Real Estate 101 Glossary S-V

We are coming down to the end of the alphabet.

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

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

SCARCITY   
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.

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

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

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

SECURITY   
The property used as collateral for a loan.

SEMIDETACHED HOUSING   
Two residences which share a common wall.

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

SERVICING   
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.

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

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

SHORT SALE   When a borrower owes more on a mortgage than their home is worth and are financially unable to continue making the mortgage payments.  In order for this to sell, the borrower’s lender would have to agree to take less than it owed on the property and pay seller’s closing fees.

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

SILL COCK   
Garden hose pipe connection.

SINGLE-FAMILY PROPERTY   
A property designed and built to support the habitation of one family.

SOFFIT  
The underside of a cornice at the eaves.

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

STUD   
A vertical framing piece in a wall, generally 2×4 lumber in interior walls.

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

SUBJECT PROPERTY   
A term which indicates a property which is being appraised.

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

SURVEY   
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.

SWEAT EQUITY   
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.

TAX-EXEMPT PROPERTY   
Any property which is not taxed.

TENANCY   Back to top
The right to occupy a building or unit.

TENANCY IN COMMON   
A form of holding title, whereby there are two or more people on title to a property, ownership does not pass on to the others upon the death of one individual.

THIRD PARTY ORIGINATION   
When a lender uses a third party to originate and package loans for sale to the secondary market (Fannie Mae, Freddie Mac).

TITLE   
A specific document which serves as proof of ownership.

TITLE COMPANY   
An organization which researches and certifies ownership of real estate before it is bought or sold. Title companies also act at the facilitator ensures all parties are paid during the real estate transaction.

TITLE INSURANCE   
A policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. This also covers a lender should a question of ownership arise.

TITLE SEARCH   
The process whereby the TITLE COMPANY researches a properties title history and ensures that no outstanding claims exist.

TRANSFER OF OWNERSHIP   
Any means by which the ownership of a property changes hands.

TRANSFER OF TAX   
Taxes payable when title passes from one owner to another.

TRAP   
A bend in water pipe.

TRUSTEE   
A fiduciary that holds or controls property for the benefit of another.

TRUTH IN LENDING   
A federal law requiring full disclosure by lenders to borrowers of all terms, conditions and costs of a mortgage.

TUDOR   
A style of architecture typified by exposed stone, wood and brick construction. Similar in style to English manor homes.

UNDER IMPROVED LAND   
A piece of land which has been improved, but not to the full extent of its potential.

UNENCUMBERED PROPERTY   
Any property which has no outstanding claims or liens against it.

UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP)   
Developed in 1986 by the Ad Hoc Committee on Uniform Standards and copyrighted in 1987 by The Appraisal Foundation, USPAP forms the guidelines followed by every licensed and certified real estate appraiser in the United States. The purpose of these Standards is to establish requirements for professional appraisal practice, which includes appraisal, appraisal review, and appraisal consulting. The intent of these Standards is to promote and maintain a high level of public trust in professional appraisal practice.

USEFUL LIFE   
The span of time over which a property can be used or can provide benefits to its owner.

VACANCY RATE   
The current percentage of vacant properties in a given area, regardless of why they are vacant.

VA MORTGAGE   
A mortgage that is guaranteed by the Department of Veterans Affairs (VA).

VARIANCE   
An exception to municipal zoning regulations granted for a specific time period to allow for non-conforming use of the land.

VENT PIPE   
A pipe allowing gas to escape.

VESTED   
Having the right to use a portion of a fund such as an IRA. Typically vesting occurs over time. If you are 100% vested, you have a right to 100% of the fund.

VETERANS AFFAIRS, DEPARTMENT OF (VA)   
The successor to the Veteran’s Administration, this government agency is responsible for ensuring the rights and welfare of our nation’s veterans and their dependents. Among other duties, the VA insures home loans made to veterans.

VOLTAGE  
An expression of electric force, or pressure. One volt being the force needed to move one amp against one ohm resistance.

Advertisements

Tags: , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: