Real Estate Terms

A sublet is when the owner of an apartment or the main lease holder decides to rent the apartment to a sub-tenant.

This is a loan that exceeds $1,000,000.

A survey is a document indicating measurements, boundaries and the area of a property.

A tax abatement is a financial incentive offered by a local or municipal government to stimulate development in a particular area. The owner of the property and/or the developer has…

A tax deductible expense helps to reduce taxable income. The tax deductible expenses related to real estate are interest payments on mortgages and real estate taxes.

Tenancy by the entirety refers to co-ownership limited to husband and wife, with the right to survivorship.

Tenancy in common is co-ownership that does not include the right of survivorship.

A term mortgage is a mortgage with interest payments only during the mortgage term, with the principal due at the end of the term.

The amortization term is the period of time in which the interest and principal payments of a loan must be made.

The title of a property is the evidence or documentation that an owner is in lawful possession of the property, such as a property deed.

Title insurance is an insurance policy protecting the insured from financial loss caused by a defect or question about the title to real property.

Title search is a process that examines local public records, laws and related court decisions to determine if any other parties have valid claims against the subject property (such as…

Title transfer tax is a tax imposed on the conveyance of title to real property by deed.

A townhouse is a private residence where at least one wall is shared with another residence.

The Treasury Index is the weekly average yield on US Treasury securities adjusted to a constant maturity of one, three or five years, as made available by the Federal Reserve…

Triple mint condition refers to a residence that is in immaculate condition.

Triple net lease refers to a condition when the lessee pays all the expenses associated with the property in addition to the rent.

A triplex is an apartment that has three levels.

Federal law requires that the lender must give this document to the home buyer within three business days after the loan application. This disclosure gives details of the mortgage payments…

A federal agency that administers funding for projects related to housing.

In mortgage lending, underwriting is the decision-making process used to determine whether the loan risk is acceptable to the lender. Underwriting involves the satisfactory review of the property appraisal and…

Unencumbered property is property that is free of any lien.

Unity of interest occurs when co-owners all have the same percentage of ownership in a property.

Unity of possession occurs when all co-owners have the right to possess any and all portions of the property owned, without physical division.

Unity of time occurs when co-owners receive title at the same time in same conveyance.

Unity of title occurs when co-owners have the same type of ownership in a property.

A special federal tax levied on investment income generated from property held in a pension plan in which there is a mortgage. The property ownership is allocated between the cash…

Shares of stock in a cooperative corporation transferred to the sponsor at the completion of the conversion process. The sponsor normally gets special rights to rent and/or sell these shares…

Use variance is the permission to use the land for a purpose which, under the current zoning restrictions, is prohibited.

Useful life is the period of time that a property is expected to be economically useful.

Usury is charging a rate of interest higher than the rate allowed by law.

A VA guaranteed loan is a mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veteran Affairs.

The vacancy rate is the projected rate of the percentage of rental units that will be vacant in a given year.

Valuation establishes an opinion of value utilizing an objective approach based on facts related to the property, such as age, square footage, location, cost to replace, etc.

Value in use is the present worth of the future benefits of ownership.

A variance is a deviation from specific requirements of a zoning ordinance due to special conditions of the property.

A vendor’s affidavit is a document signed under oath by the seller stating that the seller has not encumbered title to real estate without full disclosure to the purchaser.

Vesting options are choices buyers have in how to acquire property.

Vicarious liability is one person being responsible for the actions of another.

The walk-through inspection of a property occurs right before a closing to ensure that the property is being delivered as stipulated in the contract of sale.

A walk-up building is a building that does not have an elevator and are usually four or five stories.

Wetlands are federal and state protected transition areas between uplands and aquatic habitats that provide flood and storm water control, surface and groundwater protection, erosion control, and pollution treatment.

Words of conveyance is a stipulation in a deed demonstrating the definite intent to convey a specific title to real property to a named grantee.

A wraparound mortgage is a junior mortgage in an amount exceeding a first mortgage against the property.

A writ of attachment is a court order preventing any transfer of attached property during litigation.

The yield refers to the return on an investment.

An area of a municipality or specific building that is zoned for a specific use, such as residential, commercial, etc.

Zoning are the laws regulating land use.

Zoning ordinance is a statement settling forth the type of use permitted under each zoning classification and specific requirements for compliance.