Glossary

This Glossary of Terms is one that all Realtors have access to and now, you do too!.

A

ABSTRACT OF TITLE
A historical summary of all of the recorded new occupancy of a particular type of land use.

ACKNOWLEDGMENT
A declaration by a person who has signed a document that such signature is a voluntary act, made before a duly authorized person.

ACRE
A 2-dimensional measure of land equaling 160 square rods, 10 square chains, 4,840 square yards, or 43,560 square feet.

ADDENDUM
Something added, as an attachment to a contract. Commonly added addenda in real estate purchase agreements are for financing terms and property inspection requirements.

ADJUSTABLE RATE MORTGAGE (ARM)
A mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan.

AD VALOREM TAX
A tax based on the value of the thing being taxed.

AFFIDAVIT
A written statement, sworn to or affirmed before an officer who is authorized to administer an oath or affirmation.

AGENT
One who undertakes to transact some business or to manage some affair for another, with the authority of the latter.

AGREEMENT OF SALE
A written agreement between seller and purchaser in which the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms of the agreement. Also called offer and acceptance, contract of sale, earnest money contract.

AMORTIZATION
A gradual paying off of a debt by periodic installments.

ANNUAL PERCENTAGE RATE
The effective rate of interest for a loan per year, disclosure of which is required by the Truth-in-Lending Law.

APPRAISAL
An opinion or estimate of the value of a property.

APPRAISAL APPROACH
One of 3 methods to estimate the value of property: cost approach, income approach, and market comparison approach.

APPRAISER
One qualified to estimate the value of real property.

APPURTENANCE
Something that is outside the property itself but is considered a part of the property and adds to its greater enjoyment, such as the right to cross another's land.

AS IS
Without guarantees as to condition, as in a sale.

ASSESSED VALUATION
The value established for property tax purposes.

ASSESSMENT
The amount of tax or special payment due to a municipality or association.

ASSESSOR
An official who determines property tax assessments.

ASSET
Something of value.

ASSUMPTION OF MORTGAGE
The purchase of mortgaged property whereby the buyer accepts liability for the debt that continues to exist. The seller remains liable to the lender unless the lender agrees to release him.

ATTEST
To witness by observation and signature.

B

BALLOON MORTGAGE
A mortgage with a balloon payment.

BALLOON PAYMENT
The final payment on a loan, when that payment is greater than the preceding installment payments and pays the loan in full.

BRIDGE LOAN
Mortgage financing between the termination of one loan and the beginning of another loan.

BROKER
A state-licensed agent who, for a fee, acts for a property owner in real estate transactions, within the scope of state law.

BROKERAGE
The business of being a broker.

C

CANCELLATION CLAUSE
A contract provision that gives the right to terminate obligations upon the occurrence of specified conditions or events.

CERTIFICATE OF INSURANCE
A document issued by an insurance company to verify the coverage.

CERTIFICATE OF TITLE
An opinion rendered by an attorney as to the status of title to a property, according to the public records.

CHAIN OF TITLE
A history of conveyances and encumbrances affecting a title from the time that the original patent was granted or as far back as records are available.

CHATTEL
Personal property. Anything owned and tangible, other than real estate.

CHATTEL MORTGAGE
A pledge of personal property as security for a debt.

CLEAR TITLE
A marketable title; one free of clouds and disputed interests.

CLOSING
1.The act of transferring ownership of a property from seller to buyer in accordance with a sales contract. 2. The time when a closing takes place.

CLOSING COSTS
Various fees and expenses payable by the seller and buyer at the time of a real estate closing.

CLOSING DATE
The date on which the seller delivers the deed and the buyer pays for the property.

CLOSING STATEMENT
An accounting of funds from a real estate sale, made to both the seller and the buyer separately. Most states require the broker to furnish accurate closing statements to all parties to the transaction.

CLOUD ON THE TITLE
An outstanding claim or encumbrance that, if valid, would affect or impair the owner's tile. Compare clear title.

COLLATERAL
Property pledged as security for a debt.

COMMISSION
1. An amount earned by a real estate broker for his services. 2. the official body that enforces real estate license laws.

