FORMAL - INFORMAL
Real Estate Terms Plus
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Formal – Informal
Glossary in Matters of Real Estate
This Glossary is included for
established, new, and hopeful US private home decision makers who have or will
one day consider an optional or better approach to navigating the private home
environment. In addition, these are provided to stimulate relative ideas.
Finally, many of the terms and phrases presented here are directly relative to
aspects of home improvement with respect to resident-contractor relations.
A
Addendum: in contracting, a legal document
containing additional and updated terms of agreement to an original contract
and signed by all parties to that original agreement.
Addition: normally something legally constructed
on or added to the property as a permanent component. Otherwise referred to as ‘betterment.’
Adjustable interest
Rate: A loan with a fluctuating interest rate.
Advocate: someone or agency which intercedes for,
favors, or promotes a cause affecting the lives of people.
Amortization: reducing the amount of principal
owed on a loan through an installment plan for paying scheduled regular payments
in addition to relative, incremental interest and fees.
Apartment: a dwelling unit in a multi-residential
complex which people lease, rent, or otherwise finance as a condition for being
allowed to stay there; also, a condominium unit.
Appraisal: a professional estimate of the market
value of real estate.
Arbitration: the process of resolving business
and other issues through an independent, duly authorized third party.
Arrears: overdue debts.
Assessment: the activity of a locally authorized
assessor who inspects a property, estimates its value, and recommends what the
owner’s local tax obligation will be.
Assumption: buyer taking on mortgage obligations
once belonging to seller.
Auction: for our purposes, an event when a
property on sale can be obtained by the party who offers the highest bid.
B
Back-end Ratio: residual of gross
monthly income after all your regular monthly bills are paid.
Bankruptcy: legal declaration of lack of
sufficient funds to address debt without incurring undue hardship. A legal
protection wherein a debtor might be protected from threats, penalties, and
badgering by creditors in relation to exclusive and clearly defined debt.
Bio-hazard [colloquial]: an inept contractor who
charges exorbitant rates. Also 'High Roller'.
Bond [Performance]: contextually, in many states
this entails coverage a contractor or tradesperson is required to have in the
event he or she has challenges fulfilling exclusively identified,
project-related obligations. Although there are other types of bonds, the
present focus is on the performance bond. It reflects a primary obligation a
contractor must professionally complete the promised home improvement, remodel,
refurbishment, and even construction for which he or she received partial or
full compensation. However, if the contractor does shoddy work. and is not
bonded, the customer might have to file a civil lawsuit to recoup funds in lieu
of the fact that the contractor breached the agreement. This is evidenced by
the below-par performance. On the other hand, if he or she is bonded, then a
claim can be filed with the contractor’s bond agent. Ideally, the claimant or
customer can then be reimbursed for costs and expenses related to the contractor’s
poor performance on the property.
Example: contractor has coverage for up to
$50,000. Damage to your property from her or his mistakes was upwards to
$50,000. Once all documentation is submitted to the bond agency and is
confirmed, it will usually release that $50,000 amount to you. The contractor
is then liable to the bond agency for that amount, plus any related fees.
Note: if damage is above $50,000, usually the
contractor is personally liable for paying the customer whatever that overage
might be. Averagely, in this scenario, the bond agent is exclusively liable for
refunding the customer an amount up to $50,000. Nevertheless, this is obviously
not the only utility of a bond. Ref.
Bridge Loan: a loan towards meeting the down
payment and other financial requirements for another home before selling the
one you already have.
C
Cash-Out Refinance: a method which can be used by
the homeowner to get cash via taking out a second mortgage loan. This is done
through applying for and having the loan approved by either the principal
lender the borrower used to obtain the first mortgage loan, or a different
lending source. Although most advice in relation to Cash-Out Refinance suggests
the borrower takes out a loan in an amount greater than what is owed on the
original mortgage, that is not always the scenario since a borrower can find a lender
to grant the loan at an amount lower. Subsequently, at a lower or higher amount
of the requested loan, the Cash-Out-Refinance transaction is similarly
consummated. The following example exclusively refers to a borrower who wants
to land a better mortgage deal by getting cash-out from the present mortgage
equity of the first mortgage to finance the second mortgage with more palatable
terms: Since the borrower first moved into the home years ago the monthly
obligations on a $300,000 loan were dutifully met. Although the borrower has
cumulatively made $100,000 in monthly payments so far, circumstances are such
that the borrower decided to seek being approved for the second loan. After all,
the property was recently appraised at the market value of $750,000. Nonetheless,
the borrower opts to refinance or take out a second mortgage loan for $600,000.
In effect, the borrower fills out all necessary documents, pays related fees
out-of-pocket, and after a reasonable waiting period the loan is approved. Now
with this $600,000 increase in the borrower’s funds availability, a portion
goes to paying off the remaining balance of $200,000 for the first mortgage. Meanwhile
the second mortgage is intact and active. It has replaced the first mortgage. Succeeding
there, the borrower then uses another portion of the refinance funds towards
closing a small business deal offered at a convenient cut-rate value of
$150,000. Finally, the borrower still has enough residual cash funds to save or
to use as the mood strikes.
*The downside is that the borrower is once again
at square one on mortgage payments.
Change Order: in home improvement, it is a
document which lists any modifications to be made to the original project
agreement and consequential differences in the original price for the project.
Collateral: in mortgage lending, property used
for security on a loan against irreparable default.
Condominium: a free-standing house, duplex, or
multiplex dwelling unit owned by one or more residents which usually is or are
governed by the same management team or Board.
