Lawrence, KS Real Estate Glossary
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ABSORPTION RATE
The ratio of the number of properties in an area that have been sold against the number available. Used to show the volatility of a market.
ABSTRACTION METHOD
This method of estimating the value of Lawrence property uses similar properties available in the same market to extract the value of a parcel of land.
ACCELERATION CLAUSE
A provision in a mortgage that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstances. Usually when the borrower defaults on the loan.
ACCESSORY BUILDING
A building separate from the main structure on a Lawrence property. Often used for a specific purpose, such as a workshop, storage shed or garage.
ACCRETION
The natural growth of a piece of land resulting from forces of nature
ACRE
43,560 square feet. A measurement of area.
ACTUAL AGE
The amount of time that has passed since a building or other structure was built. See also: EFFECTIVE AGE
ADJUSTMENT DATE
The date the interest rate changes on an adjustable rate mortgage.
AD VAL OREM TAX
Taxes assessed based on the value of the land and improvements
ADDENDUM
A supplement to any document that contains additional information pertinent to the subject. Appraisers use an addendum to further explain items for which there was inadequate space on the standard appraisal form.
ADJUSTABLE-RATE MORTGAGE (ARM)
A type of mortgage where the interest rate varies based on a particular index, normally the prime lending rate.
ADJUSTED BASIS
The value of an asset (Lawrence property or otherwise) that includes the original price plus the value of any improvement, and less any applicable depreciation.
ADJUSTED SALES PRICE
An opinion of a Lawrence property’s sales price, after adjustments have been made to account for differences between it and another comparable Lawrence property.
AESTHETIC VALUE
The additional value a Lawrence property enjoys based on subjective criteria such as look or appeal.
AFFIRMATION
A declaration that a certain set of facts are truthful.
AFFORDABILITY ANALYSIS
A calculation used to determine an individual’s likelihood of being able to meet the obligations of a mortgage for a particular Lawrence property. Takes into account the down payment, closing costs and on-going mortgage payments.
AGENT
A person who has been appointed to act on behalf of another for a particular transaction.
AMENITY
Any feature of a Lawrence property that increases its value or desirability. These might include natural amenities such as location or proximity to mountains, or man-made amenities like swimming pools, parks or other recreation.
AMERICAN SOCIETY OF APPRAISERS
An organization of appraisal professionals and others interested in the appraisal profession.
AMORTIZATION
The repayment of a loan through regular periodic payment.
AMORTIZATION SCHEDULE
The breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution and debt service (interest) fees.
AMORTIZATION TERM
The length of time over which an amortized loan is repaid. Mortgages are commonly amortized over 15 or 30 years.
AMPERAGE (AMP or AMPERE)
A measure of electric current. The homes breaker box, circuit breakers, wiring and electrical outlets are all rated in AMPS.
ANNUAL PERCENTAGE RATE (APR)
The rate of annual interest charged on a loan.
ANNUITY
A sum of money paid at regular intervals, often annually.
APERATURE
The opening in pipes.
APPLICATION
A form used to apply for a mortgage loan that details a potential borrower’s income, debt, savings and other information used to determine credit worthiness.
APPRAISAL
A ”defensible” and carefully documented opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser.
APPRAISAL FOUNDATION
A not-for-profit educational organization established by the appraisal profession in the United States in 1987. It is dedicated to the advancement of professional valuation and responsible for establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP).
APPRAISAL INSTITUTE
A world-wide organization dedicated to Lawrence real estate appraisal education, publication and advocacy.
APPRAISAL PRINCIPLES
The basic building blocks of the Lawrence property valuation process, including Lawrence property inspection, market analysis and basic economics.
APPRAISAL REPORT
The end result of the appraisal process usually consists of one major standardized form such as, the Uniform Residential Appraisal Report form 1004, as well as all supporting documentation and additional detail information. The purpose of the report is to convey the opinion of value of the subject Lawrence property and support that opinion with corroborating information.
APPRAISAL STANDARDS BOARD (ASB)
An independent board of the APPRAISAL FOUNDATION, which writes, amends, and interprets USPAP. The ASB is composed of up to seven appraisers appointed by the Foundation’s Board of Trustees. The ASB holds public meetings throughout the year to interpret and amend USPAP.
APPRAISED VALUE
An opinion of the fair market value of a Lawrence property as developed by a licensed, certified appraiser following accepted appraisal principals.
APPRAISER
An educated, certified professional with extensive knowledge of Lawrence real estate markets, values and practices. The appraiser is often the only independent voice in any Lawrence real estate transaction with no vested interest in the ultimate value or sales price of the Lawrence property.
APPRECIATION
The natural rise in Lawrence property value due to market forces.
ARMS LENGTH TRANSACTION
Any transaction in which the two parties are unconnected and have no overt common interests. Such a transaction most often reflects the true market value of a Lawrence property.
ASBESTOS
A naturally occurring mineral fiber sometimes found in older homes. It is hazardous to health when a possibility exists of exposure to inhalable fibers. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it.
ASSESSED VALUE
The value of a Lawrence property according to jurisdictional tax assessment.
ASSESSMENT
The function of assigning a value to a Lawrence property for the purpose of levying taxes.
ASSESSMENT RATIO
The comparative relationship of a Lawrence property’s assessed value to its market value.
ASSESSOR
The jurisdictional official who performs the assessment and assigns the value of a Lawrence property.
ASSET
Any item of value which a person owns.
ASSIGNMENT
Transfer of ownership of a mortgage usually when the loan is sold to another company.
ASSUMABLE MORTGAGE
A mortgage that can be taken over by the buyer when a home is sold.
ASSUMPTION
When a buyer takes over, or “assumes” the sellers mortgage.
ATTACHED HOUSING
Any number of houses or other dwellings which are physically attached to one another, but are occupied by a number of different people. The individual houses may or may not be owned by separate people as well.
AWNING WINDOWS
A window with hinges at the top allowing it to open out and up.
BACKFILL
The slope of the ground around a house.
BALL COCK VALVE
The valve inside a toilet tank that controls the filling of the tank.
BALLOON MORTGAGE
A mortgage loan in which the monthly payments are not large enough to repay the loan by the end of the term. So at the end of the term, the remaining balance comes due in a single large payment.