COMMUNITY PROPERTY
Property accumulated through joint efforts of husband and wife and owned by them in equal shares. This doctrine of ownership now exists in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington State.

COMPARABLES
Properties that are similar to the one being sold or appraised.

CONTRACT
An agreement between competent parties to do or not to do certain things for a consideration.

CONVENTIONAL LOAN
1. Mortgage loan other than one guaranteed by the Veterans Administration or insured by the Federal Housing Administration. 2. A fixed-rate, fixed-term mortgage loan.

CONVEY
To deed or transfer title to another.

CONVEYANCE
The transfer of the title of real estate from one to another; the means or medium by which title of real estate is transferred.

COUNTEROFFER
Rejection of an offer to buy or sell, with a simultaneous substitute offer.

CREDIT RATING (REPORT)
An evaluation of a person's capacity (or history) of debt repayment. Generally available for individuals from a local retail credit association.

CUL-DE-SAC
A street with an intersection on one end and a closed turning area on the other. Often valued in the design of residential subdivisions for the privacy provided to homes on the street.

D

DEFECT IN TITLE
Any recorded instrument that would prevent a grantor from giving a clear title.

DEPOSIT
Money paid in good faith to assure performance of a contract. Deposits are commonly used with sales contracts and leases. If the person who put up the deposit fails to perform, the deposit is forfeited, unless conditions in the contract allow a refund. Brokers are to put deposits in a separate checking account pending completion of the contract.

DESCRIPTION
Formal depiction of the dimensions and location of a property; generally included in deeds, leases, sales contracts, and mortgage contracts for real property.

DISCOUNT POINTS
Amounts paid to the lender (usually by the seller) at the time of origination of a loan, to account for the difference between the market interest rate and the lower face rate of the note (often required when VA loans are used).

DISCOUNT RATE
1. A compound interest rate used to convert expected future income into a present value. 2. The rate charged member banks who borrow from the Federal Reserve System. Same as rediscount rate.

DOWN PAYMENT
The amount one pays for property in addition to the debt incurred.

DUTCH COLONIAL
An early American style, moderate sized, 2 to 2 ½ story house with a gambrel roof and eaves that flare outward.

DWELLING
A place of residence.

E

EARNEST MONEY
A deposit made by a purchaser of real estate to evidence good faith.

EASEMENT
The right, privilege, or interest that one party has in the land of another.

EASEMENT BY NECESSITY
The right of an owner to cross over another's property for a special necessary purpose.

EASEMENT BY PRESCRIPTION
Continued use of another's property for a special purpose can ripen into a permanent use if conditions are met.

EMINENT DOMAIN
The right of the government or a public utility to acquire property for necessary public use by condemnation; the owner must be fairly compensated.

ENCUMBRANCE
Any right to or interest in land that affects its value. Includes outstanding mortgage loans, unpaid taxes, easements, deed restrictions.

EQUITABLE TITLE
The interest held by one who has agreed to purchase but has not yet closed the transaction.

EQUITY
The interest or value that the owner has in real estate over and above the liens against it.

ESCROW
An agreement between 2 or more parties providing that certain instruments or property be placed with a third party for safekeeping, pending the fulfillment or performance of a specified act or condition.

ESCROW AGENT
Any person engaged in the business of receiving escrows for deposit or delivery.

F

FAÇADE
The outside front wall of a building.

FIDUCIARY
One who acts, in a financial role, in the best interests of others.

FINANCIAL STATEMENT
One that shows income and expense for an accounting period, or assets, liabilities and equity as of a point in time.

FINANCING
Borrowing money to buy property.

FIRST MORTGAGE
A mortgage that has priority as a lien over all other mortgages. In cases of foreclosure the first mortgage will be satisfied before other mortgages.

FIXTURES
Improvements or personal property attached to the land so as to become part of the real estate. Tests to determine whether an item is a fixture include: 1. intent of the parties (was it inteded to remain?) 2. method of annexation (how is it affixed?) 3. relation of the parties (was it expected to be part of a tenant's business?)

FLOOD INSURANCE
An insurance policy that covers property damage due to natural flooding. Flood insurance is offered by private insurers but is subsidized by the federal government.

