Amortization The process of paying the
principal and interest on a loan through regularly
scheduled installments.
Amortization tables Mathematical tables
that lenders use to calculate a borrower's monthly
payment.
Amperage The strength of an electrical
current.
Anchor bolt A large steel bolt anchored in
concrete and attached to a building to prevent the
structure from moving.
Annual Any kind of plant that must be
planted every year.
Annual mortgagor statement A yearly
statement to borrowers that details the remaining
principal and amounts paid for taxes and interest.
Annual Percentage Rate (APR) The cost of
the loan expressed as a yearly rate on the balance of
the 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.
Application A document that details a
potential borrower's income, debt and other obligations
to determine credit worthiness.
Application fee The fee that a lender
charges to process a loan application.
Appraisal An opinion of the value of a
property at a given point in time.
Appraisal fee The fee that an appraiser
charges to estimate the market value of the property.
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 the current
market value of a property.
Appreciation An increase in the value of a
home or other property..
Arbitration A method of resolving a dispute
in which a third party renders a decision.
Arbor An area shaded by trees, shrubs or
vines on a latticework structure.
Arch A curved structure that supports
weight over an area, such as a doorway.
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.
Asbestos A fire-resistant mineral used for
insulation and home products that has been found to pose
a health hazard.
As-is condition The purchase or sale of a
property in its existing condition.
Asking price A seller's initial price for a
property.
Assessed value A tax assessor's
determination of the value of a home in order to
calculate a tax base.
Assessment The estimated value of a piece
of real estate or a levy placed on property in addition
to taxes.
Assessment rolls A list of taxable property
compiled by the assessor.
Assets Items of value which include cash,
real estate, securities and investments.
Assignor A person who transfers rights and
interests of a property.
Assumable mortgage A mortgage that can be
transferred to another borrower.
Assumption clause A provision that allows a
buyer to take responsibility for the mortgage from a
seller.
Assumption fee A fee the lender charges to
process new records for a buyer who assumes an existing
loan.
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 windows Single-sash windows that
tilt outward and up.
Abstract of judgment,law The summary of a
court judgment that creates a lien against a property
when filed with the county recorder.
Accelerated cost recovery system A tax
calculation that provides greater depreciation in the
early years of ownership of real estate or personal
property.
Acceleration clause A provision that gives
a lender the right to collect the balance of a loan if a
borrower misses a payment.
Accelerated depreciation A bookkeeping
method that depreciates property faster in the early
years of ownership.
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.
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.
Add-on interest The interest a borrower
pays on the principal for the duration of the loan.
Adjustable-rate mortgage (ARM) A loan with
an interest rate that is periodically adjusted to
reflect changes in a specified financial index.
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 period The amount of time
between interest rate adjustments in an adjustable-rate
mortgage.
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.
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.
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 closing The process by which a
lender uses a title company or other firm as an agent to
complete a loan.
Agent A person licensed by the state to
conduct real estate transactions.
Agreed boundary A compromise boundary to
which property owners agree in order to resolve a
dispute.
Agreement of sale A document the buyer
initiates and the seller approves that details the price
and terms of the transaction.
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.
Allowances Budgets offered by builders of
new homes for the purchase of carpeting and fixtures.
Alternative mortgage Any home loan that
does not conform to a standard fixed-rate mortgage.
Aluminum-clad windows Wooden windows with
aluminum covering the exterior.
Aluminum siding A metal covering that
provides an alternative to paint for owners of wood
homes.
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 The
American Society of Home Inspectors is a professional
association of independent home inspectors. Phone: (800)
743-2744.
Americans with Disabilities Act A law
passed in 1990 that outlaws discrimination against a
person with a disability in housing, public
accommodations, employment, government services,
transportation and telecommunications.
