

Before-Tax Equity Yield Rate

Front 1354

A glass-enclosed, small room on the roof of a house used as a lookout, and often reached through a trap door.

Back 1354

Belvedere

Front 1355

An owner who has equitable title only to a property without holding legal ownership.

Back 1355

Beneficial

Front 1356

The increase in value of a property that results when only part of the property is taken by eminent domain and is created by the improvements made as a result of the project that caused the taking

Back 1356

Benefits

Front 1357

A mound of earth or pavement used to control the flow of surface water.

Back 1357

Berm

Front 1358

An improvement that is not a restoration or repair but one which increases property value, such as the paving of an adjoining road.

Back 1358

Betterment

Front 1359

An offer of what one is willing to pay for something or an offer of what fee one will accept for performing a certain task.

Back 1359

Bid

Front 1360

A written contract or instrument that transfers personal property from one person to another.

Back 1360

Bill of Sale

Front 1361

A preliminary agreement and down payment certifying the good faith of a purchaser

Back 1361

Binder

Front 1362

A paving material made of asphalt or coal.

Back 1362

Blacktop

Front 1363

A deed of trust that covers more than one property

Back 1363

Blanket Deed or Trust

Front 1364

One mortgage on two or more pieces of property pledged as security for a debt.

Back 1364

Blanket Mortgage

Front 1365

A type of insulation, usually made of mineral wood, wood fiber, glass fiber and nailed between the studs of an exterior wall

Back 1365

Blankets, Batts

Front 1366

An interest rate of refinanced mortgaged debt that is lower than current market rates but higher than the interest rate on the existing debt.

Back 1366

Blended Rate

Front 1367

The decay of physical appearance and condition of property within a neighborhood

Back 1367

Blight

Front 1368

A type of nailing done in such a way that nails are hammered deep into the surface and covered with putty so they cannot be seen

Back 1368

Blind Nailing

Front 1369

An illegal practice of persuading homeowners to sell their property because of the fear that people of a different race or religion will move in and lower property values.

Back 1369

Blockbusting

Front 1370

A plan of a building that is detailed enough to allow workers to build from it.

Back 1370

Blueprint

Front 1371

A state or county board established for the purpose of adjusting inequitable tax assessments.

Back 1371

Board of Equalization

Front 1372

The part of a hot water or steam furnace that holds the water being heated by the ignited fuel.

Back 1372

Boiler

Front 1373

The formal language used for deeds, documents, and contracts where specifics are written in the appropriate place each time.

Back 1373

Boiler Plate

Front 1374

A metallic screw pin or fastening having a head and an external thread.

Back 1374

Bolt

Front 1375

Good faith, no intent to defraud

Back 1375

Bona Fide

Front 1376

A buyer who purchases without the knowledge of adverse claims against the property and protected against claims of third parties unless they are recorded prior to the sale being closed.

Back 1376

Bona Fide purchaser

Front 1377

A formal written promise by a borrower to pay a lender specified payments at future specified times.

Back 1377

Bond

Front 1378

The value of a property equal to the cost less depreciation plus additions to value as written in personal or corporate financial books.

Back 1378

Book Value

Front 1379

Holes drilled in the ground to obtain samples for a soil study.

Back 1379

Boring Test

Front 1380

A building unit of clay or shale shaped into rectangles and then fired in a kiln

Back 1380

Brick

Front 1381

A wall with a space between the inner and outer layers of brick

Back 1381

Brick Cavity Wall

Front 1382

An arrangement of bricks on a wall where some are laid parallel and some perpendicular to give the wall additional strength

Back 1382

Brick Masonry Bond

Front 1383

A house style which shares one or more walls with its neighboring houses and often covers an entire block.

Back 1383

Brick Row House

Front 1384

A decorative, non-supportive layer of brick attached as the facing of a wall but not structurally bonded to it.

Back 1384

Brick Veneer

Front 1385

A type of wall construction consisting of one layer of concrete block and one layer of brick.

Back 1385

Brick Veneer on Concrete Block Wall

Front 1386

A popular wall type consisting of a frame covered on the outside with a single layer of face brick

Back 1386

Brick Veneer on Frame Wall

Front 1387

A type of short-term financing used to bridge the time gap between the end of one loan and the beginning of another loan.

Back 1387

Bridge Financing

Front 1388

Small strips of wood or metal nailed between joists or studs to give them lateral rigidity.

Back 1388

Bridging

Front 1389

A person licensed to deal in real estate and receive a commission for bringing buyers and sellers, tenants and owners together

Back 1389

Broker, Real Estate

Front 1390

An expression which means that the floors of a building are clean and swept and ready for a buyer or tenant

Back 1390

Broom Clean

Front 1391

The second of three coats of plaster that make up a plaster wall.

Back 1391

Brown Coat

Front 1392

A 19th-century American house style.

Back 1392

Brownstone

Front 1393

A measurement of heating and cooling capacity

Back 1393

BTU (British Thermal Unit)

Front 1394

Used in the income approach to convert that portion of the income attributable to the improvements into the value of the improvements.

Back 1394

Building Capitalization Rate

Front 1395

The set of governmental regulations that specify minimum construction standards.

Back 1395

Building Codes

Front 1396

A line set a specified distance from the street edge by local ordinance.

Back 1396

Building Line

Front 1397

A heavy, waterproofed paper used for insulation in roofs or walls.

Back 1397

Building Paper

Front 1398

Authorization given by local governments for construction, alterations or remodeling

Back 1398

Building Permit

Front 1399

A technique used by appraisers as part of the income approach

Back 1399

Building Residual Technique

Front 1400

Limitations made by legislation on the use of property and on what may be constructed on it.

Back 1400

Building Restrictions

Front 1401

An arrangement where a landlord builds or alters a property to the specifications of the tenant and recovers the cost of the improvements as part of the rent

Back 1401

Build to Suit

Front 1402

A technique used by appraisers to construct a capitalization rate for use in the income approach.

Back 1402

Built-Up Method

Front 1403

A roof made of layers of felt paper and asphalt and coated with fine gravel

Back 1403

Built-Up Roofing

Front 1404

A retaining wall along a waterfront

Back 1404

Bulkhead

Front 1405

A concept of property ownership from English common law

Back 1405

Bundle of Rights Theory

Front 1406

An early 20th-century American small, one story house.

Back 1406

Bungalow

Front 1407

A heavy-duty, rigid rod, tube or bar that conducts electricity

Back 1407

Bus

Front 1408

A conduit that encloses a bus

Back 1408

Bungalow

Front 1409

The value of an ongoing business including both tangible and intangible items.

Back 1409

Business Value

Front 1410

A roof with two sides that rise from the center to the eaves and has a alley so that they resemble a butterfly

Back 1410

Butterfly Roof

Front 1411

An external support for a wall

Back 1411

Buttress

Front 1412

A financing technique requiring an annual lump-sum payment made to the lender.

Back 1412

Buydown

Front 1413

A market condition wherein there are few buyers, many available properties, low prices and other conditions that favor the buyer.

Back 1413

Buyer’s Market

Front 1414

An agreement among the owners of a business that allows owners who wish to remain in the business to buy the interests of owners who wish to be bought out.

Back 1414

Buy-Sell Agreement

Front 1415

Prefabricated electrical cable consisting of rubber-insulated wires surrounded in a steel strip and used mostly for wiring houses.

Back 1415

B. X. Cable

Front 1416

Interior carpentry work of fine quality.

Back 1416

Cabinet Work

Front 1417

A foundation made by driving a tube into the ground down to bearing soil and then filling it with concrete.

Back 1417

Caisson Foundation

Front 1418

Soil that contains a significant amount of limestone

Back 1418

Calcareous Soil

Front 1419

Real estate loans available to armed forces veterans from California at low interest rates.

Back 1419

Cal-Vet Loans

Front 1420

A slight convex arching that is intentionally built into a beam, truss, girder, etc. to prevent it from sagging when under a load

Back 1420

Camber

Front 1421

A man-made waterway connecting two bodies of water

Back 1421

Canal

Front 1422

A truss, girder, bracket or other structural member that is supported at only one end

Back 1422

Cantilever Beam

Front 1423

Wealth that is accumulated for the purpose of future use.

Back 1423

Capital

Front 1424

Permanent assets used for the manufacture of income

Back 1424

Capital Assets

Front 1425

Money spent on additions, betterments or improvements such as buildings, land or equipment

Back 1425

Capital Expenditures

Front 1426

Gains realized from the sale of capital assets, generally the difference between cost and selling price, less certain deductible expenses

Back 1426

Capital Gains

Front 1427

A tax applied to gain or profit realized on the sale or exchange of a capital asset

Back 1427

Capital Gains Tax

Front 1428

The procedure of reflecting future income into the present value of a property-changing income into a value, a process commonly found in the income approach in an appraisal

Back 1428

Capitalization

Front 1429

A rate that reflects the relationship between the value of a property and its net operating income (NOI)

Back 1429

Capitalization Rate

Front 1430

The return to an investor in real estate of the capital invested in the property over a period of time.

Back 1430

Capital Recapture/Recovery

Front 1431

Annual payments needed to give an investor in real estate a return of his or her contemplated lost capital investment

Back 1431

Capital Recovery Payments

Front 1432

A period of time forecasted to be the holding period of a real estate investment during which an investor should plan to recover his or her capital invested in the project

Back 1432

Capital Recovery Period

Front 1433

The amount of money required annually to reimburse the investor for the portion of the investment that will be lost during the life of the investment

Back 1433

Capital Recovery Rate

Front 1434

A piece of wood that covers the tops of a series of vertical structures

Back 1434

Cap Plate

Front 1435

A viewing conducted of newly listed properties by sales personnel of a real estate company who travel together to gain knowledge about the listings their company has for sale

Back 1435

Caravan

Front 1436

An open-sided, roofed shelter often made by extending the house roof to one side.

Back 1436

Carport

Front 1437

An important component of a staircase

Back 1437

Carriage

Front 1438

Ornamentation on the underside of the front overhand of a Garrison colonial house.

Back 1438

Carved Drop

Front 1439

A type of window hinged to open at one of its vertical edges

Back 1439

Casement Window

Front 1440

A price expressed in terms of all cash as opposed to a price that is expressed in terms of cash and securities.

Back 1440

Case Equivalent

Front 1441

The net income an investor will hold after deducting operating expenses and loan payments from his or her gross income

Back 1441

Cash Flow

Front 1442

The ratio of cash throw-off to the original cash invested in a real estate investment

Back 1442

Cash on Cash

Front 1443

The amount of rent paid in cash to the landlord

Back 1443

Cash Rent

Front 1444

The amount of income received by the owner of a property after all expenses are paid including payment of the mortgage

Back 1444

Cash Throw-Off

Front 1445

A piece of trim material around the top and sides of doors and windows

Back 1445

Casing

Front 1446

An iron alloy with high compressive strength

Back 1446

Cast Iron

Front 1447

A grill or grating used instead of gate placed in the ground over which cattle will not cross

Back 1447

Cattle Guard

Front 1448

A narrow, elevated walkway that provides access to an area where repairs may be necessary

Back 1448

Catwalk

Front 1449

A compound used to seal cracks and fill joints

Back 1449

Caulking

Front 1450

A legal phrase meaning in Latin “Let the buyer beware.”

Back 1450

Caveat Emptor

Front 1451

A wall usually of brick or stone which has an inner and outer layer separated by an air space.

Back 1451

Cavity Wall

Front 1452

The total height from the finished surface of the floor to the lower surface of the bottom chord of the roof truss.

Back 1452

Ceiling Height

Front 1453

Insulation installed in the ceiling often under the flooring of the attic

Back 1453

Ceiling Insulation

Front 1454

Small beams that carry the ceiling

Back 1454

Ceiling Joists

Front 1455

The portion of a building that is below the ground and usually used for storage.

Back 1455

Cellar

Front 1456

A material or mixture of materials which when mixed with water form a cohesive substance

Back 1456

Cement

Front 1457

The smallest geographic area into which the Metropolitan Statistical Area is divided for statistical purposes.

Back 1457

Census Tract

Front 1458

A flat fired clay tile that comes in a variety of types

Back 1458

Ceramic Tile

Front 1459

The portion of an appraisal that contains the limiting conditions, the appraiser’s conclusion and signature signifying that the report is correct and true.

Back 1459

Certificate

Front 1460

A document required for FHA-insured loans, signed by homeowners affirming their satisfaction with the labor and materials of their home and authorizing the lender to pay the builder

Back 1460

Certificate of Completion

Front 1461

An amount of money left in a savings institution for a specific length of time that exchanges early withdrawal privileges for higher interest

Back 1461

Certificate of Deposit

Front 1462

A certificate given by the Veteran’s Administration to a veteran which states that the applicant is eligible for a VA-incurred loan

Back 1462

Certificate of Eligibility

Front 1463

A document issued to a builder by a local building department which certifies that a building is free of building code violations and fit for occupancy

Back 1463

Certificate of Occupancy

Front 1464

A document issued by the Veteran’s Administration that states a property’s current market value, based on a VA-approved appraisal

Back 1464

Certificate of Reasonable Value

Front 1465

A signed document made by a title examiner, usually presented to the buyer along with the deed, certifying that the seller of a property has good title

Back 1465

Certificate of Title

Front 1466

As specified in the Financial Institution Reform, Recovery and Enforcement Act (FIRREA), an appraiser who has been certified by the appropriate state to value general property.

Back 1466

Certified Appraiser

Front 1467

A check that a bank has certified as good

Back 1467

Certified Check

Front 1468

Part of a waste disposal system that functions similarly to a septic tank

Back 1468

Cesspool

Front 1469

A type of molding installed around a room at chairback height to protect the walls from damage.

Back 1469

Chair Rail

Front 1470

A real estate principle which contends that economic and social forces continually cause changes.