Consumer-Contractor Relations: business
relationship between consumer and contractor. same as Resident-Contractor
Relations.
Contract: an agreement between two or more
parties to assist each other for mutual benefit. in home improvement, the parties
are primarily comprised of residents who order the project, and tradespersons
who promise to deliver skillfully and loyally.
Contractee: anyone who signs a contract with
another as a condition for receiving specific service. Variously, it can pertain
to property owner, lessee, or renter who signs a service agreement with
contractors engaged in home-related jobs.
Contractor: an individual who is hired on a
temporary, per project basis to provide courtesy, patience, labor, expertise,
materials, supplies, and m to fulfill a specific contract-related service. Also
referred to as Home Service Contractor, Tradesperson, and Pro.
Contract-related: activity which centers around a
contractual agreement.
Corrupt Contractor: a dishonest individual
working in the contracting field.
Cost Assessment: in home improvement, determining
in advance whether it would be more expensive hiring a contractor than it would
be if you tackled the issue without one. In general, entails meticulous
calculation of how much an activity or project would cost to best evaluate
feasibility of spending decisions.
Creative Calculations: unsubstantiated statements,
quotes, and estimates without confirmable data.
D
Debt-to-Income Ratio: a comparison of average
gross income with average monthly or annual debt. Normally gauged by a person’s
gross monthly or annual income against average monthly or annual debt. To honest
lenders, if a potential borrower has monthly or annual debt greater than what
he or she earns, this poses an extraordinary default risk which is best not to
pursue.
Deed: signed document declaring who owns a
property. Also defined as Title.
Deed of trust: a regular deed signed over to a
buyer, yet, instead of being in the buyer’s possession, it is kept by a third
party against the buyer’s default; a physical deed usually held in escrow
temporarily against a new homeowner’s default on her or his mortgage or other
real estate loan.
Default: failure to make good on promised action
or activity. Example: failure to make payments on a loan as promised.
Delegation: assigning actions or activities to
someone else.
Delayed Financing: in real estate, a technique
which a buyer or borrower uses to purchase a property using her or his own
funds with intent to apply for a Cash-Out Refinance mortgage loan. See >
Cash-Out Refinance.
Disclosure: in real estate, it normally refers to
you or others disclosing the presence of defects, malfunctions, inadequacies, and
more, around the property that can influence the sale or purchase of your home.
Revealing.
Discovery Technique: a working strategy wherein
there is intent on doing credible research to find out how to resolve
challenges. For example, within context, it is when a resident searches the
name of a contracting entity and the name of the individual operating it to see
whether there are outstanding complaints.
Duplex: a private residential structure with two
separate living units or households.
E
Earnest Money Deposit: this is a 'holding fee.' It
keeps the deal, for example, to buy a particular house you need, available to
you, exclusively. This, of course, applies until you arrive at a final decision
whether to make the purchase. If yes, then the Earnest Money Deposit is applied
to the closing price; if not, you forfeit any holding privileges to the
property.
Easement: the legal right for use of real estate
you do not own.
Eminent Domain: the right government must possess
real estate from one or more private tenants for government or public use. In exchange,
the government offers reasonable compensation for referenced tenant[s] to
relocate.
Equity: in home real estate, the difference
between the market value of your home and how much you still need to pay until
the mortgage is paid off.
Escapism: in home improvement, leaving it up to
the contractor to determine what actual expenditures are or will be without
questioning or knowing whether the bid or estimate is unfair or unrealistic.
Note: some bids are too high, others are too low for the nature of project
needing attention. Propety owners should always take the initiative to consult
various sources to ascertain the credibility of contractor pricing.
Escrow: a process wherein something is held back pending
the fulfillment of a required precondition. Example: a student’s parents have
saved $40,000 in a trust fund for their daughter to afford a down payment on
any home she wanted. But she will not be able to access it unless she graduates
college. In the meantime, those funds are in escrow.
F
Federal Housing Administration [FHA]: a
government agency which provides home loans to eligible households [US].
Financial Management: although the subject is overly
broad the crux surrounds controlling your spending through knowing what you can
afford to invest, when you can do so, and staying well within budget.
Fixed Rate Mortgage: a mortgage arrangement
wherein the interest rate does not change for the term of the mortgage.
Floating or Adjustable-Rate Mortgage: a mortgage
arrangement wherein interest rate increases and decreases depending on
prerogative of the lending institution or fluctuations in real estate market.
Foreclosure: process where a lender has the legal
right to sell a mortgaged property when a debtor defaults on a related loan.
Front-end Ratio: in the residential sector, ratio
of home dweller’s residual gross monthly income compared to gross monthly
housing expenses. Or what you would have left over from your take home pay
after addressing your monthly housing expenses.
G
General Contractor: in
home improvement, an entity or individual who is often categorized as the Lead
Contractor responsible for fulfilling a signed contract with a property owner
or resident. Depending on the scope of the project, primary person who might
use subcontractors, laborers, or both towards fulfilling home project
requirements. These responsibilities include following project layout plans,
obtaining necessary permits, guiding the progress of the project, and providing
all supplies, materials, and equipment.
Graduated Payment Mortgage [GPM]: a mortgage rate
that starts low but gradually increases over time.
Guaranteed Mortgage: usually a government
mortgage loan toward home buying and home refinancing. The leading agency is
the Federal Housing Administration, US [FHA].
Ghost Contractors: tradespersons or home service
contractors who show up for work, accept your money, then suddenly disappear
without starting or completing the home project.
