Home

Misc Links

Traffic Swarm

Provided free, courtesy of
CardinalliRealEstate.com  and PropertiesByTreena.com,
a joint venture serving all your real estate needs.

Please be sure to visit our sponsors to keep this site free.

Dictionary

80-10-10 
        A type of blended mortgage loan which avoids private mortgage insurance (PMI). It consists of an 80% - 30 year first lien at market rates, a 10% - 15 year second lien at a slightly higher interest rate, and a 10% down payment.  Instead of having to come up with a 20% down payment, a buyer is able to avoid PMI with only 10% down.  While the interest rate on the second note is a bit higher, the total monthly payment is usually lower than a 90% mortgage with PMI. In addition, the extra interest paid for the second lien is tax deductible, whereas PMI is not.  It is also possible to payoff just the second lien, thereby lowering the future monthly payments. Some lenders also offer 75-15-10 and 80-15-5 programs. This type of mortgage also gives the consumer the option of having a non-escrowing loan without a 20% down payment.

Aches
        Delay or negligence in asserting one's rights.

Acknowledgment 
        A declaration made by a person to a notary public, or other public official authorized to take acknowledgments, that the instrument was executed by him and that it was his free and voluntary act. 

Acre 
        A measure of land equal to 43,560 square feet. 

Ad Valorem 
        Designates an assessment of taxes against property. Literally, according to value. 

Additional Principal Payment 
        A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan. 

Adjustable Rate Mortgage
        A mortgage loan whose interest rate fluctuates according to the movements of an assigned index or a designated market indicator--such as the weekly average of one-year U.S. Treasury Bills--over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary. 

Adjusted Basis 
        The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken. 

Adjustment Date 
        The date on which the interest rate changes for an adjustable rate mortgage. 

Adjustment Period 
        The period that elapses between the adjustment dates for an adjustable rate mortgage. 

Adjustments 
        Money that the buyer and sellers credit each other at the time of closing. Often includes taxes and down payment. 

Administrator
        A man appointed by a court to settle the estate of a deceased person when there is no will. Contrast with Executor. 

Administratrix 
        A woman appointed by a court to settle the estate of a deceased person when there is no will. Contrast with Executrix.

Adverse Possession 
        The right of an occupant of land to acquire title against the real owner, where possession has been actual, continuous, hostile, visible, and distinct for the statutory period. The requirements for adversely possessing property vary between states, but usually include continuous and open use for a period of five or more years and paying taxes on the property in question. 

Affidavit 
        Written statement signed and sworn to before some person authorized to take an oath. 

Agency 
        The legal relationship between a principal and an agent. In real estate transactions, usually the seller is the principal, and the broker is the agent: however, a buyer represented by a broker (i.e., buyer as principal is a growing trend. In an agency relationship, the principal delegates to the agent the right to act on his or her behalf in business transactions and to exercise some discretion while so acting. The agent has a fiduciary relationship with the principal and owes to that principal the duties of accounting, care, loyalty, and obedience. Also see buyer's broker. 

Agent 
        A person authorized to act for and under the direction of another person when dealing with third parties. The person who appoints an agent is called the principal. An agent can enter into binding agreements on the principal's behalf and may even create liability for the principal if the agent causes harm while carrying out his or her duties. 

Alienation Clause 
        A clause in a mortgage, which gives the lender the right to call the entire loan balance due if the property is sold; due-on-sale clause. 

Amenities 
        Non monetary benefits and satisfactions derived from property ownership, such as a pleasant view, pride in home ownership, etc. 

Amendment 
        A modification to an existing contract, mutually agreed to by all parties. Examples might include a change in the purchase price due to a low appraisal, or a change in the closing date. 

Amortization 
        The operation of paying off indebtedness, such as a mortgage, by installments. The conventional amortization periods are15 or 30 years. (See term) 

Amortized Mortgage 
        A mortgage requiring periodic payments that include both interest and principal. Also see self amortized loan. 

Annual Membership 
        The amount that is charged annually for having a line of credit available. Often charged regardless of whether or not you use the line. 

Antitrust Laws 
        Federal and state laws prohibiting, among other things, monopolies, monopolistic practices, restraint of trade, and price fixing. 

Application 
        An initial statement of personal and financial information, which is required to approve your loan. 

Application Fee 
        Fees that are paid upon application. Charges for property appraisal and a credit report are usually included in the application fee. 

Appraisal 
        A determination of the value of something, such as a house, jewelry or stock. A professional appraiser--a qualified, disinterested expert--makes an estimate by examining the property, and looking at the initial purchase price and comparing it with recent sales of similar property. Courts commonly order appraisals in probate, condemnation, bankruptcy or foreclosure proceedings in order to determine the fair market value of property. Banks and real estate companies use appraisals to ascertain the worth of real estate for lending purposes. And insurance companies require appraisals to determine the amount of damage done to covered property before settling insurance claims. 

Appraised Value 
        An estimate of the present worth. 

Appreciation 
        An increase in value or worth of property. Opposite of depreciation. 

Architectural Styles
        California Ranch (same as Ranch)
        Cape Cod (same as Colonial American)
        Colonial American (same as Cape Cod)
        Contemporary
        Dutch Colonial
        English Tudor
        French Provincial
        Garden Home (same as Patio Home)
        Patio Home (same as Garden Home)
        Ranch (same as California Ranch)
        Row House (same as Town House)
        Southern Colonial
        Spanish
        Town House (same as Row House)
        Victorian

Asking Price 
        The price placed on property for sale. 

Assessor 
        A local government official who determines the value of the property for taxation purposes. 

Assignee 
        A person to whom a property right is transferred. For example, an assignee may take over a lease from a tenant who wants to permanently move out before the lease expires. The assignee takes control of the property and assumes all the legal rights and responsibilities of the tenant, including payment of rent. However, the original tenant remains legally responsible if the assignee fails to pay the rent. 

Assignment 
        A transfer of property rights from one person to another, called the assignee. 

Assumable Mortgage 
        An existing mortgage that can be taken over by the buyer on the same terms given to the original borrower. 

Assumption of Mortgage 
        The transfer of title to property to a grantee wherein he assumes liability for payment of an existing note secured by a mortgage against the property; should the mortgage be foreclosed and the property sold for a lesser amount than that due, the grantee-purchaser who has assumed and agreed to pay the debt secured by the mortgage is personally liable for the deficiency. Before a seller may be relieved of liability under the existing mortgage, the lender must accept the transfer of liability for payment of the note. Also known as simple assumption. Contrast with subject to mortgage. 

