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

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

• 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.

• Acknowledgment A written declaration affirming that a person acted voluntarily.

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

• 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.

• 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.

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

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

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

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

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

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

• Back-to-back closings 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.

• 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.

• 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.

• 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.

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

• Before-tax income Total income before taxes are deducted.

• Bequest Personal property given to a person through a will.

• 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.

• 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.

• 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.

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

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

• 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.

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

• Boundary The dividing line between two adjacent properties.

• 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.

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

• 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.

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

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

• Broker’s Agent When an agent brings a buyer to a property, they in effect act as a broker’s agent under the listing agent unless they have been retained by the buyer as a buyer’s broker.

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

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

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

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

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

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

• 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.

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

• Bungalow A small one-story house or cottage.

• 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’s 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.

• 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.

• 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 income.

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

• 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 mortgages.

• 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 property.

• 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.

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

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

• 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.

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

• Cistern A tank used to store rainwater.

• 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.

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

• 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.

• 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 credit cards.

• 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.

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

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

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

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

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

• 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.

• 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.

• 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 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.

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

• 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.

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

• Counteroffer A response to an offer.

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

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

• 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.

• 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 units.

• 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.

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

• 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.

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

• 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.

• 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.

• 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.

• 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.

• Designer Unlike architects, designers are limited to drawing blueprints.

• 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.

• 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.

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

• 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 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.

• 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.

• 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.

• 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 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.

• Fair Housing Act Landmark federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disability.

• Fannie Mae The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

• Fascia A board that connects the ends of the roof rafters and provides a surface to support gutters.

• Federal Home Loan Mortgage Corporation, law The Federal Home Loan Mortgage Corporation, commonly known as "Freddie Mac". The company buys mortgages from lending institutions, pools them with other loans and then sells shares to investors.

• Federal Housing Administration (FHA) This government agency operates a variety of home-loan programs. Its most popular is the Sec.203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.

• Federal National Mortgage Association Now officially dubbed "Fannie Mae", this federally chartered agency buys mortgages from lending institutions, pools them with other loans and sells shares to investors.

• Federal Reserve Board A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates.

• Federal Trade Commission The government agency responsible for regulating a variety of companies and industries, from credit bureaus and collection agencies to timeshare operators and certain types of creditors.

• Fee simple This type of ownership is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws.

• Federal style The all-American home architecture style that evolved after the Revolutionary War. Details include bigger windows and a front doorway surrounded by glass and topped with an arched window.

• FHA loans Mortgages that are insured by the Federal Housing Administration. The FHA's 203(b) loan program provides low-rate mortgages to buyers who make a down payment as small as 3 percent. The agency also operates loan plans for investors and purchasers of rural property.

• Fiduciary duty The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.

• Filled land An area where the ground has been raised by adding dirt, gravel or other fill material.

• Finish grade A finish that prepares a lot for landscaping.

• Fire wall A buffer composed of fire-resistant material.

• Firm commitment A promise made by a lender when it agrees to loan money for the purchase of property.

• First mortgage The primary mortgage on a property that has priority over all other voluntary liens.

• Fixed-rate mortgage A home loan with an interest rate that will remain at a specific rate for the term of the loan.

• Fixed time The specific weeks in a year an owner of a timeshare arrangement has access to accommodations.

• Fixer-upper A house that needs refurbishment or remodeling It usually sells at a below-market price.

• Fixture Personal property permanently attached to a house, such as drapery rods, toilets, built-in bookcases or a furnace.

• Flashing Metal strips placed around chimneys, skylights, vents, windows, doors, beneath shingles and along seams in the roof to prevent water seepage.

• Flat fee A set fee charged by a broker instead of a commission.

• Flat roof A roof with a level surface.

• Flood insurance Hazard coverage that is required in designated flood areas.

• Flood plain Flat, flood-prone areas located along waterways.

• Footings Concrete foundations that support a structure.

• Foreclosure The legal process reserved by a lender to terminate the borrower's interest in a property after a loan has been defaulted. When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. Any excess proceeds may be used to satisfy other liens or be returned to the borrower.

• Forfeiture The relinquishing of property rights by a delinquent borrower.

• For Sale By Owner (FSBO) The owner acts as the agent to avoid paying a sales commission.