BALLOON PAYMENT
The final large payment at the end of a balloon mortgage term.
BANKRUPTCY
When a person or business is unable to pay their debts and seeks protection of the state against creditors. Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loan.
BASEBOARD
Usually wood or vinyl installed around the perimeter of a room to cover the space where the wall and floor meet.
BASEBOARD HEAT
A heating system with the heating unit located along the perimeter of the wall where the baseboard would be. It can be either an electric or hot water system.
BEAM
A structural supporting member.
BILL OF SALE
A physical receipt indicating the sale of Lawrence property.
BIWEEKLY MORTGAGE
A mortgage where you make “half payments” every two weeks, rather than one payment per month. This results in making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgage.
BLIGHTED AREA
Any region of a city or town that has fallen into disrepair or otherwise has become undesirable.
BONA FIDE
Any genuine offer, made without intent to defraud or deceive.
BREAKER BOX
A metal box that contains circuit breakers or fuses that control the electrical current in the home.
BRIDGE FINANCING
An interim loan made to facilitate the purchase of a new home before the buyer’s current residence sells and its equity is available to fund the new purchase.
BRIDGING
Structural members used between beams to strengthen the structure.
BROKER
An individual who facilitates the purchase of Lawrence property by bringing together a buyer and a seller.
BTU
British Thermal Unit. A unit of measurement used to describe heating or cooling capacity.
BUCKLING
The bending of a building material as a result of wear and tear or contact with a substance such as water.
BUFFER ZONE
A segment of land between two disparate municipal zones which acts as a shield to keep one zone from encroaching upon the other. Often used to separate residential districts from commercial areas.
BUILDING CODE
Regulations that ensure the safety and material compliance of new construction within a municipality. Building codes are localized to ensure they are adequate to meet the risk of common hazards.
BUILDING LINE OR SETBACK
The statutory distance between buildings and the Lawrence property line, imposed by municipalities, home associations, or other agreements.
BUILT-INS
Specific items of personal Lawrence property which are installed in a Lawrence real estate improvement such that they become part of the building. Built-in microwave ovens and dishwashers are common examples.
BUYERS AGENT
An agent who has a contractual obligation to represent the buyer in the real estate transaction.
BUNGALOW
A one-story, home-style dating from the early twentieth century. Often characterized by a low-pitched roof.
BUY DOWN
Extra money paid in a lump sum to reduce the interest rate of a fixed rate mortgage for a period of time. The extra money may be paid by the borrower, in order to have a lower payment at the beginning of the mortgage. Or paid by the seller, or lender, as incentive to buy the Lawrence property or take on the mortgage.
BX CABLE
Electrical cable shrouded in a galvanized steel outer cover.
CALL OPTION
A clause in a mortgage which allows the lender to demand payment of the outstanding balance at a specific time.
CAP
Associated with Adjustable Rate Mortgages. A limit on how high monthly payments or how much interest rates may change within a certain time period or the life of the mortgage.
CAPE COD COLONIAL
A single-story house style made popular in New England. Often characterized by a steep roof with gables.
CAPITAL
Accumulated goods and money which is most often used to generate additional income.
CAPITAL EXPENDITURE
An outlay of funds designed to improve the income-producing capabilities of an asset or to extend its economic life.
CASEMENT WINDOWS
A sidehinged window that opens on hinges secured to the side of the window frame.
CASH-OUT REFINANCE
Refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cash.
CAULKING
Material used to fill joints that may exist between floors and fixtures; around windows and doors, shower stalls and bathtubs, etc.
CAVEAT EMPTOR
Literally translated: ”Let the buyer beware.” A common business tenet whereby the buyer is responsible for verifying any and all claims by the seller of Lawrence property.
CERTIFICATE OF DEPOSIT
A document showing that the bearer has a certain amount of money, at a particular amount interest, on deposit with a financial institution.
CERTIFICATE OF DEPOSIT INDEX
An index based on the interest rate of six month CD’s. Used to set interest rates on some Adjustable Rate Mortgages.
CERTIFICATE OF ELIGIBILITY
A document issued by the Veterans Administration that certifies eligibility for a VA loan.
CERTIFICATE OF OCCUPANCY
Issued by an appropriate jurisdictional entity, this document certifies that a building complies with all building codes and is safe for use or habitation.
CERTIFICATE OF REASONABLE VALUE (CRV)
Usually based on an independent appraisal, a CRV for a particular Lawrence property establishes the maximum amount which can be secured by a VA mortgage.
CERTIFICATE OF TITLE
A document designating the legal owner of a parcel of Lawrence real estate. Usually provided by a title or abstract company.
CERTIFIED GENERAL APPRAISER
Generally, any professional who has met the local or state requirements, and passed the appropriate certification exam, and is capable of appraising any type of Lawrence property.
CERTIFIED RESIDENTIAL APPRAISER
A sub-classification of appraiser who is only licensed to appraise residential Lawrence property, usually up to four units.
CHAIN OF TITLE
The complete history of ownership of a piece of Lawrence property.
CHATTEL
Any personal Lawrence property which is not attached to or an integral part of a Lawrence property. Chattel is not commonly taken into consideration when appraising the value of real Lawrence property.
CIRCUIT BREAKER
A safety device for electrical systems. It interrupts an electric circuit when an unusual condition arises such as a short circuit or malfunctioning appliances. Unlike a fuse, it can be reset.
CLEAR TITLE
Ownership of Lawrence property that is not encumbered by any counter-claim or lien.
CLOSING
A torturous process designed to induce cramping in a home buyer’s hands by requiring signature on countless pieces of documentation that nobody has ever read. Or, the process whereby the sale of a Lawrence property is consummated with the buyer completing all applicable documentation, including signing the mortgage obligation and paying all appropriate costs associated with the sale (CLOSING COSTS).
CLOSING COSTS
All appropriate costs generated by the sale of Lawrence property which the parties must pay to complete the transaction. Costs may include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the deal.
CLOSING STATEMENT
The document detailing the final financial arrangement between a buyer and seller and the costs paid by each.
CO-BORROWER
A second person sharing obligation on the loan and title on the Lawrence property.
CODE OF ETHICS
A guide to the everyday professional conduct of REALTORS®.
