401(k) plans
Financial plans that allow employees to set aside tax-deferred income for retirement or emergency purposes.

A

Abstract of judgment, law
The summary of a court judgment that creates a lien against a property when filed with the county recorder.

Accelerated cost recovery system
A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.

Accelerated depreciation
A bookkeeping method that depreciates property faster in the early years of ownership.

Acceleration clause
A provision that gives a lender the right to collect the balance of a loan if a borrower misses a payment.

Acceptance
The seller's written approval of a buyer's offer.

Access
Any means by which a person can enter property.

Accessibility
The degree to which a building or site allows access to people with disabilities.

Accretion
The gradual addition to the shore or bank of a waterway by deposits of sand or silt.

Acknowledgment
A written declaration affirming that a person acted voluntarily.

Acre
A measurement of land equal to 43,560 square feet.

Acre foot
The volume of material needed to cover an acre of land one foot deep.

Active solar system
A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use.

Actual age
The number of years a structure has been standing.

Addendum
An addition or change to a contract.

Additional principal payment
Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.

Add-on interest
The interest a borrower pays on the principal for the duration of the loan.

Adjustable-rate mortgage (ARM)
A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.

Adjusted cost basis
The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.

Adjustment period
The amount of time between interest rate adjustments in an adjustable-rate mortgage.

Administrator
A person given authority to manage and distribute the estate of someone who died without leaving a will.
Administrator's deed
A legal document that an administrator of an estate uses to transfer property.

Adverse possession
The acquisition of title to property through possession without the owner's consent for a certain period of time.

Adverse use
The access and use of property without the owner's consent.

Aeolian soil
Soil that is composed of materials deposited by the wind.

Affiant
A person who makes a sworn statement.

Affirmation
A substitution for an oath granted to people based on religious reasons.

A-frame design
An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.

Agency
The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written.

Agency closing
The process by which a lender uses a title company or other firm as an agent to complete a loan.

Agent
A person licensed by the state to conduct real estate transactions.

Agreed boundary
A compromise boundary to which property owners agree in order to resolve a dispute.

Agreement of sale
A document the buyer initiates and the seller approves that details the price and terms of the transaction.

Alcove
A recessed section of a room, such as a breakfast nook.

Alienation clause
A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.

Alkali
Mineral salt found in soil.

Alkaline soil
Soil that contains a higher concentration of mineral salt than natural acid.

Alley
A lane behind a row of buildings or between two rows of buildings.

Allowances
Budgets offered by builders of new homes for the purchase of carpeting and fixtures.

Alternative mortgage
Any home loan that does not conform to a standard fixed-rate mortgage.

Aluminum siding
A metal covering that provides an alternative to paint for owners of wood homes.

Aluminum-clad windows
Wooden windows with aluminum covering the exterior.

Amenities
Parks, swimming pools, health-club facilities, party rooms, bike paths, community centers and other enticements offered by builders of planned developments.

American Society of Home Inspectors
The American Society of Home Inspectors is a professional association of independent home inspectors. Phone: (800) 743-

Americans with Disabilities Act
A law passed in 1990 that outlaws discrimination against a person with a disability in housing, public accommodations, employment, government services, transportation and telecommunications.

Amortization
The process of paying the principal and interest on a loan through regularly scheduled installments.

Amortization tables
Mathematical tables that lenders use to calculate a borrower's monthly payment.

Amperage
The strength of an electrical current.

Anchor bolt
A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.

Annual
Any kind of plant that must be planted every year.

Annual mortgagor statement
A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.

Annual Percentage Rate (APR)
The cost of the loan expressed as a yearly rate on the balance of the loan.

Annuity
The payment of a fixed sum to an investor at regular intervals.

Anticipatory breach
A communication that informs a party that the obligations of the original contract will not be fulfilled.

Application
A document that details a potential borrower's income, debt and other obligations to determine credit worthiness.

Application fee
The fee that a lender charges to process a loan application.

Appraisal
An opinion of the value of a property at a given point in time.

Appraisal fee
The fee that an appraiser charges to estimate the market value of the property.

Appraisal report
A detailed written report on the value of a property based on recent sales of comparable sites in the area.

Appraised value
An opinion of the current market value of a property.

Appreciation
An increase in the value of a home or other property..

Arbitration
A method of resolving a dispute in which a third party renders a decision.

