There are 318 glossary records total.

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 cle

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.

Accretion

An addition to land through natural causes.

Acre

43,560 square feet. A measurement of area. One square acre would be 208.71 ft per side.

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 (ARM)

A type of mortgage where the interest rate varies based on a particular index, normally the prime lending rate. 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 the interest rate changes on an adjustable-rate mortgage.

Adjustment Period

The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).

Adjustments

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

Administrator

A person appointed by a probate court to administer the estate of an individual who has died without a will.

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 or company that acts on behalf of another to transact business, generally in exchange for payment. In real estate, it is a person or company with a real estate license working under the authority of a real estate broker

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.

Amenity

Any feature of a property that increases its value or desirability. These might include natural amenities such as location or proximity to mountains, or man-made amenities like swimming pools, parks or other recreation.

Ammendment

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

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

The breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution and debt service (interest) fees.

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.

Membership fees for a club or organization such as The Board of Realtors.

Annuity

The return, including interest, from an investment of capital, paid in a series of regular payments.

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.

Asking (List) Price

The price placed on property for sale.

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 local government official who determines the value of the 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.

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 withsubject 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.

Balloon Mortgage

A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

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.

Bankruptcy

When a person or business is unable to pay their debts and seeks protection of the state against creditors. Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loan.

Before-tax Income

Income before taxes are deducted.

Beneficiary

To transfer personal property through a will.

Bequeath

To transfer personal property through a will.

Bill of Sale

A written instrument given to pass title to personal property.

Blanket Insurance Policy

A single policy that covers more than one piece of property (or more than one person).

Blanket Mortgage

One mortgage on a number of parcels of real property.

Bona Fide

In good faith, without fraud.

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.

Bond Market

Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.

Breach of Contract

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

Bridge Loan

Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favor is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.

Broker

Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. (See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

BTSA

An Acronym for Bonus To Selling Agent

Budget

A detailed plan of income and expenses expected over a certain period of time. A budget can provide guidelines for managing future investments and expenses.

Building Code

Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.

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.

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).

Call Option

A provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for whatever reason.

Cap

A limit placed on an adjustable-rate mortgage (ARM) as to how much the interest rate or mortgage payments may increase or decrease.

Cape Cod Colonial

A single-story house style made popular in New England. Often characterized by a steep roof with gables.

Capital

(1) Money used to create income, either as an investment in a business or an income property. (2) The money or property comprising the wealth owned or used by a person or business enterprise. (3) The accumulated wealth of a person or business. (4) The net worth of a business represented by the amount by which its assets exceed liabilities.

Capital Expenditure

The cost of an improvement made to extend the useful life of a property or to add to its value.

Capital gain

Profit earned from the sale of an asset.

Capital Improvement

Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.

Capitalization Rate

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

Cash-out Refinance

When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a "cash out refinance."

Caveat Emptor

A legal term meaning "let the buyer beware".

Ceiling

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

Certificate of Eligibility

A certificate obtained by a veteran from a Veteran's Administration office which states that the veteran is eligible for a V.A. insured loan.

Certificate of Occupancy

Document issued by a local governmental agency that states a property meets the local building standards for occupancy.

Certificate of Reasonable Value(CRV)

An appraisal of property for the purpose of insurance by the Veteran's Administration.

Certificate of Title

A certification issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of title offers no protection against any hidden defects in the title which an examination of the public records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy.

Certified Copy

A true copy, attested to be true by the officer holding the original.

Cestui que trust

One having an equitable interest in property, legal title being vested in trustee.

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

Any personal property which is not attached to or an integral part of a property. Chattel is not commonly taken into consideration when appraising the value of real property.

Clear Title

Ownership of property that is not encumbered by any counter-claim or lien.

Closing

The conclusion of the sales transaction when the seller transfers title to the buyer in exchange for consideration. These proceedings are usually held at a Title Company or an Attorney's office.

Closing Costs

Extra expenses beyond the purchase price that are paid at closing. This includes legal fees and mortgage fees.

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.

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 client's funds with the agent's own funds.

Commission

The fee charged by a broker or agent for negotiating a real estate or loan transaction, usually a percentage of the selling price of the property or amount of the loan.

