Real Estate Glossary - Steve Saggese - Ithaca Real Estate, Ithaca New York

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Online real estate listings Properties listed for sale on the Internet.
Open house A marketing tool in which a listing agent opens a house for view.
Open listing A property given to a number of brokers to market at the same time.
Open space Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.
Option A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.
Oral agreement Contractual arrangements that are not in writing and are usually not legally binding.
Original principal balance The amount of principal owed on a loan before a borrower makes any payments.
Origination fee A fee charged by most lenders--also called points--for processing a loan. A point is 1 percent of the total loan amount.
Overhang A protruding structural feature.
Owner financing A transaction in which the seller of a property agrees to finance all or part of the purchase.

Parcel An officially described piece of land.
Partition An interior wall.
Partnership There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an investor in the property).
Passive loss A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.
Passive solar system A system that supplies solar heat without the use of electric fans or pumps.
Patent defect A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.
Payment cap A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.
Percolation test A test used to determine the ability of soil to accommodate a septic system.
Per-diem interest Interest charged or accrued daily.
Panel A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.
Paneling Strips of wood or wood material applied as a finish to a wall.
Parking strip The strip of grass between the sidewalk and the street in front of a house.
Partition Any kind of structure dividing one room or space from another.
Patio An interior courtyard or a paved backyard area.
Perennial Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.
Punch list Buyers compile a punch list during the final walk-through detailing items to be fixed before closing.
Purchase agreement A document which details the purchase price and conditions of the transaction.
Purchase-money mortgage A mortgage that a borrower obtains to acquire a property.
Pergola An arbor with an open roof of rafters supported by posts or columns.
Personal property Any moveable property in a house such as furniture or appliances.
Pest-control inspection A common pest-control inspection is a termite inspection, which is required in some states, such as California.
Pier A rectangular masonry support column.
PITI (Principal, Interest, Taxes, Insurance) When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.
Planned communities The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.
Planned-unit development Residents own the home and the land, and share the use and financial responsibility for common areas.
Plaster A labor-intensive and more costly wall finish.
Pocket door A sliding door that retreats into the wall when opened.
Point Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.
Porch The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.
Porte cochere A porch-like roof extending over a driveway.
Portfolio lender A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.
Portico A porch supported by a row of columns.
Possession When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.
Power of attorney A document that authorizes an individual to act on behalf of someone else.
Pre-approval letter A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.
Prepaid expenses The costs for taxes, insurance and assessments paid before the due date.
Prepaid interest Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.
Prepayment penalty Lenders can impose a penalty on a borrower who pays a loan off before its expected end date.
Prequalification Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.
Pre-sold home Homes that are sold before they are built.
Pressure relief valve A safety vent that relieves excess pressure in a water heater.
Price range The range of how much a buyer is willing to pay for a home.
Primer The initial coat of paint that is applied before the final topcoat.
Principal The amount of money that the borrower owes on a mortgage.
Principle of conformity The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.
Principle of progression An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.
Principle of regression An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.
Privacy fence A structure erected between two pieces of property.
Private mortgage insurance (PMI) A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.
Probate sale A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.
Production home Homes that are mass-produced by one builder in a project.
Programming A written summation by an architect of a project's design objectives, constraints and criteria.
Project budget A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services.
Property line The official dividing line between properties.
Property report A disclosure issued by the state when a time-share project is located or sold.
Property tax Property taxes are calculated at about 1.5 percent of the current market value.
Property tax deduction The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.
Property value The value of a piece of property is based on the price a buyer will pay at a certain time.
Proration Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.

Qualifying ratios Lenders compute qualifying ratios to determine how much a potential buyer can borrow.
Queen Anne style A Victorian-era style that originated in San Francisco.
Quit-claim deed A document that releases a party from any interest in a piece of real estate.

