Real Estate Terms
Absentee Owner: Real estate property owners that do not live in a property.
Absorption Rate: Ratio of sold properties versus properties available for sale.
Abstract of Title: A list of recorded documents associated with a particular property.
Acceleration Clause: A mortgage condition that allows the lender the right to call the loan and demand full payment.
Acceptance: With regards to an offer to purchase, a seller "accepting" the price and terms of a contract.
Accrued Interest: The interest portion of a mortgage which is due but not yet paid. Interest is generally in paid in arrears.
Accrued Items: Expenses that are payable but not yet due. For example, property taxes are accrued throughout the year, yet not payable until after the year is over.
Acre: A measurement used to describe the size of a property. An acre is equal to 43,560 feet. However, a "builders acres is usually 35,000 square feet.
Action to Quiet Title: Court action to eliminate a cloud on a title and decree ownership of a property.
Actual Notice: A notice given which is announced and communicated and received by the intended party(ies).
AD Valorem tax: Taxes assessed on real property and improvements based on the "valuation" of the property and improvements.
Addendum: An addition to an already constructed document.
Additional Deposit: The amount promised in addition to the initial deposit made with an offer, usually after the offer has been accepted.
Adjusted Basis: The valuation of a property including the original price plus improvements, than subtracting out depreciation.
Adjustable Rate Mortgage (ARM): A mortgage with an interest rate that changes over time tied to a particular index.
Adjusted Gross Income: The total rental income amount a property generates, minus expenses and vacancies.
Adjustment Period: The length of time between interest rate changes on an Adjustable Rate Mortgage (ARM.
Adjusted Sales Price: Adjusting the sales prices of similar properties sold when comparing these properties to a subject property being appraised.
Advanced Fee: A fee that is collected in advance by a broker usually to cover the costs to advertise and promote an expensive property.
Adverse Land Use: Harming the value of neighborhood properties by negatively using a neighboring property.
Adverse Possession: Acquiring possession of a property by someone other than the true owner of record for a period of time.
Aesthetic Value: The additional value credited to a property based on the beauty or appeal of the improvements.
Affirmation: An admission to facts.
Agency: The relationship for which a broker/agent represents a principal.
Agent: A person who is authorized to represent another in a transaction.
Alienation Clause: A clause in a mortgage contract that calls for payment of the loan in full upon the transfer of ownership of the property.
Amendment: A change or addition to a contract.
Amenities: Features of a property for enjoyment.
Amortization: Repayment of a loan in installments of principle and interest, rather than interest-only payments.
Amortization Schedule: A detailed breakdown of repayment of a loan showing the interest portion and the principle portion.
Annual Percentage Rate (APR): The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount.
Appraisal: An estimate of a property's value.
Appraisal Methods: Three methods for appraising property, ie, Cost Approach, Income Approach, and Market Value.
Appraisal Foundation: Non-for-profit educational organization founded in 1987 committed to the advancement and enhancement for promoting the Uniform Standards of Professional Appraisal Practice.
Appraised Value: The estimated value amount of a property determined by a licensed appraiser.
Appraiser: A person who is certified to conduct property appraisals.
Appreciation: The increase in the value of property attributed to the current market conditions.
Arbitration Clause: A clause in a contract that requires all parties to agree to a third party for arbitration regarding any disputes.
Arms Length: A contract whereby all parties of the contract are not connected in any way.
Arrears: Repayment of any kind that is paid after the due date.
As-is-Condition: A clause in a contract whereby a buyer accepts the property in its as-is condition.
Asking Price: The listed price of a property for sale.
Assessed Value: The value of property determined by the tax assessor's office.
Assessment: The action of levying taxes on a property. Also levying a payment in addition to maintenance fees.
Asset: Any item of value.
Assignment: The conveying of property ownership, rights or interests to another.
Assumption of Mortgage: A buyer's agreement to assume the liability under an existing not that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.
Real Estate Terms beginning with B