Important Decisions Demand Accurate Information

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Abandon/abandonment
Vacating or giving up use of or rights in real property. Also a tenant vacating premises before a lease expires without consent of the landlord.
Abstract of title
Digest of convetances, transfers, wills, and other legal proceedings pertinant to title of a property, such as liens, charges or encumberances.
Acceleration Clause
A common provision of a mortgage or note providing the holder with the right to demand that the entire outstanding balance is immediately due and usually payable in the event of default.
Accrued Interest
Interest earned but not yet paid.
Acknowledgement
Formal declaration by a person executing an instrument that such act is intended as a free and voluntary act made before a duly authorized officer.
Acre
Measure of land area containing 43,560 square feet.
Ad valorem
According to value; the basis of real estate taxation.
Adjustable Rate Mortgage Loans (ARM)
Loans with interest rates that are adjusted periodically based on changes in a pre-selected index. As a result, the interest rate on your loan and the monthly payment will rise and fall with increases and decreases in overall interest rates. These mortgage loans must specify how their interest rate changes, usually in terms of a relation to a national index such as (but not always) Treasury bill rates. If interest rates rise, your monthly payments will rise. An interest rate cap limits the amount by which the interest rate can change; look for this feature when you consider an ARM loan.
Adjustment Interval
On an ARM loan, the time between changes in the interest rate or monthly payment.
Administrator
The person appointed by a probate court to settle the estate of a dead person.
Adverse possession
Right of an occupant of land to aquire title against the real owner, under color of title, where possession has been actual, continuous, hostile, visible and didtinct for the statuory period..
Agent
A person who represents another (a principal) by the principal’s authority.
Agreement of Sale
Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.
Alternative Documentation
A method of documenting a loan file that relies on information the borrower is likely to be able to provide instead of waiting on verification sent to third parties for confirmation of statements made in the application.
Amortization
Repayment of a loan with periodic payments of both principal and interest calculated to payoff the loan at the end of a fixed period of time.
Amount of Advance notice
the number of days’ notice that must be given before a change in the tenancy can take effect. Usually, the amount of advance notice is the same as the number of days between rent payments. For example, in a month-to-month tenancy, the landlord usually must give the tenant 30 days’ advance written notice that the landlord is increasing the amount of the security deposit.
Annual Percentage Rate (APR)
The cost of credit expressed as a yearly rate. The annual percentage rate is often not the same as the interest rate. It is a percentage that results from an equation considering the amount financed, the finance charges, and the term of the loan.
Appeal
A request to a higher court to review a lower court’s decision in a lawsuit.
Application
An initial statement of personal and financial information required to apply for a loan.
Application Fee
Fee charged by a lender to cover the initial costs of processing a loan application. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.
Appraisal
A written estimate of a property’s current market value completed by an impartial party with knowledge of real estate markets.
Appraisal Fee
A fee charged by a licensed, certified appraiser to render an opinion of market value as of a specific date.
APR
See Annual Percentage Rate.
Arbitration
Using a neutral third person to resolve a dispute instead of going to court. Unless the parties have agreed otherwise, the parties must follow the arbitrator’s decision.
Arbitrator
A neutral third person, agreed to by the parties to a dispute, who hears and decides a dispute. An arbitrator is not a judge, but the parties must follow the arbitrator’s decision (the decision is said to be “binding” on the parties). (See arbitration.)
ARM
See Adjustable Rate Mortgage Loans.
Assignment
The transfer of ownership, rights, or interests in property by one person, the assignor, to another, the assignee.
Assumption
A method of selling real estate where the buyer of the property agrees to become responsible for the repayment of an existing loan on the property.