Arbor
An area shaded by trees, shrubs or vines on a latticework structure.

Arch
A curved structure that supports weight over an area, such as a doorway.

Architect
A licensed professional who designs homes, buildings and other structures.

Architectural fees
The fee an architect charges for services. In general, architects charge for their services by the hour, by the square foot, or by a percentage of the project budget.

Arpent
A French measurement of land equal to .84625 acres.

Asbestos
A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.

As-is condition
The purchase or sale of a property in its existing condition.

Asking price
A seller's initial price for a property.

Assessed value
A tax assessor's determination of the value of a home in order to calculate a tax base.

Assessment
The estimated value of a piece of real estate or a levy placed on property in addition to taxes.

Assessment rolls
A list of taxable property compiled by the assessor.

Assets
Items of value which include cash, real estate, securities and investments.

Assignor
A person who transfers rights and interests of a property.

Assumable mortgage
A mortgage that can be transferred to another borrower.

Assumption clause
A provision that allows a buyer to take responsibility for the mortgage from a seller.

Assumption fee
A fee the lender charges to process new records for a buyer who assumes an existing loan.

Average price
The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the
number of homes.

Avigation easement
An easement over private property near an airport that limits the height of structures and trees.

Awning windows
Single-sash windows that tilt outward and up.

B

Back fill
Soil used to solidify the foundation of a structure.

Back title letter
A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes.

Back-to-back escrow
Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time.

Backup offer
A secondary bid for a property that the seller will accept if the first offer fails.

Backwater valve
A valve in a sewer line that prevents sewage from flowing back into a house.

Balance sheet
A statement that shows the assets, liabilities and net worth of an individual.

Balloon loan
A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.

Balloon payment
The final lump sum payment due at the end of a balloon mortgage.

Balloon-frame construction
A type of framing used in two-story homes in which studs extend from the ground to the ceiling of the second floor.

Balustrade
Railing held up by a set of posts on a porch or stairway.

Bankruptcy
A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow.

Bargain sale
The sale of a piece of property for less than market value.

Baseboard
Any board or molding found at the bottom of an interior wall.

Baseboard electric heat
Heating units installed in the floor that can be controlled by a central thermostat.

Basement
The area of a home below ground level.

Basis Point
A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points.

Bay
The opening between two columns or walls that forms a space.

Bay window
A window that projects outward in a curve.

Bearing wall
A wall that supports its own weight in addition to other parts of a structure.

Before-tax income
Total income before taxes are deducted.

Beneficiary
The lender who makes a loan, also called a mortgagee. The person borrowing money is the mortgagor.

Bequest
Personal property given to a person through a will.

Betterment
An improvement that increases a property's value as opposed to repairs that maintain the value.

Bidding war
Offers from multiple buyers for a piece of property. Agents also sometimes compete to list a house for sale.

Bilateral contract
A contract in which the parties involved give mutual promises. Also called "reciprocal" contracts.

Bill of sale
A document that transfers ownership of personal property.

Binder
A report issued by a title insurance company that details the condition of a home's title. and provides guidelines for a title insurance policy.

Biweekly mortgage
A mortgage that requires payments every two weeks and helps repay the loan over a shorter term.

Blanket insurance policy
A policy that covers more than one person or piece of property.

Blanket mortgage
A mortgage that covers more than one property owned by the same borrower.

Blighted area
A neighborhood that has deteriorated.

Blind nailing
Nails driven into a wall and concealed with putty.

Blue sky laws
Regulations on the sale of securities to prevent consumers from investing in fraudulent or high-risk companies without being informed of the risks.

Blue-ribbon condition
A house maintained close to its original condition. Also called mint condition.

Board foot
Measurement of lumber that is the equivalent of 144 cubic inches.

Board of Equalization
A state board charged with ensuring that local property taxes are assessed in a uniform manner.

Board-and-batten siding
Siding is composed of 8- to 12-inch wide wooden boards nailed vertically to create a barn-like exterior.

Boilerplate
Form language used in deeds, mortgages and other documents. Details can be added by individual parties.

Bona fide
A legal term that refers to actions or persons that are honest and in good faith.

Bond
An agreement that insures one party against loss by acts or defaults of another party.

Book value
The value of a property as a capital asset based on its cost plus any additions, minus depreciation.