Attachment 
        Method by which a debtor's property is placed in the custody of the law and held as security pending outcome of a creditor's suit. 

Attorney's Opinion of Title 
        An instrument written and signed by the attorney who examines the abstracts of title, stating his opinion as to whether a seller may convey good title. 

Attractive Nuisance 
        Something on a piece of property that attracts children but also endangers their safety. For example, unfenced swimming pools, open pits, farm equipment and abandoned refrigerators have all qualified as attractive nuisances. 

Auction 
        A public sale of property to the highest bidder.

BTSA
        See Bonus to Selling Agent.

Balloon Mortgage 
        A mortgage where the final payment is considerably larger than the preceding payments. Contrast with amortized mortgage. 

Balloon Payment 
        A large final payment due at the end of a loan, typically a home or car loan, to pay off the amount your monthly payments didn't cover. Many states prohibit balloon payments in loans for goods or services that are primarily for personal, family or household use, or require the lender to let you refinance the balloon payment before forcing collection. 

Base Line
        A method used by the United States Surveyor General to survey public lands.  This system bases descriptions of land on its distance from a baseline that runs east-west.  See also Meridian Line.

Bill of Sale 
        A written instrument given to pass title to personal property. 

Blanket Mortgage 
        One mortgage on a number of parcels of real property. 

Blockbusting 
        The illegal practice of inducing panic selling in a neighborhood by making representations of the entry, or prospective entry, of members of a minority group; panic peddling. See Fair Housing. 

Bond 
        (1) A written agreement purchased from a bonding company that guarantees a person will properly carry out a specific act, such as managing funds, showing up in court, providing good title to a piece of real estate or completing a construction project. If the person who purchased the bond fails at his or her task, the bonding company will pay the aggrieved party an amount up to the value of the bond. 

        (2) An interest-bearing document issued by a government or company as evidence of a debt. A bond provides pre-determined payments at a set date to the bond holder. Bonds may be "registered" bonds, which provide payment to the bond holder whose name is recorded with the issuer and appears on the bond certificate, or "bearer" bonds, which provide payments to whomever holds the bond in-hand. Mortgage interest rates are closely related to long term bond interest rates. 

Bonus to selling agent (BTSA) 
        Compensation, above and beyond the sales commission, offered to the real estate agent who brings the buyer to the transaction. A BTSA is used to provide an extra incentive for real estate agents to show a particular listing. Often the bonus is tied to closing within a certain time period or the property selling for a certain price. A buyer's agent should not consider the BTSA a factor in any negotiations between buyer and seller. Realistically, most BTSA's tend to disappear during initial negotiations, even though they should never be considered as negotiable after they have been offered. Any bonus to selling agent should be contained in a written agreement between the seller and listing broker. The BTSA is technically offered by the listing broker, not the seller, and thus should not be a subject of negotiation. 

Breach of Contract 
        Failure, without legal excuse, of one of the parties to a contract to perform according to the contract. 

Brokerage 
        For a commission or fee, bringing together parties interested in buying, selling, exchanging, or leasing real property. 

Building Line 
        A line fixed at a certain distance from the front and/or sides of a lot beyond which no structure can project. See set back. 

Bundle of Rights 
        Ownership in real property implies a group of rights, such as the right of occupancy, use and enjoyment, the right to sell in whole or in part, the right to control  the use, the right to bequeath, the right to lease any or all of the rights, the right to the benefits derived by occupancy and use of the property, etc. 

Buy Down 
        A cash payment, usually measured in points, to a lender in order to reduce the interest rate a borrower must pay. 

Buyer's Broker 
        A licensee who has declared to represent only the buyer in a transaction, regardless of whether compensation is paid by the buyer or the listing broker through a commission split. Some brokers conduct their business by representing buyers only.

CAR
        California Association of Realtors.

CC&R 
        Covenants, conditions & restrictions. 

CCCS 
        Consumer Credit Counseling Service. 

CVAR
        Central Valley Association of Realtors.

Calendar Year 
        A year using the actual number of days in each month for a total of 365 days in a year (366 days in a leap year). 

Cap 
        The maximum allowable increase, for either payment or interest rate, for a specified amount of time on an adjustable rate mortgage. 

Capital Gains 
        The profit on the sale of a capital asset, such as stock or real estate. If you sell your primary residence, you can exclude $250,000 in profit from capital gains tax. A couple can exclude $500,000. 

Capitalization 
        The estimation of the value of income producing property by dividing the annual net income by the capitalization rate. 

Capitalization Rate 
        The rate of expected return on investment property. A ratio of income to value. 

Ceiling 
        The maximum allowable interest rate over the life of the loan of an adjustable rate mortgage. 

Census 
        An official count of the number of people living in a certain area, such as a district, city, county, state, or nation.  The United States Constitution requires the  federal government to perform a national census every ten years.  The census includes information about the respondents' sex, age, family, and social and economic status. 

Certificate of Eligibility 
        The document given to qualified veterans which entitles them to VA guaranteed loans for homes, business, and mobile homes. Certificates of eligibility may be obtained by sending DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility). 

Chain of Title 
        A history of conveyances and encumbrances of a property from some starting point, whereby the present owner derives title. 

Channeling 
        The illegal practice of directing people to, or away from, certain areas or neighborhoods because of minority status; Steering. See Fair Housing. 

Chattel 
        Personal property. 

Cleaning Fee 
        A nonrefundable fee charged by a landlord when a tenant moves in. The fee covers the cost of cleaning the rented premises after you move out, even if you leave the place spotless. Cleaning fees are illegal in some states and specifically allowed in others, but most state laws are silent on the issue. Landlords in every state are allowed to use the security deposit to clean a unit that is truly dirty. 

Clear Title 
        A land title that doesn't have any liens (including a mortgage) against it. 

Closing Costs 
        Costs the buyer must pay at the time of the closing in addition to the down payment which may include points, title charges, credit report fee, document preparation fee, mortgage insurance premium, inspections, appraisals, prepayments for property taxes, deed recording fee, and homeowners insurance. Closing costs can vary considerably from one financial institution to another. 

Closing Statement 
        A detailed written summary of the financial settlement of a real estate transaction, showing all charges and credits made, and all cash received and paid out. 

