A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Abandonment The voluntary relinquishment of rights of ownership or another form of interest (an easement) by failure to use the property over an extended period of time. Back To Top ABR The Accredited Buyer Representative designation indicates a real estate agent specializing in representing buyers in the real estate transaction. The ABR is conferred by the Real Estate Buyer's Agent Council (REBAC). Back To Top Abstract (Of Title) A summary of the public records relating to the title to a particular piece of land.An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects, which must be cleared before a buyer, can purchase clear, marketable and insurable title. Back To Top Acceleration Clause Condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage. Back To Top Acceptance Refers to a legal term denoting acceptance of an offer.A buyer offers to buy and the seller accepts the offer. Back To Top Accrued Weeks (Relating to Time-Shares) Weeks that have accumulated from the prior year and are available for use in the current calendar year. Back To Top Acre A measure of land, equal to 160 sq.rods (43,560 sq. ft. ).An acre is approximately 209' x 209'. Back To Top Acknowledgment A formal declaration before an authorized official (usually a notary public) by a person who has executed a document, that he did in fact execute (sign) the document. Back To Top Addendums Additions to a contract, sometimes called attachments or exhibits.A list or other items added to a document, letter, contract, and escrow instructions, etc. Back To Top Adverse Possession Methods of acquiring title by open and notorious possession usually vary with each state. Back To Top Agency (a) The relationship that exists when a person, known as the principal, contracts to another, the agent, to perform an act in that person's stead.(b) Common term for a firm offering representation. Back To Top Agency Disclosure A state mandated form that describes representation options available to the buyer and must be presented to all buyers at the first meaningful meeting. Back To Top Agent A person authorized by another to act on his or her behalf. Back To Top Agreement of Sale Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction.A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties. Back To Top Alienation Clause A clause within a loan instrument calling for a debt in its entirety upon the transfer of ownership of the secured property.Also called a due on sale clause. Back To Top Amortization A payment plan that enables the borrower to reduce his debt gradually through monthly payments of principal. Back To Top Amortization Schedule: A table that lists what percentage of each payments consist of interest and principal. Back To Top Application Deadline The date by which the buyer must formally apply for a mortgage in order to validate the mortgage contingency. Back To Top Appraisal An expert judgment or estimate of the quality or value of real estate as of a given date. Back To Top Asking Price The price that a seller is requesting for their property, specified in a listing contract. Back To Top Assessed Value Value placed on property by the tax assessor. Back To Top Assessment The valuation of property for the purpose of levying a tax or the amount of the tax levied. Back To Top Assessor One appointed to assess property for taxation. Back To Top Assignment A transfer or making over to another the whole of any property, real or personal, or of any Estate or right therein.To assign is to transfer. Back To Top Assumption of Mortgage An obligation undertaken by the purchaser of property to be personally liable for payment of an existing mortgage.In an assumption, the purchaser is substituted for the original mortgagor in the mortgage instrument and the original mortgagor is to be released from further liability in the assumption, the mortgagee's consent is usually required Back To Top Attachment Seizure of property by court order, usually done in a pending law suit to make property available in case of judgment. Back To Top Balloon Payment The final installment paid at the end of the term of a note; used only when preceding installments were not sufficient to pay off the note in full. Back To Top Bill of Sale An instrument used to transfer personal property Back To Top Binder (a) A written statement from the insurance company showing that the homeowners insurance has been paid for and will be in place after closing.(b) A sum of money used as a deposit to show good faith and commitment to the purchase of the real property. Back To Top Blanket Mortgage (Trust Deed) A single mortgage or trust deed, which covers more than one piece of real estate Back To Top Bond An insurance agreement by which one party is insured against loss or default by a third party.In the construction business a performance bond ensures the interested party that the contractor will complete the project.A bond can also be a method of financing debt by a government or corporation, which is interest-bearing and has priority over stock in terms of security. Back To Top Bonus Time (Relating to Time-Shares) Use of your resort in addition to your regular allocated time on a space available basis. Back To Top Breach Violation of an obligation in a contract. Back To Top Binder or Offer to Purchase A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase real estate.A binder secures the right to purchase real estate upon agreed terms for a limited period of