H
Handyperson: ideally, an individual who is
proficient in a variety of building trades and associative disciplines.
Home Equity Conversion Mortgage [HCEM]: a special
loan provided by government or private lending institution against a portion of
the face value of a borrower’s home equity. A loan which is typically made to
qualified senior homeowners who might need funds for home improvements or other
expenses.
Home Equity Line of Credit [HELOC]: an ongoing
arrangement for a line of revolving credit against the equity of the home.
Home Equity Loan: a loan via an established
lending institution which is equivalent to the equity of the home.
Home Improvement: in contemporary vernacular,
anything done to the home or anywhere else on the property to maintain or
improve its comforts, conveniences, and habitability.
Home Insurance: coverage against itemized losses
and damage to the property; usually also includes the home and authorized
additions to the property. It differs from mortgage insurance in that the
latter provides coverage for the lender in the event the policyholder is unable
to fulfill her or his mortgage debt.
Home Lessee: person who leases a free-standing
detached private home, mansion, estate or a living unit in a duplex or
multiplex.
Homeowner: person who owns a free-standing
detached private home, mansion, estate or a living unit in a duplex or
multiplex
Homeowners Association [HOA]. a social
organization which originally and normally applies to legitimate homeowners
working together to sustain, create, and encourage a more wholesome, safe, and
free exclusive community.
Homeowner’s Insurance: a phrase used broadly in
that there are different coverage values, meaning, you might have home
insurance coverage for minor repairs, but it might not include damage from a
freak storm, or gutter replacement. In this view, although Home Insurance
offers coverage, it is important for you to know which type best suits you, and
if you have it.
Home Project: anything related to maintaining and
improving residential properties in, on, or around the home. Can sometimes
include remodeling, refurbishing, asbestos abatement, and new construction.
Home Renter: person who rents a free-standing
detached private home, mansion, estate or a living unit in a duplex or
multiplex.
I
Imposter: in home maintenance and improvement, an
individual who pretends to be a credentialed, skilled professional who is not.
A charlatan.
Indemnification: in home improvement, it is a
written guarantee whether included in the body of your contract or separated as
an addendum, that you will not hold the contracting entity or contractor liable
for loss or damages caused to or on your property under specified conditions.
Among these conditions might be your promise not to hold the contracting entity
or lead contractor responsible for loss or damage caused to or on your property
by actions or nondisclosures of accidental injuries sustained because of workers’
own negligence or disregard for adequate safety procedures. Indemnity.
Impact-File Credit Report: a summary of someone’s
credit history which is usually retained and accessed electronically.
Installment Contract: a contract with terms which
allow for the performance of actions to be commenced on an installment basis
over time. For example, a contractual arrangement is made for payment on a home
project in progress by installment on each Friday of the month until the work
is complete and final payment made. All said, an Installment Contract is a
contract wherein certain things are expected to be performed over time on a
piece-meal basis until everything the agreement requires is fulfilled.
Inspection Report: for our purposes, it is a
report prepared by a local certified and licensed housing inspector. Emphasis:
the housing inspector stops by, carefully examines the work, and takes notes
along the way. Informally, the individual alerts you of the good news: Passed
inspection. Now, the person must make out a formal report, specifying what was
inspected, and why there were no infractions. Or why there were.
J
Joint Liability: when two or more parties are
accountable for what does or does not occur.
Joint Tenancy: when two or more tenants own the
same household, workspace, structure, or land for which there is mutual claim
or interests.
Judicial Foreclosure: foreclosure document which must
be filed with the court to obtain a judicial decree authorizing the sale of
debtor property.
K
Know-how: in home improvement, the ability to
successfully select and negotiate with contractors at minimal expense, maximum
benefit.
Know the Contractor: a catch phrase for knowing
enough about a contractor to be reassured you are not making a disastrous
hiring decision. This means searching via every available means, including
virtually, and learning from authoritative sources what you otherwise might not
have known. Some virtual sources include professional and government databanks
and consumer reporting agencies.
L
Landscape Contractor: an individual who engages
in excavating, maintaining, improving, designing, or building outdoor spaces on
the property.
Lead Contractor: in home improvement, an entity
or individual under contract with a property owner or resident. The
tradesperson might hire subcontractors and laborers for fulfilling home project
requirements. This includes being responsible for obtaining necessary permits,
guiding the progress of the project, and providing all layout plans, supplies,
materials, and equipment. Also known as 'General Contractor.'
Lease: a legal contract allowing a person to
exclusively occupy another property for a specific timeframe in return for
payment.
Lease Option: an arrangement made wherein a
household is given the option to lease or rent a home with the prospect of buying
it after the term of the lease or rental agreement is fulfilled.
Leasehold Estate: rental agreement which usually
grants the limited right to live in and on privately owned property. It is a
legal right granted a household to occupy a rental space on a month-to-month
basis contingent on payment at the beginning of each monthly cycle.
Lien: legal claim on your property that must be
satisfied to avoid forfeiture of your right to own.
Lien Waiver: in home improvement, a legal
document or contractual clause you might want to encourage a contractor to sign
wherein he, she, or the contracting entity promises not to file a lawsuit
against you in the event of a payment or job-related dispute.
Liquid Asset: cash or something easily converted
into cash.
Lis Pendens: lawsuit pending.
Living: opposite of merely existing.
Loan Origination Fee: what lenders charge to
process a loan application. It is usually nonrefundable if the loan is
declined.