Boring test
An analysis of soil in which holes are bored into the ground and samples are removed.

Borough
A section of a city that has authority over local matters.

Borrow
Sand, gravel or other material used for grading.

Borrow pit
The hole at a site that has been excavated.

Boulevard
A street lined with trees or constructed with a landscaped median.

Boundary
The dividing line between two adjacent properties.

Braced framing
A construction method in two-story homes in which the frame is reinforced with posts and braces.

Breach of contract
The failure to perform provisions of a contract without a legal excuse.

Breach of covenant
The failure to obey a legal agreement.

Breach of warranty
A seller's inability to pass clear title to a buyer.

Break-even point
The point in which the owner's rental income matches expenses and debt.

Breast height
The height at which the diameter of a tree is measured: four feet, six inches above the ground.

Breezeway
A roofed passageway with open sides.

Brick
Building material made from clay molded into oblong blocks and fired in a kiln.

Bridge loan
A short-term loan for borrowers who need more time to find permanent financing.

Broker
A person licensed by the state to deal in real estate.

Brokerage
The act of bringing together two or more parties in exchange for a fee or commission.

Broom clean
The ideal condition of a building when it is turned over to an owner or tenant.

Brownstone
A vintage row house constructed of red sandstone.

Buffer strip
A parcel of land that separates two or more properties.

Builder upgrades
Extra house features or better finishing materials that a builder offers.

Building and loan association
An organization that raises money to helps its members purchase real estate or construct a building.

Building code
A comprehensive set of laws that controls the construction or remodeling of a home or other structure.

Building inspector
A city or county employee who enforces the building code and ensures that work is correctly performed.

Building line or setback
Guidelines that limit how close an owner can build to the street or an adjacent property.

Building moratorium
A halt on home construction to slow the rate of development.

Building paper
A thick, water-resistant paper that serves as insulation.

Building permit
A permit issued by a local government agency that allows the construction of home or renovation of a house.

Building restrictions
Regulations that limit the manner in which property can be used.

Built-ins
Appliances or other items that are framed into a home or permanently attached.

Bulkhead
A retaining wall designed to hold back water from the ocean or another body of water.

Bundle of rights
The various interests or rights an owner has in a property.

Bungalow
A small one-story house or cottage.

Butterfly roof
A roof formed by two gables that dip in the middle to resemble a butterfly's wings.

Buy-down mortgage
A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage.

Buyer broker
A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid by the buyer rather than the seller.

Buyer's market
A slow real estate market in which buyers have the advantage.

Buyer's remorse
An emotion felt by first-time homebuyers after signing a sales contract or closing the purchase of a house.

Bylaws
The rules and regulations that a homeowners association or corporation adopts to govern activities.

C

Call option
A clause in a loan agreement that allows a lender to ask for the balance at any time.

Can lights
Cylindrical chambers with bulbs recessed into the ceiling.

Cancellation clause
A clause that details the conditions under which each party may terminate the agreement.

Cantilever
A projecting structure supported on one end, such as a balcony.

Cap
A limit on the amount the interest rate or monthly payment can increase in an adjustable-rate mortgage.

Cape Cod style
A wood-frame or shingled house with a steep roof and several windows projecting from the second floor.

Capital
Money used to create income, such as funds invested in rental property.

Capital expenditure
The cost of making improvements on a property.

Capital gains
Profits an investor makes from the sale of real estate or investments.

Capital gains tax
A tax placed on the profits from the sale of real estate or investments.

Capital improvement
Any improvement that extends the life or increases the value of a piece of property.

Capitalization
A mathematical formula that investors use to compute the value of a property based on net income.

Capitalization rate
The percentage rate of return estimated from the net income of a piece of property.

Caravan
A group of real estate agents who tour a house that has been recently listed for sale.

Carport
A roof that covers a driveway or other parking area.

Casement window
A window hinged on its sides to allow it to swing open vertically.

Cash flow
The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross

Cashier's check
A check the bank draws on itself rather than on a depositor's account.

Cash-out refinance
The refinancing of a mortgage in which the money received from the new loan is greater than the amount due on the old loan. The borrower can use the extra funds in any manner.

Cathedral ceiling
A high open ceiling formed by finishing exposed roof rafters.

Caulk
An acrylic or silicon sealant used to fill cracks, crevices and holes in a home.