FLOODPLAIN
A level land area subject to periodic flooding from a contiguous body of water. Floodplains are delineated by the expected frequency of flooding.

FLOOR PLAN
The arrangement of rooms in a building, or a one plane diagram of that arrangement.

FRAME HOUSE
A house constructed with a wooden frame over which is placed some form of siding or veneer.

FRENCH PROVINCIAL
A French Provincial style format, 1 ½ -to 2 ½ story house that is perfectly balanced with a high steep hip roof and curved-headed upper windows that break through the cornice.

FRONTAGE
The linear distance of a piece of land along a lake, river, street, or highway.

FULL DISCLOSURE
A requirement to reveal all information pertinent to a transaction.

G

GABLE ROOF
One with a triangle, with the ridge forming an angle at the top and each eave forming an angle at the bottom.

GAIN
An increase in money or property value.

GAMBREL ROOF
One having two slopes on two sides with a steeper lover slope than the upper, flatter sections.

GEORGIAN
A large, English style, formal 2 or 3 story rectangular house that is characterized by its classic lines and ornamentation.

GOOD FAITH
An act done honestly.

GRACE PERIOD
The period during which one party may fail to perform without being considered in default.

H

H HAZARD INSURANCE
A form of insurance that protects against certain risks, such as from fires or storms.

HECTARE
A mertric land measurement equal to about 2.471 acres or about 107,637 square feet.

HIP ROOF
One formed by four walls sloped in different directions with the two longer sides forming a ridge at the top.

HOMEOWNER'S ASSOCIATION
An organization of the homeowners in a particular subdivision, planned unit development, or condominium; generally for the purpose of enforcing deed restrictions or managing the common elements of the development.

HOMEOWNERSHIP
The state of living in a structure that one owns. Contrasted with being a renter or tenant in one's home.

HOMEOWNER'S POLICY
An insurance policy designed especially for homeowners. Usually protects the owner from losses caused by most common disasters, theft, and liability. Coverage and costs vary widely.

HOMEOWNER'S WARRANTY PROGRAM (HOW)
A private insurance program that protects purchasers of newly constructed homes, when the builder participates in the program, against structural and mechanical faults.

HOMESTEAD
Status provided to a homeowner's principal residence by some state statutes; protects home against judgments up to specified amounts.

HOMESTEAD EXEMPTION
In some jurisdictions, a reduction in the assessed value allowed for one's principal residence.

HOUSING AND URBAN DEVELOPMENT (HUD) DEPARTMENT
A U.S. Government agency established to implement certain federal housing and community development programs.

HOUSING CODE
A local government ordinance that sets minimum standards of safety and sanitation for existing residential buildings. Contrast to building codes, which pertain to new construction.

HOUSING STARTS
An estimate of the number of dwelling units on which construction has begun during a stated period.

I

IMPROVED LAND
Land that has some improvements. Land that has been partially or fully developed for use.

INDEMNIFY
(1) To protect another person against loss or damage, (2) To compensate a party for loss or damage.

INSIDE LOT
In a subdivision, a lot surrounded on each side by other lots, as opposed to a corner lot, which has road frontage on at least 2 sides.

INSTALLMENTS
Parts of the same debt, payable at successive periods as agreed; payments made to reduce a mortgage.

INSTRUMENT
A written legal document, created to establish the rights and liabilities of the parties to it.

INTEREST
(1) Cost of the use of money, (2) The type and extent of ownership.

INTEREST RATE
(1) the percentage of a sum of money charged for its use, (2) the rate of return on an investment.

INTERIM FINANCING
A loan, including a construction loan, used when the property owner is unable or unwilling to arrange permanent financing. Generally arranged for less than 3 years, used to gain time for financial or market conditions to improve.

L

LAND
The surface of the earth; any part of the surface of the earth.

LANDLOCKED
The condition of a lot that has no access to a public thoroughfare except through an adjacent lot.

LATENT DEFECTS
Flaws that are hidden but are apt to surface later.

LEGAL DESCRIPTION
Legally acceptable identification of real estate by one of the following: the government rectangular survey, metes and bounds, recorded plat (lot and block number).

LEGAL NAME
The name one has for official purposes.