Loan Processing Fee: differs from Loan
Origination Fee in that it is required after the loan application is accepted. However,
it is usually also nonrefundable.
M
Manufactured Housing: prefabricated homes such as
modular and mobile.
Master Lease: a lease arrangement wherein the
owner of the lease has prerogative to sublease space to another party.
Maturity Date: regarding a home mortgage, refers
to the date when full payment of the mortgage loan is due.
Mechanic’s Lien: legal claim on your property
which can be made by disgruntled parties against you when they accuse you of
owing them full payment for services, goods, or both. Ideally, such services
and goods are considered by the claimants as having been used towards
sustaining or increasing the value of your property. Among these are contractors,
subcontractors, laborers, suppliers, and others with relevant vested interests.
It can result in home foreclosure and personal bankruptcy if you are unable to
satisfy presumed debts. For example, if you paid a general contractor in full,
but he or she failed to pay the subcontractors, laborers, suppliers, and others
he or she was obligated to pay, the debt is legally transferred to you. Any
number or all persons who the contractor procured services and goods from can visit
the local magistrate’s office and cause a Mechanic’s Lein to be placed on your
property. It is a legal order which prevents you from selling your house or
hiring new home improvement related services until those who filed the suit are
fully paid, drop the lawsuit, or agree to settle.
Mediation: a means of resolving disputes through
enlisting assistance from a qualified or legally authorized third party.
Mortgage: Legal claim on your property that must
be satisfied consistent with any relative loan payment agreement you made with
the lending institution.
Mortgage Insurance: a policy which differs from
home insurance. Whereas home insurance is a policy taken out for primarily
addressing wear and tear and other damage to the property, mortgage insurance
is primarily coverage for the lender in the event the policyholder defaults on
her or his mortgage loan.
Movers: technically, they are contractors who are
in the moving business. Note: since movers are also contractors, the same
protocol for thorough background checks applies.
Mortgagor: borrower who owes the entity from
which a loan was approved.
Mortgage Acceleration Clause: a condition in some
mortgage agreements for borrowers to pay off the mortgage sooner than its
maturity date. This would apply when the lender has reason to believe the
borrower will not be able to pay off the mortgage by the time final payment
becomes due.
Mortgage Banker: typically, a person working in
the loans department of a bank who arranges mortgage loans.
Mortgage Broker: a person who is usually licensed
to collaborate with borrowers and connect them with the ideal lending
institution best suited for their customized needs. Example: a borrower might
need a cordial introduction to a lending institution which offers affordable
loan conditions suitable to her or his specific mortgage needs. Ideally, brokers
make it happen.
Mortgagee: lender or other entity who provides
the loan.
Mortgage Forbearance: an action by lender to
temporarily pause mortgage payments or resort to other supportive action which
allows a borrower more time to meet payment obligations.
Municipal Housing Inspector: same as certified
and licensed inspector, a local government official who has primary
responsibility for ensuring local property safety and well-being ordinances are
enforced area officials. Duties encompass ensuring that property in the city,
town, county, and parish under the inspector’s jurisdiction meet safety
standards and supports the overall well-being of those who to happen be on it
or immediately proximal.
N
Negative Amortization: steady increase in the
initial amount owed on property due to not meeting installment payments on
schedule.
Negative Slope Driveway: a driveway which slopes
down from the street to the house or garage. The slope is called negative
because it promotes water flowing down to the house instead of away from the
house.
No Cash-Out Refinance: in home mortgage loans, this
means there is no cash payout when the borrower refinances a home mortgage. Opposite
‘Cash-Out Refinance.’
No-Documentation Loan: a loan that does not
require documentation as prerequisite prior to being approved by the lender.
Non-Assumption Clause: normally a clause in a
mortgage loan agreement which forbids another party or person from assuming
loan privilege in place of the borrower originally entitled to its enjoyment.
Non-judicial Foreclosure: foreclosure which can
be declared against the owner without the lending institution having to first
seek a court order.
Notice of Cancellation: in home improvement, a legal
document a property owner might be forced to issue to the Lead Contractor for
legitimate project-related reasons. Caution: It is not recommended for a
property owner to issue Notices of Cancellation without having in place a
written court ordered injunction against being sued, or for neutralizing the
threat of a Mechanic’s Lien placed on the property.
Notice of Default: a warning, with respect to
home or mortgage, lease, or rent payments, which usually demands a response
within 30 days, and warns of consequences if there is no remedial action within
that period.
O
Offer to Lease: it is a legal document which
outlines the terms and conditions of a lease. Also known as a Proposal to
Lease.
Open Listing: is a contractual arrangement
wherein the seller of the home establishes prerogative to solicit services of
various real estate brokers who are usually paid on a commission basis to
expedite selling the house. The broker who brings a buyer to the home first and
closes the sale, is the broker who earns the commission. Ideally.
Origination: point at which a process or activity
began. For example, a borrower goes to a broker to find and collaborate with a
lending institution to approve a loan. If the loan is approved by the lender,
the lending institution becomes the point or source at which the loan
originated.
Owner’s Title Insurance: insurance which defends
new owners from being held accountable for any liens or other debt incurred by
any previous owners relative to that property.
Options [in a lease]: a lease arrangement wherein
the lessee is given the option to renew the lease at the end of the leasing
period or purchase the home.
Origination Fee: usually an initial fee charged
by a lender or loan officer for complementary services entailed in granting and
processing the loan.
