Abstract of judgment - 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.
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.
Back fill - Soil used to solidify the foundation of a structure.
Back title letter - A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes.
Back-to-back escrow - Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time.
Backup offer - A secondary bid for a property that the seller will accept if the first offer fails.
Backwater valve A valve in a sewer line that prevents sewage from flowing back into a house.
Balance sheet - A statement that shows the assets, liabilities and net worth of an individual.
Balloon-frame construction - A type of framing used in two-story homes in which studs extend from the ground to the ceiling of the second floor.
Balloon loan - A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.
Balloon payment - The final lump sum payment due at the end of a balloon mortgage.
Balustrade - Railing held up by a set of posts on a porch or stairway.
Bankruptcy - A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow.
Bargain sale - The sale of a piece of property for less than market value.
Baseboard - Any board or molding found at the bottom of an interior wall.
Baseboard electric heat - Heating units installed in the floor that can be controlled by a central thermostat.
Basement - The area of a home below ground level.
Basis Point - A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points.
Bay - The opening between two columns or walls that forms a space.
Bay window - A window that projects outward in a curve.
Bearing wall - A wall that supports its own weight in addition to other parts of a structure.
Beneficiary - The lender who makes a loan, also called a mortgagee. The person borrowing money is the mortgagor.
Before-tax income - Total income before taxes are deducted.
Bequest - Personal property given to a person through a will.
Betterment - An improvement that increases a property's value as opposed to repairs that maintain the value.
Bidding war - Offers from multiple buyers for a piece of property. Agents also sometimes compete to list a house for sale.
Bilateral contract - A contract in which the parties involved give mutual promises. Also called "reciprocal" contracts.
Bill of sale - A document that transfers ownership of personal property
Binder - A report issued by a title insurance company that details the condition of a home's title. and provides guidelines for a title insurance policy.
Biweekly mortgage - A mortgage that requires payments every two weeks and helps repay the loan over a shorter term.
Blanket insurance policy - A policy that covers more than one person or piece of property.
Blanket mortgage - A mortgage that covers more than one property owned by the same borrower.
Blighted area - A neighborhood that has deteriorated.
Blind nailing - Nails driven into a wall and concealed with putty.
Blue-ribbon condition - A house maintained close to its original condition. Also called mint condition.
Blue sky laws - Regulations on the sale of securities to prevent consumers from investing in fraudulent or high-risk companies without being informed of the risks.
Board-and-batten siding - Siding is composed of 8- to 12-inch wide wooden boards nailed vertically to create a barn-like exterior.
Board foot - Measurement of lumber that is the equivalent of 144 cubic inches.
Board of Equalization - A state board charged with ensuring that local property taxes are assessed in a uniform manner.
Boilerplate - Form language used in deeds, mortgages and other documents. Details can be added by individual parties.
Bona fide - A legal term that refers to actions or persons that are honest and in good faith.
Bond - An agreement that insures one party against loss by acts or defaults of another party.
Book value - The value of a property as a capital asset based on its cost plus any additions, minus depreciation.
Boring test - An analysis of soil in which holes are bored into the ground and samples are removed.
Borough - A section of a city that has authority over local matters.
Borrow - Sand, gravel or other material used for grading.
Borrow pit -The hole at a site that has been excavated.
Boulevard - A street lined with trees or constructed with a landscaped median.
Boundary - The dividing line between two adjacent properties.
Braced framing - A construction method in two-story homes in which the frame is reinforced with posts and braces.
Breach of contract - The failure to perform provisions of a contractwithout a legal excuse.
Breach of covenant - The failure to obey a legal agreement.
Breach of warranty - A seller's inability to pass clear title to a buyer.
Break-even point - The point in which the owner's rental income matches expenses and debt.
Breast height - The height at which the diameter of a tree is measured: four feet, six inches above the ground.
Breezeway - A roofed passageway with open sides.
Brick - Building material made from clay molded into oblong blocks and fired in a kiln.
Bridge loan - A short-term loan for borrowers who need more time to find permanent financing.
Brokerage - The act of bringing together two or more parties in exchange for a fee or commission.
Broker - A person licensed by the state to deal in real estate.
Broom clean - The ideal condition of a building when it is turned over to an owner or tenant.
Brownstone - A vintage row house constructed of red sandstone.
Buffer strip - A parcel of land that separates two or more properties.
Building and loan association - An organization that raises money to helps its members purchase real estate or construct a building.
Building code - A comprehensive set of laws that controls the construction or remodeling of a home or other structure.
Building inspector - A city or county employee who enforces the building code and ensures that work is correctly performed.
Building moratorium - A halt on home construction to slow the rate of development.
Building paper - A thick, water-resistant paper that serves as insulation.
Building permit - A permit issued by a local government agency that allows the construction of home or renovation of a house.
Builder upgrades - Extra house features or better finishing materials that a builder offers.
Building line or setback - Guidelines that limit how close an owner can build to the street or an adjacent property.
Building restrictions - Regulations that limit the manner in which property can be used.
Built-ins - Appliances or other items that are framed into a home or permanently attached.
Bulkhead - A retaining wall designed to hold back water from the ocean or another body of water.
Bundle of rights - The various interests or rights an owner has in a property.
Bungalow - A small one-story house or cottage.
Butterfly roof - A roof formed by two gables that dip in the middle to resemble a butterfly's wings.
Buy-down mortgage - A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage.
Buyer broker - A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid by the buyer rather than the seller.
Buyer's market - A slow real estate market in which buyers have the advantage.
Buyer's remorse - An emotion felt by first-time homebuyers after signing a sales contract or closing the purchase of a house.
Bylaws - The rules and regulations that a homeowners association or corporation adopts to govern activities.
Call option - A clause in a loan agreement that allows a lender to ask for the balance at any time.
Can lights - Cylindrical chambers with bulbs recessed into the ceiling.
Cancellation clause - A clause that details the conditions under which each party may terminate the agreement.
Cantilever - A projecting structure supported on one end, such as a balcony.
Cap - A limit on the amount the interest rate or monthly payment can increase in an adjustable-rate mortgage.
Cape Cod style - A wood-frame or shingled house with a steep roof and several windows projecting from the second floor.
Capital - Money used to create income, such as funds invested in rental property.