Cloud on Title 
        A claim or encumbrance that may effect title to land. 

Co-Op 
        See Cooperative Housing or Cooperative Sale. 

Co-Tenants 
        Two or more tenants who rent the same property under the same lease or rental agreement. Each co-tenant is 100% responsible for carrying out the rental agreement, which includes paying the entire rent if the other tenant skips town and paying for damage caused by the other tenant. 

Collateral 
        Something of value deposited with a lender as a pledge to secure repayment of a loan. 

Commingling 
        The illegal practice of combining or mixing clients' funds with the agent's own funds. 

Commission 
        The compensation paid to a licensed real estate broker or by the broker to the salesman for services rendered. Usually a percentage of the selling price of the property. 

Community Reinvestment Act 
        The federal law which requires federally regulated lenders to describe the geographical market area they serve. Deposits from that area are to be reinvested in that area whenever practical. 

Comparables 
        Properties which are similar to a particular property and are used to compare and establish a value for that property. 

Compound Interest 
        Interest which is computed on the principal and any unpaid accumulated interest. Contrast with simple interest.

Condemnation 
        The act of taking private property for public use, through due process under the right of eminent domain, with compensation to the owner. 

Condominium 
        A form of real estate, usually a dwelling with individual ownership of separate portions of the building plus shared ownership of the common areas. 

Consideration 
        The price or subject matter, which induces a contract; may be in money, commodity, exchange, or a transfer of personal effort. 

Constructive Eviction 
        The provision of housing that is so substandard that, for all intents and purposes, a landlord has evicted the tenant. For example, the landlord may refuse to provide light, heat, water or other essential services, destroy part of the premises or refuse to clean up an environmental health hazard, such as lead paint dust. Because the premises are unlivable, the tenant has the right to move out and stop paying rent without incurring legal liability for breaking the lease. Usually, the tenant must first bring the problem to the landlord's attention and allow a reasonable amount of time for the landlord to make repairs. 

Consumer Credit Counseling Service
        A national non-profit agency that, at no cost, helps debtors plan budgets and repay their debts. One major criticism of CCCS is that each office is primarily funded by voluntary donations from the creditors that receive payments from debtors repaying their debts through that office. The goal of CCCS is to insure that consumers repay the debts that they owe. CCCS may arrange easy payment plans that increase the chances for repayment, but harm a consumer's credit in the process. Agreeing to a payment plan and following it to the letter may not stop creditors from reporting delinquent repayment information to credit bureaus for each month the payment falls short of the previous minimum amount. 

Contingency 
        A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event. A common example is a Buyer who enters into the purchase of another home before his current home is sold. The Buyer will usually ask for the Seller to make the sale contingent upon the sale of the Buyer's current home. If the Seller receives another offer for the property, the first Buyer must either agree to buy the home without any contingency, or step aside and let someone else purchase the home. 

Contract 
        A legally enforceable agreement to do, or not to do, a particular thing for a consideration. 

Contract for Deed 
        A contract for the sale of real estate where the deed (title) of the property is transferred only after all the payments have been made. Also known as a land contract, agreement of sale, conditional sales contract, or installment contract. Buyers should be wary of this type of contract, since they can lose their entire investment if the owner declares bankruptcy, before the deed has been transferred. 

Contract for Exchange of Real Estate 
        A contract for the sale of real estate in which the consideration is paid wholly or partly in real property instead of cash. 

Contract of Sale 
        The agreement between the buyer and seller on the purchase price, terms, and conditions necessary to both parties to convey the title to the buyer. 

Conventional Loan 
        A real estate loan, which is not insured by the FHA or guaranteed by the VA. 

Conveyance 
        Written instrument, such as a deed or lease, that evidences transfer of some ownership interest in real property from one person to another. 

Cooperative Housing 
        (1) A form of real estate, usually a dwelling in which residents own shares, but do not directly own the space they inhabit. Rather, owning a share of the building entitles the shareholder with the right to inhabit a certain space within the dwelling, such as an apartment. Shares are usually proportional to the amount of space in each apartment.   

        (2) A living arrangement in which residents must perform certain duties or chores to benefit the entire residence, in addition to paying room and board. A common form of dormitory living. 

Cooperative Sale 
        A sale of property in which the buyer is brought to the transaction by a real estate agent who works for a different real estate broker than the listing agent. Both brokers/companies have agreed to cooperate in closing the property, and typically, splitting the commission. Offers of cooperation and compensation are commonly found in the MLS property listings. 

Cost Approach to Value 
        An estimate of value based on current construction costs, less depreciation, plus land value. Contrast with the income approach to value and the market data approach to value. 

Counter Offer 
        The rejection of an offer to buy or sell that simultaneously makes a different offer, changing the terms in some way. For example, if a Buyer offers $100,000 for a home, and the Seller replies that he wants $105,000, the Seller has rejected the Buyer's offer of $100,000 and made a counter offer to sell at $105,000. The legal significance of a counter offer is that it completely voids the original offer, so that if the Seller decided to sell for $110,000 the next day, the Buyer would be under no legal obligation to pay that amount for the property. 

Covenant 
        A restriction on the use of real estate that governs its use, such as a requirement that the property will be used only for residential purposes. Covenants are found in deeds or in documents that bind everyone who owns land in a particular development. See Covenants, Conditions & Restrictions. 

Covenants, Conditions & Restrictions (CC&Rs) 
        The restrictions governing the use of real estate, usually enforced by a homeowners' association and passed on to the new owners of property. For example, CC&Rs may tell you how big your house can be, how you must landscape your yard or whether you can have pets. If property is subject to CC&Rs, buyers must be notified before the sale takes place. 

Credit Bureau 
        A private, profit-making company that collects and sells information about a person's credit history. Typical clients include banks, mortgage lenders and credit card companies that use the information to screen applicants for loans and credit cards. There are three major credit bureaus, Equifax, Experian and Trans Union, and they are regulated by the federal Fair Credit Reporting Act. 

Credit File 
        See Credit Report. 

Credit Insurance 
        Insurance a lender offers or requires a borrower to purchase to cover the loan. If the borrower dies or becomes disabled before paying off the loan, the policy will pay off the remaining balance. Federal and state consumer protection laws require the lender to disclose to existing and potential borrowers the terms and costs of obtaining credit insurance because it can affect the terms of the loan. 

Credit Limit 
        The maximum amount that you can borrow under a home equity plan. 

