Real Estate Glossary
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Accelerated cost recovery system - A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.
Acceleration clause - A provision that gives a lender the right to collect the balance of a loan if a borrower misses a payment.
Accelerated depreciation - A bookkeeping method that depreciates property faster in the early years of ownership.
Acceptance - The seller's written approval of a buyer's offer.
Access - Any means by which a person can enter property.
Accessibility - The degree to which a building or site allows access to people with disabilities.
Acknowledgment - A written declaration affirming that a person acted voluntarily.
Acre - A measurement of land equal to 43,560 square feet.
Addendum - An addition or change to a contract.
Additional principal payment - Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.
Adjustable-rate mortgage (ARM) - A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.
Adjusted cost basis - The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.
Adjustment period - The amount of time between interest rate adjustments in an adjustable-rate mortgage.
Administrator - A person given authority to manage and distribute the estate of someone who died without leaving a will.
Administrator's deed - A legal document that an administrator of an estate uses to transfer property.
Adverse possession - The acquisition of title to property through possession without the owner's consent for a certain period of time.
Agency - The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract.
Agent - A person licensed by the state to conduct real estate transactions.
Agreement of sale - A document the buyer initiates and the seller approves that details the price and terms of the transaction.
Allowances - Budgets offered by builders of new homes for the purchase of carpeting and fixtures.
Americans with Disabilities Act - A law passed in 1990 that outlaws discrimination against a person with a disability in housing, public accommodations, employment, government services, transportation and telecommunications.
Amortization - The process of paying the principal and interest on a loan through regularly scheduled installments.
Amortization tables - Mathematical tables that lenders use to calculate a borrower's monthly payment.
Amperage - The strength of an electrical current.
Annual Percentage Rate (APR) - The cost of the loan expressed as a yearly rate on the balance of the loan.
Annuity - The payment of a fixed sum to an investor at regular intervals.
Application - A document that details a potential borrower's income, debt and other obligations to determine credit worthiness.
Application fee - The fee that a lender charges to process a loan application.
Appraisal - An opinion of the value of a property at a given point in time.
Appraisal fee - The fee that an appraiser charges to estimate the market value of the property.
Appraisal report - A detailed written report on the value of a property based on recent sales of comparable sites in the area.
Appraised value - An opinion of the current market value of a property.
Appreciation - An increase in the value of a home or other property.
Arbitration - A method of resolving a dispute in which a third party renders a decision.
Arch - A curved structure that supports weight over an area, such as a doorway.
Architect - A licensed professional who designs homes, buildings and other structures.
Architectural fees - The fee an architect charges for services. In general, architects charge for their services by the hour, by the square foot, or by a percentage of the project budget.
Asbestos - A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.
As-is condition - The purchase or sale of a property in its existing condition.
Assessed value - A tax assessor's determination of the value of a home in order to calculate a tax base.
Assessment - The estimated value of a piece of real estate or a levy placed on property in addition to taxes.
Assets - Items of value which include cash, real estate, securities and investments.
Assignor - A person who transfers rights and interests of a property.
Assumable mortgage - A mortgage that can be transferred to another borrower.
Assumption clause - A provision that allows a buyer to take responsibility for the mortgage from a seller.
Assumption fee - A fee the lender charges to process new records for a buyer who assumes an existing loan.
Average price - The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the number of homes.
Awning windows - Single-sash windows that tilt outward and up.