Caveat
A formal notice, that asks a court to suspend action until the party which filed the challenge can be heard.

Caveat emptor
A legal principle derived from Latin than means "let the buyer beware."

Cavedium
A courtyard or atrium.

Ceiling height
The standard height of a ceiling is eight feet.

Central air conditioning
A device that generates cold air through an outside unit that is connected to ductwork inside the house.

Central business district
The area of a city where most large businesses are located.

Certificate of Deposit (CD)
A document which shows that the bearer has a specified amount of money on deposit with a bank, stock-brokerage firm or other financial institution.

Certificate of deposit index
An index based on the interest rates on six-month CDs. It used to determine the interest rate for some adjustable-rate

Certificate of eligibility
A document issued by the Veterans Administration that verifies the eligibility of a veteran for a loan program.

Certificate of occupancy
A document which states that a home or other building has met all building codes and is suitable for habitation.

Certificate of sale
A document issued at a judicial sale, which entitles the buyer to receive a deed after court confirmation of the purchase of the

Certificate of title
A written opinion on the status of a piece of property based on an examination of the public record.

Chain of title
The official record that details the ownership history of a piece of property.

Chair railing
Decorative trim installed on a wall about 32 inches above the floor, which protects against scuffs from furniture.

Change frequency
The adjustment schedule on an adjustable-rate mortgage.

Change order
A modification of the construction contract to authorize a change in the work, an adjustment in the amount of the contract or a change in the contract time. The owner, architect and contractor must sign the change.

Chattel
Personal property such as furniture, clothing or a car.

Chattel mortgage
A lien on personal property used as collateral for a loan.

Chimney back
The back wall or lining of a fireplace or furnace chimney.

Chimney flue
The passage inside a chimney that channels smoke and heat to the outside.

Chimney pot
A short pipe at the top of a chimney that increases ventilation to the fireplace and reduces smoke.

Cinder block
A block made of ash and cement that is used in construction.

Cinder fill
Cinders used below a basement or around a foundation to promote drainage.

Circuit breaker
An electric fuse that activates or deactivates a circuit.

Cistern
A tank used to store rainwater.

Classified property tax
A tax that varies in rate depending on the use of the property.

Clear title
A property that does not have liens, defects or other legal encumbrances.

Closing
The final procedure in which documents are signed and recorded, and the property is transferred.

Closing costs
Expenses incidental to the sale of real estate, including loan, title and appraisal fees.

Closing statement
A document which details the final financial settlement between a buyer and seller and the costs paid by each party.

Cloud on title
An invalid encumbrance on real property.

Cluster development
A method of squeezing more homes into less space.

Codicil
A change to a will that adds or subtracts provisions or clarifies portions of the document.

Co-housing
Individual housing units that are clustered around a common building where residents share cooking and other activities.

Coign
The cornerstone of a building that differs in shape or color from the rest of the wall.

Co-insurance
Coverage that involves the use of two or more insurers..

Collar beam
The structural element that connects roof rafters.

Collateral security
Additional security that a borrower supplies to obtain a loan.

Collection
The series of steps a lender takes to bring a delinquent mortgage up to date.

Collusion
The action of two or more people to break the law.

Colonia
Unincorporated communities along the U.S.-Mexico border.

Column
A slender upright structure that consists of a base, a round or square shaft and a capital.

Column footing
The support base for a load-bearing column. The footing is usually made of reinforced concrete.

Co-maker
A person who signs a promissory note with the borrower and assumes responsibility for the loan.

Combination door
An outer door with interchangeable screen and glass panels.

Combination window
A window with interchangeable screen and glass panels.

Commercial bank
A financial institution that provides a broad range of services, from checking and savings accounts to business loans and

Commercial property
An area that is zoned for businesses.

Commingling
The mixing of money held in trust with other funds.

Commission
The negotiable percentage of the sales price of a home that is paid to the agents of the buyer and seller.

Commitment
A promise by a lender to make a loan with specific terms for a specified period.

Commitment fee
The fee a lender charges for promising to make a loan.

Common area
An area inside a housing development that is owned by all residents.

Common law
A body of laws based on custom, usage and rulings by courts in various jurisdictions.