Credit Report 
        An account of your credit history, prepared by a credit bureau. A credit report will contain both credit history, such as what you owe to whom and whether you make the payments on time, as well as personal history, such as your former addresses, employment record and lawsuits in which you have been involved. An estimated 50% of all credit reports contain errors, such as accounts that don't belong to you, an incorrect account status or information reported that is older than seven years (ten years in the case of a bankruptcy). 

Credit Score 
        In the mortgage lending world, credit scores either make or break you when it comes to obtaining a home mortgage or getting the best rate you can. There are three different scores available to a mortgage lender each being generated by the three different credit agencies. The most popular, known as a Fico score is from Experian (formally TRW), then there is a Beacon score from Equifax, and finally a Emperica score from Trans Union. This is the "mortgage scoring" system used to get a conventional mortgage. 

        Simply, credit scores are numbers calculated based upon your credit history. The better your credit, the higher your number or score will be, the worse your credit, the lower the score. The number of inquiries or times your credit has been pulled in the past 90 days will also lower your "score". In some instances, lack of credit results in "no score" on your report requiring you to provide "alternative credit" via your rental, utility or telephone payment histories.

        There are some lenders that do not rely on credit scores to the degree that most do. Some times, credit reports contain inaccuracies that lower your score, this is when a lender has to use a common sense approach to approving your loan. In some instances you may have to correct your credit report, wait for your score to improve, then reapply for the loan. Talk with your mortgage broker or lender to understand what your options are.

Creditor 
        A person or entity (such as a bank) to whom a debt is owed. 

Cul-de-sac 
        A dead end street which widens sufficiently at the end to permit an automobile to make a "U" turn.

DBA 
        Doing Business As. Business names or aliases filed with the county. 

DRE
        Department of Real Estate.

Debenture 
        Bonds issued without security. 

Debt Service 
    The total amount of credit card, auto, mortgage or other debt upon which you must pay. 

Debt-Service Ratio 
        The measurement of debt payments to gross household income which may include, in addition to the main wage earner's salary, salaries of other wage earners, commissions, bonuses, overtime, etc. 

Deduction 
        In tax law, an amount that you can subtract from the total amount on which you owe tax. Examples of federal income tax deductions include mortgage interest, charitable contributions and certain state taxes. For example, if Aimee receives an income of $60,000 in 1998 and pays $12,000 in mortgage interest during that same year, she can deduct $12,000 when she fills out her federal tax return, leaving an amount of $48,000 upon which she must pay tax. 

Deed 
        A written instrument by which title to land is conveyed. 

Deed in Lieu (of Foreclosure) 
        A means of escaping an overly burdensome mortgage. If a homeowner can't make the mortgage payments and can't find a buyer for the house, many lenders will accept ownership of the property in place of the money owed on the mortgage. Even if the lender won't agree to accept the property, the homeowner can prepare a quitclaim deed that unilaterally transfers the homeowner's property rights to the lender. 

Deed Restrictions 
        Common name used to denote covenants, conditions & restrictions (CC&R's). Deed restrictions cover allowable land uses and home types and sizes within a neighborhood.

Default 
        Non-performance of a duty arising under a contract or otherwise. 

Defeasance 
        A clause in a deed, lease, will or other legal document that completely or partially negates the document if a certain condition occurs or fails to occur. Defeasance also means the act of rendering something null and void. For example, a will may provide that a gift of property is defeasable - that is, it will be void - if the beneficiary fails to marry before the will maker's death. 

Delivery 
        The actual transfer of the deed, or an act of a seller showing intent to make a deed effective, without which, there is no transfer of title to the property.

Depreciation 
        A loss in value. 

Descent 
        Acquisition of property through inheritance laws when there is no will (when a person dies in testate). 

Devise 
        A transfer of real estate by will or last testament. 

Disclosure 
        The making known of a fact that had previously been hidden; a revelation. For example, in many states you must disclose major physical defects in a house you are selling, such as a leaky roof or potential flooding problem. 

Discount Points (or Points) 
        The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount (i.e., two points on a $100,000 mortgage would equal $2,000). 

Discount Rate 
        (1) The rate charged member banks who borrow from the Federal Reserve System. 
        (2) The rate used to convert future income into present value. 

Dispossess 
        To oust from land by legal process. 

Dominant Tenement 
        Property that carries a right to use a portion of a neighboring property. For example, property that benefits from a beach access trail across another property is the dominant tenement. 

Down Payment 
        An amount of money the buyer pays which is the difference between the purchase price and the mortgage amount. 

Dual Agency 
        Representing the buyer and the seller in the same transaction by the same agent. Since there is an inherent conflict in fiduciary obligations to two different principals, dual agency, at best, is a risky undertaking. TRELA requires that all parties to a dual agency have full knowledge and consent (Disclosed Dual Agency). Contrast with intermediary. 

Due on Sale 
        A clause in a mortgage agreement providing that, if the mortgagor (the borrower) sells, transfers, or, in some instances, encumbers the property, the mortgagee (the lender) has the right to demand the outstanding balance in full. 

Duress 
        Forcing action or inaction against a person's will.

Joint Tenancy 
        A way for two or more people to share ownership of real estate or other property. When two or more people own property as joint tenants and one owner dies, the other owners automatically own the deceased owner's share. For example, if a parent and child own a house as joint tenants and the parent dies, the child automatically becomes full owner. Because of this right of survivorship, no will is required to transfer the property; it goes directly to the surviving joint tenants without the delay and costs of probate. Contrast with tenancy in common.

Judgment 
        The official and authentic decision of a court of justice concerning the respective rights and claims of the parties to an action or suit.

LID (See Levy Improvement District).

LTV (See loan-to-value ratio).

Landlord 
        The owner of any real estate, such as a house, apartment building or land, that is leased or rented to another person, called the tenant. 

Latent Defect 
        Hidden structural defects and flaws. 

Lease 
        An oral or written agreement (a contract) between two people concerning the use by one of the property of the other. A person can lease real estate (such as an apartment or business property) or personal property (such as a car or a boat). A lease should cover basic issues such as when the lease will begin and end, the rent or other costs, how payments should be made, and any restrictions on the use of the property. The property owner
is often called the "lessor," and the person using the property is called the "lessee." In California, any lease over one year in length, must be in writing. 

Lease Option 
        A contract in which an owner leases his house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance. This allows a potential home buyer move into a house he may wish to eventually buy without having to come up with a down payment or financing at that time. 