LIABILITY
A debt or financial obligation. Contrast with asset. A potential loss.

LIABILITY INSURANCE
Protection for a property owner from claims arising from injuries or damage to other people or property.

LIABLE
Responsible or obligated. Contrast with exculpatory clause and nonrecourse.

LIEN
A charge against property making it security for the payment of a debt, judgement, mortgage, or taxes; it is a type of encumbrance. A specific lien against certain property only. A general lien is against all of the property owned by the debtor.

LIST
To obtain a listing.

LISTING
A written engagement contract between a principal and an agent, authorizing the agent to perform services for the principal involving the latter's property. A record of property for sale by a broker who has been authorized by the owner to sell. The property so listed.

LISTING BROKER (AGENT)
The licensed real estate broker (agent) who secures a listing of the property. Contrast with selling broker (agent).

LOAN APPLICATION
Document required by a lender prior to issuing a loan commitment. The application generally includes the following information: name of the borrower, amount and terms of the loan, description of the subject property to be mortgaged, borrower's financial and employment data.

LOAN COMMITMENT
An agreement to lend money, generally of a specified amount, at specified terms at some time in the future.

LOAN-TO-VALUE RATIO (LTV)
The portion of the amount borrowed compared to the cost or value of the property purchased.

M

MAI (Member, Appraisal Institute)
A member of the American Institute of Real Estate Appraisers, which is affiliated with the National Association of Realtors.

MANSARD ROOF
One having two slopes on all four sides, with the lower slope steeper than the upper, flatter sections.

MARKET COMPARISON APPROACH
One of 3 appraisal approaches. Value is estimated by analyzing sales prices of similar properties (comparables) recently sold.

MARKET PRICE
The actual price paid in a market transaction. Contrast with market value.

MARKET VALUE
The theoretical highest price a buyer, willing but not compelled to buy, would pay, and the lowest price a seller, willing but not compelled to sell, would except.

MASONRY
Construction made from brick, cement block, or stone.

MATERIALMAN
A person who supplies materials used in the construction or repair of a building or other property.

MATURITY
The due date of a loan.

MECHANIC'S LIEN
A lien given by law upon a building or other improvement upon land, and upon the land itself, as security for the payment for labor done and materials furnished for improvements.

METES AND BOUNDS
A land description method that details all the boundary lines of land, together with their terminal points and angles.

METROPOLITAN AREA
Generally the developed region economically attached to a large central city; same as standard metropolitan statistical area.

MINERAL RIGHTS
The privilege of gaining income from the sale of oil, gas, and other valuable resources found on land.

MINIMUM LOT AREA
The smallest building lot area allowed in a subdivision, generally specified by a zoning ordinance.

MORTGAGE
A written instrument that creates a lien upon real estate as security for the payment of a specified debt.

MORTGAGE COMMITMENT
An agreement between a lender and a borrower to lend money at a future date, subject to the conditions described in the agreement.

MORTGAGE DISCOUNT
Amount of principal that lenders deduct at the beginning of the loan.

MORTGAGEE
One who holds a lien on property or title to property, as security for a debt.

MORTGAGE INSURANCE
A policy that guarantees repayment of a mortgage loan in the event of death or, possibly, disability of the mortgagor. Protection for the lender in the event of default, usually covering the top 25% of the amount borrowed.

MORTGAGE LIEN
An encumbrance on property used to secure a loan. The holder of the lien has a claim to the property in case of loan default. The priority of the claim depends on the order of recording and any subordination agreements. Thus a first mortgage generally has prior claim to all other mortgage lien holders.

MORTGAGOR
One who pledges property as security for a loan.

MULTIFAMILY HOUSING
A type of residential structure with more than one dwelling unit in the same building.

MULTIPLE LISTING
An arrangement among a group of real estate brokers; they agree in advance to provide information about some or all of their listings to the others and also agree that commissions on sales of such listings will be split between listing and selling brokers.

N

NEGOTIATION
The process of bargaining that precedes an agreement. Successful negotiation generally results in a contract between the parties.

NEIGHBORHOOD
A district or locality characterized by similar or compatible land uses. Neighborhoods are often identified by a place name and have boundaries composed of major streets, barriers, or abrupt changes in land use.