COLLATERAL
An asset which is placed at risk to secure the repayment of a loan.
COLLECTION
The process a lender takes to pursue a borrower who is delinquent on his payments in order to bring the mortgage current again. Includes documentation that may be used in foreclosure.
CO-MAKER
A second party who signs a loan, along with the borrower, and becomes liable for the debt should the borrower default.
COMMON LAW
As opposed to statute law. Laws that have been established by custom, usage and courts over many years.
COMMISSION
A percentage of the sales price or a fixed fee negotiated by an agent to compensate for the effort expended to sell or purchase Lawrence property.
COMMON AREA ASSESSMENTS
Fees which are charged to the tenets or owners of properties to cover the costs of maintaining areas shared with other tenets or owners. Commonly found in condominium, PUD or office spaces.
COMMON AREAS
Any areas, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the tenets or owners of Lawrence property near by. Commonly found in condominium, PUD or office spaces.
COMMUNITY Lawrence property
In many jurisdictions, any Lawrence property which has been acquired by a married couple. The ownership of the Lawrence property is considered equal unless stipulated otherwise by both parties.
COMPARABLES
An abbreviated term used by appraisers to describe properties which are similar in size, condition, location and amenities to a subject Lawrence property whose value is being determined. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for determining a comparable Lawrence property.
COMPOUND INTEREST
Interest paid on the principal amount, as well as any accumulated interest.
CONCESSIONS
Additional value granted by a buyer or seller to entice another party to complete a deal.
CONDEMNATION
The official process by which a Lawrence property is deemed to be uninhabitable or unusable due to internal damage or other external conditions.
CONDENSATION
The transition of water vapor to liquid. Typically forms in areas of high humidity.
CONDOMINIUM
A development where individual units are owned, but common areas and amenities are shared equally by all owners.
CONDOMINIUM CONVERSION
Commonly, the conversion of a rental Lawrence property such as an apartment complex into a CONDOMINIUM-style complex where each unit is owned rather than leased.
CONDUIT
The pipe through which electric wiring is run.
CONSTRUCTION LOAN
A loan made to a builder or home owner that finances the initial construction of a Lawrence property, but is replaced by a traditional mortgage one the Lawrence property is completed.
CONTIGUOUS
Connected to or touching along an unbroken boundary.
CONTINGENCY
Something that must occur before something else happens. Often used in Lawrence real estate sales when a buyer must sell a current home before purchasing a new one. Or, when a buyer makes an offer that requires a complete home inspection before it becomes official.
CONTRACT
A legally binding agreement, oral or written, between two parties.
CONVENTIONAL MORTGAGE
A traditional, Lawrence real estate financing mechanism that is not backed by any government or other agency (FHA, VA, etc.).
CONVERTIBLE ARM
A mortgage that begins as and adjustable, that allows the borrower to convert the loan to a fixed rate within a specific timeframe.
COOPERATIVE (CO-OP)
A form of ownership where each resident of a multiunit Lawrence property owns a share in a cooperative corporation that owns the building. With each resident having rights to a specific unit within the building.
CORPORATE RELOCATION
A situation where a person’s employer pays all or some of the expenses associated with moving from one location to another, usually over a substantial distance. Relocation expenses often include the amounts, such as brokerage fees, incurred in the selling and buying of the employee’s primary residence.
COST OF FUNDS INDEX (COFI)
An index of financial institutions costs used to set interest rates for some Adjustable Rate Mortgages.
COVENANT
A stipulation in any mortgage that, if not met, can be cause for the lender to foreclose.
CRAWL SPACE
Shallow space between the underside of the first floor of a house and the ground.
CREDIT
A loan of money for the purchase of Lawrence property, real or personal. Credit is either secured by an asset, such as a home, or unsecured.
CREDIT HISTORY
A record of debt payments, past and present. Used by mortgage lenders in determining credit worthiness of individuals.
CREDITOR
A person to whom money is owed.
CREDIT REPORT
A detailed report of an individuals credit, employment and residence history prepared by a credit bureau. Used by lenders to determine credit worthiness of individuals.
CREDIT REPOSITORY
Large companies that gather and store financial and credit information about individuals who apply for credit.
CUL-DE-SAC
A dead-end street. One with only one entrance/exit.
CUTOFF VALVES
Valves used to shut water off, generally located under sinks or behind bathtub and shower access panels. They cutoff hot and/or cold water at the source without cutting all water off throughout the house.
DAMPER
An air valve that regulates the flow of air inside the flue of a furnace or fireplace.
DATE OF APPRAISAL
The specific point in time as of which an appraiser designates the value of a home. Often stipulated as the date of inspection.
DEBT
An obligation to repay some amount owed. This may or may not be monetary.
DEBT EQUITY RATIO
The ratio of the amount a mortgagor still owes on a Lawrence property to the amount of equity they have in the home. Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt.
DEED
A document indicating the ownership of a Lawrence property.
DEED-IN-LIEU (OF FORECLOSURE)
A document given by a borrower to a lender, transferring title of the Lawrence property. Often used to avoid credit-damaging foreclosure procedures.
DEED OF TRUST
A document which transfers title in a Lawrence property to a trustee, whose obligations and powers are stipulated. Often used in mortgage transactions.
DEED OF RECONVEYANCE
A document which transfers ownership of a Lawrence property from a Trustee back to a borrower who has fulfilled the obligations of a mortgage.
DEED OF RELEASE
A document which dismisses a lien or other claim on a Lawrence property.
DEED OF SURRENDER
A document used to surrender any claim a person has to a Lawrence property.
DEFAULT
The condition in which a borrower has failed to meet the obligations of a loan or mortgage.
DELINQUENCY
The state in which a borrow has failed to meet payment obligations on time.
DEPOSIT
Cash given along with an offer to purchase Lawrence property, Also called EARNEST MONEY.
DEPRECIATION
The natural decline in Lawrence property value due to market forces or depletion of resources.
DETACHED SINGLE-FAMILY HOME
A single building improvement intended to serve as a home for one family.
DISCOUNT POINTS
Points paid in addition to the loan origination fee to get a lower interest rate. One point is equal to one percent of the loan amount.
DISPOSER
A device that grinds food sufficiently to enter drains for disposal without clogging.