Commitment

A written promise to make or insure a loan for a specified amount and on specified items.

Common Law

As opposed to statute law. Laws that have been established by custom, usage and courts over many years.

Community Reinvestment Act (CRA)

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.

Company Dollar

The term "company dollar" is the amount left over after all commissions have been paid out.

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. Also see 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.

Confidentiality

An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property.

The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold know material facts about the condition of the seller's property from the buyer, or to misrepresent the property's condition. To do so constitutes misrepresentation and may impose liability on both the broker and/or the seller.

Consideration

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

Construction Loan

Short term financing of real estate construction. Generally followed by the long term financing called a "take out" loan, issued upon completion of improvements.

Contingency

The dependence upon a stated event which must occur before a contract is binding. The most common contingency is a clause stating that the buyer must sell their present home before the contract becomes binding. If the buyers home does not sell within the time specified in the contract, the contract is cancelled.

Contingent Fee

Any fee that is earned upon the occurence of some specified event. Example: Listing contracts usually specify that the listing agent will be paid a fee at closing.

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, conditional sales contract, or installment contract.

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. Sometimes called Land Contract, Contract of Purchase, Purchase Agreement, or Earnest Money Contract.

Contract Sales Price

The full purchase price as stated in the contract.

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 (co-op)

A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

Corporation

An entity or organization, created by operation of law, whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures.

Credit

An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.

Credit History

A record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.

Creditor

A person or organization to whom money is owed. Bank, Mortgage Company, Credit Union.

DBA

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

Debt

An amount owed to another.

Debt Service

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

Debtor

One who owes money; a borrower, a maker of a note; a mortgagor.

Deceptive Trade Practices Act

Part of the federal Consumer Protection Act originally passed in 1973 and made specifically applicable to real estate in 1975, specifically prohibiting a lengthy number of false, misleading and deceptive acts or practices. The Texas Supreme Court has defined a deceptive trade practice as one "which has the capacity to deceive an average, ordinary person, even though that person may have been ignorant, unthinking, or credulous.

Deed

A written document that conveys the ownership of real estate from one person or party to another.

Deed Of Trust

The legal instrument used in Texas in lieu of a mortgage, in which the property is conveyed in trust to a trustee to be held as security for a loan.

Deed Restrictions

Provisions placed in deeds to control future uses of the property.

Deed-in-lieu

Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.

Default

Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.

Defeasanse

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 willmaker's death.

Deficiency Judgment

A personal judgment levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.

Delinquency

Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

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.

Deposit

A sum of money given in advance of a larger amount being expected in the future. Often called in real estate as an "earnest money deposit."

Depreciation

A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.

Descent

Acquisition of an estate by inheritance in which an heir succeeds to the property by operation of law.

Designated Agent

A licensee authorized by a broker to act as the agent for a specific principal in a particular transaction. A designated agent is the only agent in the company who has a fiduciary responsibility toward the principal.

Discharge Of Contract

A contract is discharged when the agreement is terminated. Obviously, the most desirable case is when a contract terminates because it has been completely performed, with all its terms carried out. However, a contract may be terminated for other reasons, such as a party's breach or default.

Disclaimer

A statement denying legal responsibility, frequently found in the form of the statement, "There are no promises, representations, oral understandings or agreements except as contained herein." Such a statement, however, would not relieve the maker of any liabilities for fraudulent acts or misrepresentations.

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

In the mortgage industry, this term is usually used in only in reference to government loans, meaning FHA and VA loans. Discount points refer to any "points" paid in addition to the one percent loan origination fee. A "point" is one percent of the loan amount.

Discretionary Income

Income left over for investment after allocations for bills and savings.

Domicile

From domus, Latin for "house." The state where an individual has his or her true, fixed permanent home and principal business establishment and where that person has the intention of returning whenever he or she is absent from it. Once established a domicile is never lost until there is a concurrence of specific intent to abandon the old domicile, intent to acquire a specific new domicile and actual physical presence in the new domicile.

Down Payment

The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

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

Unlawful constraint or action exercised upon a person whereby the person is forced to perform an act against his or her will. A contract entered into under duress is voidable.

Dwelling

Any building, structure or part thereof used and occupied for human habitation or intended to be so used, including any appurtenances. Many municipalities have adopted ordinances relating to the repair, closing and demolition of dwellings unfit for human habitation.

