Real Estate Dictionary

Administrator:: A person appointed by probate court to settle affairs of an individual dying without a will. The term is administratrix, if such a person is a woman.
Amortization:: Systematic payments to reduce a mortgage, along with each payment of interest.
APR (Annual Percentage Rate):: The Federal Truth in Lending Act requires disclosure of the annualized interest rate including interest, discount points and other costs charged to a borrower.
ARM (Adjustable Rate Mortgage):: A mortgage loan which allows the lender to adjust the interest rate periodically according to a specified index agreed upon at the inception of the loan. Also called a Variable Rate Mortgage.
Bridge Loan:: A form of interim financing which is secured by the borrower's present home (which is usually for sale) allowing the proceeds to be used to buy another home before the present home is sold.
Conventional Loan:: A loan which is not guaranteed by VA or insured by FHA.
Convey:: The act of deeding or transferring title to another.
DEED:: A written document by which the ownership of land is transferred from one to another.
Earnest Money:: Advance payment of part of the purchase price to bind a contract for real property.
Easement:: An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines, or crossing the property.
Encroachment:: A fixture, such as a house, garage, driveway, or fence, which intrudes beyond the legal boundaries onto the neighboring land.
Encumbrance:: A lien, liability or charge upon a parcel of land.
Escrow:: A procedure whereby a disinterested third party handles funds and legal documents on a transaction between a buyer and a seller.
FNMA (Fannie Mae):: A term commonly used when referring to the Federal National Mortgage Association.
Land Contract:: Agreement to purchase real estate on an installment basis with the title remaining in the original owner's name until the buyer completes all payments
Lien:: A claim on the property of another as security for money owed.
Mechanic's Lien:: A lien allowed by a statute to contractors and laborers on buildings or other structures upon which work has been performed or materials supplied.
Plat:: A map or chart of a lot, subdivision or community.
Points:: A one time special fee or extra charge paid to a lender in order to secure a loan or buy down the interest rate.
P.M.I. (Private Mortgage Insurance):: An insurance contract which insures that the named lender will recover a specific percentage of the loan amount in the event the loan goes bad. Many lenders require this on lower down payment loans.
Real Property:: Land and that which is affixed to it.
Real Estate agent:: Any licensed Real Estate person.
Realtor:: A licensed Real Estate agent who is also a member of the National Association of Realtors.
Riparian:: Privileges (such as fishing and boating) that go along with the land bordering a lake, stream or other body of water.
Second Mortgage:: A mortgage or other lien position subordinate to the first mortgage.
Survey:: The process of measuring land to determine its size, location and/or physical description and the resulting drawing or map.
Title Examination:: An examination of public records, law and court decisions to disclose the current facts regarding ownership of real estate.
Title insurance:: Insurance against a loss or damage resulting from defects or failure of title to a particular parcel of real property.
VA:: Veterans Administration, which operates a loan guarantee program for honorably discharged veterans enabling them purchase a home with little or no down payment.

The above terms and definitions are intended for the general public who are not normally involved in Real Estate. For exact definitions and interpretations, you are advised to consult an Attorney.

a licensed Real Estate Brokerage in the State of Ohio