Glossary of Terms

Acanthus: An architectural decoration, derived from the shape of the leaves of the southern European acanthus plant, as in Corinthian and Composite column capitals and other moldings.

Access: 1) the possibility or means of entering or approaching a place, 2) the opportunity or right to experience or make use of something, 3) the right or opportunity to meet somebody.

A frame: A framed construction of triangular cross-section, with symmetrical or non- symmetrical legs joined at the top and braced further down by a horizontal brace, similar in shape of the letter `A', used for simple one and two story houses and other buildings.

Apex: The highest point of a roof or gable

Appraisal: A system that establishes the land and homes value.

Appreciation: An increase in property values.

Appurtenances: The rights of ownership to mineral rights, rights of air, water rights and littoral rights. 

Arch: A curved, load-carrying monolithic or composite structure or member which spans an opening or recess and is essentially in compression. Loads supported by an arch are resolved into vertical and horizontal forces at supports. Before the advent of structural steel, masonry arches of a variety of shapes provided a major means of achieving long spans in buildings or structures. 

Architrave: The molding trim around a door or window opening to cover the joint between the frame and the wall finish and conceal any subsequent shrinkage or expansion. Sometimes called `Cover mould' or `Door/window lining.' 

Assignment: Assignments occur when the tenant wishes to terminate the tenancy and transfers the tenancy to another person. This can only be done with the landlord's consent. 

Attic: A habitable upper story or rooms built entirely within the roof space of a building, with stair access form the floor below and usually lit by dormers or skylights. 

Auction: The selling of any property, real or personal, in public by a licensed auctioneer     who offers the property for sale, starting at a price possibly much below its value and endeavors to persuade those present to make successively increased offers until it is knocked down to the highest bidder. The owner may place a reserve price on the property and no sale can then be made below this price. 

Alias: A name or label that is used as an alternative means of referring to a file or person. 

Application: A term used for making a formal application for mortgage. Today one can speed up the process by making application online.

Archive: To move a mortgage or real estate file from their current folders into a storage folder. Usually required by the State Commissioner of Commerce for a set number of years. 

Balloon Loan: A loan in which little, if any, of your monthly payments go toward paying off the outstanding balance. Rather, one large, lump-sum payment is due at maturity. 

Barrel Vault: The simplest form of masonry vault, consisting of a continuous plain vault with semi-cylindrical or pointed cross-section, unbroken by cross vaults, and covering a rectangular space. 

Basement: The lowest story of stories of a multistory building wholly or partly below   ground level; generally of lower height than upper story's and often given over to car parking and storage.

Bay Window: A window or group of windows projecting outward from the face of a building and forming a bay in a room. Bay windows come in rectangular, curved or polygonal plan shapes, and are carried on dwarf walls at ground level or brackets at upper levels.

Beam: A structural member, usually horizontal and narrow in proportion to its depth, which supports superimposed loads primarily by its internal resistance to bending. The bending effect at any point in a beam is found by calculating the bending moment. The principal structural materials for beams are: steel, light alloy, timber, reinforced concrete, pre-stressed concrete or composite materials. 

Bungalow: A single story house with gable and/or hipped roofs and a porch supported by pillars, built in the Californian bungalow style. 

Buttress: A projecting masonry structure to give additional strength and stability to a wall by distributing superimposed loads and/or resists the lateral thrusts from an arch, roof or vaults as in large churches and cathedrals. 

Buyers Agent: A real estate agent that represents the buyer exclusively.

Casement Window: A window with one or more sashes hinged vertically to the frame, and opening either to the left of the right, inwards or outwards. A casement window is also called `side-hung window' and one with its sill at or near floor level is canned a `French window' or `French door.' 

Cap: The maximum amount the mortgage rate can change annually or over the life of the loan on a one-year adjustable. For example, if the caps are 2% annual and 6% life of loan, a mortgage whose first-year rate is 10% could rise to no more than 12% the second year and 16% over the entire loan term. 