Earnest money

A deposit made of a portion of the purchase price by the buyer to demonstrate his or her serious intent to purchase the property, usually accompanied by an agreement outlining the terms and conditions of the sale.

Easement

The permanent or temporary right to use the property of another for a specific purpose -- e.g. for access over the property, putting up utility lines, etc.

Easement By Prescription

A right to use property, acquired by a long tradition of open and obvious use. For example, if people have been using a trail across your property for a long period of time and you've never complained, they probably have an easement by prescription through your yard to the trail.

Effective Interest Rate

The cost of credit on a yearly basis expressed as a percentage. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Useful in comparing loan programs with different rates and points.

Eminent domain

The right of the government to take over private property for public purposes upon payment of its fair market value.

Encroachment

A fixture, or structure, such as a wall or fence, which invades a portion of a property belonging to another. Solutions range from paying the rightful property owner for the use of the property to the court-ordered removal of the structure.

Encumbrance

Any claim, lien, charge or liability attached to and binding on real property that may lessen its value or burden, obstruct or impair the use of a property but not necessarily prevent transfer of title; a right or interest in a property held by one who is not the legal owner of the property.

Endangered Species Act

Passed by the United States Congress in 1973. The Act was originally intended to protect endangered species on federal lands. Since passage, the Act has been used to prohibit development or other land use in habitats of protected species.

Equal Credit Opportunity Act (ECOA)

A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Equity

A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

Escrow

An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

Escrow Account

Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.

Escrow Disbursements

The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

Estate

The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

Evaporative Coolers (swamp cooler)

An economical method of cooling a home in a dry climate. An evaporative cooler is a large box-like unit, four sides of which are removable panels with vents that let air flow through. Inside of each panel is a "cooler pad," usually made of wood fibers. The unit contains a large fan and a water pump. At the bottom of the unit is a water reservoir. Water is pumped from the reservoir, continually soaking the cooler pads. The fan draws hot outside air through the pads. As the warm air evaporates water from the pads, heat is carried away, cooling the air by up to 20 degrees-F. The water-cooled air is then pumped into the house through an air duct.

Eviction

The lawful expulsion of an occupant from real property.

Evidence Of Title

Proof of ownership of property; commonly a certificate of title, an abstract of title with lawyer's opinion, title insurance or a Torrens registration certificate.

Exception

As used in the conveyance of real estate, an exception is the exclusion of some part of the property conveyed, with title of that excepted part remaining with the grantor. For example, in most subdivision developments, mineral rights are not conveyed to the purchaser of a lot, but remain the property of the developer.

Exchange

A transaction in which all or part of the consideration for the purchase of real property is the transfer of property of "like kind" (i.e., real estate for real estate).

Executor/Executrix

The man/woman appointed in a will to carry out the requests of the will.

Fair Housing Laws

Federal, state, and local laws, particularly Title VIII of the 1968 Civil Rights Act, Title VI of the Civil Rights Act of 1964, and the Civil Rights Act of 1866, which forbid discrimination because of race, sex, color, religion, or national origin, in the selling or renting of homes or apartments, and in other specified transactions. These laws have been recently been expanded to include familial status (having children) and disabilities (Americans with Disabilities Act).

Fannie Mae

The Federal National Mortgage Association (also FNMA), a private corporation which is federally chartered to provide financial products and services that increase the availability and affordability of housing, by purchasing mortgages from banks and other lending institutions; the FNMA is the largest non-bank financial services company in the world, as well as the largest resource for financing of home mortgages in the U.S.

Farm Credit System

A national banking system for financing the activities of farmers and ranchers.

Federal Home Loan Bank System (FHLB)

Regulates the nation's savings and loan associations, much like the Federal Reserve governs the commercial banking industry.

Federal Home Loan Mortgage Corporation (FHLMC)

Commonly known as "Freddie Mac," a federally chartered corporation established in 1970 for the purpose of purchasing mortgages in the secondary market. Freddie Mac was created as a part of the savings association system and, while it is not so limited, its loan purchase policies are designed to accommodate savings association needs. It functions with an independent board of directors but is subject to oversight by HUD.