Owner Financing: often this occurs when the owner
of the property bypasses brokers to personally negotiate an agreement with the
buyer to sell her or him the house. This is often conditioned on meeting
scheduled payments [with interest] until the buyer pays off the full price of
the property. Example: The house is offered for $156,000. The agreement obligates
the buyer to pay $13,000 monthly spread over a period of 10 years, interest
included. All risks entailed.
P
Pay-outs: separate costs and expenses which
entail schedules or timeframes for paying the Lead Contractor, subcontractors,
suppliers, service providers, others. These are separate from purchases.
Project Assistant or Representative: essential
person who is specifically delegated by the private home decision maker as backup
and stand-in for when resident is unavailable. This is especially applicable to
when tradespersons or contractors are working on premises. The Project
Assistant or Representative can be delegated to conduct general research,
service validations or other intensive background checks, contribute to project
planning, supervise, measure activity, quality control, and report on progress
of the home project in your absence.
Pocketing the Money: within context, your possession,
or savings of funds you might have otherwise wasted, lost due to fraud, or
spent unwisely on home projects.
Power of Attorney: a legal document which
empowers a second party to act in another’s favor.
Principle of Conformity: it is a concept that
same or comparable properties or land usages are favored to closely resemble
all others in the area. But in many states, the principle is violated when
industrial plants are constructed proximal to residential neighborhoods, or when
a multiplex is erected amid single-family homes. Local authorities are usually
responsible for the deviation.
Principle of Regression: when upscale properties
are devalued by nearby properties which are visually rated or legally assessed
at lower value.
Private Home Decision Maker: person who owns,
rents, or leases a private home.
Procuring Cause: a phrase which typically refers
to a broker or other source who procures or finds a buyer. In this case, the
home buyer.
Project Demands: refer to the best mix of human
resources, supplies, materials, equipment, and services required for optimal
project results.
Project Management: in the realm of home improvement,
entails planning, directing, monitoring, adjusting, and coordinating all
relative activities towards successful completion of the home project.
Project Manager: in the realm of home
improvement, the project manager participates in all phases of home projects
from planning to post-completion.
Project Protocol: an intact system of guidelines
or ways for responding effectively to ensure that all research is done and all
action taken progresses towards the benefit of family, property, and project.
Property Tax: foremost, it is a tax levied on
real property directly or indirectly ordered by the government and assessed by
property assessor to encourage revenue which helps finance, sustain, enhance, and
support the public good.
Power of Sale: the right of the lender to impose
the sale of a defaulted property without judicial proceedings.
Pre-foreclosure Sale: when a lender allows the
homeowner to sell her or his property at or below face value to stave off the
impact of foreclosure. Another name for this dilemma is Short Sale. In other
words, it is when a property is on sale or sold for an amount which is lower
than it is worth.
Proposal
to Lease: same as Offer to Lease.
Protocol: in home improvement, an intact system
of guidelines or patterns of approach we often develop independently and learn
via sources of enlightenment which can be useful guarding against fraud.
Example: You might see an exciting app which offers unusually affordable home
improvement services. Everything you see and hear is incredible. But you might
think ‘I wonder if they’re as good as they say they are?’ Then instead of
connecting with them right away, let us presume you resort to a discovery
technique. You search your device to see if there are any consumer complaints
against them. This represents one of a few classic examples of what protocol in
resident-contractor relations entails, particularly in matters of home
improvement.
Punch
List: in home improvement, a list of things required to be accomplished which a
contractor might have to double check in the event something was missed or can
need corrective attention. If the contractor finds it, he or she might make a
mark alongside the missed item and continue going down the list to see what
else might need to be marked. He or she then goes over the list again, then
checks off each item which was addressed until all have been accomplished.
Project complete.
Purchase-Money
Mortgage: same as Owner Financing.
Q
Quality: In home maintenance and improvement,
most acceptable results.
Quiet Enjoyment: ideally, it refers to the right
to enjoy your premises without unannounced or illegal visits, intrusions, or
interruptions.
Quiet
Title Suit: a legal action geared towards resolving [quieting] the unrest which
can sometimes occur among disputes over property ownership. In other words,
this type of lawsuit is intended to discover who is the rightful owner of a
property, legally establish the record, and end the argument.
Quit Claim Deed: a legal document which transfers
ownership rights from one person to another.
R
Real Estate Transfer Taxes: Assessed state and
local taxation on real estate when ownership is transferred from one person to
another.
Refinance: in homeownership, making a new loan
arrangement to replace an older home loan. Usually this is done by the property
owner to get a better mortgage deal which can include a longer payment period,
lower interest rate, and cash-out benefits.
Rehabilitation Mortgage: an arrangement which
finances home repair and refurbishment. The special mortgage arrangement can:
1. enable a
prospective homebuyer to possess a property and immediately begin making it
more habitable.
2. enable a homeowner to refinance the property
and receive cash-out for addressing targeted home projects.
Refurbish: to restore something or a few things
on the property to a clean, better, or more useful state. Example: stripping,
leveling, sanding, and waterproofing an old wooden deck.
Remodel: in home improvement often entails significantly
altering or redesigning of permanent areas of the property, in part or entirely
to increase its level of comfort, convenience, usefulness, attractiveness, and
value. Can also include adding more space, relocating or ‘moving’ windows and
doors, rebuilding or relocating kitchens and rooms, and any number of new
installations.
Restructured Loan: an arrangement wherein
adjustments are made in a mortgage loan agreement which enables the debtor to meet
obligations more conveniently. This could entail extending the term of the
agreement resulting in paying a lower interest rate, mortgage forbearance, and
other means which reduce debt impact.