Back 1470

Principal of Change

Front 1471

In carpentry or masonry, a groove or gutter

Back 1471

Channel

Front 1472

Tangible personal property other than real estate, such as furniture

Back 1472

Chattel

Front 1473

A security device whereby a security interest is taken by the mortgagee in the personal property of the mortgagor

Back 1473

Chattel Mortgage

Front 1474

A vertical structure that carries smoke and other products of combustion from the fireplace into the air above a building

Back 1474

Chimney

Front 1475

The sloped metal cap that crowns a chimney

Back 1475

Chimney Cap

Front 1476

Material placed over a chimney for drainage and to prevent water penetration

Back 1476

Chimney Flashing

Front 1477

An extension at the top of the chimney made of tile or sheet metal and used to improve the draft

Back 1477

Chimney Pot

Front 1478

Actual age

Back 1478

Chronological Age

Front 1479

A lightweight building block made of cinders and concrete

Back 1479

Cinder Block

Front 1480

A permanent safety device used as a substitute for a fuse which automatically turns off an electric circuit when it is overloaded

Back 1480

Circuit Breaker

Front 1481

In a hot-water system circulators are devices that pump water through finger size tubes into radiators and baseboards

Back 1481

Circulators

Front 1482

A tank used for the storage of rainwater

Back 1482

Cistern

Front 1483

A long board used as siding

Back 1483

Clapboard

Front 1484

Used in the CTS system to denote the number of families the unit being described will accommodate

Back 1484

Class

Front 1485

A system of classifying structures according to the degree of fire resistance of materials from which they are constructed

Back 1485

Class of Construction

Front 1486

A type of fine-grained soil composed mostly of hydrous aluminum silicates.

Back 1486

Clay

Front 1487

Lumber free of knots and other defects

Back 1487

Clear Lumber

Front 1488

A large open area that does not have posts or columns in it to support the roof

Back 1488

Clear Span

Front 1489

An unencumbered title

Back 1489

Clear Title

Front 1490

A wall or portion of a wall to which the roof attaches at a higher level than the other walls or portions of walls of a building often with a window at the top of the wall

Back 1490

Clerestory

Front 1491

In real estate the date when the seller gives the title to the buyer in exchange for the agreed upon purchase price

Back 1491

Closing

Front 1492

The costs involved with the sale of real estate such as appraisal fees, attorney’s fees and recording fees

Back 1492

Closing Costs

Front 1493

A document prepared as part of a real estate closing showing the price being paid for the property, all of the adjustments, the closing costs, the financing, any other charges or credits due the buyer or seller and the net proceeds to be received by the seller

Back 1493

Closing Statement

Front 1494

A claim or encumbrance on a property that can injure the owner’s title if not removed by a quitclaim deed or court action

Back 1494

Cloud on Title

Front 1495

A housing system wherein houses are placed close together to create a big common area

Back 1495

Cluster Housing

Front 1496

An ordinance to limit coastal construction.

Back 1496

Coastal Commission

Front 1497

Stone used as the corner of a masonry wall

Back 1497

Coignes

Front 1498

A provision in a standard fire policy which requires that a property be insured to a specified percentage of its value.

Back 1498

Coinsurance

Front 1499

A beam that unites and stiffens two opposite roof rafters

Back 1499

Collar Beam

Front 1500

A line of columns at regular intervals usually used to support an architrave

Back 1500

Colonnade

Front 1501

A long slender structure that serves as support

Back 1501

Column

Front 1502

The small plate at the bottom of a column that helps to distribute the column load to the supporting structures below

Back 1502

Column Base Plate

Front 1503

The plate at the top of a column that helps support a load.

Back 1503

Column Cap Plate

Front 1504

The base, usually made of reinforced concrete, that supports a load-bearing column

Back 1504

Column Footing

Front 1505

Steel placed inside columns for support and reinforcement

Back 1505

Column Steel

Front 1506

An outer door frame having an inside removable section for year-round utility.

Back 1506

Combination Door

Front 1507

A system that handles storm water and sanitary sewage together

Back 1507

Combination Sewer

Front 1508

A window that can hold interchangeable panels of screen or glass

Back 1508

Combination Windows

Front 1509

Banks whose primary function is to serve business by providing checking accounts and short-term loans.

Back 1509

Commercial Banks

Front 1510

Bills and notes used instead of money

Back 1510

Commercial Paper

Front 1511

Properties intended for business use, such as retail and wholesale stores, offices, restaurants, and hotels

Back 1511

Commercial Properties

Front 1512

The sum, usually a percentage of the selling or rental price, paid to the real estate broker for his or her services

Back 1512

Commission

Front 1513

An agreement by a lending institution to give a mortgage on a property either when it is purchased or when it is constructed

Back 1513

Commitment

Front 1514

The area owned by an association of owners of a condominium or planned unit development

Back 1514

Common Area

Front 1515

A brick not specially treated for texture or color, used for general building purposes

Back 1515

Common Brick

Front 1516

Laws within a system that have universal and general application

Back 1516

Common Law

Front 1517

Capital shares in a corporation that have claim on the net income of the corporation

Back 1517

Common Stock

Front 1518

A type of ownership that exists in about 10 states, where each spouse is an equal and concurrent co-owner of the property acquired during the period of time they are married to each other

Back 1518

Community Property

Front 1519

The process of compacting extra soil used as fill in a lot so that it can properly bear the weight of the building

Back 1519

Compaction

Front 1520

An appraisal term for properties that are similar in value for a particular property and are used to indicate fair market value for that property.

Back 1520

Comparables

Front 1521

A technique used by appraisers to compare one property with another. Often the comparison is done on the basis of a common unit such as square feet or cubic feet.

Back 1521

Comparative Method

Front 1522

Certain types of damages caused by the taking of property.

Back 1522

Compensable Damages

Front 1523

A sum of money paid to make amends for an injury.

Back 1523

Compensation

Front 1524

Legally qualified and fit.

Back 1524

Competent

Front 1525

A principle which states that when a situation in a free market produces excess or high profits, competition will soon develop for those profits.

Back 1525

Principle of Competition

Front 1526

An individual element of construction

Back 1526

Component

Front 1527

An overall rate used in appraising in the income approach.

Back 1527

Composite Rate

Front 1528

Shingles covered with a mixture of gravel or stones.

Back 1528

Composition Shingles

Front 1529

A type of siding material that is prefabricated, often in imitation brick

Back 1529

Composition Siding

Front 1530

A method of paying interest usually paid on savings accounts where the interest earned during a period of time is added to the principal sum at end of the period.

Back 1530

Compound Interest

Front 1531

A test to measure the strength of concrete

Back 1531

Compression Strength Test

Front 1532

A mixture of cement, water, admixtures, and aggregates which is an important building material because it is strong, durable, watertight and workable in its plastic state.

Back 1532

Concrete

Front 1533

Masonry units, solid or hollow, made out of concrete composed of Portland cement, aggregates, admixtures and water.

Back 1533

Concrete Block

Front 1534

A type of masonry wall consisting of concrete blocks on a plaster coating.

Back 1534

Concrete Block Wall

Front 1535

Concrete supports for a floor-framing system

Back 1535

Concrete Piers

Front 1536

The power of government to take private property by due process of law for public use or benefit.

Back 1536

Condemnation

Front 1537

The value of property taken by condemnation that must be paid to the owner whose property was condemned

Back 1537

Condemnation Value

Front 1538

The owner of property taken by condemnation (eminent domain).

Back 1538

Condemnee

Front 1539

The party taking property by condemnation (eminent domain).

Back 1539

Condemner

Front 1540

A form of ownership in which each owner owns the fee to the individual unit and a percentage of the fee to the common areas.

Back 1540

Condominium

Front 1541

The changing of rental units to condominium units and common area.

Back 1541

Condominium Conversion

Front 1542

In electricity a wire or path through which electric current flows

Back 1542

Conductor

Front 1543

A metal pipe through which electric wire runs

Back 1543

Conduit

Front 1544

A contract, memorandum or deliberate act which validates a previous agreement that might otherwise have been void.

Back 1544

Confirmation

Front 1545

The seizure of property by the government from a private owner without paying the owner just compensation.

Back 1545

Confiscation

Front 1546

An appraisal principle which holds that uniformity of properties in a neighborhood produces maximum value.

Back 1546

Principle of Conformity

Front 1547

Damages caused to a property by the taking of a nearby property of another owner or the construction of improvements on nearby properties.

Back 1547

Consequential Damages

Front 1548

The preservation and protection of natural resources so they will not be destroyed

Back 1548

Conservation

Front 1549

The actual selling price of a property

Back 1549

Consideration

Front 1550

An appraisal theory which maintains that when a property is evaluated, the land and the improvements must be evaluated on the assumption that they are both being used for the same purpose.

Back 1550

Consistent Use Theory

Front 1551

A factor or percentage that expresses the relationship between the principal amount of a mortgage and the payments

Back 1551

Constant

Front 1552

A type of mortgage by which the borrower pays a fixed amount each month with part to be applied to repayment of principal and part to payment of interest.

Back 1552

Constant Payment Mortgage

Front 1553

The total cost of constructing a building including the price of land, labor, materials and profit

Back 1553

Construction Cost

Front 1554

A short-term loan used to finance improvements to real estate, often with a long-term commitment for more permanent financing

Back 1554

Construction Loan

Front 1555

A short-term mortgage often made by a commercial bank to a developer to provide funds during the construction of a real estate project.

Back 1555

Construction Loan Mortgage

Front 1556

A property that is touching, bordering, or very near to another property.

Back 1556

Contiguous

Front 1557

Possible occurrences that are conditioned on the precipitation of a future event.

Back 1557

Contingencies

Front 1558

A line on a map that connects points of equal elevation or outlines a water body

Back 1558

Contour Line

Front 1559

A written or oral agreement between two or more parties to perform or not perform specified obligations.

Back 1559

Contract

Front 1560

The actual rent paid for the use of a property.

Back 1560

Contract Rent

Front 1561

An economic principle used by real estate appraisers which states that each portion of a property contributes to the property’s ability to produce income.

Back 1561

Principle of Contribution

Front 1562

A term used in farm appraising to express the amount of value the buildings add to the value of the property

Back 1562

Contributory Value of Improvements

Front 1563

The transfer of heat by the heating of the air

Back 1563

Convection

Front 1564

A type of heat distribution system consisting of pipes with many fins attached at short intervals.

Back 1564

Convector Radiator

Front 1565

Electrical outlets which have two receptacles that accept three-pronged plugs

Back 1565

Convenience Outlets

Front 1566

A mortgage that is made by a lender who is not insured by a government agency.

Back 1566

Conventional Mortgage

Front 1567

Changing the use or ownership of a property from its existing use or ownership to another.

Back 1567

Conversion

Front 1568

A mortgage in which the lender may convert his debt position into equity by decreasing or foregoing cash amortization payments at some time during the life of the loan

Back 1568

Convertible Mortgage

Front 1569

A written instrument that transfers an interest in real estate from any party to another

Back 1569

Conveyance

Front 1570

A water tower in which water is cooled by evaporation and is part of an air conditioning system

Back 1570

Cooling Tower

Front 1571

A form of ownership in which each owner shares in a corporation that owns and entire property and has the exclusive right to occupy part of the property

Back 1571

Cooperative

Front 1572

An apartment in cooperative ownership.

Back 1572

Cooperative Apartment

Front 1573

A protective top of a wall, chimney, pilaster or parapet usually sloped to allow the run-off of water

Back 1573

Coping

Front 1574

A brick that has up to and over 20 holes and still classified as solid

Back 1574

Cored Brick

Front 1575

A type of tile made from cork.

Back 1575

Cork Tile

Front 1576

A strip of iron with metal lath that is placed in corners before plastering to provide reinforcement

Back 1576

Corner Bead

Front 1577

The boards covering the external corners of a frame building

Back 1577

Corner Boards

Front 1578

Braces nailed diagonally to the studs as reinforcement at corners

Back 1578

Corner Braces

Front 1579

A special entity created by law that is treated as an individual unit with its own rights and liabilities, usually owned by stockholders

Back 1579

Corporation

Front 1580

Siding composed of sheet metal or asbestos cement composition board

Back 1580

Corrugated Siding

Front 1581

The expenditure made to produce the improvements.

Back 1581

Cost

Front 1582

One of the three traditional approaches to value used by real estate appraisers based on the theory that the value of a property is the sum of the value of the land plus the reproduction cost of all the improvements less depreciation from all causes

Back 1582

Cost Approach to Value

Front 1583

The ratio of the return from improvement to the cost of the improvement

Back 1583

Cost Benefit Ratio

Front 1584

A study made of a proposed development or of an addition or alteration to determine whether the benefits received are sufficient to warrant the cost of the project

Back 1584

Cost Benefit Study

Front 1585

The process of breaking a building down into its components, estimating the value of each component and adding the results together to obtain an estimated cost of the building

Back 1585

Cost Estimating

Front 1586

A government estimation of the living cost per person per month

Back 1586

Cost of Living Index

Front 1587

A contract which specifies that the amount to be paid for services received is the provider’s actual cost plus an agreed upon profit

Back 1587

Cost Plus Contract

Front 1588

The dollar amount needed to restore an item of deferred maintenance to a new or reasonably new condition.

Back 1588

Cost to Cure

Front 1589

A form of common ownership or possession

Back 1589

Co-Tenancy

Front 1590

A real estate professional who specializes in giving real estate advice

Back 1590

Counselor

Front 1591

A new offer made to counter and cancel an original offer.

Back 1591

Counter Offer

Front 1592

A continuous horizontal layer of tile, brick, shingles, etc.

Back 1592

Course

Front 1593

A covered area, entirely or partly surrounded by walls

Back 1593

Court

Front 1594

A concave corner or molding

Back 1594

Cove

Front 1595

Lighting that is behind a concave molding near the ceiling

Back 1595

Cove Lighting

Front 1596

A small, concave, faced molding used to cover a narrow gap or angle

Back 1596

Cove Molding

Front 1597

A special clause in a deed or an agreement whereby the grantor guarantees that the grantee will have the right to a property free from the interference of other parties who may claim an interest in the property

Back 1597

Covenant of Quiet Enjoyment

Front 1598

An adjustment used in leases in which the rent payment is periodically adjusted by a percentage of the increase in the consumer price index

Back 1598

CPI Adjustment

Front 1599

The open space between the underside of the floor joists and the ground

Back 1599

Crawl Space

Front 1600

A record, prepared by a credit reporting organization of a loan applicant’s past capability to pay installment loan payments and other debts

Back 1600

Credit Report

Front 1601

A cooperative organization of workers created for the purpose of lending money to members.