• Foundation The support structure of a house.

• Foyer The entrance hall to a home or building.

• Framing The construction of the skeletal framework of a house.

• Freddie Mac The common name for the Federal Home Loan Mortgage Corporation, a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

• French doors Two adjoining doors inlaid with glass that open from the middle.

• Frontage The portion of property that borders a roadway or body of water.

• Fully amortized adjustable-rate mortgage A mortgage that amortizes, or pays down, the balance of a loan.

• Furnace An enclosed heating device powered by coal, oil, propane or natural gas.

• Fuse A device that allows power to be channeled into a home.

• Gable roof A ridged roof that forms a triangle at each end.

• Gag rules A provision in contracts signed by new buyers that prohibits the owners from publicizing complaints about the builder.

• Gambrel roof A roof with two slopes, often seen on barns.

• General contractor The person who hires all of the subcontractors and suppliers for a project.

• Georgian style Popular throughout the 18th century, this type of architecture is distinguished by a symmetrical facade, prominent front entrance and quoins-decorative blocks of masonry or wood set in the corners of the house.

• Geodesic dome A structure constructed of lightweight bars forming a grid of polygons.

• Gift A cash gift a buyer receives from a relative or other source. Lenders usually require a "gift letter" stating that the money will not have to be repaid.

• Gingerbread decoration An intricate, almost lacy, wood trim.

• Girders Crossbeams that support floor joists.

• Good-faith estimate An estimate from an institutional lender that shows the costs a borrower will incur, including loan-processing charges and appraisal fees.

• Government National Mortgage Association Commonly known as "Ginnie Mae", this agency buys home loans from lenders, pools them with other loans and sells shares to investors. Ginnie Mae differs from its cousins, Fannie Mae and Freddie Mac, in that it only purchases loans backed by the federal government.

• Grace period A specified amount of time to make a loan payment after its due date without penalty.

• Grade The elevation of land above level ground.

• Graduated-payment mortgage (GPM) A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed.

• Grade level The flat or sloping surface upon which a house is built.

• Grantee A person conveyed an interest in a piece of property.

• Grantor The person who conveys an interest in a piece of property to another person.

• Greek Revival style A style introduced in the U.S. at the end of the 18th century. Its most prominent feature is a pillar-anchored pediment forming a portico in the front of the house.

• Greenbelt Any stretch of park, open space or other natural setting in a community.

• Gross income The total income of a household before taxes or expenses are subtracted.

• Ground fault circuit interrupter Devices that detect leakage of electrical current to the ground and prevent accidental shock.. Commonly referred to as a G.F.I.

• Ground rent The amount of money paid for the use of a piece of property when it is a leasehold estate.

• Group home A single-family residence used as a living space for unrelated, developmentally disabled or mentally disabled people.

• Gutters Horizontal channels installed at the edge of a roof to carry rainwater or melted snow away from the house.

• Hazard insurance This provision of homeowners insurance covers damage by fire, wind or other disaster. It is required by all lenders before a loan is approved.

• Header Crossbeams above windows and doors.

• High density The concentration of housing units in a specific area or on a specific property.

• High-rise Any building higher than six stories.

• Hip roof A pitched roof with sloping sides.

• Historic preservation The physical rehabilitation of a historic home or building, and the movement of the same name begun in the 1960s in the U.S. to preserve and protect landmarks and urban neighborhoods.

• Historic structure A home or building listed in the National Register of Historic Places and certified as historic by the U.S. Secretary of the Interior.

• Home equity loan A loan that allows owners to borrow against the equity in their homes.

• Home inspection An examination of a home's construction, condition and internal systems by an inspector or contractor prior to purchase.

• Homeowners' association A group that governs a modern subdivision or planned community. An association collects monthly fees from all owners to pay for maintenance of common areas, handle legal and safety issues, and enforce the covenants, conditions and restrictions set by the developer.

• Homeowners' insurance This insurance includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage.

• Homeowners' warranty Special insurance policies that cover certain home repairs for a specified amount of time.

• Home warranty A type of insurance that covers repairs to certain parts of a house and some fixtures.

• Housing discrimination The illegal practice of denying an individual or group the right to buy or rent a home based on race, color, religion, national origin, sex, disability or family status.