Common-area assessments
Fees paid by the owners of a condominium project or planned-unit development to maintain, repair, improve or operate common

Common-interest development
A project composed of individually owned units that share usage and financial responsibility for common areas.

Community property
Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states.

Community Reinvestment Act
A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live.

Commute
The distance and time it takes a person to reach the workplace.

Comparables
Properties used as comparisons to determine the value of a certain property.

Comparative market analysis
An estimate of the value of a property based on an analysis of sales of properties with similar characteristics.

Competent
A term for a buyer who is legally fit to enter into a sales contract.

Compound interest
The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan.

Concrete tilt-up
The process of pouring concrete into forms on the ground, allowing the forms to harden and then raising the material to a vertical position to form walls.

Condemnation
The process the government uses to take private property for public use without the consent of the owner.

Conditional commitment
A promise by a lender to make a loan if the borrower meets certain conditions.

Condominium
Individual units in a building or development in which owners hold title to the interior space while common areas such as parking lots, community rooms and recreational areas are owned by all the residents.

Condominium conversion
The change in title from a single owner of an entire project or building to multiple owners of individual units.

Conduit
A metal pipe that houses electrical wiring.

Consent judgment
A binding written agreement between two parties to have a judgment entered and recorded.

Conservator
A court-appointed guardian.

Consideration
Anything that is legal, has value and induces a person to enter into a contract.

Construction budget
The funding that an owner arranges for the construction of a project.

Construction documents
Drawings and specifications from an architect that provide detailed requirements for the construction of a project.

Construction loan
Short-term loans a lender makes for the construction of homes and buildings. The lender disburses the funds in stages.

Construction to permanent loan
The conversion of a construction loan to a longer-term traditional mortgage after construction has been completed.

Consumer Credit Counseling Service (CCCS)
A nationwide, nonprofit organization that helps consumers get out of debt and improve their credit profile. National headquarters: 8701 Georgia Avenue., Suite 507, Silver Springs, MD 20910. Phone: (800) 388-2227.

Contemporary style
A design that features streamlined shapes, large unadorned windows and industrial materials.

Contiguous lots
Pieces of property that are adjoined.

Contingency
A condition specified in a purchase contract, such as a satisfactory home inspection.

Contingency listing
A property listing with a special condition attached.

Contingent fee
A fee that must be paid if a certain event occurs.

Contract
An agreement between two or more parties that creates or modifies an existing relationship.

Contract for deed
A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.

Contract to purchase
A contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller. Also known as an agreement of sale.

Contractor
The individual who contracts for the construction of a home or project.

Contractual lien
A voluntary obligation such as a mortgage or trust deed.

Controlled growth
Any restrictions imposed on the amount or type of new development in an area.

Conventional loan
A long-term loan a lender makes for the purchase of a home.

Convertible adjustable-rate mortgage
A mortgage which starts as an adjustable-rate loan, but allows the borrower to convert the loan to a fixed-rate mortgage during a specified period of time.

Conveyance
The transfer of title of property.

Conveyance tax
A tax imposed on the transfer of real property.

Cooperating broker
A real estate broker who finds a buyer for a property that another broker has listed.

Cooperative corporation
A business trust that holds the title to a cooperative residential building and grants occupancy rights to shareholders in the

Cooperative mortgages
Any loans related to a cooperative residential project.

Cooperative project
A project in which a corporation holds title and sells shares representing individual units to buyers who then receive a proprietary lease as their title.

Corner bead
A reinforcement placed in the corner where two walls intersect.

Corner influence
The effect on the value of a property because it is situated on a corner or near a corner.

Cornice
A horizontal molding that projects from the top of a structure or wall.

Corporate relocation
An arrangement by which employers pay to transfer and move employees.

Corrective work
Necessary or desired repairs to remedy problems uncovered by a home or specialized inspection.

Co-signer
A second party who signs a promissory note and takes responsibility for the debt.

Cost-plus contract
A construction contract that determines the builder's profit based on a percentage of the cost of labor and materials.

Cottage
A small, one-story house.

Counteroffer
A response to an offer.

Covenant
A legal assurance or promise in a deed or other document, or implied by the law.

Covenants, conditions and restrictions (CC&Rs)
Rules and regulations for a development, such as acceptable landscaping or improvements that can be made to individual

Craftsman style
An architectural style that evolved as part of the Arts and Craft movement near the turn of the century.

