"I called an 800# in the newspaper and paid $1.99 to CRN. I got my username and password to go on the internet. I called on a house (condo) listed in the area I wanted. The condo was sold but Paul R. (realtor) directed me to another foreclosed condo. In two weeks I owned the property. Thanks CRN."

- Jeanene S

... more

Glossary of Terms


We have compiled a list of the most common real estate terms and definitions to assist you in your search for a home. Whether you are a buyer or seller of real estate it is easy to get confused by the language used in real estate transactions. With our comprehensive real estate glossary you can easily navigate through the complicated world of buying and selling a home.

Click in the letter below to see the glossary

A:B:C:D:E:F:G:H:I:J:K:L:M:N:O:P:Q:R:S:T:U:V:W:X:Y:Z


A


acceptance
The seller's written approval of a buyer's offer.
addendum
An addition or change to a contract.
adjustable rate mortgage
A type of mortgage loan on which payments may be adjusted as frequently as each month based on changes in the ARM interest rate index. (Each individual contract may stipulate interest rate limits and frequency of payment adjustments, known as caps.)
adjusted gross income
Taxable income after all allowable deductions are made, such as IRA deductions, moving expenses, self-employment taxes and health insurance, Keogh retirement plans and alimony payments. (For more information, please see the IRS' definition of AGI for individual taxpayers.)
agency
The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract.
alternative mortgage
A loan that is other than the standard fixed-rate mortgage, ie a non-conforming loan. An alternative mortgage may vary in interest rate, maximum loan amount, or loan-to-value ratio.
American Society of Home Inspectors
A professional association of independent home inspectors. Members must meet the group's education and performance requirements.
amortization
The process of paying the principal and interest on a loan through regularly scheduled installments. Initially, most of each payment is applied toward interest owed, and later in the loan term increasingly applied toward principal.
annual percentage rate (APR)
A measure of interest rate that expresses the cost of a mortgage as a yearly rate on the loan balance. The APR assumes the loan is held for its full term. For adjustable-rate loans, the APR assumes the loan's index doesn't change from its initial value.
appraisal
An opinion of the value of a property at a given point in time.
appreciation
An increase in the value of a home or other property.
arbitration
A method of resolving a dispute in which a third party renders a decision.
asbestos
A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.
as-is condition
The purchase or sale of a property in its existing condition.
asking price
A seller's initial price for a property.
assessed value
The valuation placed upon property by a public tax assessor for purposes of taxation.
assumable mortgage
A mortgage contract that allows a creditworthy buyer to assume ("take over") the mortgage contract of the seller. Many loans have a "due-on-sale" clause stipulating that the mortgage must be repaid upon sale of the property, making them non-assumable.