Back 1601

Credit Union

Front 1602

Diagonal bracing between joists that gives support and stops the joists from shifting laterally

Back 1602

Cross Bridging

Front 1603

A lightweight brace used between rafters on opposite roof slopes

Back 1603

Cross Tie

Front 1604

A survey made to find and evaluate the standing timber in a given area

Back 1604

Cruise

Front 1605

A uniform method describing houses developed for the Realtors National Marketing Institute (Class, Type, Style)

Back 1605

CTS

Front 1606

Cost per cubic foot for construction

Back 1606

Cubic Foot Cost

Front 1607

A dead-end street that is enlarged at the end to allow cars to make a u-turn

Back 1607

Cul-de-sac

Front 1608

A curable deficiency.

Back 1608

Curable Depreciation

Front 1609

The raised rim of concrete, stone, or wood that edges a sidewalk, street, floor, or well opening.

Back 1609

Curb

Front 1610

The portion of a curb that goes down to street level to make the apron of a driveway

Back 1610

Curb Cut

Front 1611

A wall that encloses but does not support

Back 1611

Curtain Wall

Front 1612

The right that a husband has to his deceased wife’s estate under common law

Back 1612

Curtsey

Front 1613

Bounded by curved lines

Back 1613

Curvilinear

Front 1614

Records and information on real properties kept by appraisers, lenders, etc.

Back 1614

DataPlant

Front 1615

The date to which an appraisal is applicable.

Back 1615

Date of Appraisal

Front 1616

A street that is closed at one end and does not have an enlarged space for U turns as a cul-de-sac does

Back 1616

Dead End Street

Front 1617

The permanent weight that structural parts of a building must support.

Back 1617

Dead Load

Front 1618

Money owned that must be repaid

Back 1618

Debt

Front 1619

The ratio of annual net operating income divided by the annual debt service.

Back 1619

Debt Coverage Ratio

Front 1620

Light-gauge sheets that are used in the construction of a floor or roof

Back 1620

Decking

Front 1621

A document required by state statute to be filed as part of the process of establishing a condominium form of ownership for a property.

Back 1621

Declaration of Condominium

Front 1622

A legal, written instrument that conveys title to a described real property.

Back 1622

Deed

Front 1623

A portion of a deed that describes the property being conveyed.

Back 1623

Deed Description

Front 1624

Limitations on the use of property for a specified period or forever that are written in a deed, which apply even after the property is sold.

Back 1624

Deed Restrictions

Front 1625

Failure to fulfill a legal obligation.

Back 1625

Default

Front 1626

A judgment made against a party who does not appear in court at the appropriate time.

Back 1626

Default Judgment

Front 1627

Repairs that need to be done to rehabilitate a property but which have not yet been done.

Back 1627

Deferred Maintenance

Front 1628

Payments to commence at a future time.

Back 1628

Deferred Payments

Front 1629

The part of a mortgage debt that is not recovered by the sale of the mortgaged property

Back 1629

Deficiency

Front 1630

The judgment for the portion of debt a borrower is responsible for if a foreclosure sale does not recover all the money due for the foreclosure mortgage

Back 1630

Deficiency Judgment

Front 1631

A falling short in necessary funds

Back 1631

Deficit

Front 1632

A lessening in money supply.

Back 1632

Deflation

Front 1633

The transfer of a deed from buyer to seller so that the seller cannot recall the deed

Back 1633

Delivery

Front 1634

A note that is repayable on the demand of the holder

Back 1634

Demand Mortgage

Front 1635

A term used by the Federal Home Loan Mortgage Corporation to describe a PUD in which the common property has a relatively insignificant influence upon the enjoyment of the premises or has little or no effect upon the value of the property

Back 1635

Deminimis PUD

Front 1636

Relating to a population structure

Back 1636

Demographic

Front 1637

The number of houses, people, etc per square mile

Back 1637

Density

Front 1638

Alternate square blocks and blank spaces and comice that give the appearance of teeth.

Back 1638

Dentil

Front 1639

A decrease in the value of an asset due to exhaustion of resources, such as the taking of oil from a well.

Back 1639

Depletion

Front 1640

The percentage of a wasting asset that is used up yearly.

Back 1640

Depletion Rate

Front 1641

A deposit is given by the potential purchaser along with an offer to buy

Back 1641

Deposit

Front 1642

A simple form of contract used to make an offer to buy real estate in some areas.

Back 1642

Deposit Receipt

Front 1643

A real property which has a determinable lifespan that can be measured for depreciation

Back 1643

Depreciable Property

Front 1644

Cost new of a property less accrued depreciation from all causes

Back 1644

Depreciated Cost

Front 1645

The difference between the reproduction cost of improvements and their value.

Back 1645

Depreciation

Front 1646

The amount of depreciation in a specific property at a specific date.

Back 1646

Depreciation Accrued

Front 1647

The rate of percentage at which a property depreciates.

Back 1647

Depreciation Rate

Front 1648

This method of depreciation is based on estimating the useful life of the asset being depreciated and determining the rate of depreciation by dividing the amount of depreciation to be taken into equal parts to be taken over the estimated useful life.

Back 1648

Straight Line Depreciation

Front 1649

The low point of a business and economic cycle where unemployment skyrocket and production, prices and demand are low

Back 1649

Depression

Front 1650

To pass real estate title by succession or to pass title without a will

Back 1650

Descent

Front 1651

A plan of a building showing all facets of the building’s appearance and purpose

Back 1651

Design

Front 1652

A gradual worsening in the condition of a property through wear and tear, the elements and disintegration.

Back 1652

Deterioration

Front 1653

Someone who readies raw land for construction and then either sells it to a builder or acts as a builder and proceeds to construct improvements on the property.

Back 1653

Developer

Front 1654

A preplanned construction project where the buildings are usually related in some way

Back 1654

Development

Front 1655

A loan to buy land or make site improvements.

Back 1655

Development Loan

Front 1656

An appraisal technique for estimating the value of land.

Back 1656

Development Method

Front 1657

To take a right, estate, or interest away from somebody.

Back 1657

Divest

Front 1658

Real property given by last will and testament.

Back 1658

Devise

Front 1659

Someone to whom land is left in a will

Back 1659

Devisee

Front 1660

Someone who leaves real estate by will

Back 1660

Devisor

Front 1661

A levee

Back 1661

Dike

Front 1662

A deposit of soil created by a flood or glacier

Back 1662

Diluvium

Front 1663

Lumber cut to a specified size and stocked by lumberyards for the building industry.

Back 1663

Dimension Lumber

Front 1664

A room, separate from the kitchen, used primarily for the serving of meals

Back 1664

Dining Room

Front 1665

An appraisal technique whereby a capitalization rate is developed by abstracting it from the market.

Back 1665

Direct Capitalization

Front 1666

One of the classes of costs of a real estate development or project.

Back 1666

Direct Costs

Front 1667

Labor cost related to a specific building project

Back 1667

Direct Labor

Front 1668

A mortgage that is to be paid by amortization.

Back 1668

Direct Reduction Mortgage

Front 1669

A denial and renunciation of an interest or estate

Back 1669

Disclaimer

Front 1670

To reduce the proceeds of a loan to a borrower and thereby increases the effective interest yield to the lender

Back 1670

Discount

Front 1671

An appraisal technique that analyzes an income property by discounting the future each flow using a rate of return the appraiser estimates is required to attract an investor to the type of investment being appraised

Back 1671

Discounted Cash Flow

Front 1672

A rate of return that is required to attract investment capital to a particular investment.

Back 1672

Discounted Rate of Return

Front 1673

Giving a borrower less than the face value of the note or mortgage

Back 1673

Discounting

Front 1674

A one-percent discount

Back 1674

Discount Point

Front 1675

The relationship between dollars loaned by a lender and dollars that the borrower repays

Back 1675

Discount Rate

Front 1676

When investors remove their money from thrift institutions to reinvest where the rates of return are thought to be higher.

Back 1676

Disintermediation

Front 1677

The spread of building and other improvements from a central point on the property

Back 1677

Dispersion

Front 1678

Household money left after taxes; spendable income

Back 1678

Disposable Income

Front 1679

A drainage area made of clay tiles and gravel used to filter and disperse waste from septic tanks.

Back 1679

Disposal Field

Front 1680

A relinquishment or alienation of property

Back 1680

Disposition

Front 1681

Property that is producing income insufficient to pay the expenses of ownership

Back 1681

Distress Property

Front 1682

When a seller sells a property under great pressure to sell

Back 1682

Distress Sale

Front 1683

A load that is evenly distributed and measured in tons per square foot

Back 1683

Distributed Load

Front 1684

A method used by appraisers to estimate the value of a property.

Back 1684

Distribution Method

Front 1685

In an electrical system a metal box containing the fuses or circuit breakers

Back 1685

Distribution Panel Box

Front 1686

The concrete or clay tile sued for drainage in a disposal field

Back 1686

Distribution Tile

Front 1687

A device that keeps water from roots from flowing onto uncovered steps or platforms

Back 1687

Diverter

Front 1688

An interest in some part of a whole property

Back 1688

Divided Interest

Front 1689

Money divided among shareholders

Back 1689

Dividend

Front 1690

The ratio of cash flow to cash invested expressed in a percentage

Back 1690

Dividend Yield

Front 1691

A wall that is shared by two buildings but which does not belong to either or a load bearing interior wall

Back 1691

Division Wall

Front 1692

A loading plat for ships, railroad cars or trucks or a land pier for boats

Back 1692

Dock

Front 1693

A mechanical system designed to produce hot water for household purposes

Back 1693

Domestic Hot Water System

Front 1694

A legal term meaning someone’s permanent home

Back 1694

Domicile

Front 1695

The vertical pieces surrounding a door opening

Back 1695

Door Jamb

Front 1696

The framing member at the bottom of a door opening that serves as a threshold

Back 1696

Door Sill

Front 1697

A projection built out from the slop of a roof.

Back 1697

Dormer

Front 1698

A vertical window in a small gable that projects from a sloping roof

Back 1698

Dormer Window

Front 1699

A double layer of shingles or similar material

Back 1699

Double Courses

Front 1700

A wooden floor and subfloor

Back 1700

Double Floor

Front 1701

A way of increasing strength by doubling the usual number of framing members

Back 1701

Double Framing

Front 1702

A window with two sashes that move up and down independently in tracks

Back 1702

Double-Hung Window

Front 1703

A projecting end of a piece that has a fan or dovetailed shape

Back 1703

Dovetail

Front 1704

The legal rights that a widow has to her husband’s estate

Back 1704

Dower

Front 1705

A portion of the sales price to be paid by the purchaser from his or her own funds and not from any financing he or she may have received

Back 1705

Down Payment

Front 1706

A pipe used for carrying rainwater from the roof of a house to the ground or into a dry well or sewer connection

Back 1706

Downspout

Front 1707

A system that removes surface water through tiles and pipes.

Back 1707

Drainage

Front 1708

A geographic area where the local government controls the construction and operation of the drainage systems.

Back 1708

Drainage District

Front 1709

Hollow tile used to drain water-saturated soil or disperse liquid into the ground.

Back 1709

Drain Tile

Front 1710

A piece of molding placed at the edge of a door or window to divert water away from the opening so it will fall free to the ground.

Back 1710

Drip

Front 1711

A projection from the vertical face of an exterior wall used to make rainwater drip from the outer edge of the wall rather than run down the wall face.

Back 1711

Drip Cap

Front 1712

The thickened part of a concrete slab that surrounds a column or bracket.

Back 1712

Drop Panel

Front 1713

A type of tongue-and-grooved exterior board siding.

Back 1713

Drop Siding

Front 1714

A device used to dehydrate farm crops before storage.

Back 1714

Dryer

Front 1715

Decay of seasoned wood caused by fungus.

Back 1715

Dry Rot

Front 1716

A masonry wall put up without mortar

Back 1716

Drywall

Front 1717

Interior wall construction that uses wallboard, plywood and other sheet materials.

Back 1717

Drywall Construction

Front 1718

A hole in the ground lined with stone used to disburse waste or rainwater into the ground.

Back 1718

Dry Well

Front 1719

Pipes of metal, plastic or other material used for distributing or collecting air.

Back 1719

Ducts

Front 1720

A building having two dwelling units either side by side or one above the other.

Back 1720

Duplex

Front 1721

An electrical outlet that can receive two plugs.

Back 1721

Duplex Outlet

Front 1722

Long-lasting goods that can be used again and again.

Back 1722

Durable Capital Goods

Front 1723

Unlawful pressure to coerce someone to do something against his or her will.

Back 1723

Duress

Front 1724

A door that is divided horizontally in the middle so that the halves may be opened and closed independently or together.

Back 1724

Dutch Door

Front 1725

A building designed or used as living quarters for one or more families.

Back 1725

Dwelling

Front 1726

Money paid in advance to demonstrate good faith when an offer to buy is submitted to a property owner by a prospective purchaser.

Back 1726

Earnest Money

Front 1727

Money earned from labor or personal services rather than money received as return on capital.

Back 1727

Earnings

Front 1728

A liberty, privilege or right that one has to use land for a specific purpose distinct from ownership of the soil.

Back 1728

Easement

Front 1729

An easement attached to the dominant estate.

Back 1729

Easement Appurtenant

Front 1730

The part of the handrail that curves parallel to the floor.

Back 1730

Easing

Front 1731

Metal strips attached to eaves and gutters to prevent water absorption and provide drainage.

Back 1731

Eave Flashing

Front 1732

The lowest projecting part of the roof.

Back 1732

Eaves

Front 1733

A vent located under the eaves of the house.

Back 1733

Eave Vent

Front 1734

The science of the relationship between living things and their environment.

Back 1734

Ecology

Front 1735

The major economic activities of a community that provide it support by bringing in funds from outside the community.

Back 1735

Economic Base

Front 1736

A technique for the analysis of the macro economic supports of a community. It is used as a means of predicting income and population or other variables that affect real estate value.