• Housing expense ratio The percentage of gross monthly income devoted to housing costs.

• House wrap A polyethylene barrier wrapped around a house to save energy.

• HUD-1 Uniform Settlement Statement A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.

• Income property Property that is not occupied by the owner but is used to generate income.

• Incurable defect A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property.

• Index Financial tables used by lenders to calculate interest rates on adjustable mortgages and on Treasury bills.

• Individual Retirement Account Tax-deferred savings accounts that allow people to accrue retirement funds.

• In-file credit report Computer-generated reports drawn from credit repositories that are generally regarded as objective histories.

• Inflation This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears.

• Infrastructure The roads, schools, parks, utilities, bridges and communications systems in a community.

• Initial interest rate The original interest rate on an adjustable mortgage.

• Inspection report An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.

• Installment contract A purchase agreement in which the buyer does not receive title to the property until all installments are paid.

• Insulation Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss.

• Insurable title Title to property that a company agrees to insure against defects and disputes.

• Insurance Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.

• Insurance binder A temporary insurance arrangement usually put in force until a permanent policy can be obtained.

• Interest The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.

• Interest accrual rate The rate at which interest accrues on a mortgage.

• Interest-only loan The borrower pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

• Interest rate The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax-deductible.

• Interest rate buy-down plans For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.

• Interest rate caps A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.

• Interest rate ceiling The highest interest a lender can charge for an adjustable-rate mortgage.

• Investment property Real estate that generates income, such as an apartment building or a rental house.

• Joint liability The responsibility of two or more people to fulfill the terms of a home loan or debt.

• Joint tenancy Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.

• Joist A floor or ceiling support member supported by foundation walls, piers or beams. Sub-flooring is connected to floor joists.

• Judgment The decision of a court or law. If a court decides that a person must repay a debt, a lien may be placed against that person's property.

• Judicial foreclosure A procedure to handle foreclosure proceedings as civil matters.

• Jumbo mortgage Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit is $214,600.

• Junior mortgage A loan that subordinate to the primary loan.

• Knee wall A wall-like structure that supports roof rafters.

• Knob-and-tube wiring An old-fashioned wiring system that has been replaced by fuses and circuit breakers.

• Landscape designer A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.

• Landscape contractor A professional who carries out the plans of a landscape architect or a landscape designer.

• Late charge A fee a lender imposes on a borrower when the borrower does not make a payment on time.

• Late payment A payment a lender receives after the due date has passed.

• Latent defect An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.

• Lead A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk..

• Lease A binding agreement that contains the terms and conditions of a renter's occupancy.

• Leasehold estate An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.

• Lease-Option A lease that contains the right to purchase the property for a specific price within a certain time frame.

• Lender A bank, savings institution or mortgage company that offers home loans.

• Legal description A specific way of identifying and locating a piece of real estate that is acceptable to a court.

• Letter of intent A formal statement that the buyer intends to purchase the property for a certain price on a certain date.

• Leverage The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.

• Liabilities A borrower's debts and financial obligations.

• Liability insurance A policy that protects owners against any claim of negligence, personal injury or property damage.

• Lien A claim laid by one person or company on the property of another as security for money owed.

• Lifetime cap A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if rates on fixed-rate mortgages soar to 20 percent.

• Lintel A horizontal piece over a door or window that carries the weight of the structure above it.

• Liquid assets Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.

• Liquidated damages When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.

• Listing A piece of property placed on the market by a listing agent.

• Listing inventory The known number of houses for sale within a given market.

• Load-bearing wall A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.

• Loan application The first step toward submitting a home loan requires the borrower to itemize basic financial information.

• Loan application fee A fee charged by lenders to for making a loan application.

• Loan commitment A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.

• Loan officer An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.

• Loan origination fee Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is equal to 1 percent of the total loan amount.

• Loan processing fee A fee charged by some lenders for gathering information to enable the lender to process the loan.

• Loan term The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.

• Loan-to-value ratio A technical measure used by lenders to assess the relationship of the loan amount to the value of the property

• Lock-in When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.

• Loft A living space not partitioned into rooms or a small space built above a larger room.

• Log cabin Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S.

• Low-ball offer An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.

• Low-down-payment loan A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.

• Mansard roof A roof with four sides that slope upward from the roof edge to the square peak.