Lease Purchase
        A contract in which an owner leases his house (usually for one to five years) to a tenant for an increased monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance, with the incremental rent increase being used to form a down payment. Buyers should be wary of this type of contract since they may lose their extra rent/down payment money should the owner suffer financial setbacks before the purchase has been completed. 

Leasehold Estate 
        A form of real estate in which a tenant is allowed to construct permanent structures upon a parcel of leased land, and derive some use or income from said structures during the period of the lease. Leasehold estates
usually involve long-term leases, ranging from 20 to 99 years. Land owners are able to have their property developed, with no out of pocket expenses. Instead of having to sell their land too soon, they retain their family's rights to the land, while receiving a steady income stream. The tenant saves the initial land acquisition costs and may gain access to property that would be otherwise unavailable. The downside is, as the lease nears the end or its term, the tenant's investment becomes uncertain, and the landlord is in a position to make demands for compensation, above the fair market price. Leaseholds are much more common in commercial real estate, but can apply to some residential properties as well. 

Legal Description 
        A description of a specific parcel of real estate which is acceptable to the courts in that state, and which will allows an independent surveyor to locate and identify it. Usually it uses one of the following methods; government survey, metes and bounds, or recorded plat (lot and block number). 

Less Favorable Treatment 
        Any time a person is treated differently on the basis of race, sex, religion, color, familial status, disability, or national origin, either by action or inaction, in the selling or leasing of real property, it is a violation of the Fair
Housing Laws. Also known as unequal treatment or different treatment. 

Lessee 
        Tenant leasing property. 

Lessor 
        One who leases property to a tenant. 

Leverage 
        The use of borrowed funds to finance an investment and to magnify the rate of return. 

Levy Improvement District (LID) 
        A type of Water Control and Improvement District, used to build and maintain levies. Levies are used to contain flooding creeks and rivers. 

Lien 
        A monetary claim against a property. These should be settled before the sale is finalized. 

Life Estate 
        An interest in property only for the duration of someone's life. 

Life Tenant 
        One who has a life estate in real property. 

Limited Equity Housing 
        An arrangement designed to encourage low-and moderate-income families to purchase housing, in which the housing is offered at an extremely favorable price with a low down payment. The catch is that when the owner
sells, she gets none of the profit if the market value of the unit has gone up. Any profit returns to the organization that built the home, which then resells the unit at an affordable price. 

Lis Pendens 
        A notice indicating that legal action is pending on a property. 

Listing Agreement 
        The legal agreement between the listing agent/broker and the vendor, setting out the services to be rendered, describing the property for sale, and stating the terms of payment. 

Loan-to-Value Ratio (LTV) 
        The ratio of the amount being loaned in respect to the appraised value of the property, usually expressed as a percentage. If a buyer was putting down $20,000, and borrowing a first lien of $180,000, on a $200,000 property, then the loan would have a 90% LTV. Loan-to-value ratios can effect interest rates, loan qualifying criteria, and lender requirements for PMI and escrow accounts. 

Lock or Lock In
        A commitment you obtain from a lender assuring you a particular interest rate or feature or a definite time period.  Provides protection should interest rates rise between the time you apply for a loan, acquire loan approval, and, subsequently, close the loan and receive the funds you have borrowed. 

Loft 
        An upstairs room or area that has an open wall, overlooking a room or area below.

Manufactured Home 
        A structure built in a factory, that is later shipped to, and placed on, the homesite. The term can apply to both mobile homes and pre-fab homes. 

Margin 
        An amount, usually a percentage, which is added to the index to determine the interest rate for adjustable rate mortgages. 

Marginal Land 
        Property which is barely profitable to use. 

Market Data Approach to Value 
        An estimate of value based on the actual sales prices of comparable properties. Contrast with cost approach to value and income approach to value. 

Market Value 
        The price that a willing buyer and a willing seller, both given full information, and neither under pressure to act, would agree upon. Also known as Fair Market Value. 

Master-Planned Community 
        A large scale, mixed use, real estate development that follows a long term, comprehensive plan. Master-planned communities typically blend different price ranges of residential neighborhoods with some
commercial properties designed to serve the residents' needs. Residential properties may include patio homes, townhouses, condominiums and apartment complexes in addition to neighborhoods of single-family homes. 
Likewise, multiple home builders are included in the construction of the various neighborhoods. Commercial development can consist of retail strip centers and shopping malls, restaurants, entertainment venues and office
buildings. In addition, master-planned communities usually offer amenities such as public recreation areas and parks, neighborhood schools and extensive landscaping. Recreation areas may include public swimming pools, tennis courts, children's play grounds and sports fields. Many offer large water features and public or private golf courses. The term "master-planned" has become somewhat of an overused buzzword in the current market place. True master-planned communities require a a multi-year commitment from the developer and contain thousands of homes. 

Mechanic's Lien 
        A legal claim placed on real estate by someone who is owed money for labor, services or supplies contributed to the property for the purpose of improving it. Typical lien claimants are general contractors, subcontractors and suppliers of building materials. A mechanics' lien claimant can sue to have the real estate sold at auction and recover the debt from the proceeds. Because property with a lien on it cannot be easily sold until the lien is satisfied (paid off), owners have a great incentive to pay their bills. 

Mediation 
        A dispute resolution method designed to help warring parties resolve their own dispute without going to court. In mediation, a neutral third party (the mediator) meets with the opposing sides to help them find a mutually
satisfactory solution. Unlike a judge in her courtroom or an arbitrator conducting a binding arbitration, the mediator has no power to impose a solution. No formal rules of evidence or procedure control mediation; the
mediator and the parties usually agree on their own informal ways to proceed. 

Meridian Line
        A method used by the United States Surveyor General to survey public lands.  This system bases descriptions of land on its distance from a baseline that runs east-west.  See also Base Line.

Metes and Bounds 
        A system of land description using distance (metes) and angles/compass directions (bounds), beginning and ending at the same point. Contrast with government survey and recorded plat method. 

Mid-Rise 
        A 4-story to 8-story tall building that contains residential apartment or condominium units. While not offering the panoramic views of a high-rise, mid-rise buildings can offer comparable levels of amenities and services. 
Building features may include 24-hour concierge service, swimming pools, spas, saunas, tennis courts, exercise areas, and party rooms. Security is enhanced at these buildings by the manned entry desks and limited access, covered parking garages. 