Back 1736

Economic Base Analysis

Front 1737

The length of time improvements can be profitability utilized. It is the length of time the improvements contribute value for the property.

Back 1737

Economic Life

Front 1738

A decrease in desirability or value resulting from economic forces off the property, such as change in zoning, in traffic patterns, or in supply/demand relationships.

Back 1738

Economic Obsolescence

Front 1739

The rent that a property would command in the market at any given time.

Back 1739

Economic Rent

Front 1740

The age an improvement appears to be as compared to other improvements in the market.

Back 1740

Effective Rage

Front 1741

The desire to purchase combined with the ability to pay.

Back 1741

Effective Demand

Front 1742

The total estimated potential income produced by a property including rents and all miscellaneous income less an allowance for the income that will not be collected because of vacancies and collection losses.

Back 1742

Effective Gross Income

Front 1743

The actual rate of interest paid on a loan or mortgage.

Back 1743

Effective Rate

Front 1744

The taxes on a property expressed as a ratio between the market value of the property and the annual taxes.

Back 1744

Effective Tax Rate

Front 1745

The ratio of rentable square feet of office space to gross square footage.

Back 1745

Efficiency Rate

Front 1746

Liquid sewage after some stage of treatment.

Back 1746

Effluent

Front 1747

An electronic device that charges dust particles with electricity and removes them by attracting the particles to metal collecting rods.

Back 1747

Electric Air Cleaner

Front 1748

A heating system run by converting electricity into heat.

Back 1748

Electric Heat

Front 1749

One of the major mechanical systems of most buildings.

Back 1749

Electric System

Front 1750

Height above sea level or height measured from any point.

Back 1750

Elevation

Front 1751

A capitalization process used to convert the projected income stream of a property into a value.

Back 1751

Ellwood

Front 1752

The movement of soil caused by water in the soil.

Back 1752

Eluviations

Front 1753

The right of the government to acquire private property for public use by condemnation with just compensation.

Back 1753

Eminent Domain

Front 1754

Land enclosed within a visible boundary such as a fence used to protect a property from encroachment by animals.

Back 1754

Enclosure

Front 1755

An intrusion of one person’s property upon the property of another.

Back 1755

Encroachment

Front 1756

Any claim, charge or lien attached to a real property that does not prevent conveyance.

Back 1756

Encumbrance

Front 1757

The market value of a property less the amount of the existing mortgages.

Back 1757

Equity

Front 1758

The ratio of down payment to total price.

Back 1758

Equity Ratio

Front 1759

The return on the equity from all sources.

Back 1759

Equity Yield

Front 1760

The effective rate of return on an equity capital investment including the annual dividends and the effect of any gain or loss as a result of the sale of the investment.

Back 1760

Equity Yield Rate

Front 1761

The wearing away of rock and earth caused by running water.

Back 1761

Erosion

Front 1762

A clause in a lease that adjusts the rent during the term of the lease to reflect changing conditions.

Back 1762

Escalation Clause

Front 1763

The ownership of property reverts to the State when it is abandoned or when an owner dies without any heirs.

Back 1763

Escheat

Front 1764

The process of depositing money with a third party.

Back 1764

Escrow

Front 1765

A special bank account established by an agent in which funds being held in escrow are deposited.

Back 1765

Escrow Account

Front 1766

An interest in property.

Back 1766

Estate

Front 1767

An estate that takes effect some time in the future when another estate ends.

Back 1767

Estate in Reversion

Front 1768

An appraisal term for an opinion that is based on the analysis of adequate data about a property.

Back 1768

Estimate

Front 1769

A legal doctrine which states that a person is forbidden to contradict or deny his or her own previous statement, act or deed when an innocent third party has relied on the statement act or deed.

Back 1769

Estoppels

Front 1770

A court action for the physical removal of a person from real property.

Back 1770

Eviction

Front 1771

A document showing ownership of property.

Back 1771

Evidence of Title

Front 1772

A hole dug to provide safe and adequate support for footings and foundations.

Back 1772

Excavation

Front 1773

Rent that exceeds the fair market rent.

Back 1773

Excess Rent

Front 1774

A value greater than market value that is created when a property is leased to a good tenant at a rental that exceeds the fair market rent of the property.

Back 1774

Excess Value

Front 1775

A contract that gives the agent will receive a commission if a property is sold as a result of his or her efforts but not as an agent exclusive right to sell a property.

Back 1775

Exclusive Agency

Front 1776

A contract which states that the agent will receive a commission if a property is sold as a result of his or her efforts but not as the result of the efforts of the principal.

Back 1776

Exclusive Agency Listing

Front 1777

A written contract between a property owner and a real estate broker wherein the owner promises the broker a fee or commission if the property is sold during a stated period.

Back 1777

Exclusive Listing

Front 1778

A listing agreement between the owner of a property and a real estate broker giving the broker the exclusive right to sell the property and receive the agreed upon commission.

Back 1778

Exclusive Right to Sell

Front 1779

To make a document valid.

Back 1779

Execute

Front 1780

A court order allowing an official of the court to put into effect a judgment of the court.

Back 1780

Execution of Judgment

Front 1781

A person who is appointed as the one to carry out requests in a will.

Back 1781

Executor

Front 1782

A court-approved deed where the grantor is the executor

Back 1782

Executor’s Deed

Front 1783

The mortgage belonging to the seller of a property which is assumed by the buyer.

Back 1783

Existing Mortgage

Front 1784

The ratio of expenses to gross income.

Back 1784

Expense Ratio

Front 1785

The direction in which a property faces.

Back 1785

Exposure

Front 1786

The act of taking private property for public use.

Back 1786

Expropriation

Front 1787

A document that extends the term of a mortgage

Back 1787

Extension Agreement

Front 1788

The outside coating or covering of a building.

Back 1788

Exterior Finish

Front 1789

Any outer vertical surface that enclosed the entire structure.

Back 1789

Exterior Wall

Front 1790

A federal law designed to protect the consumer.

Back 1790

Fair Credit Reporting Act

Front 1791

Land used to grow crops raising dairy products.

Back 1791

Farm

Front 1792

The analysis of a project before construction.

Back 1792

Feasibility Study

Front 1793

The federal agency that insures against loss of deposits in commercial and savings banks.

Back 1793

Federal Deposit Insurance Corporation

Front 1794

Forbids discrimination on the basis of race, color, sex, religion or national origin.

Back 1794

Federal Fair Housing Law

Front 1795

Freddie Mac whose purpose is to buy conventional mortgages from savings and loan associations.

Back 1795

Federal Home Loan Mortgage Corporation

Front 1796

FHA, a federal agency that is now a division of the Dept of Housing and Urban Development. To promote good housing by insuring residential mortgage loans.

Back 1796

Federal Housing Association

Front 1797

Fannie Mae created as a federal agency to buy and sell FHA and VA guaranteed mortgage loans.

Back 1797

Federal National Mortgage Association

Front 1798

A lien placed on a property because the owner has failed to pay some kind of federal tax.

Back 1798

Federal Tax Lien

Front 1799

An ownership in land that can be inherited.

Back 1799

Fee

Front 1800

The best and most complete title an owner can have to a piece of real estate.

Back 1800

Fee Simple

Front 1801

Unconditional ownership and control.

Back 1801

Fee Simple Absolute

Front 1802

A fee that rests on a certain condition.

Back 1802

Fee Simple Conditional

Front 1803

An ownership that will terminate if some condition is no longer met.

Back 1803

Fee Simple Defeasible

Front 1804

A person who acts in a relationship of trust or confidence with respect to another person.

Back 1804

Fiduciary

Front 1805

A relationship where a person is put in a position of trust.

Back 1805

Fiduciary Relationship

Front 1806

Land not suitable for building because of its typography, wetness or poor bearing quality that is improved by dumping dirt.

Back 1806

Filled Land

Front 1807

An appraisal term for the process of choosing the most appropriate data and selecting from among alternative conclusions developed in the approaches to value to estimate a final value for the property being appraised.

Back 1807

Final Reconciliation

Front 1808

An opinion made by an appraiser after all of the steps of the appraisal process and alter the final reconciliation as to what the appraiser feels the value of a property is.

Back 1808

Final Value Estimate

Front 1809

A statement listing the assets and liabilities of a person or company.

Back 1809

Financial Statement

Front 1810

A promise by a lending institution to make a mortgage on a property when specified conditions are met.

Back 1810

Firm Commitment

Front 1811

A term used by the Federal Home Loan Mortgage Corporation to describe a lien meeting the requirements of any investment statute or regulation issued.

Back 1811

First Lien

Front 1812

A mortgage that has priority over all other voluntary liens on that property.

Back 1812

First Mortgage

Front 1813

A right usually granted by an owner to a lessee that gives the lessee the first chance to purchase the property if the owner decides to sell.

Back 1813

First Refusal Right

Front 1814

Permanent assets not readily converted into cash that are necessary for the operation of a business.

Back 1814

Fixed Assets

Front 1815

Personal property accessory to the real estate and part and parcel of it.

Back 1815

Fixture

Front 1816

Metal or composition used to protect, cover or deflect water in places where two materials join or form angles.

Back 1816

Flashing

Front 1817

A note secured by a mortgage where amortization of principal is not required during an initial period.

Back 1817

Flexible Payment Loan

Front 1818

The flat surfaces on the banks of rivers and streams that are subject to flooding.

Back 1818

Flood Plain

Front 1819

A type of hot air heating unit that is installed directly under the floor.

Back 1819

Floor Furnace

Front 1820

A horizontal framing lumber which supports the flooring to which it is attached.

Back 1820

Floor Joists

Front 1821

The live load support capacity of a floor that is measured in pounds per square foot that the floor may safely support.

Back 1821

Floor Load

Front 1822

An easement that provides the right to let water flow over the land and even to flood the land under prescribed circumstances.

Back 1822

Flowage Easement

Front 1823

An enclosed passageway in a chimney through which smoke and gases pass upward.

Back 1823

Flue

Front 1824

A concrete support under a foundation, chimney or column that usually rests on solid ground and is wider than the structure being supported.

Back 1824

Footings

Front 1825

A furnace that uses a fan to force the warm air through the ducts instead of relying on gravity to circulate the air

Back 1825

Forced Air Furnace

Front 1826

A sale that is made under compulsion such as to satisfy a debt.

Back 1826

Forced Sale

Front 1827

The legal proceedings by which a mortgagee, after default by the mortgagor, makes the mortgagor sell the property in order to recover the loan.

Back 1827

Foreclosure

Front 1828

When a property is sold upon court order to satisfy a debt.

Back 1828

Foreclosure Sale

Front 1829

When personal property is taken by the government because an individual has violated the law.

Back 1829

Forfeiture

Front 1830

Construction, usually below or partly below grade that provides support for exterior walls or other structural parts of a building.

Back 1830

Foundation

Front 1831

A part of the building process that consists of putting together the lumber skeleton of the building.

Back 1831

Framing

Front 1832

Real property that has no liens against it.

Back 1832

Free and Clear

Front 1833

An estate held for at least the life of the owner in real property.

Back 1833

Freehold

Front 1834

The length of the boundary line that touches the street

Back 1834

Frontage

Front 1835

A street that runs parallel to a limited access highway to service abutting properties without direct access to the highway and to gather and control the traffic entering and exiting from the highway.

Back 1835

Frontage Road

Front 1836

A measure of one foot wide along a property frontage.

Back 1836

Front Foot

Front 1837

The value of a piece of property expressed in terms of front foot units.

Back 1837

Front Foot Value

Front 1838

Money a developer must expend prior to knowing for sure that the project will go forward and that financing will be available.

Back 1838

Front money

Front 1839

The broker’s, builder’s and owner’s obligation to tell a buyer all of the known pertinent facts about the property being sold or rented.

Back 1839

Full Disclosure

Front 1840

Impairment or defects in functional capacity or efficiency.

Back 1840

Functional Obsolescence

Front 1841

The total of a property’s attractiveness and usefulness

Back 1841

Functional Utility

Front 1842

An interest that a party has in a property that will not become effective until the future.

Back 1842

Future Interest

Front 1843

The vertical triangular portion of a building formed by the inclining edges of a pitched roof

Back 1843

Gable

Front 1844

A two-pitched roof style that has its slope broken by an obtuse angle so that the lower slope is steeper than the upper slope.

Back 1844

Gambrel Roof

Front 1845

A special type of loan made to developers when their project fails to meet the conditions of their original mortgage commitment.

Back 1845

Gap Loan

Front 1846

In condemnations, benefits to the surrounding property and community caused by the project being developed that was the cause of the taking.

Back 1846

General Benefits

Front 1847

A person who contracts for the construction of an entire project.

Back 1847

General Contractor

Front 1848

A member in a partnership who shares in the profits and losses and has authority to bind the partnership.

Back 1848

General Partner

Front 1849

A partnership made up of only general partners who are responsible for the management of their partnerships and are personally liable for the debts and obligations of the partnership

Back 1849

General Partnership

Front 1850

Restrictions imposed on an entire subdivision

Back 1850

General Plan Restrictions

Front 1851

A system that consists of a network of surveyor’s marks located by latitude and longitude

Back 1851

Geodetic System

Front 1852

A deed that is given without the grantor receiving any consideration

Back 1852

Gift Deed

Front 1853

A special state or federal tax on transfers of property that are made without significant consideration

Back 1853

Gift Tax

Front 1854

A large horizontal beam often carrying other beams and joist on which the floor is laid

Back 1854

Girder

Front 1855

Gross Living Area

Back 1855

GLA

Front 1856

A federal agency that is part of the FHA.

Back 1856

GNMA Ginnie Mae Government National Mortgage Association

Front 1857

The special value that a property or business has while it is in operation.

Back 1857

Going Concern Value

Front 1858

The system of land division and description used in parts of the United States where land is divided into townships six miles square containing six sections of 640 acres.