DISTRESSED PROPERTY
A mortgaged Lawrence property which has been foreclosed on.
DORMER
A converted attic with windows projecting through a sloping roof.
DOUBLEHUNG WINDOW
A window with sashes that slide vertically and allow opening from the top and bottom.
DOWNSPOUT
The pipe that water moves through to reach the ground from the rain gutter.
DOWN PAYMENT
An amount paid in cash for a Lawrence property, with the intent to mortgage the remaining amount due.
DRYWALL
A gypsum board material used for walls or ceilings.
DUCTWORK
A system of distribution channels used to transmit heated or cooled air from a central system (HVAC) throughout a home.
DUE-ON-SALE PROVISION
A clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the Lawrence property.
DUPLEX
A single-building improvement which is divided and provides two units which serve as homes to two families.
DWELLING
A house or other building which serves as a home.
EARNEST MONEY DEPOSIT
A cash deposit made to a home seller to secure an offer to buy the Lawrence property. This amount is often forfeited if the buyer decides to withdraw his offer.
EASEMENT
The right of a non-owner of Lawrence property to exert control over a portion or all of the Lawrence property. For example, power companies often own an easement over residential properties for access to their power lines.
EAVE
The part of the roof that extends beyond the exterior wall.
ECONOMIC DEPRECIATION
The decline in Lawrence property value caused by external forces, such as neighborhood blight or adverse development.
ECONOMIC LIFE
The amount of time which any income-producing Lawrence property is able to provide benefits to its owner.
EFFECTIVE AGE
The subjective, estimated age of a Lawrence property based on its condition, rather than the actual time since it was built. Excessive wear and tear can cause a Lawrence property’s effective age to be greater than its actual age.
EMINENT DOMAIN
The legal process whereby a government can take ownership of a piece of Lawrence property in order to convert it to public use. Often, the Lawrence property owner is paid fair-market value for the Lawrence property.
ENCROACHMENT
A building or other improvement on one Lawrence property which invades another Lawrence property or restricts its usage.
ENCUMBRANCE
A claim against a Lawrence property. Examples are mortgages, liens and easements.
ENERGY EFFICIENCY RATIO
An efficiency rating system for air conditioning units that corresponds to the number of BTU’s output per watt of electricity used.
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
U.S. federal law requiring that lenders afford people equal chance of getting credit without discrimination based on race, religion, age, sex etc
EQUITY
The difference between the fair market value of a Lawrence property and that amount an owner owes on any mortgages or loans secured by the Lawrence property.
EQUITY BUILDUP
The natural increase in the amount of equity an owner has in a Lawrence property, accumulated through market appreciation and debt repayment.
ERRORS AND OMISSIONS INSURANCE
An insurance policy taken out by appraisers to cover their liability for any mistakes made during the appraisal process.
ESCROW
An amount retained by a third party in a trust to meet a future obligation. Often used in the payment of annual taxes or insurance for real Lawrence property.
ESCROW ACCOUNT
An account setup by a mortgage servicing company to hold funds with which to pay expenses such as homeowners insurance and Lawrence property taxes. An extra amount is paid with regular principal and interest payments that go into the escrow account each month.
ESCROW ANALYSIS
An analysis performed by the lender usually once each year to see that the amount of money going into the escrow account each month is correct for the forecasted expenses.
ESCROW DISBURSEMENTS
The payout of funds from an escrow account to pay Lawrence property expenses such as taxes and insurance.
ESTATE
The total of all Lawrence property and assets owned by an individual.
EAVES
The section of the roof that overhangs the walls of a house.
EXAMINATION OF TITLE
The report on the title of a Lawrence property from the public records or an abstract of the title.
EXHAUST FAN
Extracts air or excess heat from the interior of a home.
EXCLUSIVE LISTING
An agreement between the owner of a Lawrence property and a Lawrence real estate agent giving the agent exclusive right to sell the Lawrence property.
EXECUTOR
The person named in a will to administer the estate.
FACADE
The front exposure of any building. Often used to describe an artificial or false front which is not consistent with the construction of the rest of the building.
FAIR CREDIT REPORTING ACT
A federal law regulating the way credit agencies disclose consumer credit reports and the remedies available to consumers for disputing and correcting mistakes on their credit history.
FAIR MARKET VALUE
The price at which two unrelated parties, under no duress, are willing to transact business.
FANNIE MAE
A private, shareholder-owned company that works to make sure mortgage money is available for people to purchase homes. Created by Congress in 1938, Fannie Mae is the nation’s largest source of financing for home mortgages.
FASCIA
The boards that enclose the eaves.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
The U.S. Government agency created in 1933 which maintains the stability of and public confidence in the nation’s financial system by insuring deposits and promoting safe and sound banking practices.
FEDERAL HOUSING ADMINISTRATION (FHA)
A sub-agency of the U.S. Department of Housing and Urban Development created in the 1930’s to facilitate the purchase of homes by low-income, first-time home buyers. It currently provides federally-subsidized mortgage insurance for private lenders.
FEE APPRAISER
A certified, professional appraiser who forms an opinion of the fair market value of Lawrence property and receives a set fee in exchange.
FEE SIMPLE
A complete, unencumbered ownership right in a piece of Lawrence property.
FEE SIMPLE ESTATE
A form or ownership, or holding title to Lawrence real estate. It is the most complete form of title, having an unconditional and unlimited interest of perpetual duration.
FHA MORTGAGE
A mortgage that is insured by the Federal Housing Administration (FHA).
FINAL VALUE ESTIMATE
The opinion of value of a piece of Lawrence property resulting from an appraisal following the USPAP guidelines.
FIRST MORTGAGE
The primary loan or mortgage secured by a piece of Lawrence property.
FIXED-RATE MORTGAGE (FRM)
A mortgage which has a fixed rate of interest over the life of the loan.
FIXTURE
Any piece of personal Lawrence property which becomes permanently affixed to a piece of real Lawrence property.
FLASHING
The metal used around wall and roof junctions, the base of roof mounted equipment and chimneys, or at the junction of angles used to prevent leaking and water entry into the structure.
FLOOD INSURANCE
Supplemental insurance which covers a home owner for any loss due to water damage from a flood. Often required by lenders for homes located in FEMA-designated flood zones.