Crawl space
The space between the ground and the first floor of a home, usually no higher than four feet.

Creative financing
Innovative home-financing arrangements that help sell a property.

Credit
The money a lender extends to a buyer for a commitment to repay the loan within a certain time frame.

Credit history
A record of an individual's current and past debt payments.

Credit life insurance
Insurance that pays off a mortgage in the event of the borrower's death.

Credit rating
The degree of credit worthiness assigned to a person based on credit history and financial status.

Credit report
A credit bureau report that shows a loan applicant's history of payments made on previous debts. Several companies issue credit reports, but the three largest are Trans Union Corp., Equifax and Experian (formerly TRW ).

Credit repository
Large companies that gather financial and credit information from various sources about individuals who have applied for

Credit union
Nonprofit cooperative organizations that provide banking and financial services, including mortgages, home improvement loans and home equity loans, to their members.

Creditor
An individual or institution to whom a debt is owed.

Cross-bridging
The strengthening of a structure by bracing cross members between beams.

Cul de sac
A street or alley that is closed at one end.

Cupola
A dome-like structure that sits on top of a roof.

Curable defect
A deficiency in a property that is easy or inexpensive to fix, such as chipping paint.

Curb appeal
The first impression of a house as seen from the street.

Curtain wall
An exterior wall that encloses a yard or other area but does not provide any structural support to a home.

Custom builder
A builder who constructs a home or building based on plans created by the owner.

Custom home
A structure designed by an architect hired by the owner.

D

Damper
A movable plate in a fireplace that allows smoke and fumes to travel up the chimney's flue.

Days on the market
The period of time a property is listed for sale until it is sold or taken off the market

Deadbolt lock
Locks that require a key to open from the outside and a turn button from the inside.

Debt
Any amount one person owes to another.

Deck
A roofless, floored area that adjoins a house.

Deed
The legal document that transfers ownership of a piece of property.

Deed of trust
A document that gives a lender the right to foreclose on a piece of property if the borrower defaults on the loan.

Deep-seal floor drain
A drain used to dispose of water from the basement floor to a sewer line.

Default
The failure to fulfill a duty or promise or discharge an obligation, such as making monthly mortgage payments.

Deferred maintenance
Any repair or maintenance of a piece of property that has been postponed, resulting in a decline in property value.

Delinquent mortgage
A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.

Density test
An analysis of soil to determine if the surface can support the foundation of a house.

Dentils
Small rectangular blocks that project from a building, usually under cornices or along rooflines.

Deposit
Money given by the buyer with an offer to purchase property. Also called earnest money.

Depreciation
The decline in value of a piece of property.

Design/build
A project in which the owner contracts directly with an individual or company to perform design and construction.

Designer
Unlike architects, designers are limited to drawing blueprints.

Digital images
Images that are incorporated into house listings to give potential buyers a view of the property.

Dimension plans
Plans which show the layout of a house but are less detailed than full blueprints.

Disability insurance
An insurance policy which covers an individual's ability to produce income.

Disclosure
A statement to a potential buyer listing information relevant to a piece of property, such as the presence of radon or lead paint.

Discount points
Fees that a borrower pays at the time the lender makes the loan. A point equals 1 percent of the total loan amount.

Distressed property
Property that is in poor physical or financial condition.

Document needs list
A list of documents a lender requires when a potential submits a loan application.. The required documents range from paycheck stubs to credit card statements.

Domed ceiling
A hemispherical ceiling that projects upward without support.

Domicile
A person's primary or permanent home.

Dormer
A window set upright in a sloping roof.

Double-hung window
A window that consists of two sashes that slide up and down.

Dovetail joints
Joints that lock two pieces of wood together with meshed teeth.

Down payment
The amount of money a buyer agrees to give the seller when a sales agreement is signed. Complete financing is later secured with a lender.

Down spouts
A vertical gutter that empties water from the roof to the ground.

Drainage
A system of gutters and drainpipes that carry water away from the foundation of a house.

Draw
A payment made to subcontractors or suppliers from a construction loan.

Dropped ceiling
A flat ceiling built lower than the original ceiling.

Dry rot
A fungal decay that causes wood to become brittle and crumble.

Drywall
A construction material composed of gypsum or plaster wrapped in paper and produced in large sheets that can be nailed to wall studs.

