LTV Real Estate Real Estate Terms
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.
Acceleration
The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale-Clause.
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.
Addendum
Something added. Items added to a document, letter, contract, escrow instructions, etc.
Agent
A person who acts or has the power to act for another. A real estate agent acts on behalf of the principal (the buyer or seller) and has a fiduciary responsibility towards the principal. Buyer's Agent: a agent who represents the buyer and owes fiduciary duties to the buyer. Seller's Agent: an agent who represents the seller and owes fiduciary duties to the seller. They are usually referred to as the listing agent who is authorized by a property owner to find a buyer or a tenant for the property.
Agreement of Sale
A written agreement of contract in which the seller agrees to sell and the buyer agrees to buy under specific terms and conditions.
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.
Amenities
Features that enhance and add to the value or desirability of real estate. Common amenities include swimming pools, professional landscaping, gourmet kitchen and so on.
Amortization
The reduction of a debt over time by making periodic payments, usually monthly, a portion of which is interest and a portion of which reduces the outstanding amount of the debt. The monthly mortgage payments remain the same over the life of the loan, even though the proportion of principal to interest changes over time. In the early part of the loan period the principal repayment is very small and interest repayment is very high. At the end of the loan that relationship is reversed.
Appraisal
An estimate of the value of property, made by a qualified professional called an "appraiser".
Appraiser
Someone who practices appraisal. Appraisers' work involves appraising, review (the process of critically studying a report prepared by another), or consulting (the process of providing information, analysis of real estate data, and recommendations on diversified problems in real estate, other than estimating value).
APR - Annual Percentage Rate
The actual interest rate taking into account the points and other prepaid fees expressed in annual percentage terms. Not to be confused with an initial interest rate, a teaser rate lenders use to get you into a loan.
ARM - Adjustable Rate Mortgage
A loan that allows the interest rate to change periodically up or down. The interest rate on an ARM is determined by adding a margin or spread to a specified financial index. Financial indexes include; Treasury, Certificate of Deposit, Cost of Funds. The margin is the difference between the index rate and the ARM rate. Adjustment interval is how often the interest rate is adjusted. A loan that adjusts its interest rate after six months is called a six-month ARM. Rate caps limit how much your interest rate can move up or down. Periodic caps limit the change per adjustment period, and a lifetime cap governs the maximum amount the interest rate can increase or decrease over the life of the loan.
Assessment
A local tax levied against a property for a specific purpose, such as a sewer or street lights.
Assessor
One appointed to assess property for taxation.
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.
Assumption
The agreement between the buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing costs and new, probably higher, interest rates will apply.
Balloon Mortgage
A mortgage for a fixed term shorter than necessary to fully repay the debt. As a result, the remaining amount of principal is due at the maturity of the loan.
Blanket Mortgage
A mortgage covering at least two pieces of real estate as security for the same mortgage.
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.
Breach
Violation of an obligation in a contract.
Bridge Loan
A loan, usually short term, that finances the portion of the purchase price not provided by the mortgage loan and the down payment. A bridge loan is commonly used when a purchaser has not sold his existing home before he closes on his purchase of a new home. The bridge loan is paid off when the old home is sold, out of the proceeds of that sale.
Broker
A real estate professional who has acquired a higher level of training and experience than a sales agent. A minimum number of classes must be taken along with passing a state exam to acquire a brokers license. Generally they are a legal representative or a proprietor of the office. Brokers usually charge a fee or receive a commission for their services.
Building Code
A set of stringent laws that control the construction of buildings, design, materials and other similar factors.
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.
Acceleration
The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale-Clause.
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.
Addendum
Something added. Items added to a document, letter, contract, escrow instructions, etc.
Agent
A person who acts or has the power to act for another. A real estate agent acts on behalf of the principal (the buyer or seller) and has a fiduciary responsibility towards the principal. Buyer's Agent: a agent who represents the buyer and owes fiduciary duties to the buyer. Seller's Agent: an agent who represents the seller and owes fiduciary duties to the seller. They are usually referred to as the listing agent who is authorized by a property owner to find a buyer or a tenant for the property.
Agreement of Sale
A written agreement of contract in which the seller agrees to sell and the buyer agrees to buy under specific terms and conditions.
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.
Amenities
Features that enhance and add to the value or desirability of real estate. Common amenities include swimming pools, professional landscaping, gourmet kitchen and so on.
Amortization
The reduction of a debt over time by making periodic payments, usually monthly, a portion of which is interest and a portion of which reduces the outstanding amount of the debt. The monthly mortgage payments remain the same over the life of the loan, even though the proportion of principal to interest changes over time. In the early part of the loan period the principal repayment is very small and interest repayment is very high. At the end of the loan that relationship is reversed.
Appraisal
An estimate of the value of property, made by a qualified professional called an "appraiser".
Appraiser
Someone who practices appraisal. Appraisers' work involves appraising, review (the process of critically studying a report prepared by another), or consulting (the process of providing information, analysis of real estate data, and recommendations on diversified problems in real estate, other than estimating value).
APR - Annual Percentage Rate
The actual interest rate taking into account the points and other prepaid fees expressed in annual percentage terms. Not to be confused with an initial interest rate, a teaser rate lenders use to get you into a loan.
ARM - Adjustable Rate Mortgage
A loan that allows the interest rate to change periodically up or down. The interest rate on an ARM is determined by adding a margin or spread to a specified financial index. Financial indexes include; Treasury, Certificate of Deposit, Cost of Funds. The margin is the difference between the index rate and the ARM rate. Adjustment interval is how often the interest rate is adjusted. A loan that adjusts its interest rate after six months is called a six-month ARM. Rate caps limit how much your interest rate can move up or down. Periodic caps limit the change per adjustment period, and a lifetime cap governs the maximum amount the interest rate can increase or decrease over the life of the loan.
Assessment
A local tax levied against a property for a specific purpose, such as a sewer or street lights.
Assessor
One appointed to assess property for taxation.
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.
Assumption
The agreement between the buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing costs and new, probably higher, interest rates will apply.
Balloon Mortgage
A mortgage for a fixed term shorter than necessary to fully repay the debt. As a result, the remaining amount of principal is due at the maturity of the loan.
Blanket Mortgage
A mortgage covering at least two pieces of real estate as security for the same mortgage.
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.
Breach
Violation of an obligation in a contract.
Bridge Loan
A loan, usually short term, that finances the portion of the purchase price not provided by the mortgage loan and the down payment. A bridge loan is commonly used when a purchaser has not sold his existing home before he closes on his purchase of a new home. The bridge loan is paid off when the old home is sold, out of the proceeds of that sale.
Broker
A real estate professional who has acquired a higher level of training and experience than a sales agent. A minimum number of classes must be taken along with passing a state exam to acquire a brokers license. Generally they are a legal representative or a proprietor of the office. Brokers usually charge a fee or receive a commission for their services.
Building Code
A set of stringent laws that control the construction of buildings, design, materials and other similar factors.