Back 1858

Government Survey

Front 1859

Plowing and raking a lot to give it a desired contour and drainage

Back 1859

Grading

Front 1860

A lease that provides for a certain rent or an initial period following by an increase or decrease in rent over a stated period

Back 1860

Graduated Lease

Front 1861

A clause in a law that permits people or businesses established prior to the law to continue their operations without complying with the provisions of the law

Back 1861

Grandfather Clause

Front 1862

A person who receives a transfer of real property by deed

Back 1862

Grantee

Front 1863

Someone who transfers real property by deed

Back 1863

Grantor

Front 1864

Total with no deductions

Back 1864

Gross

Front 1865

The total revenue from operating sources before deducting expenses incurred for gaining such revenues

Back 1865

Gross Earnings

Front 1866

A system of measuring the size of a house that is widely used by appraisers

Back 1866

Gross Living Area

Front 1867

Total income before the deduction of any expenses.

Back 1867

Gross Income

Front 1868

A figure which when multiplied by a property’s annual gross income will produce an estimate of the value of that property.

Back 1868

Gross Income Multiplier

Front 1869

A version of the income approach used by appraisers mostly for estimating the value of residences

Back 1869

Gross Rent Multiplier Approach

Front 1870

Total sales before the deduction of returns, allowances, etc.

Back 1870

Gross Sales

Front 1871

A lease for land only, exclusive of any buildings that may be on it.

Back 1871

Ground Lease

Front 1872

Rent paid for the use of vacant land.

Back 1872

Ground Rent

Front 1873

A person who makes a guaranty that some act will be performed or a payment will be made.

Back 1873

Guarantor

Front 1874

A contract, either written or verbal, in which the guarantor promises that someone else will perform an act or pay a debt.

Back 1874

Guaranty

Front 1875

One of the standard clauses in a deed that defines the extent of the ownership of the grantee

Back 1875

Habendum

Front 1876

A framing member that goes across the top of an opening and carries the load above it.

Back 1876

Header

Front 1877

A system employed to transfer heat into a space or substance.

Back 1877

Heat Pump

Front 1878

The utilization of a property to its best and most profitable use.

Back 1878

Highest and Best Use

Front 1879

An easement that is crated for the purpose of the construction of a highway.

Back 1879

Highway Easement

Front 1880

The junction of three sloping sides of a hip roof

Back 1880

Hip

Front 1881

A roof that rises by inclined plans from all four sides of the house.

Back 1881

Hip Roof

Front 1882

The actual cost of the construction of a structure when it was originally built.

Back 1882

Historical Cost

Front 1883

A portion of a mortgage loan that is withheld by the lender from the borrower at the time of the closing to be disbursed later, after the borrower has met specified conditions set forth in the mortgage document.

Back 1883

Holdback

Front 1884

The act of maintaining possession of a property without the owner’s consent after the lease has expired.

Back 1884

Holding Over

Front 1885

A tenant who retains possession of a leased property after his or her lease has expired.

Back 1885

Holdover Tenant

Front 1886

An association of property owners in a residential area formed for the purpose of improving the area both physically and socially. The association may own or maintain some physical facilities

Back 1886

Homeowner’s Association

Front 1887

A multi-peril policy that combines a group of insurance policies needed by homeowners.

Back 1887

Homeowner’s Insurance

Front 1888

The fixed residence of a family, including the surrounding land and buildings.

Back 1888

Homestead

Front 1889

State laws that allow a family to have a home and some land which are protected against the claims of general creditors

Back 1889

Homestead Exemption Laws

Front 1890

Insurance that protects the homeowner against mechanical system failures and structural failures.

Back 1890

Home Warranty Insurance

Front 1891

Similar or the same.

Back 1891

Homogeneous

Front 1892

A tank in which water is heated for domestic, commercial or industrial use.

Back 1892

Hot Water Heater

Front 1893

A heating system that uses hot water circulating from a boiler and flowing through a series of pipes to the areas to be heated and back to the boiler

Back 1893

Hot Water Heating System

Front 1894

Drawings usually in scale of a house showing all the design and construction details

Back 1894

House Plans

Front 1895

Responsible for major government housing programs.

Back 1895

Housing and Urban Development Department

Front 1896

Department of Housing and Urban Development

Back 1896

HUD

Front 1897

A hot water heating system

Back 1897

Hydronic System

Front 1898

To pledge a property as security for a mortgage loan without actually delivering title

Back 1898

Hypothecate

Front 1899

Land that has been improved by the creation of some structure.

Back 1899

Improved Land

Front 1900

Additions made to a property or utilities that are intended to increase the value of the property

Back 1900

Improvements

Front 1901

One of the approaches to value used by real estate appraisers based on the theory that the present value of the property is equal to the present value of its future capacity to produce income

Back 1901

Income Approach

Front 1902

Property that has the primary purpose of producing income from rents or business profits.

Back 1902

Income Property

Front 1903

The amount of risk estimated to exist that a future income stream projected for a property will occur as estimated

Back 1903

Income Risk

Front 1904

The income taxes that will be due on the net operating income produced by the property less the mortgage interest and depreciation

Back 1904

Income Tax Liability

Front 1905

A valuation principle which states that an increase in such things as the amount of labor, materials, or any other factor of production may not increase the value of the property equal to the cost of the added items

Back 1905

Increasing and Decreasing Returns

Front 1906

A steadily increasing net operating income of a property forecasted over a long period of time.

Back 1906

Increasing Annuity

Front 1907

An increase often used in reference to increases on land value

Back 1907

Increment

Front 1908

A defect of design, material, condition of a property that is not prudent to cure because t cost to effect the cure would be greater than the value added to the property caused by curing the defect

Back 1908

Incurable Deprecation

Front 1909

A defect in property that reduces its value as a result of its design, materials, condition, etc.

Back 1909

Incurable Functional Obsolescence

Front 1910

A number used to express the difference between the value, price, cost, etc. of a group of items at two or more different points of time.

Back 1910

Index Number

Front 1911

Costs to an owner to develop a property that would not typically be included in a general construction contract

Back 1911

Indirect Costs

Front 1912

The network of public facilities located within a community

Back 1912

Infrastructure

Front 1913

A right to enter upon and pass through land

Back 1913

Ingress and Egress

Front 1914

Property that is received or will be received by an heir from an estate

Back 1914

Inheritance

Front 1915

Tax paid for the privilege of inheriting property rather than for the right to transmit property upon death

Back 1915

Inheritance Tax

Front 1916

A court order that restrains a party from acting or continuing some action

Back 1916

Injunction

Front 1917

All bodies of water exclusive of the open seas

Back 1917

Inland Waters

Front 1918

A narrow waterway extending inland

Back 1918

Inlet

Front 1919

Payments received by a community, county or state from property owners who are not required to pay ad valorem because of an exemption.

Back 1919

In Lieu Tax

Front 1920

Forever

Back 1920

In Perpetuity

Front 1921

A situation when someone or some organization cannot pay their debts.

Back 1921

Insolvency

Front 1922

The examination of a property for a specific purpose

Back 1922

Inspection

Front 1923

A term used by the IRS to describe a sale where sellers receive less than 100% of the cash due to them in the first calendar year of the sale

Back 1923

Installment Sale

Front 1924

Banks, insurance companies, pension funds, savings and loan associations and other non-profit institutions who make loans on a regular basis

Back 1924

Institutional Lender

Front 1925

Property owned and run by nonprofit organizations

Back 1925

Institutional Property

Front 1926

A formal legal document such as a sales contract, deed, mortgage, etc.

Back 1926

Instrument

Front 1927

Two pieces of double or single strength glass sealed together with an air space between them

Back 1927

Insulating Glass

Front 1928

Any material used to reduce the transmission of heat and cold or to reduce fire hazard

Back 1928

Insulation

Front 1929

An insurance term which expresses the concept that only people or organizations that have an interest in a property may insure the property and receive benefits

Back 1929

Insurable Interest

Front 1930

A mortgage in which payments to the mortgagee are guaranteed in the event the mortgagor fails to make them

Back 1930

Insured Mortgage

Front 1931

Personal property that has value but cannot be physically touched.

Back 1931

Intangible Property

Front 1932

A right or share in something

Back 1932

Interest

Front 1933

A loan for which the lender is repaid the principal in one lump sum at the end of the loan term and is paid interest only during the term of the loan.

Back 1933

Interest Only Loan

Front 1934

A percentage of a principal sum that is paid for by the borrower for its use.

Back 1934

Interest Rate

Front 1935

A temporary or short-term loan usually secured by a mortgage

Back 1935

Interim Financing

Front 1936

Temporary use of a property to produce some income during the period in which development is postponed.

Back 1936

Interim Use

Front 1937

The effective annual rate of return on an investment.

Back 1937

Internal Rate of Return

Front 1938

A person who dies without leaving a will or who leaves a will that is invalid

Back 1938

Intestate

Front 1939

A legal process wherein an owner of a property may sue for damages caused as a result of a condemning that has been publicly announced but has not been performed by the condemning body within a reasonable period from the time of the announcement

Back 1939

Inverse Condemnation

Front 1940

Property acquired for the purpose of making a profit

Back 1940

Investment Property

Front 1941

A company established specifically for the purpose of being used as vehicle for investors to pool their money and make investments in stocks

Back 1941

Investment Trust

Front 1942

Value to an investor based on his or her individual needs and income tax bracket.

Back 1942

Investment Value

Front 1943

Value to an investor based on his or her individual needs and income tax bracket

Back 1943

Investment Value

Front 1944

The gain from a real estate investment expressed as an annual percentage that includes all of the income and the capital gain or loss from the resale.

Back 1944

Investment Yield

Front 1945

An income tax term that describes the conversion of real property into personal property by condemnation.

Back 1945

Involuntary Conversion

Front 1946

That which cannot be annulled, abrogated, revoked or withdrawn

Back 1946

Irrevocable

Front 1947

The artificial watering of crops in times of drought or in dry areas

Back 1947

Irrigation

Front 1948

Windows and doors made of movable glass louvers that can be adjusted to slope upward to admit light and air yet exclude rain or snow

Back 1948

Jalousies

Front 1949

The framing pieces that line doors and windows

Back 1949

Jamb

Front 1950

A pier or other stone or pile structure placed in a body of water to protect a harbor by hindering currents

Back 1950

Jetty

Front 1951

The space between two adjacent surfaces.

Back 1951

Joint

Front 1952

An estate or tenancy shared equally by two or more parties with the right to survivorship.

Back 1952

Joint Tenancy

Front 1953

People hooding under joint tenancy

Back 1953

Joint Tenants

Front 1954

When two or more people combine their property, skills and funds and become partners in a single business purpose

Back 1954

Joint Venture

Front 1955

A series of parallel timber beams used to support floors and ceilings

Back 1955

Joists

Front 1956

The final decision of a court after a trial or hearing

Back 1956

Judgment

Front 1957

A lien placed on a property as a result of the decision of a court

Back 1957

Judgment Lien

Front 1958

The sale of property to satisfy the debt in a mortgage foreclosure

Back 1958

Judicial Sale

Front 1959

Money which is loaned on real estate that is secured with mortgages which do not have first claim on the property.

Back 1959

Junior Financing

Front 1960

A lien placed on a property that is subordinate to a lien that has been previously recorded.

Back 1960

Junior Lien

Front 1961

A mortgage that is legally subordinate to another mortgage

Back 1961

Junior Mortgage

Front 1962

The amount paid to a property owner when a property is condemned

Back 1962

Just Compensation

Front 1963

A lot that has one side adjacent to the rear of other lots.

Back 1963

Key Lot

Front 1964

The kit-shaped steps in a stairway at the place where the stairway changes direction

Back 1964

Kit Winder

Front 1965

As defined by appraisers it is the solid portion of the earth’s surface substantially in its undisturbed condition.

Back 1965

Land

Front 1966

A contract for the sale of real estate by which the buyer pays only a portion of the purchase price when the contract is executed

Back 1966

Land Contract

Front 1967

A five-step process that is used to estimate the value of land.

Back 1967

Land Residual Technique

Front 1968

A map prepared by assessors indicating the use of the land and its value.

Back 1968

Land Value Map

Front 1969

A joint formed by placing one board of piece of material partly over the other and fastening them together.

Back 1969

Lap Joint

Front 1970

Situated at or on the side.

Back 1970

Lateral

Front 1971

The right of a property owner to have his land supported by the land of his neighbors.

Back 1971

Lateral Support

Front 1972

The distance in degrees north or south of the equator measured along a meridian on a map or globe

Back 1972

Latitude

Front 1973

The process of absorbing water into the ground from a waste disposal system

Back 1973

Leaching

Front 1974

A hole in the ground lined with stones.

Back 1974

Leaching Cesspool

Front 1975

A part of a waste disposal system used to disburse the waste water into the ground

Back 1975

Leaching Field

Front 1976

A contract that transfers the right to use or occupy a property from the owner to the tenant in exchange for payments called rent.

Back 1976

Lease

Front 1977

The interest in a property that remains with the owner after he has granted someone else the right to occupy the property

Back 1977

Leased Fee

Front 1978

The interest in a property of a tenant created by a lease.

Back 1978

Leasehold

Front 1979

A non-freehold estate in a property created by a lease

Back 1979

Leasehold Estate

Front 1980

Additions, alterations and improvements to a property made by a tenant in anticipation of their use during the period the tenant has the right to use the property

Back 1980

Leasehold Improvements

Front 1981

The value of a tenant’s interest in a lease

Back 1981

Leasehold Value

Front 1982

An agreement whereby a tenant can acquire ownership of a property through a series of payments specified in a lease

Back 1982

Lease-Purchase Agreement

Front 1983

A horizontal framing member supported by hangers or by upright posts that supports the joists

Back 1983

Ledger

Front 1984

A special gift of money or other personal property made in a will to a recipient

Back 1984

Legacy

Front 1985

The inherent right of the owner of property immediately adjacent to a highway to enter onto the highway from the property

Back 1985

Legal Access

Front 1986

A method of identifying the boundaries of a property

Back 1986

Legal Description

Front 1987

The party to a lease who receives the right to use or occupy a property in return for the payment of rent

Back 1987

Lessee

Front 1988

The party to a lease who owns the fee title and gives a tenant the right to use or occupy the property in return for the payment of rent

Back 1988

Lessor

Front 1989

A raised embankment along the edge of a river that prevents the river from overflowing

Back 1989

Levee

Front 1990

A comprehensive term that includes all the obligations a person has as require by law or equity

Back 1990

Liability

Front 1991

A right granted by the owner of a property to someone to do some act o series of acts on the property without obtaining and interest in the property

Back 1991

License

Front 1992

Laws created by legislative bodies that prohibit the practice of specified professions or business enterprises without obtaining a license from the government granting permission to practice.