Federal Housing Administration (FHA)

An agency of the U.S. Department of Housing and Urban Development (HUD), whose function is the insuring of residential mortgage loans made by private lenders; while setting standards for construction and underwriting, the FHA itself does not lend money, or construct housing.

Federal National Mortgage Association (FNMA)

Popularly known as "Fannie Mae," an active participant in the secondary mortgage market. Fannie Mae was established as a federal agency in 1938 for the purpose of purchasing FHA loans from loan originators to provide some liquidity for government-insured loans in a depression-wracked economy when few lending institutions would undertake this type of loan.

Fee Appraiser

A non-salaried appraiser who is paid a fee for the appraisal assignments performed.

Fee Simple

The greatest possible interest a person can have in real estate.

Fee Title

The maximum possible estate one can possess in real property. A fee title estate is the least limited interest and the most complete and absolute ownership in land; it is of indefinite duration, freely transferable and inheritable. A "fee title" is sometimes referred to as "the fee".

FHA Mortgage

A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.

FICO

Acronym for "Fair, Isaac & Company." FICO is the most commonly used scoring system used by lenders to derive credit scores for borrowers.

Fiduciary

A relationship that implies a position of trust or confidence wherein one person is usually entrusted to hold or manage property or money for another. The term fiduciary describes the faithful relationship owed by an attorney to a client or by a broker (and salesperson) to a principal. The fiduciary owes complete allegiance to the client. Among the obligations that a fiduciary owes to his or her principal ane the duties of loyalty, obedience and full disclosure; the duty to use skill, care and diligence; and the duty to account for all monies.

Filled Land

An area of a property where the grade has been raised by depositing dirt, gravel or rock. Under most circumstances a seller (broker) has a duty to disclose to a buyer the fact that a property is on filled land.

Financial Statement

A brief summary of a person's assets, liabilities and earnings records.

Finder's Fee

A fee charged by real estate brokers and apartment-finding services in exchange for locating a rental property. These fees are permitted by law. Some landlords, however, charge finder's fees merely for renting a place. This type of charge is not legitimate and, in some areas, is specifically declared illegal.

Fire Rating

A rating of the length of time it takes a fire to penetrate a barrier. Designates the ability of a material to contain a fire in a carefully controlled test setting for a specified period of time. A material tested in a laboratory that adequately contains a fire for two hours and meets other requirements during the laboratory fire test, is given a two-hour fire resistance rating. Fire-resistance ratings are based on full-scale tests under controlled conditions and are generally recognized by building code authorities and fire insurance rating bureaus. Requirements for fire-resistance ratings are usually set by local building code officials based on the expected occupancy of the building.

First Mortgage

A mortgage which is in first lien position, taking priority over all other liens (which are financial encumbrances).

Fixed Expenses

Those recurring expenses that have to be paid regardless of whether the property is occupied; for example, real property taxes, hazard insurance and debt service. These expenses contrast with operating expenses necessary to maintain the production of income from the operation of a property.

Fixed Rate Mortgage

A mortgage with an interest rate and monthly payment that doesn't vary for the term of the loan.

Fixture

Personal property that becomes real property when attached in a permanent manner to real estate.

Flood Hazard Areas

Locations specified on Federal Emergency Management Agency (FEMA) maps indicating areas that are subject to flooding. The seller's agent is required to inform potential buyers if the agent has knowledge that a property is located in such an area.

Flood Insurance

Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.

Flood Plain

Flood plains are by definition subject to periodic flooding. They are generally characterized by relatively flat topography and soil types that were laid down during past inundations by flood waters. If your property is in the 100-year flood plain, there is a 1-in-100 chance in any given year that your property will flood. If it is in the 25-year flood plain, there is a 1-in-25 chance in any given year that your property will flood. The statistical chance of flooding is not changed by any one flooding event; but repeated flooding may result in the flood plain being recalculated.

For Sale By Owner (FSBO)

An individual homeowner who is attempting to sell his property without a real estate broker. The acronym, FSBO is pronounced "fizzbo."

Forbearance

The act of refraining from taking legal action despite the fact that payment of a promissory note in a mortgage or deed of trust is in arrears. It is usually granted only when a borrower makes a satisfactory arrangement by which the arrears will be paid at a future date.