Reverse Mortgage: an option wherein senior
homeowners 62 years or older can use the equity of their homes as collateral
for receiving funds or cash-out within or up to the maximum value of their home
equity.
Right of First Offer: a contractual agreement
wherein a party has the first prerogative to purchase a property, meaning, he
or she has reserved the right to purchase it before anyone else. This right can
be waived through signing the appropriate alternative agreement known as a
Waiver of Right of First Refusal, or ROFR.
Right to Recission: applies to a borrower’s right
to cancel a loan arrangement within 3 days. However, although the cancellation
deadline is within 3 days, there are extraneous circumstances which can
supersede that timeframe. An example of an ‘extraneous’ event is when the
lending agency did not disclose critical sign-up risks which could have
influenced the borrower’s decision to look elsewhere.
Risk Management: in lending, an evaluation
process wherein a lending institution does whatever it can
to avoid or minimize loss. The approach includes accessing as much financial data
as possible from a borrower in the form of documents and about the borrower via
virtual financial sources to validate the borrower’s ability to pay off the
loan.
S
Second Mortgage [Cash-Out Mortgage Refinancing
II]: a loan a borrower pursues to either get cash-out and replace the first
mortgage, or use solely for the cash-out benefit while retaining the first mortgage.
Explanations:
* One borrower might be able to use the equity of
the first mortgage for cash-out to finance the second mortgage, but the cash-out
benefit is not the sole reason. Instead, there are a few explanations. Besides
the cash-out benefit, the borrower wants to use it for paying off the balance
of the first mortgage, then starting off with a clean slate with the second
mortgage becoming the new mortgage obligation. By this means, he or she will
still have only one mortgage, and enough left over to place into savings or to
go on a wild spending spree.
* Another borrower might opt to take out the
second mortgage for a singular reason: the cash-out benefit. In this alternate
pursuit, the borrower prefers to retain the first mortgage. As a result, after
successfully being approved for the second mortgage loan, he or she is now
obligated to simultaneously pay two, separate mortgage fees [with interest]:
one for the first mortgage, the other for the second mortgage.
Secured Loan: a loan made after a borrower has
satisfied a lender’s requirement for having a legal claim on a borrower’s
assets in an amount equal to the loan as security against borrower defaulting.
Service Validation: an old term first used via
HGRBS, a dissolved nonprofit against home improvement fraud. Same as Discovery
Technique in relation. Newer vernacular which pertains to private residents
using a more aggressive approach to validating the competence and reliability
of tradespersons in relation to contracting entities. Alternatively defined, it
depicts a process for investigating the reputation, credibility, reliability,
efficiency, and expeditiousness of contractors before making a hiring decision.
Settlement: in resident-contractor relations,
this often refers to both parties reaching an amiable agreement after a
significant dispute over financial and other matters of residential property
engagement.
Servicing and Disclosure Statement: a written
statement a lender is legally required to disclose to the borrower at the time the
borrower applies for a loan or within three business days, stating that they
will transfer loan payment obligation to another firm.
Single-family Attached: a condominium, apartment,
or townhouse unit which is usually attached to the wall of another household regulated
by the same property management firm. This type dwelling, irrespective of its
wall being adjoined to the wall of another household is regarded as a dwelling
with a legal occupancy capacity for one family.
Single-family Detached: a standalone abode with a
legal occupancy capacity for one family.
Special Projects: within the vernacular of this
personal home guide, any refurbishing, remodeling, re-wiring, landscaping,
plumbing, carpentry, installation, or other activities which require special
trade skills valued at hundreds, thousands, hundreds of thousands, or over a
million dollars to successfully complete. Any home project which normally
requires a written contract. Contract-related home project.
Specific Insurance Assurance [informal variant
specific resident-contractor relations]: takes into consideration these factors
…
* homeowner’s having adequate coverage specific
to the type of projects ordered.
* contractors having adequate coverage for any damage
to property, materials, goods, and other items used while delivering promised
results.
* contractors having adequate personal coverage
as well as coverage for any injuries or deaths among subcontractors, laborers,
and others enlisted by the firm to accomplish targeted projects.
Specific Itemizing: refers to contractors
providing to clients a complete list specific to costs and expense estimates
which justify the dollar amount for the bid offered for the targeted project. Depending
on the nature of the project, itemizations can include accessories, appliances,
equipment, and other rentals, permit fees, supplies, materials, and more.
Specific Licensure or Certification: legal
authorization to operate and to perform specialized projects. Includes all the
credentials required by relevant government offices for the tradesperson or
contractor to operate legally in that vicinity, municipality, county, parish,
or state.
Starter Home: a first home purchased or financed
through a mortgage loan. But could pertain to an old or new one two-bedroom
house, or a home which requires substantial refurbishment or remodeling.
Although this can also apply to a first home which is smaller in size and less
expensive than a larger home, a lot of emphasis is on a home which has low
equity and can be purchased or mortgaged at a much lower interest rate.
Stop Work Order: usually an order issued by the local
housing inspector to cause a contracting entity or lead contractor to stop work
on the project. This Stop Work Order can sometimes be issued to legally stop
the work without canceling the project.
Subcontractor: a contractor who works with a
primary or lead contractor. Usually specialized in supportive professional
skills such as appliance or other exclusive installations, especially those
installations which are physically attached to the property. Subcontractors can
also include carpenters, electricians, HVAC-R technicians, landscapers, masons,
plumbers, and other skilled professionals working under the auspices of the
contracting entity or lead contractor.