Mineral Rights 
        An ownership interest in the minerals contained in a particular parcel of land, with or without ownership of the surface of the land. The owner of mineral rights is usually entitled to either take the minerals from the land
himself or receive a royalty from the party that actually extracts the minerals. 

Minimum Payment 
        The minimum amount that you must pay, usually monthly, on a home equity loan or line of credit. In some plans, the minimum payment may be "interest only," (simple interest). In other plans, the minimum payment may
include principal and interest (amortized). 

Minority 
        As defined in the Civil Rights Act of 1968 as part of the Fair Housing Laws 'minority' means any group, or any member of a group, that can be identified either: (1) by race, color, religion, sex, disability, or national origin; or (2) by any other characteristic (such as familial status) on the basis of which discrimination is prohibited by a federal, state, or local fair housing law. 

Misrepresentation 
        A false statement, or concealment, of material fact with the intention of inducing action of another. 

Mobile Home 
        A type of manufactured home, that is transported to the home site using wheels attached to the structure. Mobile homes come in various widths and lengths, and maybe composed of one to three pieces. A one piece home is called a "single-wide", while a house that is joined together from two halves is called a "double-wide". Recently, "triple-wides" have appeared, and become as the largest mobile homes available. Most sections are between 14 and 16 feet wide, and 54 to 80 feet in length. Mobile homes do not require any foundation or substructure. They sit up off the ground, with skirting used around the base to hide the wheel and jacks. While
it is possible to tie down a mobile home to a piece of land, using straps and screw-in anchors, the structures are very susceptible to high winds and tornados. 

Month-to-Month Tenancy 
        A rental agreement that provides for a one-month tenancy that is automatically renewed each month unless either tenant or landlord gives the other the proper amount of written notice (usually 30 days) to terminate the
agreement. Some landlords prefer to use month-to-month tenancies because it gives them the right to raise the rent after giving proper notice. This type of rental also provides a landlord with an easy way to get rid of troublesome tenants, because in most states month-to-month tenancies can be terminated for any reason. It is also common for leases to revert to month-to-month tenancies at the end of the original lease period, if another lease has not been signed. 

Monument 
        A fixed object or point, either natural or man-made, used in making a survey. 

Mortgage 
        A contract providing security for the repayment of a loan, registered against property, with stated rights and remedies in the event of default. Lenders consider both the property (security) and financial worth of the
borrower (covenant) in deciding on a mortgage loan. 

Mortgage Banker 
        Originates mortgage loans, loaning you their funds and closing the loan in their name. 

Mortgage Broker 
        A person or company having contacts with financial institutions or individuals wishing to invest in mortgages. 

Mortgage Loan 
        A loan which utilizes real estate as security or collateral to provide for repayment should you default on the terms of your loan. The mortgage or deed of trust is your agreement to pledge your home or other real estate as security. 

Mortgagee 
        The lender in a mortgage loan transaction. 

Mortgagor 
        The borrower in a mortgage loan transaction. 

Multiple Listing Service (MLS) 
        A system by which a number of real estate firms share information about homes that are for sale. Membership usually provides a computer service that provides Realtors® with detailed listings of most homes currently on the market.

NAR
         National Association of Realtors.

NNN Commercial Real Estate
        NNN Commercial Real Estate will often be described as net net net or triple net, referring to property where taxes, insurance, and exterior maintenance expense items are paid by the tenant.

NOD (See Notice of Default)

Negative Amortization 
        Amortization in which the payment made is insufficient to fund complete repayment of the loan at its termination.  Usually occurs when the increase in the monthly payment is limited by a ceiling. The portion of the payment which should be paid is added to the remaining balance owed. The balance owed may increase, rather than decrease over the life of the loan. 

Net Lease 
        A commercial real estate lease in which the tenant regularly pays not only for the space (as he does with a gross lease) but for a portion of the landlord’s operating costs as well. When all three of the usual costs--taxes, maintenance and insurance--are passed on, the arrangement is known as a "triple net lease." Because these costs are variable and almost never decrease, a net lease favors the landlord. Accordingly, it may be possible for a tenant to bargain for a net lease with caps or ceilings, which limits the amount of rent the tenant must pay. For example, a net lease with caps may specify that an increase in taxes beyond a certain point (or any new taxes) will be paid by the landlord. The same kind of protection can be designed to cover increased insurance premiums and maintenance expenses. Contrast with gross lease. 

Net Listing 
        A price, which must be expressly agreed upon, below which the owner will not sell the property and at which the broker will not receive a commission; the broker receives the excess over and above the net listing price as commission. The broker in this type of listing will have a very hard time maintaining his fiduciary responsibilities to his seller since his interests are potentially at odds with the interests of the seller. 

Net Net Net (See NNN Commercial Real Estate)

Note 
        A written instrument of credit attesting to a debt and promise to pay. 

Notice of Default
        When a homeowner is late with their mortgage payment (defaults), a notice of default (NOD) is filed.  The NOD is the beginning of the foreclosure process.

Nuisance 
        Something that interferes with the use of property by being irritating, offensive, obstructive or dangerous. Nuisances include a wide range of conditions, everything from a chemical plant's noxious odors to a neighbor's
dog barking. The former would be a "public nuisance," one affecting many people, while the other would be a "private nuisance," limited to making your life difficult, unless the dog was bothering others. Lawsuits may be brought to abate (remove or reduce) a nuisance. See quiet enjoyment, attractive nuisance.

PITI
        Principal, Interest, Taxes and Insurance

PMI (See Private Mortgage Insurance).

POA (See Power of Attorney).

PUD (See Planned Unit Development or Public Utility District).

Panic Peddling 
        The illegal practice of inducing panic selling in a neighborhood by making representations of the entry, or prospective entry, of members of a minority group; blockbusting. See Fair Housing. 

Party Wall
        Wall erected on line between adjoining properties for the use of both properties. 

Patio Home 
        A single-family home that sits on a small lot, often with one outside wall of the structure sitting on the property line. Patio homes have no common structural walls with adjoining properties, but their zero lot line wall may
form part of their neighbors backyard fence/wall. These properties often have a small back or side yard large enough for a patio or garden area. Also known as a garden home. 

Percentage Lease 
        Lease in which all or part of rental is a specified percentage of gross income from total sales made upon the premises. 

Person 
        An individual, a partnership, or a corporation, foreign or domestic. 