time.If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded. Back To Top Broker, Real Estate An agent licensed by the state to carry on the business of operating in real estate.He usually receives a commission for his services of bringing together buyers and sellers, owners and tenants in exchange agreements. Back To Top Building Code A set of stringent laws that control the construction of buildings, design, materials and other similar factors. Back To Top Broker's Commission - A section of the offer to purchase, and the purchase and sale agreement outlining the cooperating real estate broker's fees. Back To Top Building Line or Setback Distances from the ends and/or sides of the lot beyond which construction may not extend.The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances. Back To Top Built-Ins Items that are not movable, such a stoves, ovens, microwave ovens or dishwashers. Back To Top Buyer Broker A real estate agent who specializes in representing the purchaser.Some agents who specialize in this area are referred to as Exclusive Buyers Agents and do not list properties.Most real estate agents throughout the USA who work with many of the more commonly known franchises do both - list property and sell it as well.For clarification, have each agent detail out to you their position in the transaction. Back To Top Buyers Market A market condition that occurs in real estate where more homes are for sale than there are interested buyers. Back To Top Camping Membership (Relating to Time-Shares) A membership to a resort or resort community catering to campers, some of which are affiliated with national organizations providing camping locations for members in many states and other countries. Back To Top Capital Gains A term used for income tax purposes, which represents the gain realized from the sale of an asset less the purchase price and deductible expense. Back To Top Capitalization An appraising term used in determining value by considering net operating income and a percentage of reasonable return on investment. Back To Top Cash Flow The owner's spendable income after operating expenses and debt service is deducted. Back To Top CCIM The highest designation of commercial specialists is the CCIM, Certified Commercial Investment Member, conferred by the Commercial Investment Real Estate Institute of NAR. Back To Top Certificate of Title A certificate issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property, which he is offering for sale.A certificate of title offers no protection against any hidden defects in the title, that an examination of the records could not reveal.The issuer of a certificate of title is liable only for damages due to negligence.The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy. Back To Top Cesspool A private sewerage system consisting of a pit underground where sewerage flows into and allows the waste water to leach through the sides of the pit leaving the sludge to be pumped regularly. Back To Top Chain Of Title A history of conveyances and encumbrances affecting the title as far back as records are available. Back To Top Client A buyer or seller who is represented by a real estate salesperson or broker as the buyer's or seller's agent and subject to that buyer's or seller's control.The terms of their agency agreement should be in writing. Back To Top Closing In the sale of real estate it is the final moment when all documents are executed and recorded and the sale is complete.Also, a general selling term where a sales person is attempting to sell something and the buyer agrees to purchase. Back To Top Closing Costs The expenses which buyers and sellers normally incur to complete a transaction in the transfer of ownership of real estate.These costs are in addition to price of the property and are items prepaid at the closing day. Back To Top Closing Date The date on which the title to the property changes hands. Back To Top Closing Statement A list of the final accounting of all funds and disbursement of both buyer and seller prepared by an escrow agent, which notes all costs each, must pay at the completion of a real estate transaction. Back To Top Cloud (On Title) An outstanding claim or encumbrance which adversely affects the marketability of title. Back To Top Club Membership (Relating to Time-Shares) Year-round usage of resort facilities with purchase, on a space available basis. Back To Top Code of Ethics The rules and regulations required by all members of the National Association of Realtors. Back To Top CMA (Comparative Market Analysis) A service normally provided by real estate agents prior to either listing a property or prior to making an offer to purchase a property on the behalf of a purchaser.The true purpose of a CMA is to establish a current estimated market price of a property.This is accomplished by researching both: the currently listed properties and the most recently sold properties, in the same area, with as similar characteristics as the property in question.This information is usually provided to the homeowner to help them establish a fair market selling price or it may be given to a prospective purchaser to help guide them in a proper offer to make the owner.Some real estate agents perform this service for free others may charge as much as $300 for this information.A lot depends on both who is doing the CMA and also how detailed the information that is provided. Back To Top Commission Money paid to a real estate agent or broker by the seller as compensation