Monday, May 23, 2005
Glossary of Real Estate Terms for the Savy Real Estate Investor
Absolute auction- All properties are sold to the highest bidder; the seller has no reservation prices.
Acceleration - Causing the full amount of a loan to be due upon default of certain provisions.
Acceptance- Agreeing to take an offer; the acceptance of an offer constitutes a contract.
Ad valorem tax - Tax based on the value of the property.
Addendum- An attachment to a contract, often to describe required inspections or financing.
Adjustable-rate mortgage (ARM) - Loan where the interest rate fluctuates according to another rate, as when the mortgage rate is adjusted annually based on the one-year Treasury bill rate, plus a 2 percent margin.
Agency - Legal relationship between a principal and agent arising from a contract in which the principal engages the agent to perform certain acts on the principal’s behalf.
Agent - One who undertakes to transact some business or to manage some affair for another, with the authority of the latter.
Agreement of Sale - Written agreement between buyer and seller to transfer real estate at a future date. Includes all the conditions required for the sale.
Amortization - Gradual process of reducing a debt in a systematic manner.
Appraisal -An expert’s opinion on the value of a property arrived at with careful consideration of all available and relevant data.
Appreciation - Increase in the value of property.
As is - Present condition of property. The “as-is” clause is likely to warn of a defect.
Assessed value - Value against which a property tax is imposed. The assessed value is often lower than the market value to state law, conservative tax district appraisals, and infrequent appraisals.
Assignment- Method by which a right or contract is transferred from one person to another.
Assumable mortgage- Loan that can be transferred to another party. The transferee assumes the debt, but the original borrower is not released from the debt without a novation.
Acceleration - Causing the full amount of a loan to be due upon default of certain provisions.
Acceptance- Agreeing to take an offer; the acceptance of an offer constitutes a contract.
Ad valorem tax - Tax based on the value of the property.
Addendum- An attachment to a contract, often to describe required inspections or financing.
Adjustable-rate mortgage (ARM) - Loan where the interest rate fluctuates according to another rate, as when the mortgage rate is adjusted annually based on the one-year Treasury bill rate, plus a 2 percent margin.
Agency - Legal relationship between a principal and agent arising from a contract in which the principal engages the agent to perform certain acts on the principal’s behalf.
Agent - One who undertakes to transact some business or to manage some affair for another, with the authority of the latter.
Agreement of Sale - Written agreement between buyer and seller to transfer real estate at a future date. Includes all the conditions required for the sale.
Amortization - Gradual process of reducing a debt in a systematic manner.
Appraisal -An expert’s opinion on the value of a property arrived at with careful consideration of all available and relevant data.
Appreciation - Increase in the value of property.
As is - Present condition of property. The “as-is” clause is likely to warn of a defect.
Assessed value - Value against which a property tax is imposed. The assessed value is often lower than the market value to state law, conservative tax district appraisals, and infrequent appraisals.
Assignment- Method by which a right or contract is transferred from one person to another.
Assumable mortgage- Loan that can be transferred to another party. The transferee assumes the debt, but the original borrower is not released from the debt without a novation.