• Manufactured housing Prefabricated homes that can range from simple trailers to larger dwellings.

• Mantel The facing of stone, marble or other material around a fireplace.

• Maintenance fee The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas.

• Margin The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable-rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.

• Market conditions Factors affecting the sale and purchase of homes at a particular point in time.

• Market value The price that a piece of property sells for at a particular point in time.

• Masonry The brick or stone work on a building.

• Master-planned community A suburban plan that includes homes and commercial, work, educational and community facilities.

• Mechanical systems A home's plumbing, wiring, heating and cooling systems.

• Mechanic's lien Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment.

• Mediation A dispute-resolution process in which a neutral party works to resolve contract differences.

• Median price The price of the house that falls in the middle of the total number of homes for sale in that area.

• Metes and bounds A time-honored land surveying method of describing land in terms of shape and boundary dimensions.

• Mint condition Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible.

• Modification A change in any of the terms of the loan agreement.

• Molding Decorative trim elements applied to walls, ceilings, and window and door openings.

• Mortgage A legal document specifying a certain amount of money to purchase a home at a certain interest rate, and using the property as collateral.

• Mortgagee A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.

• Mortgagor The person who borrows money to purchase a house. The lender is called the mortgagee.

• Mortgage acceleration clause A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or the borrower defaults on a scheduled payment.

• Mortgage banker A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.

• Mortgage broker A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.

• Mortgage insurance Required by lenders in some loans to protect them from a possible default . All conventional loans with less than a 20 percent down payments require private mortgage insurance, or PMI.

• Mortgage-interest deduction The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans.

• Mortgage life insurance A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired.

• Motivated buyer Any buyer with a strong incentive to make a purchase.

• Motivated seller Any seller with a strong incentive to sell quickly.

• Move-in condition A house that is ready for a new occupant.

• Move-up buyer A buyer who has purchased a home before or is looking for a bigger or more expensive home.

• Mullion A vertical dividing bar between window lights or panels.

• Multi-dwelling property A property that contains individual units for several households but carries only one mortgage.

• Multiple listing service (MLS) The service combines the listings for all available homes in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database. Most MLS systems require that a property be listed exclusively with one broker in order for the listing to be submitted to the MLS.

• Multiple offers Multiple purchase offers occur in hot markets or hot neighborhoods.

• Municipal housing inspector Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.

• Negative-slope driveway A driveway that drops from street level to the garage.

• Net worth The worth of a person or company based on the difference between total assets and liabilities.

• Niche A small recessed area in a wall, traditionally arched at the top.

• No-documentation loan A loan application that does not require verification of income but typically is granted in cases of large down payments.

• Non-assumption clause A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.

• Non-liquid asset An asset such as a house that is not easily turned into cash.

• Non-recurring closing costs Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.

• Note The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.

• Note rate The interest rate specified in a mortgage note.

• Notice of default A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.

• Open house A marketing tool in which a listing agent opens a house for view.

• Open listing A property given to a number of brokers to market at the same time. Typically these properties cannot be submitted to the MLS or be co-mingled with listings that are held exclusively.

• Option A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy. However, if the buyer does not "exercise his option", the option deposit money is generally forfeited to the seller.

• Oral agreement Contractual arrangements that are not in writing and are usually not legally binding.

• Original principal balance The amount of principal owed on a loan before a borrower makes any payments.

• Origination fee A fee charged by most lenders--also called points--for processing a loan. A point is equal to 1% of the total loan amount.

• Overhang A protruding structural feature.

• Owner financing A transaction in which the seller of a property agrees to finance all or part of the purchase.

• Partition An interior wall.

• Partnership There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an investor in the property).

• Passive solar system A system that supplies solar heat without the use of a traditional heating system.

• Patent defect A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.

• Payment cap A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.

• Percolation test A test used to determine the ability of soil to accommodate a septic system.

• Per-diem interest Interest charged or accrued daily.

• Panel A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.

• Paneling Strips of wood or wood material applied as a finish to a wall.

• Partition Any kind of structure dividing one room or space from another.

• Patio An interior courtyard or a paved backyard area.

• Perennial Any plant that produces leaves, flowers and seeds from year-to-year, such as irises or peonies.

• Personal property Any moveable property in a house such as furniture or appliances.