Subordinate Loan: a secondary loan. Example: a
borrower might have a mortgage loan arrangement he or she has been making
monthly payments on for a few years. This borrower has also taken out a second
mortgage which co-exists with the first. Among the two, the second mortgage is regarded
as the subordinate loan, and the first mortgage is obviously the primary.
·
Urgent Note: although a loan is regarded
secondary, the significance of meeting all monthly obligations on that loan is
no less crucial than meeting monthly obligations for the primary mortgage. Subsequently,
if the secondary loan goes into default, the property owner might want to file
for mortgage forbearance and rectify the situation to stave off foreclosure.
Surety Bond: coverage a contractor should have to
compensate for any damage or injuries a contractor might cause in the process
of working on the property. There might be other penalties for the infraction.
Example: The law requires contractors to use
bolts when building a porch, especially for weight-bearing connections which
serve to keep it and the stairs intact and stable. This includes the ledgers
which attach to the home and the crossbeams to support a specified weight load.
When contractors ignore these laws and use screws instead bolts for weight-bearing
connections, the porch could collapse and cause severe injury or death.
Subsequently, one function of surety bond serves to prove contractors have coverage
to compensate customers for damage or injury which can occur while on the job.
Swales: often unseemly outdoor surfaces in the
backyard or elsewhere which are sometimes uneven, moist, and marshy mounds of
dirt, soil, and vegetation of assorted sizes and shapes.
T
Team Project: Home improvement work which
requires two or more to successfully tackle. Examples: roofing, siding, deck
building, exterior plumbing, major painting, paving stone, additions,
staircases, drywall, framing, driveways, major landscaping, rubbish removal,
demolition, sign-hanging, gutters, fences, above ground exterior decorations,
door installation, and more.
Tear Down Condition: in home real estate,
pertains to a structure which requires major upgrading to be habitable. A loan
can be taken out to claim ownership of the property through applying and being
approved for a Rehabilitation Mortgage.
Third-Party Origination: a loan which originates
with the lender after a broker or other intermediary submits the loan
application and other essential borrower documentation to the lender for
evaluation and approval. Sequentially, First, borrower; Second; broker; Third,
lender.
Time Share: normally denotes shared ownership of
a property or space for a specified period. Most recognizable example is a
vacation home.
Title Insurance: an insurance policy which covers
the legal expenses of a real estate representative or homeowner in a legal
dispute over who is the rightful owner of the property.
Tradesperson or Contractor: preferably, within
the residential context, anyone with years of training in one or more real
estate home service areas. including improvements, repairs, remodeling, new construction,
and all applicable property-related services used for the home setting. Home
Service Contractor.
Travel Charges: What contractors might charge customers
for making the trip to the property to negotiate getting the project. However,
travel charges imply that those who charge them expect customers to shoulder
expenses which might not inherently be legally required. In general, unless a
prior agreement was made between customer and contractor for being billed by
this tradesperson for travel expenses he or she incurred, it could be an
unreasonable demand. In many states, if there is no current contract between
tradesperson and consumer, there is no obligation for the consumer to pay. In
this view, there is an appearance of attempted consumer fraud in some states
when the demand for reimbursement occurs where there is no contract. CAUTION: Since
there are still some states wherein it is legal to compensate contractors for
travel expenses without a contract, home consumers might find it imperative to
use their devices to search to discover whether this is legally protected or
forbidden where they are located. This is suggested to be done before inviting
contractors over for the initial interview.
Truth-in-Lending Act: a federal law which requires
lenders to fully disclose to borrowers, in writing, the nature of the loan, its
rates, and all terms relative to that loan. Also, can be referred to as
Regulation Z.
Truth-in-Lending statement: a legally required
document stipulated in the Real Estate Settlement Procedures Act RESPA, which
recommends …
·
what the required annual percentage rate of the
mortgage loan should be after all charges and fees are tabulated, in addition
to full disclosure of all terms and details of the loan.
·
when the legally required disclosure document
should be received by the borrower.
Normally
the timeframe for borrower to receive said document is immediately or within
three business days of an application for a loan.
Two-Step Mortgage: a term which usually refers to
one mortgage interest rate for the length of time required to complete building
a home, standalone garage, or both, and a different mortgage interest rate
after construction is completed.
U
Underinsured: Not having enough insurance.
Underwriting: a form of risk management wherein an
underwriter completely evaluates the borrower to ascertain the borrower’s
credit worthiness, and to recommend for loan approval if the borrower qualifies.
Unrecorded Deed: often entails a deed which is
not registered within the locale where the property exists.
Unsecured Loan: a loan which is made without
collateral. However, there are other requirements which often include proof of
identification, location information, credit check, and at least one credit or
debit account number related to the loan transaction.
Underwater Mortgage: a condition when what is
owed on the mortgage is greater than the present market value of the property.
Universal Law of Home Project Success and
Failure: ‘The leading reason for most successful contract-related home projects
is that residents do thorough enough service validations on contractors; the
leading reason for most unsuccessful contract-related home projects is that
resident do not do thorough enough service validations on contractors.’
V
VA Guaranteed Loan: a posture taken by US
Department of Veterans Affairs [VA] to cover for US veterans who might face
default on a mortgage loan made with private lenders. In the event, the VA
guarantees payment to the lenders on a portion of what is owed on the veteran’s
balance.