Cathedral Ceiling: A ceiling that follows the line of the roof, often with the roof timbers exposed. 

Capital Gains Tax: A federal tax, with exclusions, imposed for selling a home before the age of 55.

Cellar: A wholly or partly (at lest 50 per cent) underground room or space in a building, which is used for storage and not living purposes. 

Colonial Style: The style of early architecture of British colonies in North America and Australia, following the concepts of the English Georgian style, also called Colonial Georgian style. 

COFI: Adjustable-rate mortgage with rate that adjusts based on a cost-of-funds index, often the 11th District Cost of Funds. 

Column: A freestanding vertical structural member designed to carry axial loads in compression, generally rectangular or round (circular) in plan, and made of stone, brick, reinforced concrete, cast iron, steel or aluminum. 

Condition Report: A Condition Report is a record of inspection showing the condition of the property at the beginning of a tenancy. A copy of this report must be checked by the tenant and returned to the agent within 7 days of the commencement of a tenancy. 

Conservatory: A glass covered building to house or conserve plants, more elaborate than a greenhouse. 

Cooling-off Rights: The purchaser is granted a "cooling-off" period which commences on the day of exchange and expires at 5 PM on the fifth business day following. Within this period the purchaser is entitled to withdraw from the contract and to pay a small penalty to the vendor. 

Cost Value Index: An index for specifically calculating the return on investment for home remodeling.

Consumer Credit Code: A code designed to keep borrowers informed of fees, charges and general loan conditions. 

Credit Check: When a lender views your credit history to assess if you are suitable for a loan.

Crossroad: A road that runs across another one or that links two main roads.

Dado: The lower portion of an interior wall from the floor or skirting to waist height usually finished in contrast to the remainder of the wall, such as in wood paneling, fabric, wallpaper or paint. 

Deed: A written document, properly signed and delivered, that conveys title to real property.

Default: Failure to pay mortgage payments in a set time.

Delinquency: Being late with loan repayments. 

Detached Home: A house, which is freestanding on its own block of land. 

Developer: One who transforms raw land to improved property by use of labor, capital, and entrepreneur efforts.

Disclosure: A seller’s disclosure is mandated to disclose all material facts that could adversely affect the buyers right to enjoy a property.

Discount: The amount of principle that lenders charge or deduct at the beginning of the loan. 

Distressed Property: Real estate that is under foreclosure or impending foreclosure because of insufficient income production or mortgage payment.

Double Brick: A solid brick wall constructed with some of the bricks laid in a traverse direction so that its width equals two single bricks plus one mortar joint or 230mm. 

Double Glazing: A form of glazing for windows or doors consisting of two panes of glass enclosing an air space between them and used for thermal insulation or sound insulation, or both. 

Down payment: The amount of money required upfront by a lending institution in order to get a mortgage. 

Drywall Construction: The building of interior walls without mortar or other materials  requiring water, by using dry lining materials such as wallboard, plywood or wood paneling.

Dual Agency: The situation in which an agent represents more than one party to a transaction. 

Easement: The right, privilege, or interest that one party has in the land of another. Often uncovered or established by survey.  

Eaves: The lower part of a pitched roof or edge of a flat roof projecting beyond the wall    face; usually finished with a fascia board. Eaves provide shading and throw rain water clear of the walls below. 

Elevation: A view of the facade of a building or an object and the drawn projection of that facade or object. 

Encroachment: A building, a part of a building, or an obstruction that physically intrudes upon, overlaps, or trespasses upon the property of another. A survey can establish whether an encroachment is occurring.

Estate for Life: An interest in property that terminates upon the death of a specified person.

Estate Tax: A tax based on the value of property left by the deceased. 

Equity: The difference between the market value of a house and the amount still owed on the mortgage. 

Escrow Closing: A term meaning the same as closing, especially in states where deeds of trusts are used instead of mortgages.

