The Following are real estate terms and topics: Starting With the Letter ( A)

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The Following are real estate terms and topics: Starting With the Letter ( A)

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Are you confused and overwhelmed by the extensive terms and words used in real estate? Every person working in real estate or planning to buy or sell real estate can benefit from learning some of the terms….

Real Estate Terms A

Acceleration clause
A provision in a mortgage that gives the lender the right to demand payment of the entire principal balance, under certain circumstances, such as bankruptcy, nonpayment of taxes on mortgaged property, breaking of loan covenants, or failure to make payments.

Acceptance
An offeree’s consent to enter into a contract and be bound by the terms of the offer. Often, the party making the offer prepares a written real estate contract, signs it, and transmits it to the other party who would accept the offer by signing the contract.

Accrued Item
A Sellers expenses that are treated in a particular way at closing. Accrued items are prorated costs that are owed by a seller(such as real estate taxes in states where these are not prepaid).

Actual Damages
The compensation given to an injured party for proven injuries or losses that resulted from another party’s actions or omissions.

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. This enables the borrower’s futre interest payments to be reduced in amount.

Adjustable-rate mortgage (ARM)
A mortgage loan that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index or variety of indices.

Adjusted basis
The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken. Adjusted basis is the net cost of an asset after adjusting for various tax-related items.

Adjustment date
The date on which the interest rate changes for an adjustable-rate mortgage (ARM).

Adjustment period
The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM). Most ARMs have an adjustment period of one year, meaning that the rate would be adjusted once annually.

Administrator
A person appointed by a probate court to administer the estate of a person who died intestate.

Affordability analysis
A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that you might expect to pay. It is a detailed examination of an individual’s ability to afford a house.

Affidavit of Title
The document in which the seller states that he or she has had no judgments, bankruptcies or divorces since the date of the title examination, that he or she possesses the property, that there are no unrecorded deeds or contracts for the property, that all repairs and improvements have been paid an that here are no defects in the title.

Amenity
A feature of real property that enhances its attractiveness and increases the occupant’s or user’s satisfaction although the feature is not essential to the property’s use.

Amortization
The gradual repayment of a mortgage loan by installments.

Amortization schedule
An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.

Amortization term
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months.

Amortize
To repay a mortgage with regular payments that cover both principal and interest.

Annual mortgagor statement
The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year.

Annual percentage rate (APR)
The cost of a mortgage stated as a yearly rate.

Annuity
An amount paid yearly or at other regular intervals.

Appraisal
A written analysis of the estimated value of a property prepared by a qualified appraiser.

Appraised value
An opinion of a property’s fair market value, based on an appraiser’s knowledge.

Appraiser
A person qualified by education, training, and experience to estimate the value of real property and personal property.

Appreciation
An increase in the value of a property due to changes in market conditions or other causes.

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

Assessment
The process of placing a value on property for the strict purpose of taxation.

Assessment rolls
The public record of taxable property.

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

Asset
Anything of monetary value that is owned by a person.

Assignment
The transfer of a mortgage from one person to another.

Assumable mortgage
A mortgage that can be taken over by the buyer when a home is sold.

Assumption
The transfer of the seller’s existing mortgage to the buyer.

Assumption clause
A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller.

Assumption fee
The fee paid to a lender resulting from the assumption of an existing mortgage.

Attorney-in-fact
A person named in a written power of attorney document to act on behalf of the person who signs the document, called the principal.

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