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| RE/MAX
Valley Real Estate
Phone: (330) 629 - 9200 |
| - absorption rate
A term referring to the rate at which properties are able to be sold (or absorbed) in an area within a given period of time, usually one year. It tells astute ® the supply (inventory) of houses on the current market and how long it will take to sell all of those houses: - Three months - (Sellers' Market)
- Six months - (Equilibrium)
- Nine months - (Buyers' Market)
- Twelve-plus - (Extreme Buyers' Market)
See ► - abstract of judgment, law
- The summary of a court judgment that creates a lien against a property when filed with the county recorder.
- Accredited Buyer Representative (ABR)
- See ►
- Accredited Staging Professional (ASP)
- See ►
- accelerated cost recovery system
- A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.
- accelerated depreciation
- A bookkeeping method that depreciates property faster in the early years of ownership.
- acceleration clause
- A provision in a mortgage that gives the lender the right to demand payment of the entire principal balance if a monthly payment is missed. This provision may also be worded in mortgages to demand full payment of the entire principal should the mortgagor transfer any interest in the property such as with a wrap-around mortgage, land contract, or lease option.
- acceptance
- An offeree’s consent to enter into a contract for the purchase of real property and be bound by the terms of the 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.
- accretion
- The gradual addition to the shore or bank of a waterway (river, lake , or sea) by sedimentary deposits of sand or silt
- acre
- A measure of land equal to 43,560 sq. feet; 4,840 sq. yards; 4,047 sq. meters; 160 sq. rods; or 0.4047 hectares.
- See ►
- acre foot
- The volume of material needed to cover an acre of land one foot deep.
- active solar system
- A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use.
- actual age
- The number of years a structure has been standing.
- Contrast with ► effective age.
- 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.
- add-on interest
- The interest a borrower pays on the principal for the duration of the loan
- The American Council for an Energy-Efficient Economy (ACEEE)
- A nonprofit, 501(c)(3) organization dedicated to advancing energy efficiency as a means of promoting both economic prosperity and environmental protection.
- Visit ►
- additional principal payment
- A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.
- adjustable-rate mortgage (ARM)
- A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.
See ► - ," , The Board of Governors, Federal Reserve System
- Home Buyer's Top Ten Tool #6 -
- adjusted basis
- The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.
- adjustment date
- The date on which the interest rate changes for an adjustable-rate mortgage (ARM)
- adjustment period
- The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).
- administrator
- A person appointed by a probate court to administer the estate of a person who died intestate.
- affordability analysis
- A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that you might expect to pay.
- See ► Home Buyer's Top Ten Tool #4 -
- agency
- An area of commercial law dealing with a contractual three part set of relationships when an Agent is authorized to act on behalf of another (called the Principal) to create a legal relationship with a Third Party. It is the relationship between a principal and an agent whereby the agent, with either express or implied authorization from the principal works under control of the principal and on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between:
- Agents and Principals;
- Agents and the Third Parties with whom they deal on their Principals' behalf; and
- Principals and the Third Parties when the Agents purport to deal on their behalf.
See ► - agent
- An agent in commercial law is a person who is authorized to act on behalf of another (called the principal) to create a legal relationship with a Third Party. The Agent's primary fiduciary duty is to be loyal to the principal, although there is a duty of care obligation that must be met when dealing with a third party.
- See ► Real Estate Agent
- amenity
- A feature of real property that enhances its attractiveness and increases the occupant’s or user’s satisfaction although the feature is not essential to the property’s use. Natural amenities include a pleasant or desirable location near water, scenic views of the surrounding area, etc. Human-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.
- American Center For Credit Education (ACCE)
- The American Center for Credit Education (ACCE) is a non-profit accredited organization, whose mission is to make available to all consumers, through various community resources, national standardized credit and financial education. The financial education programs offered by ACCE may be taken online.
- Visit ► .
- amortization
- The gradual repayment of a mortgage loan by installments.
- amortization schedule
- A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.
- amortization term (mortgage term) (term)
- The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.
- See ► Home Buyer's Top Ten Tool #7 -
- amortize
- To repay a mortgage loan with regular payments that cover both principal and interest.