for finding a buyer and completing the sale.Usually it is a percentage of the sale price- - 6 to 7 percent on houses, 10 percent on land. Back To Top Commitment Letter A letter from the lending institution giving formal approval for a mortgage loan. Back To Top Common Area That area owned in common by owners of condominiums and planned sight development homes within a subdivision. Back To Top Community Property Both real and personal property accumulated by a husband and wife after marriage through joint efforts of both living together. Back To Top Condemnation A declaration by governing powers that a structure is unfit for use. Back To Top Conditional Sales Contract A contract for the sale of property where the buyer has possession and use, but the seller retains title until the conditions of the contract have been fulfilled.Also known as a land contract. Back To Top Co-Op Housing An apartment building or a group of dwellings owned by a corporation, the stockholders of which, are the residents of the dwellings.It is operated for their benefit by their elected board of directors.In a cooperative, the corporation or association owns title to the real estate.A resident purchases stock in the corporation, which entitles him to occupy a unit in the building or property owned by the cooperative.While the resident does not own his unit, he has an absolute right to occupy his unit for as long as he owns the stock. Back To Top Condominium Individual ownership of a dwelling unit and an individual interest in the common areas and facilities that serve the multi-unit project. Back To Top Consideration Anything of value given to induce someone into entering into a contract. Back To Top Construction Loan The short-term financing of improvements on real estate.Once the improvements are completed a 'take out' loan for a longer term is usually issued. Back To Top Contingency A condition upon which a valid contract is dependent.Typically found in the offer to purchase and the purchase and sale agreement.For example, the sale of a house is contingent upon the buyer obtaining adequate financing. Back To Top Contract An agreement between two or more parties, written or oral, to do or not to do certain things. Back To Top Conveyance The transfer of the title to land from one to another. Back To Top Contractor In the construction industry, a contractor is one who contracts to erect buildings or portions of them.There are also contractors for each phase of construction: heating, electrical, plumbing, air conditioning, road building, bridge and dam erection, and others. Back To Top Conventional Mortgage A mortgage loan not insured by HUD or guaranteed by the Veterans' Administration.It is subject to conditions established by the lending institution and State statutes.The mortgage rates may vary with different institutions and between States.(States have various interest rate limits. ) Back To Top Counter Offer An offer in response to an offer.'A' offers to by 'B's' house for $20,000, which is listed for $22,000.'B' counter offers 'A's' offer by stating that he will sell the house to 'A for $21,000.The $21,000 is the counter offer. Back To Top Covenants Agreements written into deeds and other instruments stating performance or non-performance of certain acts or noting certain uses or non-uses of property. Back To Top CRP (The Certified Relocation Professional) certification is conferred by the Employee Relocation Council (E-R-C).The designation denotes relocation professionals who specialize in relocation and who pass. Back To Top CRS The Certified Residential Specialist designation, offered through NAR, denotes an agent who specializes in residential real estate.Only about three percent of the members of NAR have earned this designation. Back To Top Credit Report A report on a buyer's credit history required by the lender before approval. Back To Top Credit Score A potential borrower's composite of available credit, outstanding credit and payment history. Back To Top Customer A buyer who is working with a real estate salesperson or broker who is the agent or subagent of the seller.It could also be a seller of an unlisted property who is working with a buyer's agent, although this situation is less common. Back To Top Debt Service The total amount of the load payment, including principal and interest. Back To Top Deed A formal written instrument by which title to real property is transferred from one owner to another.The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day.There are two parties to a deed: the grantor and the grantee.(See also deed of trust, general warranty deed, quitclaim deed, and special warranty deed. ) Back To Top Default Failure to make mortgage payments as agreed to in a commitment based on the terms and at the designated time set forth in the mortgage or deed of trust.It is the mortgagor's responsibility to remember the due date and send the payment prior to the due date, not after.Generally, thirty days after the due date if payment is not received, the mortgage is in default.In the event of default, the mortgage may give the lender the right to accelerate payments, take possession and receive rents, and start foreclosure.Defaults may also come about by the failure to observe other conditions in the mortgage or deed of trust. Back To Top Deposit A sum of money sometimes referred to as earnest money, binder or escrow, which is presented with the offer to purchase and the purchase and sale agreement.This money is held in escrow