Real Estate Glossary

A situation in which the grantor in a deed to a parcel of property sells it and retains possession by simultaneously leasing it from the grantee.

The actual price a property sells for, exclusive of any special financing concessions.

An appraisal practice which estimates the value of a property by comparing it to comparable properties which have sold recently.

An economic principal that dictates the price of a good or service through the interaction of supply and demand. When an item is scarce, its price tends to rise, given a constant demand. Real Estate is a classic example of scarcity.

In title industry parlance, a careful exploration and examination of the public records in an effort to find all recorded instruments relating to a particular chain of title.

A loan secured by the equity in a home, when a primary mortgage already exists.

An economic marketplace where mortgage bankers buy and sell existing mortgages.

A loan that is backed by collateral. In the case of a mortgage loan, the collateral is the house.

The property used as collateral for a loan.

Two residences which share a common wall.

Real property owned by one spouse exclusive of any interest of the other spouse.

A financial institution which collects mortgage payments from borrowers and applies the appropriate portions to principal, interest and any escrow accounts.

The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments to.

The covering on outside walls beneath the siding or exterior finish such as stucco.

Also called drywall, the gypsum board commonly used on interior walls.

Garden hose pipe connection.

The lumber used around the foundation to support exterior wall framing.

A property designed and built to support the habitation of one family.

The underside of a cornice at the eaves.

One who settles upon unoccupied land without legal claim or authority. (See Adverse Possession.)

A copy of the last policy or report issued by a title insurer which described the title to land upon which a new search is to be made. In some states, this is called a back title letter or back title certificate.

Interest-bearing bonds issued, usually by a city or county, to secure the payment of assessments levied against land to pay for street improvements. The property owner may pay off the particular assessment against the property, or may allow the assessment to "go to bond" and pay installments of principal and interest over a period of years, usually at the city or county treasurer's office. The holder of a bond received payments from these offices.

A textured plaster exterior (and occasionally interior) wall finish.

A vertical framing piece in a wall, generally 2x4 lumber in interior walls.

A residential development that is created from a piece of land which has been subdivided into individual lots.

An area of land laid out and divided into lots, blocks, and building sites, and in which public facilities are laid out, such as streets, alleys, parks, and easements for public utilities.

A term which indicates a property which is being appraised.

An agreement by which one encumbrance (for example, a mortgage) is made subject to another encumbrance (for example, a mortgage) is made subject to another encumbrance (perhaps a lease). To "subordinate" is to "make subject to," or to make of lower priority.

A basin into which water drains and from which the water is pumped out.

Rights to enter upon and use the surface of a parcel of land, usually in connection with an oil and gas lease or other mineral lease. They may be "implied" by the language of the lease (no explicit reservation or exception of the surface rights) or "explicitly" set forth.

A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements.

The measurement by a surveyor of real property which delineates the boundaries of a parcel of land. An ALTA survey additionally delineates the exact location of all improvements, encroachments, easements and other matters affecting the title to the property in question. A survey may be required by a title insurance company whenever the company is requested to issue an ALTA Extended Coverage Policy.

The method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.