• Pier A masonry support column.

• PITI (Principal, Interest, Taxes, Insurance) When a buyer applies or a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.

• Pocket door A sliding door that retreats into the wall when opened.

• Point Fees charged by lenders at the time a loan is originated. A point is equal to 1% of the total loan amount.

• Porch This structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.

• Portfolio lender A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.

• Possession When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.

• Power of attorney A document that authorizes an individual to act on behalf of someone else.

• Pre-approval letter A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.

• Pre-closing inspection A buyer's final inspection of the home to determine if conditions in the purchase agreement have been satisfied.

• Prepaid expenses The costs for taxes, insurance and assessments paid before the due date.

• Prepaid interest Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.

• Prepayment penalty Lenders can impose a penalty on a borrower who pays a loan off before its expected end date. Vermont does not have a prepayment penalty.

• Pre-qualification Many lenders will pre-qualify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.

• Pressure relief valve A safety vent that relieves excess pressure in a water heater.

• Price range The range of how much a buyer is willing to pay for a home.

• Primer The initial coat of paint that is applied before the final topcoat.

• Principal The amount of money that the borrower owes on a mortgage.

• Principle of conformity The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.

• Principle of progression An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.

• Principle of regression An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.

• Private mortgage insurance (PMI) A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.

• Property line The official dividing line between properties.

• Property tax deduction The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.

• Property Transfer Tax Vermont imposes a tax on the purchase of real estate. This tax is the obligation of the buyer.

• Property value The value of a piece of property is based on the price a buyer will pay at a certain time.

• Pro-ration Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.

• Purchase and Sale Contract A document which details the purchase price and conditions of the transaction.

• Queen Anne style A Victorian-era style that originated in San Francisco.

• Quit-claim deed A document that releases a party from any interest in a piece of real estate.

• Radon A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets.

• Rafter Rafters form the slope of a pitched roof and are analogous to floor joists.

• Ranch style Modern ranch-style homes (where all living areas are on the same level) were popularized in the 1950s.

• Rate lock When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the guaranteed interest rate is in effect.

• Real estate Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure.

• Real estate agent A real estate agent has a state license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for real estate brokers.

• Real estate attorney A lawyers who specializes in real estate transactions.

• Real estate broker A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction in exchange for a commission. Most brokers also have agents working for them, and are entitled to a portion of their commissions.

• Real Estate Settlement Procedures Act (RESPA) A federal law designed to make sellers and buyers aware of settlement fees and other transaction-related costs. RESPA also outlaws ‘kickbacks’ in the real estate business.

• Real property Land and any permanent fixtures on it, including buildings, trees and minerals.

• Realtor A designation for an agent or broker who is a member of the National Association of Realtors. They agree to adhere to a strict Code of Ethics.

• Recording The filing of a specific document to the appropriate government entity.

• Recording fee A fee charged for the recordation of the documents, conveying the sale of a piece of property, into the public record.

• Redlining The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood.

• Refinancing The process of replacing an older loan with a new mortgage. Once example might be the replacement of an existing mortgage (with an unfavorable interest rate) with that of a new mortgage with better a rate.

• Regulation Z The federal code issued under the Truth-in-Lending Act which requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.

• Relocation benefits Benefits provided by employers for new workers and can include moving costs, reimbursement for temporary housing and transportation, real estate agent assistance and discounted loans.

• Relocation company A firm that administers all aspects of moving employees to a new community.

• Remaining balance The amount of unpaid principal on a home loan.

• Remaining term The original loan term minus the number of payments made.

• Renter's insurance A policy that covers the replacement value of possessions.

• Rent loss insurance A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable.

• Repayment plan When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court.

• Re-point The process of removing old mortar from between bricks and replacing it with new mortar.

• Repossession When a house is repossessed, it is taken back by the lender holding the mortgage.

• Resale value The future value of a piece of property that can be affected by many factors, including the surrounding neighborhood, school scores, and economic and housing market conditions.

• Reserve fund All homeowners associations set aside a certain amount of money for major repairs or improvements.

• Return on investment The amount of profit a property generates.

• Ridge board A horizontal board that serves as the apex of the roof structure.

• Ridge vent A vent located along the ridge board of the roof that allows moisture to escape.