Foreclosure

The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

Fraud

Any form of deceit, trickery, breach of confidence or misrepresentation by which one party attempts to gain some unfair or dishonest advantage over another. Unlike negligence, fraud is a deceitful practice or material misstatement of a material fact, known to be false, and done with intent to deceive, or with reckless indifference as to its truth, and relied on by the injured party to his or her damage.

Gated Community

A neighborhood or group of neighborhoods, usually surrounded by masonary walls, restricting access through the use of a manned guard station or electronically operated gates. The electronic gates may be opened through the use of individual remote controls and/or a numeric keypad and code. Some gated communities restrict entry at all times, while others only limit access during the evening hours. The City of Houston does not allow public city streets to be gated off, so only neighborhoods with private streets, may have restricted access. The costs associated with maintaining a manned guard gate can significantly impact monthly maintenance fees, depending on the size of the community.

GaZoo

Similiar to the word WaZoo

General Lien

A lien that includes all the property owned by a debtor, rather than a specific property. Contrast with Specific Lien.

General Warranty Deed

A deed in which the grantor fully warrants good and clear title to the property. A general warranty deed offers the most protection of any deed.

Ginnie Mae

The Government National Mortgage Association (GNMA), a United States corporation that guarantees privately issued securities backed by pools of mortgages insured by the Federal Housing Administration, the Farmers Home Administration, or the Veterans Administration.

Good Faith Estimate

A written estimate of closing costs which a lender must provide you within three days of submitting an application.

Government Loan (Mortgage)

A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.

Government National Mortgage Association

(Ginnie Mae) A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA)

Grace Period

A period of time during which a loan payment may be paid after its due date but not incur a late penalty. Such late payments may be reported on your credit report.

Habendum Clause

The "to have and hold" clause which defines or limits the quantity of the estate granted in the premises of the deed.

Hazard Insurance

Lenders require that you get hazard insurance policy before you buy or refinance a home. Hazard insurance shields you against property damages caused by a fire or a severe storm. If you live in an area that’s prone to natural disasters, like earthquakes and floods, you might need a separate policy. If a catastrophe does happen, hazard insurance should cover the costs to rebuild your home. You have to pay for first year of hazard insurance on the closing date. The lender may also require that you deposit up to 2 months of premiums into an escrow account.

Hereditaments

Property, personal and real, capable of being inherited.

High-Rise

A nine-story or taller building containing residential apartments or condominium units. In addition to spectacular views, most high-rises offer their residents a full range of amenities. Building features may include 24-hour concierge service, swimming pools, spas, saunas, tennis courts, exercise areas, party rooms and guest suites. Security is enhanced at these buildings by the manned entry desks and limited access, covered parking garages. Compare with mid-rise.

Highest and Best Use

The particular use of a real property which will produce the greatest financial return. The optimum use of a site as used in appraisal. This is often determined by location, neighboring properties, deed restrictions and local zoning regulations. A home built on a busy street, surrounded by commercial property, and not restricted from other development, is not fulfilling its highest and best use. Once the property is redeveloped into commercial property, it can meet it economic potential.

Home Equity Line Of Credit (HELOC)

A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower's equity in a property.

Home Equity Loan

A home equity loan lets you use your equity, the value of your home minus what you owe, as a guarantee that you’ll repay the loan. Depending on the lender, you could borrow between 80% to 100% of your home’s equity, and sometimes more. Home owners often apply for home equity loans to pay college tuition, to make major renovations on a home, or to pay off credit card debt.

Home Inspection

A thorough inspection performed by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser. Contrast with appraisal.

Homeowner's Insurance

Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards. The policy typically combines personal liability insurance and property hazard insurance coverage for a dwelling and its contents.

Homeowner's Warranty (HOW)

A type of insurance that covers repairs to specified parts of a house for a specific period of time. It may be provided by the builder or property seller as a condition of the sale but homeowners can also purchase it.

Homeowners' Association (HOA)

A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements. See also master association.

Homestead

Real estate that is owned and utilized as the primary family residence, protected in some states as exempt from the claims of creditors.

House Closing

The final transfer of the ownership of a house from the seller to the buyer, which occurs after both have met all the terms of their contract and the deed has been recorded. Also known as just "closing".