and goes towards the buyer's closing costs. Back To Top Depreciation Decline in value of a house due to wear and tear, adverse changes in the neighborhood or any other reason. Back To Top Developer's Price (Relating to Time-Shares) Estimated developer's current or market price.Full retail price. Back To Top Documentary Stamps A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another.The amount of stamps required varies with each state. Back To Top Down-Payment The amount of money to be paid by the purchaser to the seller upon the signing of the agreement of sale.The agreement of sale will refer to the down payment amount and will acknowledge receipt of the down-payment.The down-payment is the difference between the sales price and maximum mortgage amount.The down-payment may not be refundable if the purchaser fails to buy the property without good cause.If the purchaser wants the down-payment to be refundable, he should insert a clause in the agreement of sale specifying the conditions under which the deposit will be refunded, if the agreement does not already contain such clause.If the seller cannot deliver good title, the agreement of sale usually requires the seller to return the down-payment and to pay interest and expenses incurred by the purchaser. Back To Top Dual Representation (Agency) A broker or salesperson representing both buyer and seller in the same transaction. Back To Top Earnest Money The deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house.If the sale goes through, the earnest money is applied against the down-payment.If the sale does not go through, the earnest money will be forfeited or lost unless the binder or offer to purchase expressly provides that it is refundable. Back To Top Easement Rights A right-of-way granted to a person or company authorizing access to or over the owner's land.An electric company obtaining a right-of-way across private property is a common example. Back To Top Economic Obsolescence Loss of useful life and desirability of a property through economic forces, such as change in zoning, changes in traffic flow, etc.- rather than deterioration. Back To Top Encroachment An obstruction, building, or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line. Back To Top Encumbrance A legal right or interest in land that affects a good or clear title, and diminishes the lands value.It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants.An encumbrance does not legally prevent transfer of the property to another.A title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it. Back To Top Equity The residual value of real property beyond any mortgage thereon. Back To Top Escalation Clause A clause in a lease providing for an increased rent at a future time due to increased costs to lessor, as in cost of living index, tax increases, etc. Back To Top Escheat The reverting of property to the state in the absence of heirs. Back To Top Estate The ownership interest of a person in real property.Is also used to refer to a deceased person's property.And often used to describe a large home with spacious grounds Back To Top Equity The value of a homeowner's unencumbered interest in real estate.Equity is computed by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property.A homeowner's equity increases as he pays off his mortgage or as the property appreciates in value.When the mortgage and all other debts against the property are paid in full the homeowner has 100% equity in his property. Back To Top Escrow Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual.In FHA mortgage transactions an escrow account usually refers to the funds a mortgagor pays the lender at the time of the periodic mortgage payments.The money is held in a trust fund, provided by the lender for the buyer.Such funds should be adequate to cover yearly anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums and special assessments. Back To Top Escrow Account (a) An account maintained by a real estate broker, attorney, escrow agent in an insured bank for the deposit of other people's money.(b) An account maintained by the borrower with the lender in certain mortgage loans to accumulate the funds to pay an annual insurance premium, real estate tax, or a home owner's association assessment. Back To Top Exchange Company (Relating to Time-Shares) Organization, which for a fee provides vacation exchange services and will assist timeshare and camping membership owners in exchanging for other resorts worldwide. Back To Top Exclusions A section of the offer to purchase designed to exhibit anything the buyer or seller would not like included with the real estate (i. e.debris in the yard or a chandelier). Back To Top Exclusive Buyer Representation An agency relationship between a buyer and a broker that cannot result in dual agency. Back To Top Executed Contract An agreement that has been fully performed. Back To Top Expiration Date and Time A section of the offer to purchase designed to give the offer a time limit after which the offer is withdrawn. Back To Top Extensions Written or verbal extensions of dates in the offer to purchase and the purchase and sale agreement. Back To Top Fair Market Value That price a property will bring given that both buyer and seller are fully aware of market conditions and comparable properties. Back To Top Fee Simple Ownership of title to property without any limitation, which can be sold, left at will, or inherited. Back To Top Fiduciary Duties An obligation of trust imposed on an agent