• Right of first refusal An agreement by a property owner to give another person the right to buy or rent the property before the owner enters into an agreement with a third party.

• Right of recission A provision in the federal Truth-in-Lending Act that allows borrowers to cancel certain kinds of loans within three days of signing. This typically occurs with the re-finance of a primary residence.

• Rough-in The installation of plumbing, electrical and other mechanical systems.

• Rural Housing Service A U.S. Department of Agriculture program that provides financing to farmers and certain borrowers to purchase rural property when other funds are not available.

• Sales contract A contract signed by the buyer and seller that details the terms of a home purchase.

• Saltbox style A design that dates to colonial times and takes its name from the shape of saltboxes.

• Sanitary sewer The drain line in a house that carries away food and human wastewater to a municipal sewer system or a septic system.

• Sash One of two windows in a double-hung window.

• Schematic designs Renderings of floor plans and the exterior of a house.

• Second mortgage Another loan placed upon a piece of property.

• Secondary mortgage market A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.

• Secured loan Any loan backed by collateral.

• Security A piece of property designated as collateral.

• Seller’s broker A seller broker represents the interest of the seller.

• Seller carry-back An agreement in which the seller provides financing for a home purchase.

• Seller take-back An agreement in which the seller provides financing for a home purchase.

• Seller's market A hot real estate market in which sellers have the advantage and multiple offers are common.

• Septic system A self-contained sewage treatment system that distributes wastewater to an underground storage area and relies on bacterial action to decompose solid waste matter.

• Setback The minimum distance a house or buildings must be from the lot line.

• Settlement statement A document that details who has paid what to whom.

• Shared-appreciation mortgage A loan that allows a lender or other party to share in the borrower's profits when the home is sold.

• Shared-equity transaction A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner.

• Shed roof A shed roof pitches up longer on one side than the other.

• Shingles Thin, wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber, glass fiber or composition asphalt installed on a roof to prevent water seepage.

• Sill plate A horizontal piece of wood placed on top of the foundation.

• Skylight A window in a roof that allows natural light to illuminate a room.

• Slab foundation A foundation built directly on soil with no basement or crawl space.

• Soffit An external area under the overhang of a roof.

• Special assessment When a homeowners' association or municipal government needs or wants extra funds, it levies a special assessment upon the owners.

• Special deposit account Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.

• Specifications The written requirements for materials, equipment, construction systems and standards.

• Speculation home A home that has been built without a buyer.

• Splash block A slanted block used to divert runoff water from a downspout away from the foundation.

• Split-level style A home that is a ranch-style house stacked to fit on a smaller lot and perhaps to accommodate a garage.

• Square footage The number of square feet of livable space in a home or building.

• Standard payment calculation A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments.

• Starter home Homes that fall within the lower price range of a typical first-time buyer.

• Step-rate mortgage A loan that allows a gradual increase in the interest rate during the first few years of the loan.

• Storm windows Sets of windows and screens that are installed on older double-hung windows.

• Strike plate The metal part of a lock that is anchored to the doorframe and holds the door closed.

• Stucco A mixture of sand and cement used to cover the exterior surface or interior walls of a home or building.

• Studs The upright pieces of lumber or steel in a wall to which panels, siding, drywall or other coverings are attached.

• Subcontractor Specialty construction companies hired by the general contractor to perform certain tasks.

• Subdivision The process in which the owner of a large piece of property divides it into smaller parcels.

• Sub-flooring The sheathing, usually made of plywood, placed on top of floor joists and covered by flooring.

• Subordinate loan A second or third mortgage.

• Sump pump A pump that moves water from a basement sump pit.

• Survey A precise measurement of a piece of property by a licensed surveyor.

• Sweat equity The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements.

• Tax lien An impediment placed against a property, such as back taxes.

• Tax sale The public sale of a property by the government for nonpayment of taxes.

• Tax shelter A term often applied to real estate investment and refers to various tax advantages.

• Tenancy by the entirety When a married couple owns a home, it is usually considered tenancy by the entirety. If the property must be sold to pay the debts of one spouse, both must agree.

• Tenants in common Two or more owners who share interest in a specific property.

• Terrace A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape.

• The 72-hour clause When a buyer has a house to sell before they can purchase another home, most sellers insist on a 72-hour clause. In the event of a better offer coming in before the contingency is settled, this clause entitles the seller to give the buyer 72 hours to remove the contingency or lose the house.

• Timeshare Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.

• Title The actual legal document conferring ownership of a piece of real estate.

• Title company Firms that ensure that the title to a piece of property is clear and provide title insurance.

• Title insurance A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property.

• Title search A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property.

• Top producer A real state industry term that refers to agents and brokers who sell a high volume of homes.

• Top soil The top layer of soil that is removed when lots are graded in preparation for construction.

• Total expense ratio The percentage of monthly debt obligations relative to gross monthly income.

• Trading down A reference to buyers who purchase a home that is less expensive than their current house.

• Trading up A reference to buyers who purchase a home that is more expensive home than their current house.

• Transfer of ownership Any legal means by which a piece of real estate changes hands.

• Transfer tax An assessment by state or local authorities at the time a piece of property changes hands.

• Transom A small hinged window directly above a door.

• Trans-Union Trans-Union Corp. is one of the "Big Three" credit-reporting bureaus.

• Tray ceiling A tray ceiling has edges that slant toward the middle from the walls.

• Treasury bills Securities issued by the Treasury Department that have the full backing of the U.S. government.

• Treasury index An index used to determine interest rate changes for adjustable rate mortgages.

• Trellis A decorative landscape structure made of thin strips of wood or plastic.

• Trim work The finishing of doors, doorways, window frames and floors.

• Truss A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements.

• Trust account Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller.

• Trustee A legally empowered person who holds or controls a piece of property for another person.

• Truth-in-Lending Act A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage) until midnight of the third business day after the contract was signed.

• Two-step mortgage An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.

• Unrecorded deed An unrecorded deed transfers ownership from one party to another without being officially recorded.

• U.S. Department. of Housing and Urban Development (HUD) A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.

• Unsecured loan Any loan that is not backed by collateral.

• Usury A reference to illegally excessive interest charged on any loan.

• Variable rate mortgage A loan with an interest rate that hinges on factors such as the rate paid on bank certificates and Treasury bills.

• Variable rate An interest rate that changes with fluctuations in such indexes as the U.S. Treasury bill index.

• Verification of deposit Part of the loan process, in which a lender will ask a borrower's bank to sign a statement verifying the borrower's account balances and history.

• Verification of employment Part of the loan process, in which a lender asks the borrower's employer for confirmation of the borrower's position and salary.

• Veterans Administration (VA) The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment.

• Victorian style An architectural style that dates from the mid-19th century.

• Vinyl-clad windows Wood windows sheathed in vinyl on the outside.

• Voluntary lien A lien that a homeowner willingly gives to a lender.

• VA loans A program that allows most veterans to purchase a house without a down payment.

• Variable interest rate A loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills.

• Variable rate mortgage A loan with an interest rate that hinges on factors such as the rate paid on bank certificates and Treasury bills.

• Variable rate An interest rate that changes with fluctuations in such indexes as the U.S. Treasury bill index.

• Verification of deposit Part of the loan process, in which a lender will ask a borrower's bank to sign a statement verifying the borrower's account balances and history.

• Verification of employment Part of the loan process, in which a lender asks the borrower's employer for confirmation of the borrower's position and salary.

• Vestibule A small entrance hall or room.

• Veterans Administration (VA) The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment.

• Victorian style An architectural style that dates from the mid-19th century.

• Vinyl-clad windows Wood windows sheathed in vinyl on the outside.

• Voluntary lien A lien that a homeowner willingly gives to a lender.

• VA loans A program that allows most veterans to purchase a house without a down payment.

• Waiver A voluntary relinquishing of certain rights or claims.

• Walk-out basement A feature that allows a door to open onto ground level.

• Warranty A legally binding promise to do something in the future.

• Wetlands Watery areas such as swamps, marshes and floodplains.

• Will The most basic legal document outlining the disposition of a person's estate in the event of death.

• Window seat A bench built under an interior window.

• Window well A curved, corrugated steel insert used to isolate basement windows from moisture if they're below the soil line.

• Zoning Regulations that control the use of land within a jurisdiction.

• Zoning variance A one-time modification of existing zoning law.