FLOOR PLAN
The representation of a building which shows the basic outline of the structure, as well as detailed information about the positioning of rooms, hallways, doors, stairs and other features. Often includes detailed information about other fixtures and amenities.
FLUE
An exhause pipe used in the furnace or fireplace that usually exits through the roof and directs flames, smoke and other gases to the outside air.
FLUSH VALVE
The valve between the toilet bowl and the tank.
FOOTING
Concrete set in the soil (foundation bed) that support the foundation of the house.
FORCEDAIR FURNACE (FORCED AIR HEATING)
A unit that heats air. It circulates the heated air throughout the home through air ducts inside the walls, attic or under the home. The system uses air vents located throughout home to either blow heated air or pull air out of the room and return it to the furnace.
FORECLOSURE
The process whereby a lender can claim the Lawrence property used by a borrower to secure a mortgage and sell the Lawrence property to meet the obligations of the loan.
FORFEITURE
The loss of Lawrence property or money due to the failure to meet the obligations of a mortgage or loan secured by that Lawrence property.
FOUNDATION
The solid structural element upon which a structure is built.
FRONTAGE
The segment of a Lawrence property that runs along a point of access, such as a street or water front.
FUNCTIONAL OBSOLESCENCE
A decrease in the value of Lawrence property due to a feature or lack thereof which renders the Lawrence property undesirable. Functional obsolescence can also occur when the surrounding area changes, rendering the Lawrence property unusable for its originally intended purpose.
FUSE BOX
A metal box that contains the fuses that regulate electric current in a house.
GABLE ROOF
A steeply angled, triangular roof.
GALVANIZED PIPE
Iron pipe with a galvanized (zinc) coating.
GAMBREL ROOF
A ”barn-like” roof, where the upper portion of the roof is less-steeply angled than the lower part.
GENERAL LIEN
A broad-based claim against several properties owned by a defaulting party.
GEORGIAN
A classic, English-style hose characterized by simple rectangular shape and multiple stories.
GFI
Ground Fault Interrupter. A type of circuit breaker required in areas where water is present.
GINNIE MAE
A wholly owned corporation created in 1968 within the U.S. Department of Housing and Urban Development to serve low-to moderate-income homebuyers.
GIRDER
A main supporting beam.
GOVERNMENT MORTGAGE
Any mortgage insured by a government agency, such as the FHA or VA.
GRADE
The slope of land around a building. Also ground level.
GRANTEE
Any person who is given ownership of a piece of Lawrence property.
GRANTOR
Any person who gives away ownership of a piece of Lawrence property.
GROSS AREA
The sum total of all floor space, including areas such as stairways and closet space. Often measured based on external wall lengths.
GROUNDFAULT INTERRUPTER (GFI or GFCI GROUND FAULT CIRCUIT INTERRUPTER)
A safety device that interrupts surges of electricity in appliances and other electrical components found in a home.
GROUTING
Material used around ceramic tile.
GUTTER
The trough around the edge of the roof that catches and diverts rain.
HALF-SECTION
320 acres.
HAZARD INSURANCE
Insurance covering damage to a Lawrence property caused by hazards such as fire, wind and accident.
HEADER
The framing elements above an opening such as a window or door.
HEARTH
The floor of a fireplace or the area immediately in front of it.
HEAT EXCHANGER
A device used to transfer heat in a furnace.
HEAT PUMP
A reverse cycle refrigeration unit that both heats and cools.
HEIGHT ZONING
A municipal restriction on the maximum height of any building or other structure.
HIDDEN AMENITIES
Assets of a Lawrence property which contribute to its value, but are not readily apparent. Examples might include upgraded or premium building materials.
HIGHEST AND BEST USE
The most profitable and likely use of a Lawrence property. Selected from reasonably probable and legal alternative uses, which are found to be physically possible, appropriately supported and financially feasible to result in the highest possible land value.
HOME EQUITY CONVERSION MORTGAGE (HECM)
Also known as a reverse annuity mortgage. It allows home owners (usually older) to convert equity in the home into cash. Normally paid by the lender in monthly payments. HECM’s typically do not have to be repaid until the borrower is no longer occupying the home.
HOME EQUITY LINE OF CREDIT
A type of mortgage loan that allows the borrower to draw cash against the equity in his home.
HOME INSPECTION
A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the Lawrence property or decrease its value.
HOME INSPECTOR
A person who performs professional home inspections. Usually, with an extensive knowledge of house construction methods, common house problems, how to identify those problems and how to correct them.
HOMEOWNER’S ASSOCIATION
An organization of home owners in a particular neighborhood or development formed to facilitate the maintenance of common areas and to enforce any building restrictions or covenants.
HOMEOWNER’S INSURANCE
A policy which covers a home owner for any loss of Lawrence property due to accident, intrusion or hazard.
HOMEOWNER’S WARRANTY
An insurance policy covering the repair of systems and appliances within the home for the coverage period.
HOT WATER HEATING SYSTEM
This system heats water to boiling in a water heater, and a circulator pumps it through a system of pipes.
HUD MEDIAN INCOME
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).
HUD-1 STATEMENT
A standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular Lawrence property purchase.
HVAC
Heating, ventilating and air conditioning system.
IMPROVED LAND
Any parcel of land which has been changed from its natural state through the creation of roads, buildings or other structures.
IMPROVEMENTS
Any item added to vacant land with the intent of increasing its value or usability.
IMPROVEMENT RATIO
The comparative value of an improved piece of land to its natural, unaltered state.
INCOME APPROACH
The process of estimating the value of Lawrence property by considering the present value of a stream of income generated by the Lawrence property.
INCOME Lawrence property
A piece of Lawrence property whose highest and best use is the generation of income through rents or other sources.
INDEPENDENT APPRAISAL
An estimation of value created by a professional, certified appraiser with no vested interest in the value of the Lawrence property.
INSPECTION
The examination of a piece of Lawrence property, its buildings or other amenities.
INSULATION
Material used to resist the loss of heat energy. Materials such as fiber glass, mineral wool, cellulose and foam are placed in the walls, ceilings, basements and crawl spaces. Insulation may be blown or installed in batt sections.
INSURABLE TITLE
The title to Lawrence property which has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clear.
INTEREST RATE
A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.