toward his/her principal.These duties include loyalty, disclosure, confidentiality, obedience, reasonable care, due diligence, and accountability for funds and documents under the agent's control.Every agent has a fiduciary responsibility to the principal, once they are engaged. Back To Top Financing Acceptance Deadline The date in the offer to purchase that the buyer expects to have the loan commitment from the bank and may be used to nullify the sale contract if the mortgage is not obtained. Back To Top Fixed (Relating to Time-Shares) A time period that is fixed for each calendar year, either by date or by calendar weeks; most in numerical sequence 1-52.With a week number, your actual start date may vary slightly from year to year. Back To Top Fixed Rate Loan A loan that has an unchanging interest rate. Back To Top Fixtures Items affixed to buildings or land usually in such a way that they cannot be moved without damage to themselves or the property, such as plumbing, electrical fixtures, trees, etc. Back To Top Floating (Relating to Time-Shares) Your time period is defined by a season and your week period is not fixed.You reserve your time period within the appropriate season annually.Most resorts have a High, Medium and Low Season. Back To Top Foreclosure A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgaged property, and depriving the mortgagor of possession. Back To Top FSBO (For Sale By Owner) A home that is being sold by the owner of the property without the representation of a broker. Back To Top Fractional (Relating to Time-Shares) Multiple week ownership at the same resort - two or more weeks of timeshare ownership for use in one calendar year. Back To Top Front Footage The linear measurement along the front of a parcel.That portion of the parcel, which fronts the street or walkway. Back To Top Functional Obsolescence Loss in value due to out-of-date or poorly designed equipment while newer equipment and structures have been invented since its construction. Back To Top General Warranty Deed A deed which conveys not only all the grantor's interests in - and title to - the property to the grantee, but also warrants that if the title is defective or has a cloud on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the grantee may hold the grantor liable. Back To Top Good Faith Estimate A required statement from the lender that shows all of the expected closing costs. Back To Top Grantee That party in the deed that is the buyer or recipient. Back To Top Grantor That party in the deed that is the seller or giver. Back To Top Gross Estimate All money coming into a household on a regular basis. Back To Top Ground Lease A lease of vacant land Back To Top Hard Credit Report A report on one's credit history that is a compilation of the three credit bureaus. Back To Top Hazard Insurance Protects against damages caused to property by fire, windstorms and other common hazards. Back To Top Home Owners Association An association of homeowners within a community formed to improve and maintain the quality of the community.An association formed by the developer of condominiums or planned developments. Back To Top Homeowner's Insurance An insurance policy protecting against a variety of hazards. Back To Top HUD U. S.Department of Housing and Urban Development.Office of Housing/Federal Housing Administration within HUD insures home mortgage loans made by lenders and sets minimum standards for such homes. Back To Top Inclusions A section of the offer to purchase designed to exhibit any extra items the buyer or seller would like to be included with the real estate (i. e.personal property). Back To Top Inspections The analysis of the home to find defects that may exist. Back To Top Interest Money paid to a lender as compensation for money that is borrowed. Back To Top Intestate A person who dies without making a will. Back To Top Involuntary Lien A lien that attaches to property without the consent of the owner such as tax liens as opposed to voluntary liens (mortgages). Back To Top Joint Tenancy Joint ownership by two or more persons with right of survivorship.Upon the death of a joint tenant, his interest does not go to his heirs, but to the remaining joint tenants. Back To Top Lease A contract between the owner of real property, called the lessor, and another person referred to as the lessee, covering all conditions by which the lessee may occupy and use the property. Back To Top Lease With Option To Purchase A lease where the lessee has the option to purchase the leased property. The terms of the purchase option must be set forth in the lease. Back To Top Legal Description The geographical identification of a parcel of land. Back To Top Lessee One who contracts to rent property under a specified lease. Back To Top Lessor An owner who contracts into a lease with a tenant (lessee). Back To Top Lien A claim by one person on the property of another as security for money owed.Such claims may include obligations not met or satisfied, judgments, unpaid taxes, materials, or labor.(See also special lien. ) Back To Top Life Estate An estate in real property for the life of a person Back To Top Listing (a) A property included in the multiple listing service.