Dual agency
A relationship in which a real estate agent or broker represents both parties in a transaction.

Duct
Any kind of pipe or channel that carries water, wiring or conditioned air through a house.

Due-on-sale clause
Standard language in a mortgage which states that the loan must be paid when a house is sold.

Duplex
A structure that consists of two separate family units.

Dutch colonial style
A design that features barn-like gambrel roof, a ground-level front porch, and dormers.

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Early occupancy
The condition in which buyers can occupy the property before the sale is completed.

Earnest money
Money a buyer gives with an offer to purchase a property. Also called a deposit.

Earthquake insurance
A policy that provides coverage against damage to a home from an earthquake.

Easement
A right given to a third party to use a portion of the property for certain purposes, such as power lines or water mains.

Eaves
The projecting overhang at the lower edge of a roof.

Effective age
The age of a structure estimated by its condition rather than its actual age.

Effective gross income
Additional income that a lender considers when assessing the loan application of a potential borrower.

Electric service panel
A panel that transfers power from the utility line into a house to be distributed through fuses or circuit breakers.

Elevations
The exterior view of a home design that shows the position of the house relative to the grade of the land.

Ell
An extension or wing of a house that is at right angles to the main structure.

Eminent domain
The government's right to condemn private land for public use, such as the routing of a public highway.

Employer-assisted housing
Programs which help employees purchase homes through special plans developed with lenders.

Empty nesters
Potential buyers who have raised their families and want to move into a smaller home.

Encroachment
Fences or other structures that extend into the property of another owner.

Encumbrance
A claim or lien on a property which complicates the title process.

End loan
The conversion from a construction loan to permanent financing a condominium buyer secures after all units in a project have
been completed.

Endorser
A person who signs over ownership of property to another party.

English Tudor style
An architectural design that features stone or brick exterior walls and exposed beams.

Environmental impact statement
A government-mandated evaluation of all aspects and effects a development will have on the environment of a proposed site.

Environmentally friendly home construction
A method of construction that utilizes recycled materials.

Equal Credit Opportunity Act.
A federal law that prohibits a lender or other creditor from refusing to grant credit based on the applicant's sex, marital status, race, religion, national origin or age. The law also prohibits a creditor from refusing to grant credit because the applicant receives public assistance.

Equifax
Equifax Credit Information Services, Inc., is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address:
P.O. Box 740249, Atlanta, GA 30374.

Equity
A determination of the value of a property after existing liens are deducted.

Errors and omissions insurance
A policy that pays for any mistakes a builder or architect makes in a project.

Escrow
A neutral third party holds the documents and money involved in a real estate transaction and ensures that all conditions of a sale are met.. Escrow also refers to a special account that a lender establishes to hold monthly installments from the borrower to cover property taxes and insurance.

Escrow account
An account that a lender or mortgage servicer establishes to hold funds for the payment of expenses such as homeowners insurance and property taxes. Also known as an impound account.

Escrow agent
A neutral third party who ensures that all conditions of a real estate transaction are met.

Escrow analysis
A lender's periodic examination of an escrow account to determine if the lender is withholding enough funds from a borrower's monthly mortgage payment to pay for expenses such as property taxes and insurance.

Escrow closing
Escrow closes when all conditions of a real estate transaction are met and the title of the property is transferred to the buyer.

Escrow company
Firms that act as neutral third parties to ensure that all conditions that the buyer, seller and lender establish in a real estate transaction are met.

Escrow payment
Funds that a mortgage servicer withdraws from a borrower's escrow account to pay property taxes and insurance.

Estate
The total assets of a person, including real property, at the time of death.

Eviction
A legal procedure to remove a tenant for reasons including failure to pay rent.

Examination of title
An inspection by a title company of public records and other documents to determine the chain of ownership of a property.

Excavation
The process of clearing trees, removing topsoil and grading land before the foundation is laid.

Exclusive listing
A contract that gives an agent the exclusive right to market a property for a specific period of time.

Executor
A person appointed to carry out the instructions in a will. If there is no will, a probate court will appoint an executor.

Exhaust fan
Ventilating devices that remove water vapor, undesired smells or smoke.

Experian
Experian, formerly known as TRW Information Systems & Services, is one of the "Big Three" credit-reporting bureaus. Address: 505 City Parkway West, Orange, CA 92868.

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