R-value A construction term that refers to the resistance of to heat loss. The higher the R-value, the slower the rate of heat loss.
Radon A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets. A leading cause of lung cancer , radon is found in mostly the northern half of the country.
Rafter Rafters form the slope of a pitched roof and are analogous to floor joists.
Rammed-earth construction An alternative building process in which dirt is compacted into large structural frames to create walls.
Ranch style Modern ranch-style homes, popularized in the 1950s, were championed by such architectural giants as Frank Lloyd Wright.
Rate-improvement mortgage A loan with a clause that entitles a borrower to a one-time cut in the interest rate without going through refinancing.
Rate lock When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the guaranteed interest rate is in effect.
Real estate Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure.
Real estate agent A real estate agent has a state license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for real estate brokers.
Real estate attorney A lawyers who specializes in real estate transactions.
Real estate broker A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction in exchange for a commission. Most brokers also have agents working for them, and are entitled to a portion of their commissions.
Real estate investment trusts (REITs) The trusts are publicly traded companies that own, develop and operate commercial properties.
Real Estate Settlement Procedures Act (RESPA) A federal law designed to make sellers and buyers aware of settlement fees and other transaction-related costs. RESPA also outlaws kickbacks in the real estate business.
Real property Land and any permanent fixtures on it, including buildings, trees and minerals.
Realtist A designation for an agent or broker who is a member of the National Association of Real Estate Brokers.
REALTOR® A designation for an agent or broker who is a member of the National Association of Realtors.
Recission The cancellation of a contract by law or consent by the parties involved.
Reconveyance When a borrower completely pays off the mortgage, the property is reconveyed to them from the lender.
Recorder A public official responsible for keeping the records of all real estate transactions.
Recording The filing of a specific document to the appropriate government entity.
Recording fee A fee charged by real estate agents for conveying the sale of a piece of property into the public record.
Redlining The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood.
Refinancing The process of replacing an older loan with a new mortgage that has better terms.
Regulation Z The federal code issued under the Truth-in-Lending Act which requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.
Rehabilitation mortgage A mortgage that provides for the costs of repairing and improving a resale home or building.
Relocation benefits Benefits provided by employers for new workers and can include moving costs, reimbursement for temporary housing and transportation, real estate agent assistance and discounted loans.
Relocation company A firm that administers all aspects of moving in new employees to the community.
Remaining balance The amount of unpaid principal on a home loan.
Remaining term The original loan term minus the number of payments made.
Renter's insurance A policy that covers the replacement value of possessions.
Rent loss insurance A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable.
Repayment plan When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court.
Replacement reserve fund Money that is set aside from homeowners' assessments to replace common property, such as furniture in a planned development's community room.
Repossession When a house is repossessed, it is taken back by the lender holding the mortgage.
Resale value The future value of a piece of property that can be affected by many factors, including the surrounding neighborhood, school scores, and economic and housing market conditions.
Reserve fund All homeowners associations set aside a certain amount of money for major repairs or improvements.
Restructured loan A mortgage in which new terms are negotiated.
Return on investment The amount of profit a property generates.
Reverse mortgage A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community.
Ridge board A horizontal board that serves as the apex of the roof structure.
Ridge vent A vent located along the ridge board of the roof that allows moisture to escape.
Right of first refusal An agreement by a property owner to give another person the right to buy or rent the property before it goes on the open market.
Right to recission A provision in the federal Truth-in-Lending Act that allows borrowers to cancel certain kinds of loans within three days of signing.
Rough-in The installation of plumbing, electrical and other mechanical systems.
Rural Housing Service A U.S. Department of Agriculture program that provides financing to farmers and certain borrowers to purchase rural property when other funds are not available.