(b) A written agreement between a seller and a broker authorizing the broker to procure a buyer or tenant for his/her real estate. Back To Top Listing Agent The broker employed by the principal to market the property. Back To Top Listing Agent Questionnaire A form to be filled out by the listing agent or the seller answering typical questions regarding the condition of the property. Back To Top Living Trust A trust agreement, which the title to property and assets can be transferred into, thereby avoiding probate.The Living Trust was the first of the Trusts.A Trust is created when a living person (the Trustor) agrees to let someone (the Trustee) hold title to property for the benefit of someone (the Beneficiary). Back To Top Loan Fee Also known as points, discount points or origination fee, this is a one time charge by a lender as compensation for their services.1 point equals 1% of the mortgage amount. Back To Top Loan Originator A person who works for the lending institution whose job it is to meet with potential borrowers to discuss loan options, rates, etc. Back To Top Maintenance Fee (Relating to Time-Shares) Maintenance fees are established and collected by the Homeowners Association or Resort Management Company to maintain the property, pay insurance, utilities, refurbishing and taxes. Back To Top Market Analysis An analysis performed to determine the current value of a property based on recently sold comparable properties, comparable properties that are currently for sale and the current overall market conditions. Back To Top Marketable Title A title that is free and clear of objectionable liens, clouds, or other title defects.A title that enables an owner to sell his property freely to others and one which others will accept without objection. Back To Top Mechanic's Lien A lien created by statute on a specific property for labor or materials contributed to an improvement on that property. Back To Top Money Market Accounts These are like a savings account usually offered through Securities Brokerage houses and some banks, which usually pay higher interest rates, have checkwriting features, along with a variety of other features.In most cases, a great place to put funds from the closing of a real estate transaction.Check with a Mutual Funds Registered Representative for details. Back To Top Mortgage A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself.Some states use the term First Trust Deeds to refer to mortgage loans. Back To Top Mortgage (Open- End) A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges.Open- end provisions often limit such borrowing to no more than would raise the balance to the original loan figure. Back To Top Mortgagee The lender in a mortgage agreement. Back To Top Mortgagor The borrower in a mortgage agreement. Back To Top Mortgage Commitment A written commitment from the lending institution to provide a mortgage to the buyer for a specific property. Back To Top Mortgage Contingency A contingency in the offer to purchase and/or the purchase and sale agreement which protects the buyers in case they are unable to get a mortgage commitment by a date specified in the contract.In this case, the buyers would be able to cancel the contract to purchase and receive back all deposits made. Back To Top Multiple Listing A listing taken by a member of an organization of brokers, whereby all members have an opportunity to find a buyer. Back To Top Multiple Listing Service A service provided to real estate agents that lists homes under a seller's representation agreement and may be available for sale.A computerized database of all homes listed by real estate agents. Back To Top Negative Amortization When monthly payments are not enough to cover interests costs, they are added to the principal balance, and you may end up owing more than when you started.This is most likely to occur with ARMs that have payment caps. Back To Top Notary Public One who is authorized by federal or local government to attest authentic signatures and administer oaths. Back To Top Note A written instrument acknowledging a debt and promising payment. Back To Top Odd & Even Years (Relating to Time-Shares) Timeshare ownership usage every other year - some odd-numbered, some even. Back To Top Offer Apresentation to form a contract or agreement. Back To Top Offer To Purchase Agreement The agreement between a buyer and seller for a certain price and terms usually dependent on conditions being satisfied. Back To Top Origination Fee Application fee(s) for processing a proposed mortgage. Back To Top Option Aright given, for consideration, to purchase or lease property upon stipulated terms within a specific period of time. Back To Top Personal Property All property that is not land and is not permanently attached to land; everything that is moveable. Back To Top PITI Principal, interest, taxes, and insurance.This is your monthly house payment. Back To Top Plot Amap or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land and easements. Back To Top Points Sometimes called discount points. A point is one percent of the amount of the mortgage loan.For example, if a loan is for $25,000, one point is $250.Points are charged by a lender to raise the yield on his loan at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage.Buyers are prohibited from paying points on HUD or Veterans' Administration guaranteed loans (sellers can pay, however).On a conventional mortgage, points may be paid by either buyer or seller or split between them. Back To Top P.M.I.