Real Estate Glossary

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• Acceleration Clause - Condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage.
   
• Accessibility - The degree to which a building or site allows access to people with disabilities.
   
• Acre - A measurement of land equal to 43,560 square feet.
   
• Addendum - An addition or change to a contract.
   
• Adjustable Rate Mortgage (ARM) - Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap.
   
• Adverse Possession - The acquisition of title to property through possession without the owner's consent for a certain period of time.
   
• Agency - The relationship of trust that exists between sellers and buyers and their agents.
   
• Amenity - A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, Woods, water) or man-made (like a swimming pool or garden).
   
• Amortization - Repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years)
   
• Annual Percentage Rate (APR) - Calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.
   
• Application - The first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.
   
• Appraisal - A document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
   
• Appraiser - A qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.
   
• Appreciation - Any increase in the value of property that may be estimated.
   
• Assessed Value - The valuation placed upon property by a public tax assessor for purpose of taxation.
   
• Assessor - A government official who is responsible for determining the value of a property for the purpose of taxation.
   
• Assumable Mortgage - A mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an assumable mortgage.