NET WORTH
The excess of assets over liabilities. The amount of equity.

NEW ENGLAND COLONIAL
An early American style, 2 ½ story boxlike house that is generally symmetrical, square, or rectangular with side or rear wings. The traditional material is narrow clapboard siding. The roof is usually the gable type covered with shingles.

NORMAL WEAR AND TEAR
Physical depreciation arising form age and ordinary use of the property.

NOTARIZE
To attest, in one's capacity as a notary public, to the genuineness of a signature.

NOTARY PUBLIC
An officer who is authorized to take acknowledgements to certain types of documents, such as deeds, contracts, and mortgages and before whom affidavits may be sworn.

NOTE
A written instrument that acknowledges a debt and promises to pay.

O

OFFER
An expression of willingness to purchase a property at a specified price.

OFFER AND ACCEPTANCE
A written agreement between Seller and Purchaser in which the Purchaser agrees to buy certain real estate and the Seller agrees to sell upon the terms of the agreement.

OPEN HOUSE
A method of showing a home for sale whereby the home is left open for inspection by interested parties.

OPINION OF TITLE
A certificate, generally from an attorney, as to the validity of title to property being sold.

OPTION
The right to purchase or lease a property upon specified terms within a specified period.

ORDINANCES
Municipal rules governing the use of land.

ORIGINATION FEES
Charges to a borrower to cover the costs of issuing the loan, such as credit checks, appraisal, and title expenses.

OUTSTANDING BALANCE
The amount currently owed on a debt.

OVERIMPROVEMENT
A land use considered too intense for the land.

P

PACKAGE MORTGAGE
A mortgage arrangement whereby the principal amount loaned is increased because personalty (e.g., appliances), as well as realty serve as collateral.

PARCEL
A piece of property under one ownership; a lot in a subdivision.

PARTIAL RELEASE
A provision in a mortgage that allows some of the property pledged to be freed from serving as collateral.

PLANNING COMMISSION
A group of citizens appointed by local government officials to conduct hearings and recommend amendments to the zoning ordinance. The planning commission generally oversees the work of a professional planning department, which prepares a comprehensive plan. May also be called a planning board, zoning commission, or zoning board, depending on locality.

PLAT
A plan or map of a specific land area.

PLAT BOOK
A public record containing maps of land, showing the division of land into streets, blocks, and lots and indicating the measurements of the individual parcels.

POINTS
Fees paid to induce lenders to make a mortgage loan. Each point equals 1% of the loan principal. Points have the effect of reducing the amount of money advanced by the lender.

PREMIUM
The cost of an insurance policy; the value of a mortgage or bond in excess of its face amount.

PREPAID INTEREST
Interest paid in advance of the time earned.

PREPAYMENT CLAUSE
A clause in a mortgage that gives a mortgagor (borrower) the privilege of paying the mortgage indebtedness before it becomes due. Sometimes there is a penalty for pre-payment, with waiver of the interest that is not yet due.

PREPAYMENT PENALTY
Fees paid by borrowers for the privilege of retiring a loan early.

PREPAYMENT PRIVILEGE
The right of a borrower to retire a loan before maturity.

PRESCRIPTION
Acquiring rights through adverse possession.

PRINCIPAL AND INTERST PAYMENT (P&I)
A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to amortization of the principal balance. Commonly used with amortizing loans.

PRINCIPAL, INTEREST, TAXES AND INSURANCE PAYMENT (PITI)
The periodic (typically monthly) payment required by an amortizing loan that includes escrow deposits. Each periodic payment includes a principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgaged property.

PRINCIPAL RESIDENCE
The place one lives in most of the time. May be a single-family house, condominium, trailer, or houseboat. To defer capital gain taxes on the profit from a home, the home must be used as the taxpayer's principal residence.

PRIVATE MORTGAGE INSURANCE
Default insurance on conventional loans, provided by private insurance companies.

PROMISSORY NOTE
A promise to pay a specified sum to a specified person under specified terms.

PROPERTY
The rights that one individual has in lands or goods to the exclusion of all others; rights gained from the ownership of wealth. See real property, personalty; possession, title. Real estate.