(Private Mortgage Insurance) Private mortgage insurance, required by many lenders when a borrower's down payment is less then 20% of the purchase price. Back To Top Pre-approval Apre-commitment from a lending institution to a buyer based on background checks, hard credit reports and review by an underwriter. Back To Top Prequalifying The lender's process of judging if a borrower is creditworthy and capable of making payments on a loan. Back To Top Prepayment Payment of mortgage loan - or part of it - before due date.Mortgage agreements sometimes restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment.The Federal Housing Administration does not permit such restrictions in FHA insured mortgages. Back To Top Prepayment Penalty Apenalty within a note, mortgage, or deed of trust imposing a penalty if the debt is paid in full before the end of its terms. Back To Top Principal The basic element of the loan as distinguished from interest and mortgage insurance premium.In other words, principal is the amount upon which interest is paid. Back To Top Promissory Note Awritten promise to pay a debt as set forth in writing. Back To Top Property Tax and Insurance Escrow Money collected monthly by the lender and held to pay taxes and insurance when due. Back To Top Purchase and Sale Agreement Adetailed document(s) regarding the agreement between the buyer and seller on the price and other terms and conditions of the transaction written in legalese. Back To Top Quartershare (Relating to Time-Shares) 3-month interval ownership with rotating schedule. Back To Top Real Estate Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty. Back To Top Real Estate Broker Aperson or organization who negotiates real estate sales, exchanges, or remittals for others for compensation or a promise of compensation.Supervisor of real estate salespeople. Back To Top Real Estate Salesperson Aperson performing any of the acts included in the definition of real estate broker but while associated and supervised by a real estate broker. Back To Top Recording Deed Entering the deed (owner's title) in public records to protect against subsequent claimants. Back To Top Representation Agreement Amutual contractual agreement between the agency and the client committing services and fiduciary duties to the client. Back To Top RAC The Nationwide Organization of Independent Appraisers Who Are Trained Professionals In Relocation Appraising.Each member of RAC must: 1) Have attended a minimum of 10 hours of relocation-related courses within the last three years.2) Provide at least three references from management level relocation clients.3) Provide three ERC or equivalent appraisal to demonstrate the member's understanding and ability to apply ERC appraisal guidelines, including forecasting. Back To Top Real Estate Agent Alicensed person who works under the direction of a broker selling and renting real estate. Back To Top Real Estate Broker Amiddle-man or agent who buys and sells real estate for a company, firm, or individual on a commission basis.The broker does not have title to the property, but generally represents the owner. Back To Top Realtor Areal estate broker holding membership in a real estate board affiliated with the National Association Of Realtors. Back To Top Refinancing The process of the same mortgagor paying off one loan with the proceeds from another loan. Back To Top RREI Residential Real Estate Inspector (RREI) or Commercial Real Estate Inspector (CREI) both are members of the Foundation of Real Estate Appraisers (FREA). Back To Top Restrictive Covenants Private restrictions limiting the use of real property.Restrictive covenants are created by deed and may run with the land, binding all subsequent purchasers of the land, or may be personal and binding only between the original seller and buyer.Th Back To Top Right-To-Use (Relating to Time-Shares) Occupancy rights for a specified number of years, with no ownership interest in the property. Back To Top Sales Agreement See agreement of sale. Back To Top Season (Relating to Time-Shares) Designated season of the year denoting period of ownership for exchange or usage value. Back To Top Second Deposit The additional deposit made at the signing of the purchase and sale agreement. Back To Top Seller Representation Offered by firms representing sellers (might offer buyer representation as well) Back To Top Seller's Market More buyers than sellers. Back To Top Special Assessments Aspecial tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, street lights, etc. Back To Top Septic System Aprivate sewerage system consisting of a tank, distribution box and leaching field.The sewerage flows into the tank, the wastewater rises and goes out a pipe to the distribution box.From this point the waste water is diverted into the leaching field consisting of three perforated pipes which allow the waste water to leach into the ground.The sludge remains in the tank and must be pumped regularly. Back To Top Setback The distance from the front or interior property line to the point where a structure can be located. Back To Top Smoke Detector Certificate Written verification from a municipality that the smoke detectors in a home meet the necessary standards. Back To Top Soft Credit Report Areport on one's credit history from one of the credit bureaus. Back To Top Special Conditions Asection of the offer to purchase designed to exhibit any special circumstances, contingencies or addendums desired by the buyer or seller. Back To Top Special Lien Alien that binds a specified piece of property, unlike a general lien, which is levied against all one's assets.It creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person's behalf.In some localities it is called particular lien or specific lien.(See lien. )