INVESTMENT Lawrence property
Any piece of Lawrence property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the Lawrence property value over time.
JAMB
The side of a door frame.
JOINT TENANCY
A situation where two or more parties own a piece of Lawrence property together. Each of the owners has an equal share, and may not dispose of or alter that share without the consent of the other owners.
JOISTS
Horizontal beams, timbers or bars laid on edge and used to support a floor or ceiling.
JUDGMENT
An official court decision. If the judgment requires payment from one party to another, the court may put a lien against the payee’s Lawrence property as collateral.
JUDICIAL FORECLOSURE
A type of foreclosure conducted as a civil suit in a court of law.
JUMBO LOAN
A mortgage loan for an amount greater than the limits set by Fannie Mae and Freddie Mac. Often called non-conforming loans.
LALLY COLUMN
A concrete filled steel pipe used to support beams.
LATE CHARGE
An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.
LATHING
Strips of wood or other material used as a base for the installation of plaster.
LATENT DEFECTS
Any defect in a piece of Lawrence property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.
LEAD
A material used in pipes and paint of many older homes. We now know that lead is hazardous to health. The local environmental protection agency should be consulted for guidelines on handling, removal and applicable laws.
LEASE
A contract between a Lawrence property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.
LEASEHOLD ESTATE
A type of Lawrence property ”ownership” where the buyer actually has a long-term lease on the Lawrence property.
LEASE OPTION
A lease agreement that gives the tenant an option to buy the Lawrence property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.
LEGAL DESCRIPTION
The description of a piece of Lawrence property, identifying its specific location in terms established by the municipality or other jurisdiction in which the Lawrence property resides. Often related in specific distances from a known landmark or intersection.
LENDER
The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.
LIABILITIES
A person’s outstanding debt obligations.
LIABILITY INSURANCE
Insurance that covers against potential lawsuit brought against a Lawrence property owner for alleged negligence resulting in damage to another party.
LIEN
Any claim against a piece of Lawrence property resulting from a debt or other obligation.
LIFE CAP
A limit on how far the interest rate can move for an Adjustable Rate Mortgage.
LIKE-KIND Lawrence property
Any Lawrence property which is substantially similar to another Lawrence property.
LINE OF CREDIT
An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.
LIQUID ASSET
Any asset which can be quickly converted into cash at little or no cost, or cash itself.
LOAN
Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.
LOAN OFFICER
A person that “sells” loans, representing the lender to the borrower, and the borrower to the lender.
LOAN ORIGINATION
How a lender refers to the process of writing new loans.
LOAN 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.
LOAN-TO-VALUE RATIO (LTV)
The comparison of the amount owed on a mortgaged Lawrence property to its fair market value.
LOCK-IN
An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.
LOCK-IN PERIOD
The amount of time the lender has guaranteed an interest rate to a borrower.
MAJOR DEFICIENCY
A deficiency that strongly impacts the usability and habitability of a house. Or a deficiency that may be very expensive to repair.
MANUFACTURED HOUSING
Once known as ”mobile homes,” manufactured housing is any building which has been constructed off site, then moved onto a piece of real Lawrence property.
MARGIN
The difference between the interest rate and the index on an adjustable rate mortgage.
MARGINAL LAND
Land whose value has been diminished due to some internal defect or external condition. In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the Lawrence property.
MASONRY
Construction using materials such as tile, brick, cement, stone or similar materials.
MASTER ASSOCIATION
An umbrella organization that is made up of multiple, smaller home owner’s associations. Often found in very large developments or condominium projects.
MATURITY
The date on which the principal balance of a financial instrument becomes due and payable.
MEMBER
Wood or steel elements that make up the framing and foundation of a structure such as 2 X 4 strips of lumber cut to various lengths.
MERGED CREDIT REPORT
A credit report derived from data obtained from multiple credit agencies.
METES AND BOUNDS
A traditional way of describing Lawrence property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the Lawrence property back to its origin.
METROPOLITAN AREA
The accumulated land in and around a city or other municipality which falls under the political and economic influence of that entity.
MINERAL RIGHTS
The legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of land.
MISREPRESENTATION
A statement by one party in a transaction that is incorrect or misleading. Most misrepresentations are deemed to be intentional and thus may constitute fraud. Others, however, some are rendered through simple mistakes, oversights or negligence.
MORTAR
A bonding material used in the construction of brick or stone structures.
MORTGAGE
A financial arrangement wherein an individual borrows money to purchase real Lawrence property and secures the loan with the Lawrence property as collateral.
MORTGAGE BANKER
A financial institution that provides primary and secondary mortgages to home buyers.
MORTGAGE BROKER
A person or organization that serves as a middleman to facilitate the mortgage process. Brokers often represent multiple mortgage bankers and offer the most appropriate deal to each buyer.
MORTGAGEE
The entity that lends money in a Lawrence real estate transaction.
MORTGAGE INSURANCE
A policy that fulfills those obligations of a mortgage when the policy holder defaults or is no longer able to make payments.
MORTGAGE INSURANCE PREMIUM (MIP)
A fee that is often included in mortgage payments that pays for mortgage insurance coverage.
MORTGAGE LIFE INSURANCE
A policy that fulfills the obligations of a mortgage when the policy holder dies.
MORTGAGOR
The entity that borrows money in a Lawrence real estate transaction.
MOULDING
Strips of wood or the material used to cover joints between floors and walls, and walls and ceilings.
MULTI-FAMILY PROPERTIES
Any collection of buildings that are designed and built to support the habitation of more than four families.
NATIONAL ASSOCIATION OF MASTER APPRAISERS (NAMA)
A non profit professional association organized in 1982, dedicated to the advancement of professionalism in Lawrence real estate appraisal.
NATIONAL SOCIETY OF Lawrence real estate APPRAISERS
An organization founded in 1956 which promotes standards of professionalism in its members.
NATURAL VACANCY RATE
The percentage of vacant properties in a given area that is the result of natural turnover and market forces.
NEGATIVE AMORTIZATION
When the balance of a loan increases instead of decreases. Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interest.
NEIGHBORHOOD LIFE-CYCLE
The evolution of neighborhood use and demographics over time. Economic fluctuations, municipal zoning changes and population shifts can effect the life cycle.