PROPERTY TAX
A government levy based on the market value of privately owned property. Sometimes referred to as ad valorem tax or real estate tax.

PRORATE
To allocate between seller and buyer their proportionate share of an obligation paid or due; for example, to prorate real property taxes or insurance.

PROSPECT
A person considered likely to buy. A prospective purchaser.

PUBLIC HOUSING
Government-owned housing units made available to low-income individuals and families at no cost or for nominal rental rates.

PUNCH LIST
An enumeration of items that need to be corrected prior to sale.

PURCHASE AGREEMENT
Same as contract of sale.

R

RAW LAND
Acreage with no added improvements, such as landscaping, drainage, streets, utilities, and structures.

REAL ESTATE
In law, land and everything more or less attached to it. Ownership below to the center of the earth and above to the heavens. Distinguished from personal property. Same as realty. In business, the activities concerned with ownership and use transfers of the physical property.

REAL ESTATE COMMISSION
State agency that enforces real state license laws.

RECORDING
The act of entering in a book of public record instruments affecting the title to real property. Recording in this manner gives notice to the world of facts recorded.

REFINANCE
The substitution of an old loan(s) with a new loan(s).

REGISTRAR
The person who is to maintain accurate official records, such as for deeds, mortgages, and other recorded documents.

RELEASE
To free real estate from a mortgage.

REPLACEMENT COST
The cost of erecting a building to replace or serve the functions of a previous structure.

RESCIND
To withdraw an offer or contract. Regulation Z allows a 3-day period in which to rescind certain credit transactions.

RESIDENCE
The place where one lives, particularly the dwelling in which one lives.

RESIDENTIAL
Pertaining to housing.

RESIDENTIAL PROPERTY
In real estate brokerage terminology, owner-occupied housing. In income taxation terminology, rental units used for dwelling purposes, not of a transient (hotel, motel) nature. To qualify as residential, at least 80% of a building's income should be derived from dwelling units.

RESTRICTION
A limitation placed upon the use of property, contained in the deed or other written instrument in the chain of title or in local ordinances pertaining to land use.

REZONING
An action to change the designation of a subject parcel or group of parcels on the zoning map. The effect of a rezoning is to change the permitted uses for the affected parcels.

RIGHT-OF-WAY
the right to use a particular path for access or passage; a type of easement. The areas of subdivisions dedicated to government for use for streets, roads, and other public access to lots.

RURAL
Pertaining to the area outside the larger and moderate-sized cities and surrounding population concentrations. Generally characterized by farms, ranches, small towns and unpopulated regions.

S

SALES CONTRACT
A contract by which the buyer and seller agree to the terms of sale. Same as agreement of sale, earnest money contract.

SCALE
The proportional relationship between the dimensions of a drawing, plan, or model to the dimensions of the physical object it represents.

SECOND MORTGAGE
A subordinated lien, created by a mortgage loan, over the amount of a first mortgage. Second mortgages are used at purchase to reduce the amount of a cash down payment or in refinancing to raise cash for any purpose.

SECTION (OF LAND)
One square mile in the government rectangular survey. There are 36 sections in a 6-mile square township.

SECURITY
Property that serves as collateral for a debt. A document that serves as evidence of ownership.

SELLER'S MARKET
Economic conditions that favor sellers, reflecting rising prices and market activity. Contrast with buyer's market.

SETBACK
The distance from the curb or other established line within which no buildings may be erected.

SHED ROOF
One having a single, sloped side.

SIMPLE INTEREST
A method of calculating the future value of a sum assuming that interest paid is not compounded, i.e., that interest is paid only on the principal.

SINGLE-FAMILY HOUSING
A type of residential structure designed to include one dwelling. Adjacent units may share walls and other structural components but generally have separate access to the outside and do not share plumbing and heating equipment.

SOUTHERN COLONIAL
A large, early American style, 2 or 3 story frame house with a characteristic colonnade extending across the front. The roof extends over the colonnade.

SPEC HOUSE
A single-family dwelling constructed in anticipation of finding a buyer.

SPECIFIC PERFORMANCE
A legal action in which the court requires a party to a contract to perform the terms of the contract when he has refused to fulfill his obligations. Used in real estate, since each parcel of land is unique.

