For complete Real Estate Glossary, please click the alphabetical links below.

Abutters
Neighbors with a common boundary.

Abstract of Title
A summary of or digest of the conveyances, transfer and any other facts relied on as evidence of title together with any other elements of record which may impair the title.

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.

Acceptance
An offeree's consent to enter into a contract and be bound by the terms of the offer.

Accretion
An addition to land from natural causes as for example from gradual action of the ocean or river waters.

Acknowledgment
A formal declaration before a duly authorized officer by a person who has executed an instrument that such execution is his act and deed.

Actual Use
The use to which the property is principally or predominantly devoted.

Acquisition
A formal declaration before a duly authorized officer by a person who has executed an instrument that such execution is his act and deed.

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.

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.

Ad Valorem
According to valuation.

Adverse Possession
The open and notorious possession and occupancy under an evident claim or right, in denial or opposition to the title of another claimant.

Affidavits
As part of the closing process, you're likely to sign numerous affidavits. You may be required, for example, to sign an affidavit of occupancy. It states that you will use the property as a principal residence. Or, you and the seller may have to sign an affidavit stating all of the improvements to the property required in the sales contract were completed before closing.

Affirm
To confirm, to aver, to ratify, to verify.

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.

Agent
One who represents another from whom he has derived authority. A fiduicary agent of the principal.

Agreement of Sale
A written agreement or contract between seller and purchaser on which they reach a meeting of minds on the terms and conditions of the sale.

Air Right
The right of the property owner to use, control or occupy the air space over his property subject to the requirements of aerial navigations and government regulations.

Alienation
The transferring of property to another; the transfer of property and possession of lands, or other things, from one person to another.

Alluvion
Soil deposited by accretion. An increase of earth on a shore or bank of a river.

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.

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
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.

Amortize
To repay a mortgage 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 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.

Application
A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security.

Appraisal
A written analysis of the estimated value of a property prepared by a qualified appraiser. Contrast with home inspection.

Appraised Value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

Appraiser
A person qualified by education, training, and experience to estimate the value of real property and personal property.

Appreciation
An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

Appurtenance
Something annexed to another thing which may be transferred incident to it. That which belongs to another thing as a barn, dwelling, garage, or orchard, is incident to the land to which it is attached.

Assessed Value
The valuation placed on property by a public tax assessor for purposes of taxation.

Assessed Valuation
A valuation of property for the purpose of public officer or board as a basis for taxation.

Assessment
The process of placing a value on property for the strict purpose of taxation. May also refer to a levy against 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.

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
The transfer of a mortgage from one person to another.

Assignor
One who assigns or transfer property.

Assigns Assignees
Those to whom property shall have been transferred.

Assumable Mortgage
A mortgage that can be taken over ("assumed") by the buyer when a home is sold. A provision in an assumable mortgage 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 the sale or transfer of the property.

Assumption
The transfer of the seller's existing mortgage to the buyer.

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.

Attachment
Seizure of property by court order usually done to have it available in the event a judgment is obtained in a pending suit.

Attorney-in-fact
One who holds a power of attorney from another to execute documents on behalf of the grantor of the power.

Automated Underwriting
After you complete your loan application with a lender, it is sent to "underwriting" for review. In short, underwriting is the process used to analyze how you have managed credit obligations in the past, whether you have the ability to repay the mortgage loan you are applying for (i.e., your income and assets), and whether the price you are willing to pay for the home is supported by the price of the property.

Automatic Redemption Clause
A stipulation in a mortgage of several properties providing that when a buyer of one or more lots pays in full the purchase price a portion of the payment shall be applied to the mortgage obligation and the mortgagee shall correspondingly release said lot or lots from the mortgage.

Avulsion
The sudden tearing away or removal of land by action of water flowing over or through it.