Back 1992

License Laws

Front 1993

A claim or charge upon property which encumbers the property and makes it security for the payment of debt

Back 1993

Lien

Front 1994

The owner of a property that is encumbered by a line

Back 1994

Lienee

Front 1995

The person who has the right of lien against a property to secure the payment of debt.

Back 1995

Lienor

Front 1996

A legal distinction which states that the holder of a mortgage has only a lien against the mortgaged property rather than a true title interest

Back 1996

Lien Theory

Front 1997

A legal theory which states that the true title of a property rests on the borrower and that the lender has only a lien on the property

Back 1997

Lien Theory of Mortgage

Front 1998

Notice that a lawsuit is pending.

Back 1998

Lis Pendens

Front 1999

A contest in a court of justice for the purpose of enforcing a right.

Back 1999

Litigation

Front 2000

Property abutting a large body of water such as an ocean, sea, bay or large lake

Back 2000

Littoral Property

Front 2001

The rights of owners of littoral property to enjoy the use of the body of water to which their property abuts.

Back 2001

Littoral Rights

Front 2002

A one-time payment made to a lender at the time of the initial loan and in addition to the regular loan interest

Back 2002

Loan Fee

Front 2003

The length of time the lender loans the money to the borrower

Back 2003

Loan Maturity

Front 2004

The percentage the amount of a loan is to the value of the property or other security pledged to secure the loan.

Back 2004

Loan-to-value ratio

Front 2005

A parcel of land that is distinctly designated

Back 2005

Lot

Front 2006

A map that divides a parcel of land into lots

Back 2006

Lot and Block Description

Front 2007

The border of a lot as described in the title documents

Back 2007

Lot Line

Front 2008

A lease 10 years or longer in duration

Back 2008

Long-term Lease

Front 2009

A mortgage clause that prohibits prepayment of the loan during a specified period of time

Back 2009

Locked-in Period

Front 2010

Off-site built housing moved and permanently attached to a fixed site.

Back 2010

Manufactured Housing

Front 2011

The salability of a property at a specific time and price

Back 2011

Marketability

Front 2012

A study to discover how a particular piece of property can be marketed

Back 2012

Marketability Study

Front 2013

A study made of general market conditions for the product proposed to be marketed

Back 2013

Market Analysis

Front 2014

The geographic territory within which a product being marketed can reasonably expect to find a buyer.

Back 2014

Market Area

Front 2015

The actual price paid for a property

Back 2015

Market Price

Front 2016

The amount of rent a property should bring if it were being currently offered for rent under competitive market conditions.

Back 2016

Market Rent

Front 2017

The price that a property will sell for in a competitive market when all the conditions for a fair sale exist.

Back 2017

Market Value

Front 2018

The date when an instrument comes due.

Back 2018

Maturity

Front 2019

A statistical term for a measure of central tendency of a set of data.

Back 2019

Mean

Front 2020

A special lien created to protect those who work on real estate and provide material and labor for construction, improvement and repairs

Back 2020

Mechanic’s Lien

Front 2021

A statistical term for the middle number of a set of numbers when the total number of items in the set is odd and they are arranged in ascending or descending order according to their size.

Back 2021

Median

Front 2022

The boundary lines of a property including terminal points and angles.

Back 2022

Metes and Bounds

Front 2023

An intermediate floor between two floors that does not have the same area as the rest of the floors.

Back 2023

Mezzanine

Front 2024

The rights to minerals beneath the ground such as coal, iron and gold with or without ownership of the surface of the land.

Back 2024

Mineral Rights

Front 2025

In real estate terminology minerals that may be mined.

Back 2025

Minerals

Front 2026

A statistical term for the most frequent number that appears in an array of numbers

Back 2026

Mode

Front 2027

Prefabricated rooms that are built in a factory and shipped to their eventual location

Back 2027

Modular Construction

Front 2028

Material used to slow down or stop the buildup of condensation in walls

Back 2028

Moisture Barrier

Front 2029

Tenant rents for one month at a time.

Back 2029

Month-to-Month Tenancy

Front 2030

The pledge of property to a lender to secure the payment of the debt.

Back 2030

Mortgage

Front 2031

A person or organization that makes loans secured by mortgages from their own funds and then sells the mortgages.

Back 2031

Mortgage Banker

Front 2032

A person who brings together a borrower and lender for a fee and manages the necessary papers for a borrower to secure a loan against a property by giving a deed of trust or mortgage as security.

Back 2032

Mortgage Broker

Front 2033

A certificate issued by the Federal Home Loan Mortgage Corporation.

Back 2033

Mortgage Certificate

Front 2034

A written notice given by a lending institution that promises a mortgage loan for the future and specifies the conditions and terms of the loan.

Back 2034

Mortgage Commitment

Front 2035

A written document verifying that a real property has been given as security for a loan.

Back 2035

Mortgage Deed

Front 2036

The lender who loans money.

Back 2036

Mortgagee

Front 2037

A technique used by appraisers as part of the income capitalization process

Back 2037

Mortgage Equity

Front 2038

Insurance available to mortgage lenders from the Mortgage Guaranty Insurance Corporation that is issued against financial loss

Back 2038

Mortgage Guaranty Insurance

Front 2039

An independent insurance company organized in 1956 that will insure a percentage of loans made by approved mortgage lenders to qualified buyers to help protect mortgage lenders from financial loss.

Back 2039

Mortgage Guaranty Insurance Corporation (MGIC)

Front 2040

A document which states that in addition to the property being security for the repayment of the mortgage the borrower also personally guarantees the mortgage repayment

Back 2040

Mortgage Note

Front 2041

A title insurance policy that guarantees to the mortgagee that the title to the property being used as mortgage security is a good title

Back 2041

Mortgage Policy

Front 2042

Maintaining the responsibilities of a mortgage such as paying taxes and insurance and collecting payments

Back 2042

Mortgage Servicing

Front 2043

The value of the property for mortgage security purposes

Back 2043

Mortgage Value

Front 2044

The accumulation by a mortgage banker of a portfolio of mortgages in his own account for the purpose of selling them in a package to a lending institution

Back 2044

Mortgage Warehousing

Front 2045

The person who borrows money secured by a mortgage

Back 2045

Mortgagor

Front 2046

A statistical technique for measuring the effect that a number of independent variables have on one dependent variable.

Back 2046

Multiple Regression Analysis

Front 2047

A figure used to estimate the value of a property based on its gross income.

Back 2047

Multiplier

Front 2048

A general term that may mean a body of water able to carry commerce or a body of water large enough to ebb and flow

Back 2048

Navigable Waters

Front 2049

A situation which occurs when the income from an investment does not pay for the expenses and the owner must periodically furnish the extra cash to meet these expenses

Back 2049

Negative Cash Flow

Front 2050

Any separately identifiable cohesive area within a community with some community interest shared by its occupants

Back 2050

Neighborhood

Front 2051

Growth, stability, decline and renewal

Back 2051

Neighborhood Life Cycle

Front 2052

The balance remaining after deducting all operating expenses, maintenance, taxes and losses from the gross income.

Back 2052

Net Income

Front 2053

A factor obtained by dividing the selling price by the net income used to estimate the value of other properties whose net income is known by multiplying the net income by the factor.

Back 2053

Net Income Multiplier

Front 2054

The gross operating income of the property less the fixed expenses, variable expenses and reserves for replacement not including deductions for deprecation, debt service or any expenses not directly related to the property.

Back 2054

Net Operating Income -NOI

Front 2055

A use that does not currently conform to the zoning regulations of an area.

Back 2055

Non-Conforming Use

Front 2056

A property that does not conform in usage or physical appearance to its neighboring properties

Back 2056

Non-Conforming

Front 2057

An estate in real estate without ownership.

Back 2057

Non-Freehold Estate

Front 2058

A notice that is filed when a borrower is in default on a mortgage or a deed of trust.

Back 2058

Notice of Default

Front 2059

A notice filed to void notice of default of a mortgage or deed of trust

Back 2059

Notice of Recision

Front 2060

A written notice given by a landlord to a tenant advising the tenant that the landlord wants possession of the premises at some stated time.

Back 2060

Notice to Quit

Front 2061

In order to obtain title by adverse possession, possession must be so open and exclusive that the owner is presumed to be aware of it.

Back 2061

Notorious Possession

Front 2062

The substitution of a new obligation, contract or debt for an existing one.

Back 2062

Novation

Front 2063

The amount that someone would pay for a property because it is a nuisance as currently run or is actually damaging the prospective buyer.

Back 2063

Nuisance Value

Front 2064

Not legally binding.

Back 2064

Null and Void

Front 2065

A person to whom a debt or favor is owed.

Back 2065

Obligee

Front 2066

A person who owes a debt.

Back 2066

Obligor

Front 2067

Forms of depreciation that are caused by things other than physical deterioration.

Back 2067

Obsolescence

Front 2068

Being no longer useful or desirable.

Back 2068

Obsolete

Front 2069

A proposal subject to another’s acceptance to do a specified deed when the other party in turn performs a specified deed.

Back 2069

Offer

Front 2070

The person to whom an offer is made.

Back 2070

Offeree

Front 2071

A person making an offer

Back 2071

Offeror

Front 2072

The development and construction of improvements, such as streets and sewers to make adjacent property fit for construction

Back 2072

Off-Site Improvement

Front 2073

A listing to sell or rent property that is given to more than one broker.

Back 2073

Open Listing

Front 2074

Relationship between operating expenses and projected gross income expressed as a percentage of the gross income.

Back 2074

Operating Expense Ratio

Front 2075

A legal opinion stating that a property is free, clear and marketable

Back 2075

Opinion of Title

Front 2076

An agreement that grants the right to purchase or lease a property during a specified period of time at stipulated terms

Back 2076

Option

Front 2077

A person who received an option

Back 2077

Optionee

Front 2078

A person who gives an option for a fee

Back 2078

Optionor

Front 2079

A verbal agreement

Back 2079

Oral Contract

Front 2080

A fee charged by a lender for making a loan or taking a mortgage, usually a percentage of the mortgage

Back 2080

Origination Fee

Front 2081

The ratio between annual net operating income and value or sales price

Back 2081

Overall Rate

Front 2082

An improvement that is not the highest and best use for a property

Back 2082

Overimprovement

Front 2083

The ownership of a property as shown in the land records.

Back 2083

Owner of Record

Front 2084

A broad term that describes the ownership of property.

Back 2084

Ownership

Front 2085

A heating system that places the electric coils, steam pipes and other heating devices into walls or ceilings to serve as heating panels and transmit heat by radiation.

Back 2085

Panel Heating

Front 2086

The taking of a portion of a property by the government’s power of eminent domain.

Back 2086

Partial Taking

Front 2087

An association of two or more persons who carry on a business for profit as co-owners

Back 2087

Partnership

Front 2088

A common wall in a building that separates two units in separate ownership.

Back 2088

Party Wall

Front 2089

A test made to determine the capacity of the soil to absorb water, often required to establish the location of the leaching fields of a septic system.

Back 2089

Percolation Test

Front 2090

One of the two broad classifications of property which is distinguished by its movability versus being permanently affixed.

Back 2090

Personal Property

Front 2091

Loss in value of a property caused by wear, tear, age and use.

Back 2091

Physical Deterioration

Front 2092

The projected typical life of an improvement that is correctly maintained and cared for.

Back 2092

Physical Life

Front 2093

Masonry or concrete column supporting foundations of the floor structure in basementless spaces, freestanding or bonded at its sides to other masonry or concrete.

Back 2093

Pier

Front 2094

A mortgage loan made by two or more lenders on the same property.

Back 2094

Piggyback Mortgage

Front 2095

A type of land development that is specifically provided for in a community’s zoning regulations, allowing the developer more flexible use of the land.

Back 2095

Planned Unit Development – PUD

Front 2096

A map that indicates the boundary lines of real estate.

Back 2096

Plat Map

Front 2097

A record book that holds the plat maps together with the names of the owners of the property in a designated area.

Back 2097

Plat Book

Front 2098

A drawing that indicates the position of the improvement on a lot which may also show the contours of the land and the location of the underground pipes.

Back 2098

Plot Plan

Front 2099

The increase in value that takes place when two or more small lots under different ownership are assembled into one common ownership to produce a larger lot that has increased utility over the separately owned smaller lots.

Back 2099

Plottage

Front 2100

Mortgage insurance that is written by companies not part of the federal government.

Back 2100

Private Mortgage Insurance

Front 2101

One percent of the face amount of a mortgage that is charged by a lender at the time of the closing as a fee for making the mortgage loan.

Back 2101

Point

Front 2102

The power of the government to control the use of real estate for the general welfare of the public.

Back 2102

Police Power

Front 2103

A penalty imposed on a borrower for repaying a loan, note or mortgage before it is due.

Back 2103

Prepayment Penalty

Front 2104

The right to use another’s property acquired by long, continuous use which must have been continuous, open, and exclusive and for a period of time set by state statute.

Back 2104

Prescriptive Easement

Front 2105

In real estate the sum of money for which a property is sold or listed (asking price)

Back 2105

Price

Front 2106

The lowest interest rate on short-term loans charged by a commercial bank to is most creditworthy customers

Back 2106

Prime Lending Rate

Front 2107

The capital portion of a debt or investment as distinguished from interest, income or profit

Back 2107

Principal

Front 2108

A broad term for income produced by an investment or business enterprise

Back 2108

Profit

Front 2109

A statement made from the books and records of a business or other profit-making enterprise that shows its income, expenses and profits or loses.

Back 2109

Profit and Loss Statement

Front 2110

A document that is a promise by one party to pay a specified amount to a second party

Back 2110

Promissory Note

Front 2111

A broad term for an area of land under one legal ownership together with all the buildings and other improvements

Back 2111

Property

Front 2112

The recorded boundary of a property

Back 2112

Property Line

Front 2113

A person or organization who performs specified functions on behalf of a property’s owner which often include renting, collecting rents, making repairs and any other functions an owner would be expected to perform.