- annual mortgagor statement
- A report sent to the mortgagor each year. The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year.
- annual percentage rate (APR)
- The cost of a mortgage loan stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).
- annuity
- An amount paid yearly or at other regular intervals, often on a guaranteed dollar basis.
- application
- A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security.
- application fee
- This charge imposed by your lender covers the initial costs of processing your loan request and checking your credit report. It is not the same as an origination fee which is usually charged as well.
- appraisal
- A real estate appraisal is a service performed by a licensed or certified appraiser, who develops an opinion of value based upon the highest and best use of real property. The highest and best use is that use which produces the highest value for the land, as if vacant. Use is based on 4 parts; physically possible, appropriate, legal, and economically feasible.
Also of importance is the definition of the type of value being developed and this must be included in the appraisal, i.e. market value, condemnation value, quick sale value, etc. For mortgage valuations of improved residential property, this value is most often reported on a standardized form, the Uniform Residential Appraisal Report. Contrast with ► home inspection, comparable market analysis, and broker's price opinion. - appraised value
- An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
- See ►
- appraiser
- A person qualified by education, training, and experience to estimate the value of real property and personal property. In Ohio, appraisers must be licensed by the Ohio Division of Real Estate and Professional Licensing and are subject to the laws of the Ohio Revised Code.
- appreciation
- An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.
- appurtenance
- A right, privilege or improvement belonging to, and passing with, the land.
- "arm's length" transaction
- A colloquial description of a transaction where none of the parties are related to each other or have common interests -- they are at "arm's length." An arms-length transaction is generally at fair market value In a transaction that is "non-arm's-length," the relationship between the parties may cause one or the other to accept less, or pay more than fair market value.
- assessed value
- The valuation placed on property by a public tax assessor for purposes of taxation. In most Ohio jurisdictions, this value is usually 35 percent of the fair-market value.
- assessment
- The process of placing a value on property for the strict purpose of taxation. Assessment may also refer to a tax levy against real property for a special purpose, such as a sewer assessment.
- assessment rolls
- The public record of taxable property.
- assessor
- A public official who establishes the value of a property for taxation purposes. In Ohio, it is usually the county auditor. In Ohio, the property tax will then most often actually be billed by the county treasurer.
- asset
- Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).
- assignment (of mortgage)
- A written document serving as evidence of a transfer of a loan obligation from the original borrower to a third party. Not to be confused with a release of mortgage.
- assumable mortgage or loan
- A mortgage loan that can be taken over ("assumed") by the buyer when a home is sold.
- assumption
- The transfer of the homeowner’s (mortgagor's) existing mortgage to a buyer. In an Assumption of Mortgage, the buyer "steps into the shoes" of the homeowner and accepts any liability of debt remaining on the existing mortgage instrument. The assumption must be approved by the existing lender or loan service provider (mortgagee) and a written legal instrument called an assignment of mortgage given by the lender is necessary in order for the homeowner to be fully free from any further liability of debt under the assumption.
For example, a homeowner owes a 30-year mortgage loan of $250,000 against his house. A prospective buyer wants to purchase the house and keep the same mortgage. The buyer pays $50,000 cash for the equity in the home and assumes the remaining mortgage, becoming legally liable for the debt. However, the original owner is formally released from the note with the lender's assignment of mortgage, that transfers total liability to the buyer. Do not confuse an "Assumption of Mortgage" with the so called "purchase subject to mortgage." When a buyer purchases property "subject to mortgage", the buyer agrees to assume the remaining debt on an existing mortgage, but the original homeowner remains on the loan and, therefore, remains personally liable for the debt should the buyer default on making the monthly payments. - assumption clause
- A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.
- assumption fee
- The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.
- attorney-in-fact
- One who holds a power of attorney from another to execute documents on behalf of the grantor of the power.
- automated market modeling (AVM)
- AVMs are web-sites that by means of mathematical modeling claim to place a value on your home. They do this by comparing your home with the selling price of similar homes that have recently sold in your area. They all crunch data from public records; and some claim to have input from actual appraisals, pricing trends, and sellers. AVM sites have been shown to be as much as 20% higher or lower than actual certified appraisals.
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