Personal Property 
        Property which is tangible, movable, and not fixed to the land. Also called chattel and personalty. Contrast with real property. 

Personalty 
        Personal property; chattel. Contrast with Realty. 

Physical Deterioration 
        The loss of value to real property from all causes due to the action of the elements and old age. Physical deterioration can be either curable or incurable. 

Planned Unit Development (PUD) 
        In a PUD, the planned unit development association owns and maintains property in a real property development project for the benefit of its members, who are owners of individual parcels of real property in the development and are members of the association because of that ownership. The level of services and fees are similar to a condominium complex, but since each owner has title to a specific parcel of land, lenders may treat units as non-condominiums. This allows higher LTV loans and eliminates owner occupancy percentage requirements. 

Plat Book 
        A record of recorded subdivisions of land. 

Points 
        Fees paid to induce lenders to make mortgage loans at a particular interest rate. Each point is equal to one percent (1%) of the loan principal. Same as discount points. 

Police Power 
        The authority of a government to adopt and enforce law governing the use of real estate based on the need to promote public safety, health, and general welfare. 

Power of Attorney (POA) 
        A written authorization by a person to another person to act for him on his behalf. 

Prepayment 
        Paying off all or part of the mortgage before the scheduled date. 

Prepayment Clause in a Mortgage 
        Statement of the terms upon which the mortgagor (borrower) may pay the entire or stated amount on the mortgage principal at some time prior to the due date. 

Prepayment Penalty
        A fee paid to the lending institution for paying a loan prior to the scheduled maturity date.

Primary Mortgage Market 
        Lenders who originate loans and makes funds available directly to the borrowers. Contrast with secondary mortgage market. 

Prime Rate 
        The interest, or discount rate charged by a commercial bank to its largest and strongest customers. 

Principal 
        The amount of money owed to the lender not including interest. 

Principle of Conformity 
        An appraisal principle which holds that the maximum value is realized when a reasonable degree of homogeneity (sameness) exists in a neighborhood. 

Private Mortgage Insurance (PMI) 
        Default insurance on conventional loans, normally insuring the top 20%-25% of the loan and not the whole loan. 

Property Taxes 
        Taxes that are paid yearly on real property. Property taxes are ad valorem, based on the assessed value of the real property. 

Pro-Rate 
        To divide or distribute proportionally. At closing, various expenses such as taxes, insurance, interest, rents, etc. are prorated between the seller and buyer. 

Public Utility District (PUD) 
        A water district, created by a city or county, promoting development of a designated area by providing water and sewer services. The PUD operates in the same manner as a Municipal Utility District, but is created by a local government, not a private developer. 

Puffing 
        Non-factual or extravagant statements and opinions made to enhance the perceived desirability of a property.  The is a fine line between legal puffing and illegal misrepresentation, and puffing is best avoided. An example of puffing would be, "This home has the best view in the city". Also known as puffery. 

Purchase Offer 
        A document that lists the price, terms and conditions under which a buyer is willing to purchase a property.

RESPA (See Real Estate Settlement Procedures Act).

Ready, Willing and Able 
        A buyer who is prepared to buy on the seller's terms and has the financial capacity to do so. 

Real Estate 
        Refers to land and improvements and the rights to own or use them. "A leasehold, as well as any other interest or estate in land, whether corporeal, incorporeal, freehold, or non-freehold, and whether the real estate is situated in this state or elsewhere.  In popular usage, Real Estate is used interchangeably with real property and realty. 

Real Estate Board
        A non profit organization representing local real estate agents/brokers and salespeople, which provides services to its members and maintains and operates the Multiple Listing Service in the community. 

Real Estate Agent 
        A person licensed to negotiate and transact the sale of real estate on behalf of the property owner. 

Real Estate Settlement Procedures Act (RESPA)
        Real Estate Settlement Procedures Act is a federal law which deals with the procedures to be followed in a real estate closing, and is intended to make borrowers more knowledgeable about possible costs and charges.

Real Property 
        Refers to the right to own land and improvements. Commonly used interchangeably with Real Estate and Realty. Contrast with personal property. 

REALTOR® 
        A real estate broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors®. 

Realty 
        Refers to land and buildings and other improvements from a physical standpoint. Real Estate and Real Property tend to be used interchangeably with Realty in everyday usage.

Receiver 
        Court-appointed custodian who holds property for the court, pending final disposition of the matter before the court. 

Recorded Plat 
        A subdivision map filed with the county recorder's office that shows the location and boundaries (lot and block number) of individual parcels of land. Contrast with government survey method and metes and bounds. 

Recording 
        The act of entering in the public records, the written record of title to real property, thereby giving constructive notice to the public. 

Redlining 
        The illegal practice of refusing to originate mortgage loans, or limiting their number, in certain neighborhoods on the basis of racial or ethnic composition. See Fair Housing. 

Refinancing 
        To apply for a new mortgage in order to gain better terms, usually either a lower interest rate or a different principal amount. 

Regulation 'Z' 
        Truth in lending law developed by the Federal Reserve System which requires lenders to provide full disclosure of the terms of the loan, including interest rates expressed as an annual percentage rate (APR). 

Release 
        To relinquish an interest or claim to a piece of property. 

Remainder 
        The future interest in an estate which takes effect after the termination of another estate, such as a life estate; what is left at the termination of a life estate. 

Rent Control 
        Laws that limit the amount of rent landlords may charge, and that state when and by how much the rent can be raised. Most rent control laws also require a landlord to provide a good reason, such as repeatedly late rent, for evicting a tenant. Rent control exists in some cities and counties in California, Maryland, New Jersey, New York and Washington, D.C. 

Reserves 
        Amounts of money set aside by a mortgage company to assure payment of property taxes, homeowners' association dues, and insurance premiums. The money is kept in an escrow account.

Reservation 
        A right reserved by a grantor in the sale or lease of a property. In a sale, the title of all property passes to the grantee, but the use may be reserved for the grantor. Contrast with exception. 

Restrictions 
        Limitations on the use or occupancy of real estate contained in a deed or in local ordinances pertaining to land use. 

Right of Survivorship 
        The right of a surviving joint tenant to take ownership of a deceased joint tenant's share of the property. See joint tenancy. 

Riparian Owner 
        One who owns land bounding upon a river or water course (stream, creek, bayou, etc.).

Row House (See Town House).