Back 2113

Property Manager

Front 2114

An appraisal technique that is part of the income approach to value combining all of the income produced by the property capitalized into a single property value.

Back 2114

Property Residual Technique

Front 2115

A tax levied by the government on real and personal property, determined by multiplying the assessed value of the property by the tax rate.

Back 2115

Property Tax

Front 2116

A form of business ownership usually unincorporated and owned by one person

Back 2116

Proprietorship

Front 2117

The process of dividing prepaid or unpaid expenses such as taxes, insurance and rent proportionately between buyers and sellers at the time of closing

Back 2117

Prorate

Front 2118

A document that describes the details of a specific property, company or partnership.

Back 2118

Prospectus

Front 2119

Land that is owned by the federal government

Back 2119

Public Domain Land

Front 2120

Housing that is owned by the government which is usually used to accommodate low income or elderly families

Back 2120

Public Housing

Front 2121

Land owned by the federal government not intended for use by the government and subject to sale or lease

Back 2121

Public Lands

Front 2122

Records which the government is required to keep in order for someone or some organization to give notice that is required by law such as deeds, mortgages and other real estate related documents required to be filled to satisfy a variety of statutory requirements

Back 2122

Public Records

Front 2123

A mortgage given by the seller of a property to the buyer to reduce the amount of cash needed to complete the sale

Back 2123

Purchase Money Mortgage

Front 2124

A pie shaped 90 degree quarter of a circle

Back 2124

Quadrant

Front 2125

A method of estimating the cost of a new building or the replacement cost of an existing building by making a detailed estimate of quality and quantity of necessary materials as well as labor costs to install them.

Back 2125

Quantity Survey Method

Front 2126

In public land survey a quarter of a full section of 640 acres

Back 2126

Quarter

Front 2127

The right of owners to the use and possession of their property without interference

Back 2127

Quiet Enjoyment

Front 2128

A deed that conveys all of the ownership of the seller to the buyer without guaranteeing the quality of the title.

Back 2128

Quitclaim Deed

Front 2129

A colorless, odorless naturally occurring gas produced by natural radioactive minerals in the ground which can be a health hazard when trapped in a structure in large amounts

Back 2129

Radon

Front 2130

Used in the government survey system a six mile wide row of township running north and south

Back 2130

Range

Front 2131

The amount of interest paid on borrowed money

Back 2131

Rate of Interest

Front 2132

The annual net income from an investment expressed as a percentage

Back 2132

Rate of Return

Front 2133

A term often used or implied in a listing agreement which describes the buyer that must be produced by the broker in order to earn a commission

Back 2133

Ready, Willing and Able

Front 2134

The place of commercial activity in which real estate is bought and sold.

Back 2134

Real Estate Market

Front 2135

A federal law designed to protect buyers of real estate requiring lenders provide buyers with detailed information about closing and financing costs prior to closing

Back 2135

Real Estate Settlement Procedures Act – RESPA

Front 2136

The changing of unusable land into developable sites

Back 2136

Reclamation

Front 2137

A series of steps throughout the appraisal process of selecting the most significant data from a variety of data.

Back 2137

Reconciliation

Front 2138

A map or survey of a property that is recorded

Back 2138

Recorded Map

Front 2139

The process of recording a copy of certain legal instruments such as deeds, mortgages, leases, liens, etc to make public record of the document.

Back 2139

Recording

Front 2140

The right of a lender to seek payment personally for a borrower or endorser of a note secured by a mortgage

Back 2140

Recourse

Front 2141

The regaining of a property lost in a foreclosure sale or other legal process by the original owner upon payment of the debt plus interest and cost

Back 2141

Redemption

Front 2142

A statistical technique used to analyze the effect independent variables have upon dependent variables such as sales price

Back 2142

Regression Analysis

Front 2143

States that all credit purchasers must be informed in writing of all costs associated with the credit portion of the purchase

Back 2143

Regulation Z

Front 2144

The removal of blight and the restoration of deteriorating properties and public facilities in an urban renewal area

Back 2144

Rehabilitation

Front 2145

Instrument that discharges a lien when payment of the old debt is made together with interest and cost

Back 2145

Release of Lien

Front 2146

A future estate in real property create in any person other than the grantor that commences in the future after the end of another estate

Back 2146

Remainder

Front 2147

The period of time from the date of appraisal until the improvements become economically valueless

Back 2147

Remaining Economic Life

Front 2148

The process of trying to agree on new terms to an existing contract, lease, mortgage, requiring agreement by both parties

Back 2148

Renegotiation

Front 2149

A provision in a lease that gives the tenant the right but not the obligation to extend the lease for a specified period of time

Back 2149

Renewal Option

Front 2150

A general term for substantially improving a property through rehabilitation, modernization and remodeling

Back 2150

Renovation

Front 2151

The amount of money a tenant is warranted in paying for the right to occupy or use a property for a given time under certain prescribed or assume conditions

Back 2151

Rental Value

Front 2152

The control by a government agency of the amount of rent a landlord can charge for property

Back 2152

Rent Controls

Front 2153

To estimate the value the rent is multiplied by the selected multiplier

Back 2153

Rent Multiplier

Front 2154

A payment made by a government agency or charitable organization

Back 2154

Rent Subsidy

Front 2155

A category of property used to describe real property acquired through foreclosure by financial institutions

Back 2155

REO

Front 2156

The total cost to replace an improvement at current costs with modern materials and using current design standards.

Back 2156

Replacement Cost

Front 2157

Money set aside for the replacement of equipment and short-lived building components by landlords

Back 2157

Replacement Reserves

Front 2158

The total cost to reproduce an exact replica of an improvement at current costs using the same materials and the same design as the original structure

Back 2158

Reproduction Cost

Front 2159

Money set aside from earnings for future taxes, maintenance or to pay future claims or possible liabilities

Back 2159

Reserve

Front 2160

Money set aside to provide for the necessary replacement of short-lived items that wear out from normal wear and tear before the main structure wears out.

Back 2160

Reserve for Depreciation

Front 2161

Money set aside to provide for the necessary replacement of short-lived items that wear out from normal wear and tear before the main structure wears out.

Back 2161

Reserve for Replacement

Front 2162

A portion of the net operating income is allocated either to the site or the improvements. The remaining income is capitalized into an estimated value of that portion of the property the remaining income is attributed to.

Back 2162

Residual Process

Front 2163

A type of private restriction on the use or transfer of property

Back 2163

Restrictive Covenant

Front 2164

Interest earned by investors for the use of their money for a period of time

Back 2164

Return on Investment

Front 2165

A clause in a type of lease that provides for specified periodic adjustments of the rent based on the appraisal of the property at the designated time.

Back 2165

Revaluation Clause

Front 2166

A mortgage which elderly homeowners use to borrow against equity in their residence.

Back 2166

Reverse Annuity Mortgage

Front 2167

The return to the owner of real estate of rights granted to others for a specified period.

Back 2167

Reversion

Front 2168

A factor that is used to discount the value of a single payment received in the future to present value.

Back 2168

Reversion Factor

Front 2169

The right of the surviving partner to automatically acquire the interest of a decreased joint owner.

Back 2169

Right of Survivorship

Front 2170

Legally enforceable claims to any interest or title in property

Back 2170

Rights

Front 2171

The rights of owners of property that is bounded or traversed by a body of water.

Back 2171

Riparian Rights

Front 2172

The measure of a slope

Back 2172

Rise

Front 2173

The part of a stair that is the vertical board under the stair top

Back 2173

Riser

Front 2174

The portion of the return on an investment that is attributed to the investment risk

Back 2174

Risk Factors

Front 2175

A measure of ability to retard heat flow

Back 2175

“R” Thermal Resistance

Front 2176

The price for which a property actually sells

Back 2176

Sale Price

Front 2177

The value of a building or a portion of the building such as plumbing fixture which could be removed from the premises to be used at another site.

Back 2177

Salvage Value

Front 2178

The completion of an obligation such as a mortgage by the payment of the amount due.

Back 2178

Satisfaction

Front 2179

The proportion between a representation and that which it represents.

Back 2179

Scale

Front 2180

Limited availability of real estate in relation to its demand

Back 2180

Scarcity

Front 2181

An easement granted to nearby property owners which restricts construction on the property to those improvements that will not detract from the attractiveness of the area.

Back 2181

Scenic Easement

Front 2182

A loan secured by a mortgage or trust deed which is secondary to another deed or mortgage

Back 2182

Secondary Financing

Front 2183

The selling of first mortgages and trust deeds by primary lenders to Freddie Mac, Fannie Mae and other organizations who raise their capital in the bond market.

Back 2183

Secondary Mortgage Market

Front 2184

A mortgage with a security interest in a property that is junior to another mortgage on the same property

Back 2184

Second Mortgage

Front 2185

In the rectangular survey system a section of land one mile square containing 640 acres

Back 2185

Section

Front 2186

Real property or personal property pledged by a debtor to a creditor with power to sell if the debt is not paid

Back 2186

Security

Front 2187

A deposit that a landlord requires of a tenant as security for payment of rent

Back 2187

Security Deposit

Front 2188

An economic situation whereby a seller can sell his property at higher prices than properties sold in a recent preceding period

Back 2188

Seller’s Market

Front 2189

The agent who obtains the buyer and effects the sale rather than the agent who listed the property for sale

Back 2189

Selling Agent

Front 2190

A sewage system consisting of a septic tank, distribution box and field, used in areas where sewers have not been installed

Back 2190

Septic System

Front 2191

A covered watertight sewage settling tank to retain the solids in the sewage long enough for decomposition by bacterial action to take place.

Back 2191

Septic Tank

Front 2192

The zoning ordinance which regulates the distance that a building must be set back from the street or the portion where improvements may be constructed

Back 2192

Setback Ordinance

Front 2193

A statement drawn up by a broker, escrow agent, attorney, etc. that provides a breakdown of all the costs involved in a real estate sale.

Back 2193

Settlement Statement

Front 2194

Compression of the soil due to the weight of the newly built structure upon it

Back 2194

Settling

Front 2195

A property owned by one person alone

Back 2195

Severalty

Front 2196

Sole ownership

Back 2196

Severalty Ownership

Front 2197

Partition or separation

Back 2197

Severance

Front 2198

The decrease in value of a property which commonly results from the taking of a piece of the property for subsequent construction of a road or building

Back 2198

Severance Damage

Front 2199

A deed given to a buyer at a sheriff’s mortgage foreclosure sale

Back 2199

Sheriff’s Deed

Front 2200

The portions of a structure that have a shorter expected economic life than the rest of the structure.

Back 2200

Short-Lived Items

Front 2201

A lease with a term under five years and usually not over ten years

Back 2201

Short-Term Lease

Front 2202

An easement that protects the line of sight over an adjoining property from being obstructed by a building

Back 2202

Sight Line Easement

Front 2203

A framing member placed on top of the foundation wall that serves as a level base for the wall studs and floor joists

Back 2203

Sill

Front 2204

Soil grains ranging from 0.5 to .002 mm in diameter

Back 2204

Silt

Front 2205

The interest computed on the original principal alone, not on accrued interest.

Back 2205

Simple Interest

Front 2206

Money set aside to be used for necessary replacement of improvements

Back 2206

Sinking Fund

Front 2207

A factor that is used to calculate the amount per period that will have to be deposited at a given interest rate in order to obtain a specified amount in a given number of years

Back 2207

Sinking Fund Factor

Front 2208

A way to recover the value of an asset by establishing a sinking fund

Back 2208

Sinking Fund Method

Front 2209

A plot of land that is improved or is suitable for building purposes

Back 2209

Site

Front 2210

The study of a site and its surroundings to determine its suitability for a specific purpose

Back 2210

Site Analysis

Front 2211

Improvements such as utility installation that must be made to a site to make it suitable for construction

Back 2211

Site Development

Front 2212

The cost involved in preparing a site for use

Back 2212

Site Development Cost

Front 2213

Location

Back 2213

Situs

Front 2214

A concrete ground-level floor that is part of the foundation

Back 2214

Slab

Front 2215

The incline of a slope expressed in terms of horizontal distance per unity of vertical rise or fill

Back 2215

Slope Ratio

Front 2216

The exposed undersurface of an arch, stairway, balcony, lintel or vault

Back 2216

Soffit

Front 2217

A map that shows the location and type of soils in a given area

Back 2217

Soil Map

Front 2218

A charge against a real estate made by a public authority to help pay for improvements such as sidewalks and sewers

Back 2218

Special Assessment

Front 2219

Special exceptions in typical zoning codes to allow certain uses in a zone that do not fit the predominant permitted use.

Back 2219

Special Exception

Front 2220

A building such a s a hospital or church limited by its design to one purpose

Back 2220

Special Purpose Property

Front 2221

Detailed instructions to show a contractor how to proceed with construction

Back 2221

Specification

Front 2222

An action taken in a court to require one of the parties to a contract to perform as agreed to in the contract

Back 2222

Specific Performance

Front 2223

A person who buys real estate in order to make a profit through a rise or fall in price

Back 2223

Speculator

Front 2224

Net income after taxes

Back 2224

Spendable Income

Front 2225

An appraisal term for a capitalization rate that is made up of two different rates.

Back 2225

Split Rate

Front 2226

A change in zoning that permits non-conforming use in an area zoned for a different specific purpose

Back 2226

Spot Zoning

Front 2227

A method for estimating the cost to reproduce or replace improvements where the square foot area of the improvements is multiplied by their cost per square foot

Back 2227

Square Foot Method

Front 2228

An appraisal term for the projected expenses shown in the operating statement used in the cost approach to value which are adjusted to show the expenses for a typical year rather than for a specified year.