Housing and Urban Development, Deparment (HUD)

The U.S. Department of Housing and Urban Development. This is the agency responsible for enforcing the federal Fair Housing Act.

HUD-1

A document that gives a breakdown of the costs that the buyer and seller pay at closing.

Impound Account

An account used to pay your hazard insurance, mortgage insurance and property taxes.

Improvements

Valuable additions to the land, such as buildings, fences, roads, etc., which increase the value of the property.

In-File Credit Report

An objective account, normally computer-generated, of credit and other financial information obtained from a credit reporting agencies.

Income Approach to Value

An estimate of value based on the monetary returns that a property can be expected to generate; capitalization. Contrast with the cost approach to value and the market data approach to value.

Income property

Real estate developed for the purpose of generating income.

Independent School District

In Texas, all but one of the state's school districts are considered "Independent" since they do not fall under the direct control of any other local government, and their boundaries are not constrained by any city or county border lines. Each district is run by an elected school board, which appoints a superintendent and sets budgets and tax rates. Only the State of Texas has the authority to regulate and oversee the actions of an Independent School District.

Index

A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index is generally a published number or percentage, such as the average interest rate or yield on Treasury bills. A margin is added to the index to determine the interest rate that will be charged on the ARM. Some lenders provide caps that limit how much the interest rate or loan payments may increase or decrease.

Inflation

An increase in the amount of money or credit available in relation to the amount of goods or services available, which causes an increase in the general price level of goods and services. Over time, inflation reduces the purchasing power of a dollar, making it worth less.

Initial Interest Rate

The starting interest rate for an adjustable-rate mortgage (ARM) loan or variable-rate home equity line of credit. At the end of the effective period for the initial rate, the interest rate adjusts periodically during the life of the loan based on changes in a specified financial index. Sometimes known as "start rate," "intro rate" or "teaser rate."

Inspection Clause

A stipulation in an offer to purchase that makes the sale contingent on the findings of a home inspector.

Installment Loan

Borrowed money that is repaid in equal payments, known as installments. A furniture loan is often paid for as an installment loan.

Insurable Title

A title which a title company will insure.

Insurance

A contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium.

Insurance Binder

A document that states that insurance is temporarily in effect. Because the coverage will expire by a specified date, a permanent policy must be obtained before the expiration date.

Insured Mortgage

A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (PMI). If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount.

Interest

The sum paid in return for the use of money; could be considered rent for the use of money.

Interest Accrual Rate

The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.

Interest Payment

The portion of a monthly payment that goes to interest based on the amortization schedule.

Interest Rate

The periodic charge, expressed as a percentage, for use of credit.

Intestate

Legal designation of a person who has died without leaving a valid will.

Intimidation

As defined in the fair housing laws, it is the illegal act of coercing, intimidating, threatening, or interfering with a person in exercising or enjoying any right granted or protected by federal, state or local fair housing laws.

Introductory Rate

The starting rate for a home equity loan or line of credit, usually a discounted rate, for a short period of time. See initial interest rate.

Investment Property

A property that is not occupied by the owner and is generally rented to a tenant to produce income.

Joint Tenancy

A form of co-ownership that gives each tenant equal undivided interest and rights in the property, including the right of survivorship.

Judgment

A decree by a court of law that one person, a debtor, is indebted to another, a creditor, in a specified amount. The court may place a lien against the debtor's real property as collateral for payment of the judgment to the creditor.

Judgment Lien

A lien on the property of a debtor resulting from a judgment.

Judicial Foreclosure

A type of foreclosure proceeding used in some states that is handled as a civil lawsuit where the court confirms the sales price for the property and the distribution of the sale proceeds.

Jumbo Loan

Any loan amount in excess of $252,700. Also called a nonconforming loan.

Laches

Delay or negligence in asserting one's rights.

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.

Late Charge

The penalty a borrower must pay when a payment is made a stated number of days after the due date.

Latent Defect

Hidden structural defects and flaws.

Lease

A written agreement between the property owner and a tenant that stipulates rent to be paid, as well as the terms under which the tenant may reside in the real estate for a designated period of time.

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 to 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.

