Real Estate Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A-frame design
An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.
Absolute Net
Lease that requires the tenant to pay all costs (including rent) associated with the operation, repair and maintenance of the building. This includes real estate taxes, utilities, repair and maintenance. Also referred to as net-net-net (NNN) or triple net.
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.
Accelerated depreciation
A bookkeeping method that depreciates property faster in the early years of ownership.
Acceleration clause
A provision that gives a lender the right to collect the balance of a loan if a borrower misses a payment.
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.
Additional Rent
Money due under a lease in addition to base rent, such as operating expense increases.
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 acquisition of title to property through possession without the owner's consent for a certain period of time.
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.
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.
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.
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.
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.
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.
As-is
Tenant or buyer accepts the property in its present condition, with no understanding that landlord will improve it first.
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.
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.
Assignment/Subletting
A transfer to another party of property or rights to said property (transfers of title). Examples: leases, mortgages, and deeds of trust. With the permission of the landlord, the tenant gets out of the lease by transferring all interest and obligation in the leased property to another property.
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.
Attorneys' Fees
Attorneys to be paid by one or both parties in case of litigation.
Aviation 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.