Back 2228

Stabilized Expenses

Front 2229

The projected income of a property in a typical year rather than in any specific year

Back 2229

Stabilized Income

Front 2230

A statistical term used to describe the extent of dispersion in a frequency distribution

Back 2230

Standard Deviation

Front 2231

State laws that require certain contracts to be in writing to be enforceable

Back 2231

Statute of Frauds

Front 2232

Statutes that prevent all right of court action after a certain specified period from the time when the action occurred

Back 2232

Statute of Limitations

Front 2233

A method of depreciating assets over their estimated life in equal annual amounts

Back 2233

Straight Line of Depreciation

Front 2234

An area of land that has been subdivided into parcels suitable for building

Back 2234

Subdivision

Front 2235

A map that must be submitted to the proper authority for approval in order to establish a subdivision

Back 2235

Subdivision Map

Front 2236

An owner’s right to have the surface of his land supported by the land under it to prevent collapse

Back 2236

Subjacent Support

Front 2237

A lease executed by the lessee of a property to a third person for a period of time shorter than the lessee holds it

Back 2237

Sublease

Front 2238

A person who subleases

Back 2238

Sublessee

Front 2239

To make subject to

Back 2239

Subordinate

Front 2240

Makes the lease subordinate to a mortgage that is placed on the property after the date of the lease

Back 2240

Subordination Clause

Front 2241

Housing for low to moderate income families for which families and the government pay for part of the rent or the government aids the developer with his loan interest cost

Back 2241

Subsidized Housing

Front 2242

A payment made by the government to help the party pay part of the cost

Back 2242

Subsidy

Front 2243

A basic economic principle stating that all other things being approximately equal a buyer will purchase the product offered at the lowest price when there is a choice

Back 2243

Principle of Substitution

Front 2244

Rights in the form of ownership or easements at specified depths below the ground

Back 2244

Subsurface Rights

Front 2245

The area around a city that is usually residential

Back 2245

Suburban

Front 2246

Those improvements made to a property that add less value than their cost because they result in an overimprovement of the property

Back 2246

Superadequacy

Front 2247

A theory which holds that price varies directly with supply

Back 2247

Law of Supply and Demand

Front 2248

The right to use only the surface of the land

Back 2248

Surface Easement

Front 2249

Easements that allow owners of such rights to use the surface of the land in order to obtain access to subsurface elements

Back 2249

Surface Rights

Front 2250

Water from any source that appears in a diffused state

Back 2250

Surface Water

Front 2251

Extra profit from a business or property that is above what is usually earned by similar properties

Back 2251

Surplus Profits

Front 2252

The process of measuring the size of a piece of land and its quality

Back 2252

Survey

Front 2253

The gaining of sole interest in a joint interest by outliving the other who had an interest

Back 2253

Survivorship

Front 2254

A program that allows a purchaser or borrower to do work on the property

Back 2254

Sweat Equity

Front 2255

The appraisal value of the physical property to be distinguished from intangible value such as a favorable lease.

Back 2255

Tangible Value

Front 2256

The decrease in the amount of tax improperly levied

Back 2256

Tax Abatement

Front 2257

Income that is subject to income tax

Back 2257

Taxable Income

Front 2258

The sum of all the assessed values of properties in a community

Back 2258

Tax Base

Front 2259

The type of deed in some jurisdictions that is given when a property is sold for unpaid taxes

Back 2259

Tax Deed

Front 2260

Exemption or partial exemption from the payment of property taxes granted to educational, religious and similar groups and in certain states, to veterans and senior citizens

Back 2260

Tax Exemption

Front 2261

Cash income produced by a property that is tax free because it is sheltered by paper losses caused by depreciation

Back 2261

Tax Free Cash Flow

Front 2262

The geographical area over which a taxing authority can levy taxes

Back 2262

Taxing District

Front 2263

The total income produced by a specified type of tax, such as a real estate tax

Back 2263

Tax Levy

Front 2264

A lien taken for nonpayment of property taxes

Back 2264

Tax Lien

Front 2265

An assessment map showing the boundaries of individual lots within an assessment jurisdiction

Back 2265

Tax Map

Front 2266

A condition in a lease which states that the lessee pays all or part of the property taxes

Back 2266

Tax Participation

Front 2267

A clause in a lease that requires the tenant to share tax increases levied against the property during the term of the lease.

Back 2267

Tax Participation Clause

Front 2268

A sum to be paid due to nonpayment of taxes

Back 2268

Tax Penalty

Front 2269

The ratio of dollars to tax to the value of the tax base

Back 2269

Tax Rate

Front 2270

The sale of property for unpaid taxes after a certain duration of delinquent payment

Back 2270

Tax Sale

Front 2271

Property that provides the owner with income tax deductions because it entails a financial loss

Back 2271

Tax Shelter

Front 2272

A tenancy that is created when a tenant fails to vacate the premises at the end of a lease and remains in possession with the landlord’s consent

Back 2272

Tenancy At Sufferance

Front 2273

A tenancy that can be cancelled at any time by either party giving notice to the other. It is for an unspecified period of time and often for an unspecified amount of rent.

Back 2273

Tenancy At Will

Front 2274

A special tenancy specifically created for ownership by a married couple of property acquired after their marriage. Both spouses have an equal undivided interest in the property

Back 2274

Tenancy By The Entirety

Front 2275

A tenancy shared by two or more parties with separate and distinct titles

Back 2275

Tenancy in Common

Front 2276

A form of ownership specifically created by state statues that permits partnerships to own property in the name of the partnership

Back 2276

Tenancy in Partnership

Front 2277

Ownership of the property is vested in only one person or one corporation

Back 2277

Tenancy in Severalty

Front 2278

A person who uses and occupies a real property with the owner’s permission

Back 2278

Tenant

Front 2279

A tenancy of unspecified duration with permission of the property owner at an agreed upon rent.

Back 2279

Tenant at Will

Front 2280

Changes or improvements made to suit the needs of the tenants

Back 2280

Tenant Improvements

Front 2281

A length of time such as the term of a mortgage

Back 2281

Term

Front 2282

The considerations and conditions in a contract or mortgage

Back 2282

Terms

Front 2283

A will

Back 2283

Testament

Front 2284

The clause in a deed that recites the date on which the instrument was executed and by whom

Back 2284

Testimonium Clause

Front 2285

Someone who is not a party to an agreement but is affected by the agreement

Back 2285

Third Party

Front 2286

A clause placed in a contract to indicate that timely performance is a condition and performance not at that time can be entirely rejected

Back 2286

Time is of the Essence

Front 2287

Evidence of ownership of property

Back 2287

Title

Front 2288

A corporation whose basic function is to insure and issue title to real property

Back 2288

Title Company

Front 2289

An insurance policy issued to a property owner or mortgage that indemnifies him against losses caused by defects in the title that are discovered after the closing

Back 2289

Title Insurance

Front 2290

A company that provides insurance regarding title to real property

Back 2290

Title Insurance Company

Front 2291

A report made prior to the issuance of title insurance that states the condition of said title

Back 2291

Title Report

Front 2292

A procedure of reviewing all public records and legal proceedings to determine the current state of the property’s ownership

Back 2292

Title Search

Front 2293

A system used in some states to register the title of real property and record liens on the property.

Back 2293

Torrens System

Front 2294

A subdivision used in the Rectangular Survey System that is 6 miles long, 6 miles wide and has 36 sections, each 1 mile square

Back 2294

Township

Front 2295

Lines that divide townships at their northern and southern borders

Back 2295

Township Lines

Front 2296

A piece of land

Back 2296

Tract

Front 2297

One of many similar houses built using the plan of a builder

Back 2297

Tract House

Front 2298

The conveyance of title to property from one person to another

Back 2298

Transfer

Front 2299

Rights in real estate or other property held by one party for the benefit of another party.

Back 2299

Trust

Front 2300

An account in which a broker is required by state law to deposit all monies that he or she is holding in trust for another separate from a broker’s personal funds

Back 2300

Trust Account

Front 2301

A deed that conveys title of a property to a trustee

Back 2301

Trust Deed

Front 2302

A person or organization that holds property in trust for another party

Back 2302

Trustee

Front 2303

An arrangement between a contractor and a property owner whereby the contractor takes complete responsibility for the design and construction of a property and turns it over to the owner ready for use

Back 2303

Turnkey

Front 2304

Denotes the structural nature of a house

Back 2304

Type

Front 2305

An improvement which is deficient in that it does not serve the highest and best use for the site on which it is located

Back 2305

Underimprovement

Front 2306

Fractional ownership which occurs when two or more people have an interest in the same property

Back 2306

Undivided Interest

Front 2307

Free and clear

Back 2307

Unencumbered

Front 2308

A contract that is valid but will not be enforced by the courts because of some special barrier

Back 2308

Unenforceable Contract

Front 2309

A term usually used to describe land without buildings or lacking in essential improvements necessary to serve a useful purpose

Back 2309

Unimproved

Front 2310

An appraisal method of estimating construction costs by figuring the cost of each component section including labor cost and overhead

Back 2310

Unit Cost in Place Method

Front 2311

A general rule used in condemnation proceedings to determine what constitutes the whole property and what property may potentially suffer severance damages.

Back 2311

Unit Rule

Front 2312

An appraisal technique that divides properties into units such as front foot, square foot, dwelling unit, and number of beds.

Back 2312

Units of Comparison

Front 2313

The value of a whole property divided into the value of a portion of the property known as a unit

Back 2313

Unit Value

Front 2314

A requirement of the joint tenancy of ownership that all interests must be acquired by the same conveyance

Back 2314

Unity of Interest

Front 2315

A title that has serious defects and is not saleable except at a discount to somebody who is willing to risk the potential problems of owning a property with a defective title

Back 2315

Unmarketable Title

Front 2316

A deed or mortgage not recorded in a county recorder’s office. It is valid between the parties involved but is not protected under recording statutes nor valid against innocent third parties

Back 2316

Unrecorded Instrument

Front 2317

An appraisal form

Back 2317

URAR

Front 2318

A set of professional appraisal standards

Back 2318

USPAP

Front 2319

Pertaining to a city or town

Back 2319

Urban

Front 2320

A controlled method of redeveloping and rehabilitating urban areas by demolishing, renovating or repairing existing structures, roadways, etc. through federal, state, local or private redevelopment efforts.

Back 2320

Urban Renewal

Front 2321

Urban real estate, both land or buildings whose value stems directly from its location

Back 2321

Urban Space

Front 2322

The relationship of the number of buildings of a specific use to a given unit of area

Back 2322

Use Density

Front 2323

The length of time a structure can be expected to perform the function for which it was intended

Back 2323

Useful Life

Front 2324

An estimate of the value of property in its present use rather than the value if it were used for its highest and best use

Back 2324

Use Value Assessment

Front 2325

The usefulness of a real property

Back 2325

Utility

Front 2326

A building or rental unit that is unrented

Back 2326

Vacancy

Front 2327

A projection made of the future percentage of occupancy of a property.

Back 2327

Vacancy Factor

Front 2328

Legally binding

Back 2328

Valid

Front 2329

A group of economic principles that apply to the valuation of real estate

Back 2329

Valuation Principles

Front 2330

The monetary worth of a property being appraised

Back 2330

Value

Front 2331

The value of an investment or commodity relative to its power to purchase other goods

Back 2331

Value in Exchange

Front 2332

An annuity whose future periodic payments are not fixed but rather depend upon the value of the assets in the funding

Back 2332

Variable Annuity

Front 2333

Those expenses in an income and expense statement projected by an appraiser that tend to vary with the occupancy of the property

Back 2333

Variable Expenses

Front 2334

An interest rate that changes with the prevailing rate

Back 2334

Variable Interest Rate

Front 2335

A mortgage with an interest rate that is not fixed but rather changes based on some other interest rate

Back 2335

Variable Rate Mortgage

Front 2336

An authorization generally granted by a board of zoning appeals that gives the right to improve or develop a specific property that is not authorized by the prevailing zoning ordinance

Back 2336

Variance

Front 2337

The process of confirming the correctness of data about a comparable property with either the buyer, seller or broker

Back 2337

Verification

Front 2338

The buyer of property, particularly a real property

Back 2338

Vendee

Front 2339

A person who sells a property

Back 2339

Vendor

Front 2340

Placed in possession and control

Back 2340

Vested

Front 2341

Breach of any law or contract

Back 2341

Violation

Front 2342

Not legally binding

Back 2342

Void

Front 2343

Provisions in a contract that may make the contract voidable should either party break it

Back 2343

Voidable

Front 2344

A title that is valid until voided by the party who has a right to nullify it.

Back 2344

Voidable Contract

Front 2345

A title that has no legal force and is not binding so that it is actually no title at all

Back 2345

Void Title

Front 2346

A lien placed on a property with the voluntary consent of the owner

Back 2346

Voluntary Lien

Front 2347

The intentional relinquishment of a known right, benefit or claim

Back 2347

Waiver

Front 2348

To attest that a title is good

Back 2348

Warrant

Front 2349

An assurance by the seller that the property is as represented or will be as promised

Back 2349

Warranty

Front 2350

A type of deed used to convey the title of property that provides for the grantor to guarantee that the title be granted good and unencumbered.

Back 2350

Warranty Deed

Front 2351

The height of a body of water measured by a shore point

Back 2351

Water Level

Front 2352

Being ready to proceed

Back 2352

Willing

Front 2353

To sign a note, deed or other document to verify to its truth

Back 2353

Witness

Front 2354

A written order to carry out the judgment or decree of a court

Back 2354

Writ of Execution

Front 2355

A unit of 36 inches

Back 2355

Yard

Front 2356

Income from a property or other investment often expressed as an annual percentage of the capital or investment

Back 2356

Yield

Front 2357

A term often used to express the true yield of a bond or other investment that is purchased at a discount

Back 2357

Yield to Maturity

Front 2358

A provision in a zoning regulation or building code that permits construction of the improvements up to the edge of the lot

Back 2358

Zero Lot Line

Front 2359

An area where the use of land is restricted by a zoning ordinance for a specific use

Back 2359

Zone

Front 2360

The division and separation of a community into separate areas

Back 2360

Zoning

Front 2361

A map illustrating how a community is divided into zones of permitted use under the zoning ordinance

Back 2361

Zoning Map

Front 2362

Law restricting, regulating and controlling the use of real estate for the general welfare

Back 2362

Zoning Ordinance

Front 2363

An inaccurate measure of land

Back 2363

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