Lease-Purchase Mortgage Loan

An alternative financing option that allows low and moderate income home buyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that accumulates in a savings account for a down payment.

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 acquisation 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 (Not Used in Texas), 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.

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.

Liabilities

A person's financial obligations. Liabilities include long term and short term debt.

Licensee

A person licensed by the Texas Real Estate Commission to engage in real estate brokerage, either as a broker or as a salesman.

LID

Acronym - Levy Improvement District.

Lien

A claim upon a piece of property for the payment or satisfaction of a debt or obligation.

Lien Theory State

Texas is a Lien Theory State, where legal title of mortgaged property resides with the mortgagor (borrower), with the mortgage as a lien against the property.

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.

Lifetime Payment Cap

For an adjustable rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage.

Lifetime Rate Cap

For an adjustable rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan.

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

A sum of borrowed money (principal) that is generally repaid with interest.

Loan to Value Ratio

The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.

Lock

A lender's guarantee that the mortgage rate quoted will be good for a specific number of days from the day of application.

Mandatory Continuing Education (MCE)

The State of Texas requires that its licensed real estate brokers, and salesmen (who have met their SAE requirement), attend at least 15 hours of certified real estate education courses before each license renewal (every two years). At least six of the 15 hours must be in legal topics.

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 Approach to Value

An estimate of value based on the actual sales prices of comparable properties.

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.

Maturity

The date on which the principal balance of a loan becomes due and payable.

MCE

See mandatory continuing education.

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.

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.

MIP (Mortgage Insurance Premium)

Insurance from FHA to the lender against incurring a loss on account of the borrower's default.

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.

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.

Monthly Fixed Installment

The portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortizes, the monthly fixed installment does not include any amount for principal reduction and doesn't cover all of the interest. The loan balance therefore increases instead of decreasing.

Monument

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

Mortgage

Debt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan.

Mortgage Banker

A company that originates mortgages for resale in the secondary mortgage market.

Mortgage Broker

An individual or company that charges a service fee to bring borrowers and lenders together for the purpose of loan origination.

Mortgage Insurance

Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA mortgage insurance.

Mortgage Life Insurance

A type of term life insurance. In the event that the borrower dies while the policy is in force, the mortgage debt is automatically paid by insurance proceeds.

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

Mortgagor

The borrower or homeowner.

MUD

See Municipal Utility District.

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 monthly book and/or computer service that provides Realtors® with detailed listings of most homes currently on the market.

Municipal Utility District (MUD)

Municipal Utility Districts are authorized under the Texas Constitution, Article III, Section 52, or Article XVI, Section 59. They are local political subdivisions of the State, governed by a board of directors.

National Association of Realtors (NAR)

A real estate trade organization that sets the standards for integrity and honesty within the real estate profession nationwide.

Origination fee

A fee paid to the lender for processing a loan application

Percolation test

A testing of the soil on a property to evaluate if its absorption and drainage capacity will allow installation of a septic system

Power of attorney

A written legal document authorizing a person to act as agent for another, to the extent outlined in the document

Quitclaim deed

A deed that releases whatever interest or title a grantor may hold in a property, without claiming any obligations or warranties

Real Estate

Land, including all inherent natural attributes and man-made improvements of a permanent nature placed thereon.

Real Estate Agent

An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.

Real Estate Broker

A real estate agent that is authorized to open and run his or her own agency.

Realtor^®

A designation given to a real estate broker or sales-associate who is a member of a board associated with the National Association of Realtors or with the National Association of Real Estate Boards.

Right-of-way

Permission to pass across the property of another

Section, or Section of land

A parcel of land measuring one square mile or 640 acres. Once section is one square mile.

Title

A legal document that evidences a person's ownership of and right to possess a property

Underwriting

The process of analyzing a borrower's capability to honor repayment of a loan (evaluating his or her credit, assets, employment) along with the value of the property being purchased, to help minimize the risk involved for the party lending the purchase money

VA loan, or Government mortgage

A mortgage loan available to qualified military veterans which is guaranteed by the Department of Veteran Affairs, usually offering either no down payment or a low down payment

Warranty deed

A document conveying ownership of a property that guarantees a clear, clean title

Zoning

The regulation by local government of the use and development of private land