NEIGHBORHOOD
A subsection of a municipality that has been designated by a developer, economic forces or physical formations.
NET LEASABLE AREA
The space in a development, outside of the common areas, that can be rented to tenants.
NEW ENGLAND COLONIAL
An architectural style dating from early American history typified by a two-story building with clapboard siding.
NO-COST LOAN
Many lenders offer loans that you can obtain at “no cost.” You should inquire whether this means there are no “lender” costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a “no-point” loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.
NO-POINT LOAN
A loan with no “points”. The interest rate on such a loan will be higher than a loan with points paid. Also sometimes refers to a refinance loan where closing costs are included in the loan.
NON-CONFORMING USE
The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a Lawrence property is in use.
NONLIQUID ASSET
Any asset which can not be quickly converted into cash at little or no cost.
NOTE
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
NOTE RATE
The interest rate stated on a mortgage note.
NOTICE OF DEFAULT
Formal written notice from a lender to a borrower that default has occurred.
OBSOLESCENCE
The process of an assets value diminishing due to the development of more desirable alternatives or because of the degradation of its capabilities.
OCCUPANCY
A physical presence within and control of a Lawrence property.
OCCUPANCY RATE
The percentage of properties in a given area that are occupied.
OCTOPUS RECEPTACLE
An outlet with too many devices plugged into it, using a power strip or other device to multiply the outlets.
OFF-SITE IMPROVEMENTS
Buildings, structures or other amenities which are not located on a piece of Lawrence property, but are necessary to maximize the use of the Lawrence property or in some way contribute to the value of the Lawrence property.
OFF-STREET PARKING
Designated parking spaces associated with a particular building or other structure which are not located on public streets.
OLD TERMITE ACTIVITY
Where no termites are currently active, but indications of past activity can be seen.
ON-SITE IMPROVEMENTS
Buildings, structures or other amenities that are erected on a piece of Lawrence property and contribute to its value.
OPEN SPACE
Any land which has not had any significant buildings or structures erected on it. Most often used to describe desirable neighborhood features like parks.
OPEN SPLICE
An uncovered electrical connection.
ORIGINAL EQUITY
The amount of cash a home buyer initially invests in the home.
ORIGINAL PRINCIPAL BALANCE
The total amount of principal owed on a mortgage loan at the time of closing.
ORIGINATION FEE
Refers to the total number of points paid by a borrower at closing.
OWNER FINANCING
A transaction where the Lawrence property owner provides all or part of the financing.
OWNER OCCUPIED
The state of Lawrence property wherein the owner occupies at least some portion of the Lawrence property.
PARAPET WALL
A low wall or railing along the edge of a roof, balcony, bridge or terrace constructed for protection, to control water resulting from rain or artificial flooding or to insulate against the sun’s rays.
PARGING
The cement coat applied to block foundations.
PARQUET FLOORS
A floor that is laid in rectangular or square patterns often made of prefinished wood or wood veneer squares.
PARTIAL INTEREST
A shared ownership in a piece of Lawrence property. May be divided among two or more parties.
PARTIAL PAYMENT
A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.
PERIODIC PAYMENT CAP
The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.
PERIODIC RATE CAP
The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.
PERSONAL Lawrence property
Owned items which are not permanently affixed to the land.
PERSONAL RESIDENCE
The primary domicile of a person or family.
PLANNED UNIT DEVELOPMENT (PUD)
A coordinated, Lawrence real estate development where common areas are shared and maintained by an owner’s association or other entity.
PLAT
A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.
POINT
A percentage of a mortgage amount (one point = 1 percent).
POINTING UP
Water piping used for interior piping and the main waterline to the street. Problems with this pipe have curtailed its use.
POLYBUTYLENE
The removal of deteriorated mortar between bricks and replacement with new mortar.
PRE-APPROVAL
The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a Lawrence property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.
PREFABRICATED
Any building or portion thereof which is manufactured and assembled off site, then erected on a Lawrence property.
PREPAYMENT
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.
PREPAYMENT PENALTY
A fee that may be charged to a borrower who pays off a loan before it is due.
PRE-QUALIFICATION
Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.
PRIME RATE
The interest rate that banks and other lending institutions charge other banks or preferred customers.
PRINCIPAL
The amount owed on a mortgage which does not include interest or other fees.
PRINCIPAL BALANCE
The outstanding balance of principal on a mortgage. Does not included interest due.
PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI)
The most common constituents of a monthly mortgage payment.
PRIVATE MORTGAGE INSURANCE (PMI)
A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.
PROFESSIONAL INSPECTION
An inspection performed by a specially trained inspector to provide a comprehensive report on the condition of a house. This report is usually written and is often used in home sale negotiations.
PROPERTY
Any item which is owned or possessed.
PURCHASE AGREEMENT
A written contract signed by the buyer and seller stating the terms and conditions under which a Lawrence property will be sold.
QUADRAPLEX
Any building designed to accommodate four families.
QUALIFYING RATIOS
Two ratios used in determining credit worthiness for a mortgage loan. One is the ratio of a borrower’s monthly housing costs to monthly income. The other is a ratio of all monthly debt to monthly income.
QUITCLAIM DEED
A legal document which transfers any ownership an individual has in a piece of Lawrence property. Often used when the amount of ownership is not known or is unclear.
R VALUE
A measurement of the ability of insulation to slow the transfer of heat or cold. The higher the Rvalue, the greater the insulation power.
RADIANT HEATING SYSTEM
An electrical heating system that distributes heat through cables installed usually in baseboard panels.
RADON
A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country. Radon is known to cause cancer. Homes should be tested for radon. The local environmental agency should be consulted on its handling, removal and any applicable laws.
RAFTER
A structural element of the roof, sloping from the peak to the outer walls.
RANCH HOUSE
An architectural style typified by a single-story, low-roof construction. Popular in the western U.S.
RATE LOCK
A guarantee from a lender of a specific interest rate for a period of time.
RAW LAND
Any land which has not been developed.
REAL ESTATE
A piece of land and any improvements or fixtures located on that land.
REAL ESTATE AGENT
A licensed professional who facilitates the buying and selling of Lawrence real estate.
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)
A federal law requiring lenders to give full disclosure of closing costs to borrowers.