Sale-leaseback A transaction in which the buyer leases back the property to the seller for a specified period of time.
Sales contract A contract signed by the buyer and sellerthat details the terms of a home purchase.
Saltbox style A design that dates to colonial times and takes its name from the shape of saltboxes.
Sanitary sewer The drain line in a house that carries away food and human wastewater to a municipal sewer system or a septic system.
Sash One of two windows in a double-hung window.
Schematic designs Renderings of floor plans and the exterior of a house.
Second mortgage Another loan placed upon a piece of property.
Secondary mortgage market A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.
Secured loan Any loan backed by collateral.
Security Apiece of property designated as collateral.
Seller broker A seller broker represents the interest of the seller.
Seller carry-back An agreement in which the seller provides financing for a home purchase.
Seller take-back An agreement in which the seller provides financing for a home purchase.
Seller's market A hot real estate market in which sellers have the advantage and multiple offers are common.
Semi-custom home The buyer of a semi-custom home is free to make some design changes but not to the home's structural plan.
Septic system A self-contained sewage treatment system that distributes wastewater to an underground storage area and relies on bacterial action to decompose solid waste matter.
Servicer A firm that collects mortgage payments and manages borrowers' escrow accounts.
Setback The minimum distance a house or buildings must be from the lot line.
Settlement statement A document that details who has paid what to whom.
Shared-appreciation mortgage A loan that allows a lender or other party to share in the borrower's profits when the home is sold.
Shared-equity transaction A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner.
Shed ceiling A shed ceiling pitches upward at one end.
Shed roof A shed roof pitches up longer on one side than the other.
Shingle style An alternative style of Victorian homes that evolved in the late 19th century to simplify the complexity of the traditional Victorian house.
Shingles Thin, wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber, glass fiber or composition asphalt installed on a roof to prevent water seepage.
Shoe molding An unobtrusive finish trim between the floor and the baseboard designed to hide any irregularities in the seam between the floor and wall or baseboard.
Sill plate A horizontal piece of wood placed on top of the foundation.
Sill cock An exterior threaded faucet connection for garden hoses that provides water outside a home.
Skylight A window in a roof that allows natural light to illuminate a room.
Slab foundation A foundation built directly on soil with no basement or crawl space.
Slider window A window that is composed of two windows, or sashes, that glide open and closed on a metal track.
Soffit An external area under the overhang of a roof.
Soils test A test of the subsoil to ensure that foundations can be safely constructed.
Spanish Mission style A design that is derived from the original missions established by the Spanish in the Southwest.
Special assessment When a homeowners' association needs or wants extra funds, it levies a special assessment upon the owners.
Special deposit account Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.
Specifications The written requirements for materials, equipment, construction systems and standards.
Speculation home A home that has been built without a buyer.
Splash block A slanted block used to divert runoff water from a downspout away from the foundation.
Split-level style A home that is a ranch-style house stacked to fit on a smaller lot and perhaps to accommodate a garage.
Square footage The number of square feet of livable space in a home or building.
Standard Metropolitan Statistical Area Areas designated by the U.S. Office of Management and Budget that contain a city of 50,000 or more.
Standard payment calculation A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments.
Starter home Homes that fall within the lower price range of a typical first-time buyer.
Steel framing A construction method used by commercial and residential builders.
Step-rate mortgage A loan that allows a gradual increase in the interest rate during the first few years of the loan.
Storm sewer A drain line, which is not connected to the sewer line, removes all other wastewater from a home.
Storm windows Sets of windows and screens that are installed on older double-hung windows.
Strike plate The metal part of a lock that is anchored to the doorframe and holds the door closed.
Straight purchase A transaction in which the buyer gives a new-home builder a deposit to begin building and the balance when the sale of the house closes.
Stucco A mixture of sand and cement used to cover the exterior surface or interior walls of a home or building.
Studs The upright pieces of lumber or steel in a wall to which panels, siding, drywall or other coverings are attached.
Subagent When an agent brings a buyer to a property, they in effect act as a subagent to the listing agent.
Subcontractor Specialty construction companies hired by the general contractor to perform certain tasks.
Subdivision The process in which the owner of a large piece of property divides it into smaller parcels.
Sub-flooring The sheathing, usually made of plywood, placed on top of floor joists and covered by flooring.
Subordinate loan A second or third mortgage.
Sump pump A pump that moves water from a basement sump pit.
Survey A precise measurement of a piece of property by a licensed surveyor.
Sweat equity The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements.

