Amortized Loan – A loan that is completely paid off, interest and Principal, by a series of regular payments that are equal or nearly equal. Also called a Level Payments Loan.

Appraisal – An estimate of value based upon a factual analysis of a property or home.

Appreciation – An increase in the value of real estate.

Assumption of Mortgage – The taking of title to property by a grantee, wherein he or she assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property; becoming a co-guarantor for the payment of a mortgage or deed of trust note.

Closing – The date on which a property legally changes hands from seller to buyer.

Conventional Mortgage – A mortgage securing a loan made by investors without government underwriting, i.e., which is not FHA Insured or VA guaranteed.

Counter-Offer – A rejection of an offer by a seller along with an agreement to sell the property to the potential buyer on terms differing from the original offer.

Deed – Written instrument which, when properly executed and delivered, conveys title.

Discount Points – Additional charges made by a lender at the time a loan is made. Points are measured as a percent of the loan, with each point equal to one percent. These additional interest charges are paid at the time a loan is closed to increase the rate of return to the lender to approximate the market level.

Earnest Money Deposit – Deposit made by a purchaser of real estate as evidence of good faith.

Easement – The right or privilege to use another individual’s property.

Encroachment – A structure, or portion of a structure, built on another individual’s property.

Equity – The interest or value that an owner has in real estate over and above the liens against real property.

Escrow – The deposit of instruments and funds with instructions to a third neutral party (Escrow Agent) to carry out the provisions of an agreement or contract.

FHA Loan – A loan that has been insured by the federal government guaranteeing its payment in case of default by the borrower.

Fee Appraisal – The act or process of estimating values of real estate or any interest therein for a fee.

Home Inspection – A review of the physical condition of a home by an experienced individual.

Land Contract – A contract ordinarily used in connection with the sale of property in cases where the seller does not wish to convey title until all or a certain part of the purchase price is paid by the buyer.

Lien – A legal claim against a property used to secure the payment of debt related to the property.

Loan Ratio – The ratio, expressed as a percentage, of the amount of a loan to the value of purchase price of real property.

Marketable Title – Merchantable title; title free ad clear of objectionable liens or encumbrances.

Maturity – (a) The termination period of a note. (b) The date a note becomes due.

Mortgage – An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation; procedure for foreclosure in event of default is established by statute.

Multiple Listing – Multiple Listing is the name given a service performed by the Local Board of Realtors (Multiple Listing Service). MLS provides necessary information to aid in the sale of listings. It is a marketing tool used by member of the Service to eposes properties to a wider market base.

Origination Fee – A fee charged the borrower by the lending institution.

Ownership – The rights to the use enjoyment and alienation of property, to the exclusion of others.

Personal Property – Any property that is not real property (i.e. money, savings accounts, appliances, boats, etc.).

Promissory Note – Following a loan commitment from the lender, the borrower signs a note promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its payment.

Purchase Agreement – An agreement between a buyer and seller for the purchase of real estate.

Real Property – Land whatever by nature of artificial annexation is a part of it.

Special Assessment – Legal charge against real estate by a public authority to pay cost of public improvement such as: streetlights, sidewalks, street improvements, etc.

Term of Mortgage – The period that a mortgage must be paid.

Trust Account – An account separate and apart and physically segregated from broker’s own funds, in which broker is require by law to deposit all funds collected for clients.

VA Loan – A loan guaranteed by the Veteran’s Administration insuring payment in case of default by the borrower. Available e to qualified Veterans.

Zoning – A local governments specifications for the use of real property.