SQUARE FOOTAGE
The area, measured in square feet, of a piece of real estate. Generally measured from outside the exterior walls in the case of structures.

STATUTE
A law established by an act of legislature.

STIPULATION
The terms within a written contract.

SUBDIVISION
A tract of land divided into lots suitable for home-building purposes. Some states and localities require that a subdivision plat be recorded.

SUBURB
A town or unincorporated developed area in close proximity to a city. Suburbs, largely residential,are often dependent on the city for employment and support services; generally characterized by low-density development relative to the city.

SURVEY
the process by which a parcel of land is measured and its area ascertained. The plan showing the measurements, boundaries, area, and contours.

SURVEYOR
One who prepares surveys.

U UNDERIMPROVEMENT
A structure or development of lower cost than the highest and best use of the site.

UNDERWRITER
One who insures another or takes certain risks. In mortgage lending, the one who approves or denies a loan based on the property and the applicant. In securities, it is the broker that sells the issue and , unless sold on a "best efforts" basis, agrees to purchase the shares not bought by the public.

UNENCUMBERED PROPERTY
Real estate with free and clear title.

UNIMPROVED PROPERTY
Land that has received no development, construction, or site preparation.

UNRECORDED DEED
An instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of change in ownership. Recording is essential to protect one's interest in real estate.

UTILITIES
Services, such as water, sewer, gas, electricity, and telephones, that are generally required to operate a building. The periodic charges for such services.

UTILITY EASEMENT
Use of another's property for the purpose of laying gas, electric, water, and sewer lines.

T

TAX
A charge levied upon persons or things by a government.

TAX DEDUCTIBLE
A type of expense that can be used to reduce taxable income.

TAX DEDUCTION
One that can be used to reduce taxable income.

TAX-EXEMPT PROPERTY
Real property that is not subject, in whole or in part, to ad valorem property taxes.

TERMITE INSPECTION
An examination of a structure by qualified personnel to determine the existence of infestation by termites. Often required by the terms of a sales contract.

TERMITES
Insects that bore into wood and destroy it.

TERMS
Conditions and arrangements specified in a contract.

TIME IS OF THE ESSENCE
A phrase that, when inserted in a contract, requires that all references to specific dates and times of day noted in the contract be interpreted exactly. In its absence extreme delays might be acceptable.

TITLE
Evidence that the owner of land is in lawful possession thereof; evidence of ownership.

TITLE COMPANY
One in the business of examining title to real estate and/or issuing title insurance.

TITLE INSURANCE
An insurance policy that protects the holder from loss sustained by defects in the title.

TITLE REPORT
A document indicating the current state of the title, such as easement, covenants, liens and any defects. The title report does not describe the chain of title.

TITLE SEARCH
An examination of the public records to determine the ownership and encumbrances affecting real property.

TRACT
A parcel of land, generally held for subdividing; a subdivision.

TUDOR
An English style imposing looking house with fortress-lines. Siding is chiefly stone and brick with some stucco and half timbers. Windows and doors have moulded cement or stone trim around them.

W

WAIVER
The voluntary renunciation, abandonment, or surrender of some claim, right, or privilege.

WARRANTY
A promise contained in a contract.

WARRANTY DEED
One that contains a covenant that the grantor will protect the grantee against any and all claims. Usually contains covenants assuring good title, freedom from encumbrances, and quiet enjoyment.

WETLANDS
Land, such as marsh or swamp, normally saturated with water.

WITHOUT RECOURSE
Words used in endorsing a note or bill to denote that the holder is not to look to the debtor personally in the event of nonpayment: the creditor has recourse only to the property. A form of exculpation.

Y

Z

ZONE
An area set off by local ordinance for specific use, subject to certain restrictions or conditions.

ZONING
A legal mechanism for local governments to regulate the use of privately owned real property by specific application of police power to prevent conflicting land uses and promote orderly development. All privately owned land within the jurisdiction is placed within designated zones that limit the type and intensity of development permitted.

ZONING ORDINANCE
Act of city or county or other authorities specifying the type of use to which property may be put in specific areas.