Running with the Land 
        A phrase used in property law to describe a right or duty that remains with a piece of property no matter who owns it. For example, the duty to allow a public beach access path across waterfront property would most likely pass from one owner of the property to the next.

SFH (See Single-Family Home).

SFR (See Single Family Residence).

Sales Contract 
        A written agreement stating the terms of the sale agreed to by both buyer and seller. 

Secondary Mortgage Market 
        Buying and selling of existing mortgage loans, designed to provide additional liquidity for lenders. Contrast with primary mortgage market. Also see Fannie Mae, Freddie Mac and Ginnie Mae. 

Security Deposit 
        A payment required by a landlord to ensure that a tenant pays rent on time and keeps the rental unit in good condition. If the tenant damages the property or leaves owing rent, the landlord can use the security deposit to cover what the tenant owes. 

Security Interest 
        An interest that a lender takes in the borrower's property to assure repayment of a debt. 

Self Amortized Loan 
        A loan which will retire the debt by systematic payments of principal and interest, so that at the end of the loan period, the balance will be zero. 

Servicing a Loan 
        The ongoing process of collecting your monthly mortgage payment, including accounting for and payment of your yearly tax and/or homeowners insurance bills. 

Servient Tenement 
        Property that is subject to use by another for a specific purpose. For example, a beachfront house that has a public walkway to the beach on its premises would be a servient tenement. 

Setback 
        The distance a building must be set back from the property lines in accordance with local zoning ordinances or deed restrictions. 

Shared Equity Mortgage 
        A home loan in which the lender gets a share of the equity of the home in exchange for providing a portion of the down payment. When the home is later sold, the lender is entitled to a portion of the proceeds. 

Short Sale (of house) 
        A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. See also deed in lieu (or foreclosure). 

Simple Interest 
        Interest computed only on the principal balance. Contrast with compound interest. 

Single-Family Home 
        A free-standing, residential structure, designed to accommodate one family. Single-family homes include traditional houses, as well as patio homes. 

Single Family Residence (See Single-Family Home).

Special Warranty Deed 
        A warranty deed which, instead of warranting the title from sovereignty of the soil to the last grantee, merely warrants the title against every person whomsoever lawfully claiming or to claim the same, or any part thereof, by, through or under the grantor. 

Specific Lien 
        A claim that only applies to or affects a certain property or group of properties. Contrast with general lien. 

Specific Performance 
        Carrying out of the precise terms agreed upon in a contract. Also see suit for specific performance. 

Spite Fence 
        An unsightly fence erected for no other purpose than to irritate a neighbor. Such a fence may be illegal under local fence height and appearance regulations or state laws that specifically bar spite fences. Even if it doesn't violate regulation or laws, the fence may still be illegal if it was built with malicious intent. 

Statute of Frauds 
        The law which requires among other things, that all contracts transferring real estate, or for the leasing of property for over one year, must be in writing to be enforceable. 

Statutory Year 
        A year composed of twelve months, each with thirty (30) days, for a total of 360 days in a statutory year. Also known as a banker's year. Contrast with calendar year. 

Steering 
        The illegal practice of directing members of minority groups to, or away from, certain areas or neighborhoods; channeling. See Fair Housing. 

Subject to Mortgage 
        The buyer of an already mortgaged property makes the payments, but does not take personal responsibility for the loan. Should the mortgage be foreclosed and the property sold for a lesser amount than is owed, the grantee-buyer is not personally liable for the deficiency, but the grantor-seller is. Contrast with assumption of mortgage. 

Sublease 
        A rental agreement or lease between a tenant and a new tenant (called a sublessee) who will either share the rental or take over from the first tenant. T e sublessee pays rent directly to the tenant. The tenant is still completely responsible to the landlord for the rent and for any damage, including that caused by the sublessee. Most landlords prohibit subleases unless they have given prior written consent. Compare with assignment. 

Subpoena 
        A legal process ordering a witness to appear and give testimony or to present documents under penalty of law.

Substitution, Principle of 
        The principle which states that a buyer will pay no more for a property than the cost of an equally desirable alternative property. 

Succession 
        The passing of property or legal rights after death. The word commonly refers to the distribution of property under a state’s intestate succession laws, which determine who inherits property when someone dies without a valid will. When used in connection with real estate, the word refers to the passing of property by will or inheritance, as opposed to gift, grant, or purchase. 

Suit for Specific Performance 
        A legal action brought by either a buyer or a seller to enforce performance of the terms of a contract.

Veterans Administration
        The Veterans Administration, a federal agency which guarantees loans made to qualified veterans on approved property.

Victorian
        The architectural style typically has most, if not all, the features listed;
                Wood, with elaborate decoration
                More than one story
                All white with siding and trim in contrasting colors
                High-ceilinged rooms
                Leaded and stained-glass windows
                Front porch, sometimes wrapping around the side of the house

View Ordinance 
        A law adopted by some cities or towns with desirable vistas--such as those in the mountains or overlooking the ocean--that protects a property owner from having his or her view obstructed by growing trees. View ordinances don't cover buildings or other structures that may block views. 

Virtual Home Tour 
        Any method used to provide internet users with a graphical presentation of a home, or homes. Presentations may include web pages, java applets, streaming video, panoramic images and bubble views. 

Void 
        Having no legal force or effect; legally invalid. 

Voidable 
        A contract which appears valid and enforceable on the surface, but may be declared invalid by one of the parties, such as a contract entered into by a minor.

Waiver 
        The intentional or voluntary relinquishment of a known claim or right. 

Walk Through 
        (1) A Buyer's on-site inspection of the property being purchased, just prior to closing.
        (2) A detailed inspection of a new construction home, in which punch list and cosmetic items are addressed, prior to final acceptance. 

Warranty Deed 
        A type of deed that contains express assurances about the legal validity of the title being transferred. See general warranty deed and special warranty deed. 

Writ of Execution 
        A court order which authorizes and directs the proper officer of the court (usually the sheriff) to carry into effect the judgment or decree of the court.

Zero Lot Line 
        A term generally used to describe the positioning of a structure on a lot so that one side rests directly on the lot's boundary line (no set back). Where allowed by zoning and/or deed restrictions, it is used for "patio homes". 

Zoning 
        Exercise of police power of city in regulating and controlling the character or use of property. Zoning laws divide cities into different areas according to use, from single-family residences to industrial plants. Zoning ordinances control the size, location, and use of buildings within these different areas.

BlueHost.com

Last updated: 05/28/06