Explore one of the most complete online dictionaries for real estate terminology. Understanding the language of the professionals- Realtors, mortgage brokers, and attorneys, is useful in establishing creditability for you and your company.
Real estate terminology gives you the power to effectively communicate to your team of professionals. Get up to speed on all the basic real estate terminology and definitions.
Annual Percentage Rate (APR):
The APR is the annual rate that is charged when money is borrowed, or made when money has been invested. The APR rate includes several forms of charges that take place during the process which the borrower is required to pay. These charges include the broker fees, interest rate, points and various other elements that are require a funding.
Annuity a sum paid at regular intervals to allow the growth of the sum in an account, this overall saving is then paid out at a later point in time - acting as an insurance policy for people during retirement.
The fee you are required to pay when applying for a mortgage from a mortgage lender or broker, this fee i sussed to cover the cost of the processing that occurs during the application.
An analysis constructed by professionals which is used to estimate the value that a property holds, it also includes several similar properties sales data for comparison.
The appraiser is the individual who carries out the analysis of the desired property, they will also conduct research on similar properties which allows them to set a value for the analysed property. This process is then documented an presented as an appraisal to the client.
The value a home may increase by due to improvements that may have been carried out or a general change to conditions in the market.
The process used to settle a dispute using a third party, allowing a fair conclusion of the case. Both parties will speak their case at a hearing before the arbitrator comes to a conclusion. The disputing parties must agree in advance in order to come to agreement with the decision of the arbitrator.
Asbestos is a fibrous mineral found in many materials used to insulate pipes and tanks, it is also used in ceiling tiles and various other building materials. Due to the harm it can cause if it is inhaled , today it is not used in newly built houses but it may still exist in older buildings due to its popularity in the 1970s.
The value that is placed on a property for taxation purposes.
The assessor holds the task of establishing the value of a property for purposes of taxation, generally an official member of public.
An asset is anything that holds a monetary value such as any form of property, mutual funds, stocks and any other investment that is owned by a person or company.
Assignment of Mortgage:
A formal document which proves the ownership transfer of a mortgage from one client to another, it can be used as a formal item of evidence.
This is the mortgage loan that the buyer can take over when a home is sold on the market. The process occurs when the buyer of the property takes over the sellers existing mortgage; the seller still remains liable for the mortgage unless they are released from the obligation by the lender of the mortgage. The loan may require the lenders consent if it is to be assumed, this is only if the mortgage contains a due-on-sale clause.
An agreement taken out by the home buyer, stating that they will take over the payments for the current mortgage.
the fee set by the lender and paid for by the buyer for the assumption of an existing mortage on the property.
Used to automate the process of loan applications by allowing a software application to streamline the process that is carried out. The application provides a recommendation note to the lender which advises them to either approve the loan or refer it to receive manual underwriting.
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