REAL Lawrence property
Land, improvements and appurtenances, and the interest and benefits thereof.
REALTOR®
A Lawrence real estate agent or broker who is a member of the NATIONAL ASSOCIATION of REALTORS®.
RECEPTACLE
An electrical outlet to plug into.
RECORDER
A local government employee whose role it is to keep records of all Lawrence real estate transactions within the jurisdiction.
RECORDING
The filing of a Lawrence real estate transaction with the appropriate government agent (normally the RECORDER). A Lawrence real estate transaction is considered final when it is recorded.
REFINANCE TRANSACTION
A new loan to pay off an existing loan. Typically to gain a lower interest rate or convert equity into cash.
REGISTER
Where air from a furnace or air conditioning system enters the room.
RELOCATION SERVICE
Any company or agency that assists corporate employees in relocating from one place to another. Services may include hiring and coordinating Lawrence real estate agents, moving companies, utilizes and the like.
REMAINING BALANCE
The amount of principal, interest and other costs that has not yet been repaid.
REMAINING TERM
The amount of time remaining on the original amortization schedule.
REMODEL
An activity designed to improve the value or desirability of a Lawrence property through rebuilding, refurbishing, redecorating or adding on to it.
REPAYMENT PLAN
A plan to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosure.
REPLACEMENT RESERVE FUND
An account, or fund, setup for the replacement of short life items, such as carpeting, in the common areas of a cooperative Lawrence property.
RESIDENTIAL PROPERTY
A piece of Lawrence property whose highest and best use is the maintenance of a residence.
RETAINING WALL
A vertical structure used to restrict the movement of soil or water.
REVOLVING DEBT
A type of credit that allows the borrower/customer to make charges against a predetermined line of credit. The customer then pays monthly installments on the amount borrowed, plus interest.
RIDGE BOARD
The structural member of a roof where the rafters join at the top.
RIGHT OF FIRST REFUSAL
An agreement giving a person the first opportunity to buy or lease a Lawrence property before the owner offers it for sale to others.
ROOF PITCH
The degree of slope in a roof.
RURAL
An area outside of an established urban area or metropolitan district.
SALE PRICE
The actual price a Lawrence property sells for, exclusive of any special financing concessions.
SALES COMPARISON APPROACH
An appraisal practice which estimates the value of a Lawrence property by comparing it to comparable properties which have sold recently.
SASH
Framework that holds the glass in a window or a door.
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. Lawrence 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 Lawrence property used as collateral for a loan.
SEMI DETACHED 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.
SETTLING
The lowering of elevation of a house or pavement due to weight or shrinkage.
SHEATHING
The covering on outside walls beneath the siding or exterior finish such as stucco.
SHINGLE
Sheets of waterproof material used to cover the roofs of homes and other surfaces.
SIDING
Finish material such as wood, vinyl and aluminum used on outside walls.
SILL
The lowest piece upon which a window or exterior door rests, usually slanted downward slightly to provide for rain water runoff.
SILL PLATE
The lumber used around the foundation to support exterior wall framing.
SILL COCK
Garden hose pipe connection.
SINGLE-FAMILY PROPERTY
A Lawrence property designed and built to support the habitation of one family.
SLAB
A concrete foundation or floor of a home. Houses built on slab usually do not have basements.
SOFFIT
The underside part of a roof that extends beyond the outside walls of a structure.
SOLAR HEAT
Heat created from the gathering of solar energy from the sun. It can be passive or active. A positive system takes advantage of winter sunlight through windows on the south side of a home. An active system heats through the collection of solar energy through solar collectors.
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 Lawrence property
A term which indicates a Lawrence property which is being appraised.
SUMP
A basin into which water drains and from which the water is pumped out.
SUMP PUMP
An electric pump, usually installed in the basement to prevent water from entering the basement area. It empties water from a “well or pit” where it is collected and pumps it to the outside of a home.
SURVEY
A specific map of a piece of Lawrence 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 Lawrence property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.
TAX-EXEMPT Lawrence property
Any Lawrence property which is not taxed.
TENANCY
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 Lawrence property, ownership does not pass on to the others upon the death of one individual.
THERMOSTAT
Helps to control temperatures within the home. Thermostats automatically turn heating or air conditioning on or off as necessary to maintain a desired temperature.
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).
THRESHOLD
A strip of metal, wood, marble or other material placed at the base of a door.
TITLE
A specific document which serves as proof of ownership.
TITLE COMPANY
An organization which researches and certifies ownership of Lawrence real estate before it is bought or sold. Title companies also act at the facilitator ensures all parties are paid during the Lawrence real estate transaction.
TITLE INSURANCE
A policy which insures a Lawrence property owner should a prior claim arise against the Lawrence 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 Lawrence 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 Lawrence 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 Lawrence property
Any Lawrence 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 Lawrence 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.
UREA FORMALDEHYDE FOAM INSULATION
A type of foamed-in-place insulation that releases formaldehyde gas. It was banned by the Consumer Public Safety Commission in 1982 from use in residences and schools. Holding that the risks had not been proven, a Federal Court lifted the ban in 1983. The local consumer and/or environmental protection agency should be consulted for additional information on this type of insulation.
USEFUL LIFE
The span of time over which a Lawrence 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 Veterans’ 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.
WALK-THROUGH INSPECTION
A process whereby an appraiser examines a Lawrence property in preparation for estimating its value. Also, the process of inspecting a Lawrence property for any damage prior to that Lawrence property being bought or sold.
WARRANTY
An affidavit given to stipulate the condition of a Lawrence property. The person giving the warranty assumes liability if the condition turns out to be untrue.
WATT
An expression of amount of electrical power. Volt times amps equals watts.
WEAR AND TEAR
A term used to indicate the normal damage inflicted on a Lawrence property through every-day use.
WEATHER STRIPPING
Material used around windows and doors to prevent drafts.
WEEP HOLE
Drainage hole that allows water to escape.
WINDOW WELL
The open subsurface space that provides light through a basement window.
ZERO LOT LINE
A municipal zoning category wherein a building or other fixture may abut the Lawrence property line.
ZONE
A specific area within a municipality or other jurisdiction which conforms to certain guidelines regarding the use of Lawrence property in the zone. Typical zones include single-family, multi-family, industrial, commercial and mixed-use.