Title The actual legal document conferring ownership of a piece of real estate.
Title company Firms that ensure that the title to a piece of property is clear and provide title insurance.
Title insurance A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property.
Title risk Possible impediments to the transfer of a title from one owner to another.
Title search A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property.
Top producer A real state industry term that refers to agents and brokers who sell a high volume of homes.
Top soil The top layer of soil that is removed when lots are graded in preparation for construction.
Total expense ratio The percentage of monthly debt obligations relative to gross monthly income.
Townhouse An attached home that is not a condominium.
Tract home Another term for a production home, a mass-produced house constructed by one builder in a project.
Trade equity Other real estate or assets a buyer gives to a seller as part of the down payment.
Trading down A reference to buyers who purchase a home that is less expensive than their current house.
Trading up A reference to buyers who purchase a home that is more expensive home than their current house.
Transfer of ownership Any legal means by which a piece of real estate changes hands.
Transfer tax An assessment by state or local authorities at the time a piece of property changes hands.
Transom A small hinged window directly above a door.
Tray ceiling A tray ceiling has edges that slant toward the middle from the walls.
Treasury bills Securities issued by the Treasury Department that have the full backing of the U.S. government.
Treasury index An index used to determine interest rate changes for adjustable rate mortgages.
Trellis A decorative landscape structure made of thin strips of wood or plastic.
Trim work The finishing of doors, doorways, window frames and floors.
Truss A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements.
Trust account Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller.
Trustee A legally empowered person who holds or controls a piece of property for another person.
Truth-in-Lending Act A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage or first trust deed) until midnight of the third business day after the contract was signed.
Tuck-point The process of removing old mortar from between bricks and replacing it with new mortar.
Two-step mortgage An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.
Two- to four-family property A piece of property that is owned by one person but provides housing for up to four households.
Tap fees Most companies charge a tap fee for hooking up utilities.
Tax deduction A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted.
Tax lien An impediment placed against a property, such as back taxes.
Tax sale The public sale of a property by the government for nonpayment of taxes.
Tax shelter A term often applied to real estate investment and refers to various tax advantages.
Tear-down condition A house that requires the entire interior to be rebuilt.
Teaser rate An low, short-term rate offered on a mortgage to entice the borrower.
Tenancy by the entirety When a married couple owns a home, it is usually considered tenancy by the entirety If the property must be sold to pay the debts of one spouse, both must agree.
Tenants in common Two or more owners who share interest in a specific property.
Terrace A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape.
The 72-hour clause When a buyer has a house to sell before they can purchase another home, most sellers insist on a 72-hour clause. In the event of a better offer coming in before the contingency is settled, this clause entitles the seller to give the buyer 72 hours to remove the contingency or lose the house.
Third-party origination In a third-party origination transaction, the lender has another institution originate all or part of a mortgage.
Timeshare Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.

Underlayment A layer of wood between the subfloor and the floor.
Underwriting The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan.
Undisclosed heir A person who claims the right to a piece of property after the death of an owner without a will.
Undisclosed spouse An unidentified marital partner who can claim the right to a piece of property.
Unrecorded deed An unrecorded deed transfers ownership from one party to another without being officially recorded.
U.S. Department. of Housing and Urban Development (HUD) A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.
Unsecured loan Any loan that is not backed by collateral.
Upgrades Options than the standard carpeting, lighting, finish carpentry and other amenities offered to all buyers in a new-home project.
Upzoning The process in which a property is zoned from a lower to a higher use.
Urban sprawl The unplanned expansion of development over a large area.
Usury A reference to illegally excessive interest charged on any loan.

Variable rate An interest rate that changes with fluctuations in such indexes as the U.S. Treasury bill index.
Vaulted ceiling An elongated half-cylinder that arches above the floor.
Verification of deposit Part of the loan process, in which a lender will ask a borrower's bank to sign a statement verifying the borrower's account balances and history.
Verification of employment Part of the loan process, in which a lender asks the borrower's employer for confirmation of the borrower's position and salary.
Vestibule A small entrance hall or room.
Veterans Administration (VA) The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment.
Victorian style An architectural style that dates from the mid-19th century.
Vinyl-clad windows Wood windows sheathed in vinyl on the outside.
Voluntary lien A lien that a homeowner willingly gives to a lender.
VA loans A program that allows most veterans to purchase a house without a down payment.
Variable interest rate A loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills.
Variable rate mortgage A loan with an interest rate that hinges on factors such as the rate paid on bank certificates and Treasury bills.

Wainscoting Wood paneling, tongue-and-groove boards or similar material installed between a baseboard and a chair rail.
Waiver A voluntary relinquishing of certain rights or claims.
Walk-out basement A feature that allows a door to open onto ground level.
Walk-through A buyer's final inspection of the home to determine if conditions in the purchase agreement have been satisfied.
Warranty A legally binding promise to do something in the future.
Wetlands Watery areas such as swamps, marshes and floodplains.
Wild deed An improperly recorded deed.
Will The most basic legal document outlining the disposition of a person's estate in the event of death.
Window light An individual pane of glass.
Window seat A bench built under an interior window.
Window well A curved, corrugated steel insert used to isolate basement windows from moisture if they're below the soil line.
Window well covers Curved plastic covers designed to be installed on top of a window well to cover the opening.
Wraparound mortgage A loan to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan.

Zero-lot lines Houses built without space between them and with little or no yard.
Zoning Regulations that control the use of land within a jurisdiction..
Zoning variance A one-time modification of existing zoning law.

Information deemed reliable but not guaranteed.

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