·
Customarily VA is not known to provide funding
for paying off the entire loan. But the VA guaranteed loan can help resourceful
veterans who are homeowners postpone foreclosure and possibly get things back
on the right track.
VA Loan: a loan arrangement which the US
Department of Veterans Affairs [VA] arranges with private lenders to help
finance down payments for eligible US veterans on a home. Nevertheless, even
here veterans are obligated to make all payments consistent with the
arrangement, including interest and local property taxes. But there are
property tax exemptions for some. Ref...
·
Overview – VA – Housing Assistance – Home Loans ….12/27/2024.
·
‘VA direct and VA-backed Veterans home loans can
help Veterans, service members, and their survivors to buy, build, improve, or
refinance a home.’ Ref.
Variable Interest Rate: same as Floating or
Adjustable.
Validate: Within the context of the new, more
assertive approach to hiring contractors, this involves private home residents
using an aggressive discovery technique for validating the reputation,
credibility, reliability, efficiency, and expediency of contractors. Also known
as 'service validation' or ‘validating'.
Valuation:
an estimate of an appraiser’s assessment of what a property is worth.
Variant
or Variance: in real estate, a variant is a situation or condition wherein
something which is outside regulated zoning restrictions is legally allowed. An
example of an activity for which the local magistrate might grant a variance can
be legal clearance for excessive construction-related noise after a certain
time of day wherein it is normally restricted. Another can entail a local
variance for building a two-family structure in a zone which is traditionally
for one-familiar structures.
Victory: when a private home decision maker gets
a lot accomplished in, on, or around the property at minimal expense.
Volatile [informal]: for our purposes, a private
home decision maker’s wising up and making unscrupulous people answer for their
indiscretions; a scathing report against rip offs, waste, unreasonable prices, and
scandal.
Voluntary Lien: a property owner’s voluntary
consent for a lender to place a lien on her or his property as security against
defaulting on a loan. A common legal agreement some borrowers make as a
condition for taking out a loan [but not necessarily mortgage related, although
it can be].
W
Waive: giving up the right, privilege, or option
for taking or not taking an action.
Waiver: usually a legal document with conditions
for bypassing an action or activity which was previously withheld or upheld.
Walk-Through: in real estate, averagely entails
moving along the premises and assessing the scenario. There could be several
reasons. A few of these can entail:
·
weighing in on the look, feel, and functionality
of the property for present and future needs.
·
ascertaining what needs to be done to make this
property more livable.
·
ensuring everything which needed to be done has
been fulfilled or corrected.
·
And other property related diligence.
Warranty: in real estate, there are multiple
types which offer basic assurances in relation to the distinctive nature of a
sales agreement. Two examples:
·
a warranty deed a property seller signs over to
the new owner which contains reassuring conditions to the effect that the
property seller is the legitimate owner who is transferring or has transferred exclusive
ownership of related property to the buyer.
·
a service warranty which promises if for any
reason within a specified period anything relative to the service needed
corrective attention, that it will be remedied in a manner and within the
timeframe stipulated in that warranty.
Weep Holes: uniformly created vertical spaces
which might usually appear as ‘missed spots’ in brick work, meaning, there is
no concrete filling where they appear. These can be found at various points of
brick homes. But the engineering behind what can seem to be ‘missed spots’ is to
mitigate or lessen the corrosive effects of excess moisture between the inner
side of the bricks and backup walls. In other words, this scattered spacing
allows airflow which helps keep the inner space drier. This supports the
interior wall integrity of the home.
Wild Deed: a deed which has questionable
legitimacy, meaning it can be absent from public records, contain false and
misleading data, or in some other way not yet confirmed as legally valid. In turn,
this can lead to being unable to identify the legal owner of a property.
Workout Plan: an agreement between the borrower and
lender which includes recommended steps a borrower can take as a means for
averting delinquency which can result in foreclosure.
Wraparound Mortgage Loan: in matters of domestic
real estate, this kind of mortgage loan originates with the property owner who
finances or mortgages out her or his home to a private buyer. Another form of
Owner Financing.
X
Xeriscape: a specially designed garden area or
landscape of plants which require very little watering.
Xerophytic Garden: a garden which is usually adorned
with plants which require no urgency for watering.
Y
Yearly Appreciation: in real property, refers to
an annual increase in property value. This can occur in several ways, but here
are two:
·
through a series of home improvements on the
property.
·
new construction of a solar panel factory nearby.
Yearly Depreciation: in home property, refers to
an annual decrease in its value. This can occur over time when the home is not
well maintained, or the neighborhood devolves into a less desirable place for
prospective new residents to live.
Yearly Lease: a lease which is subject to renewal
each year.
Z
Zero Energy Building: a structure which is
largely or completely powered by solar, water, or both energy sources. ‘Zero’
denotes little to no energy generated by use of oil, gas, or both.
Zoning: mapping and making laws which clearly
specify the parameters for where, when, and how land should be used.
Zoning Map: a map which distinctly identifies
each zone within the jurisdiction of interest. Often used by civilian,
business, and government inquirers for a range of reasons, from locating a
preferred neighborhood to an ideal location for developing a shopping center,
township, community center, multiplex, and more.
Zoning Ordinance: result of mapping and making
laws which outline the parameters for where, when, and how land should be used.
However, each ordinance often pertains to conditions which differ one from
another in relation to land use. Two examples:
·
standards for new construction, remodeling, and
other work which adds to or alters a permanent structure or in some way alters
the original configuration of the land.
·
standards against construction or other undue
noise after a certain time of day.
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