abstract of judgment
The summary of a court judgment that creates a lien against a property when filed with the county recorder.

abstract or title search
The process of reviewing all recorded transactions in the public record to determine whether any title defects exist that could interfere with the clear transfer of ownership of the property.

accelerated cost recovery system
A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.

accelerated depreciation
A bookkeeping method that depreciates property faster in the early years of ownership.

acceleration clause
A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

acceptance
The seller's written approval of a buyer's offer.

access
Any means by which a person can enter property.

accessibility
The degree to which a building or site allows access to people with disabilities.

accretion
The gradual addition to the shore or bank of a waterway by deposits of sand or silt.

acknowledgment
A written declaration affirming that a person acted voluntarily.

acre
A measurement of land equal to 43,560 square feet. 

acre-foot
The volume of material needed to cover an acre of land one foot deep. 

active solar system
A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use. 

actual age
The number of years a structure has been standing. 

add-on interest
The interest a borrower pays on the principal for the duration of the loan. 

addendum
An addition or change to a contract.

additional principal payment
Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.

adjustable-rate mortgage (ARM)
A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

adjusted cost basis
The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.

adjustment date
The date the interest rate changes on an adjustable-rate mortgage

Adjustment Interval
On an ARM loan, the time between changes in the interest rate or monthly payment.

administrator
A person given authority to manage and distribute the estate of someone who died without leaving a will.

administrator's deed
A legal document that an administrator of an estate uses to transfer property.

A.D.S.
Advanced drainage system- flexible drain pipe.

adverse possession
The acquisition of title to property through possession without the owner's consent for a certain period of time.

adverse use
The access and use of property without the owner's consent.

ad valorem tax
Tax based on assessed property value.

aeolian soil
Soil that is composed of materials deposited by the wind.

affiant
A person who makes a sworn statement.

affirmation
A substitution for an oath granted to people based on religious reasons.

A-frame design
An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.

agency
The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract.

agency disclosure
Laws in most states require agents who act for buyers or sellers to disclose who represents whom in a real estate transaction. Laws vary widely by state.

agreed boundary
A compromise boundary to which property owners agree in order to resolve a dispute.

air duct
pipes that carry warm and cold air to rooms and back to furnace or air conditioning system.

air handler
Short for air-handling unit, the blower equipment in a furnace, heat pump, or similar appliance designed for circulating heated or cooled air through a central heating system.

air lot
A designated airspace over a piece of property.

air-handling unit
The blower equipment in a furnace, heat pump, or similar appliance designed for circulating heated or cooled air through a central heating system

A.I.S.
Asphalt impregnated sheathing- insulated board sheathing

alcove
A recessed section of a room, such as a breakfast nook.

alienation clause
A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.

alkali
Mineral salt found in soil.

alkaline soil
Soil that contains a higher concentration of mineral salt than natural acid.

alley
A lane behind a row of buildings or between two rows of buildings.

allowance
A budget offered by builders of new homes for the purchase of carpeting and fixtures.

Alternative Documentation
A method of documenting a loan file that relies on information the borrower is likely to be able to provide instead of waiting on verification sent to third parties for confirmation of statements made in the application.

aluminum siding
A metal covering that provides an alternative to paint for owners of wood homes.

aluminum-clad windows
Wooden windows with aluminum covering the exterior.

amenities
Parks, swimming pools, health-club facilities, party rooms, bike paths, community centers, and other enticements offered by builders of planned developments.

American Society of Home Inspectors (ASHI)
Professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 743-2744 for list of ASHI-certified inspectors in your area

Americans with Disabilities Act (ADA)
A law passed in 1990 that outlaws discrimination against a person with a disability in housing, public accommodations, employment, government services, transportation and telecommunications.

amortization
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

amortization schedule
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

amortization tables
Mathematical tables that lenders use to calculate a borrower's monthly payment.

amperage
The strength of an electrical current.

ampere
The basic unit used to measure electric current.

anchor bolt
A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.

annual assessments
The process of placing a value on property for the strict purpose of taxation. May also refer to a levy against property for a special purpose, such as a street lighting or sewer assessment.

annual mortgagor statement
A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.

annual percentage rate (APR)
This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.

annuity
The payment of a fixed sum to an investor at regular intervals.

anticipatory breach
A communication that informs a party that the obligations of the original contract will not be fulfilled.

antioxidant compound
A substance applied to aluminum wiring connections to seal and promote conduction.

appellant
A taxpayer or representative who appeals to a higher tribunal.

application
The form used to apply for a mortgage loan, containing information about a borrower’s income, savings, assets, debts, and more.

Application Fee
Fee charged by a lender to cover the initial costs of processing a loan application. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.

appraisal
A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Appraisal Fee
A fee charged by a licensed, certified appraiser to render an opinion of market value as of a specific date.

appraisal report
A detailed written report on the value of a property based on recent sales of comparable sites in the area.

appraised value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

appraiser
An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

appreciation
The increase in the value of a property due to changes in market conditions, inflation, or other causes.

approval
A thorough assessment made by a lender of a borrower's ability to pay for a home, and a confirmation of the amount the borrower may obtain.

apron
A paved area, such as the junction of a driveway with the street.

aquastat
A thermostat submerged in water and used to control the operation of a device.

arbitration
A method of resolving a dispute in which a third party renders a decision.

arch
A curved structure that supports weight over an area, such as a doorway.

arch surrounds
Half-round or elliptical trim mounted above a door or window for decorative purposes.

architect
A licensed professional who designs homes, buildings, and other structures.

architectural fees
The fee an architect charges for services. In general, architects charge for their services by the hour, by the square foot, or by a percentage of the project budget.

arpent
A French measurement of land equal to .84625 acres.

array
A term used by tax assessors to describe a list of properties in a certain category sold within a given period of time.

as-is condition
The purchase or sale of a property in its existing condition.

asbestos
A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.

asking price
A seller's initial price for a property.

Asphalt Emulsion
sprayed on or painted on asphalt based waterproofing

assemblage
The combining of two or more adjoining lots into one larger tract to increase total value.

assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.

assessment
The placing of a value on property for the purpose of taxation.

assessor
A public official who establishes the value of a property for taxation purposes.

asset
Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

assignment
When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

assumable mortgage
A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must "qualify" in order to assume the loan.

assumption
The term applied when a buyer assumes the seller’s mortgage.

A.T.B.
Asphalt treated base- first layer of asphalt road inlieu of rock base

automatic extension
A clause in a listing contract stating that the agreement will automatically continue for a certain period of time after the expiration date. This is discouraged and prohibited in many states.

automatic flue damper
A device in the flue of a heating unit that closes to prevent heat loss when the unit is not in operation.

average price
The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the number of homes.

avigation easement
An easement over private property near an airport that limits the height of structures and trees.

awning
A roof-like shelter extending over a doorway, window, porch, etc. which provides protection from the sun or rain.

awning windows
Single-sash windows that tilt outward and up.