Exit Fees: Although most new loans do not carry this fee, it can be quite substantial on   loans taken out before November 1996 Fixed-Rate Mortgage A loan with an interest rate that does not change. 

Exchange IRS1041: The exchange of like property to facilitate tax deferral. 

Exchange of Contract: The agent delivers the copy of the contract signed by the      purchaser to the vendor and delivers the original of the contract signed by the vendor to the purchaser. This process is called the Exchange of Contracts and is the stage at which both parties become legally bound to proceed with the purchase of the property, subject to the purchaser's "cooling-off' rights. 

Exclusive Agency Listing: An employment contract given only to one broker, for a   specific time, the right to sell the property and also allowing the owner to sell the property without paying a commission. 

Exclusive Right to Sell Listing: Employment contract giving the broker the right to      collect commission if the property is sold by anyone, including the owner, during the term of the agreement. 

Exclusive Buyer Representation: Employment contract giving the buyer personal representation throughout the home buying process.

Final Inspection: The purchaser makes a final inspection of the property to ensure that it is in the same condition as at exchange and all inclusions are present.

Flat Rate Broker: A licensed broker who charges a fixed fee for the provision of brokerage services instead of a commission.

Floating Rate: An interest rate that is not fixed over the term of a loan, bond or other fixed Income security, but is allowed to vary according to the change in a specified index.

Form: An electronic format that is used to collect and/or distribute information, such as entering mortgage application text using a Standard CGI Send form.

Foundation: The basis for a homes. The foundation is located at the lowest portion of the home and is used to support the structure built upon it.

Furnace: A device, which provides and maintains heat within a home.

Galumping: This occurs when the owner of a property verbally agrees with a buyer to sell and then subsequently accepts a higher offer from a second purchaser prior to the agreement with the first buyer being formalized. 

General Warranty Deed: A deed in which the grantor agrees to protect the grantee against any other claim to title of the property and provides other promises. 

Gift Funds: A type of fund or grant given by the government (National or local) for the use of down payment assistance, interest reduction, first time buyer help, and more.

Grandfather Clause: When a law is changed or a new law is passed, those whose    specifically activity was legal under the previous law are often allowed to continue, by virtue of this provision. 

Hazard Insurance: A form of insurance that protects against certain risks, such as fires or storms. 

Holdback: Money not paid until certain events have occurred. 

Honeymoon Rate: A lower interest rate usually fixed for one year to attract borrowers. 

Homestead Tax: A sometimes-imposed state tax allowing savings for principle residence.

Index Rate: A floating index lenders use to calculate the rate on a one-year adjustable-rate mortgage. The most common indexes are the one-year Treasury Constant Maturity Yield and the FHLB 11th District Cost of Funds. 

Interest Rate: The amount charged per year for borrowing money. 

Interest Rate Cap: A limit on the amount interest can rise or fall during a specified period of time on an adjustable-rate mortgage. 

Implied Contract: Contracts created by actions, but not necessarily written or spoken. 

Independent Fee Appraiser: One who estimates the value of property, has no interest in the property, and is not associated with a lending institution or investor.

Insulation: A product which when placed in the proper areas of a home lowers the heat or cooling transfer rate.

Landscape Architect: A professional who designs buildings sites, subdivisions, and other projects which require work on drainage, grading, vegetation, installation of utilities and site improvements.

Leadlight Windows: A window often used in churches and in domestic architecture to the 18th century, made up of small rectangular or diamond shaped pieces of clear or colored glass, held together and to the frame by lead glazing strips. 

Lintel: A small horizontal structural member spanning an opening, such as a window, or door, to transfer the superimposed load to walls, columns, or piers on either side. 

Load bearing Wall: A wall designed to support a superimposed load in addition to its own weight. 

Lot and Block: A method of locating a parcel of land. 

Kicker: A payment required by a mortgage in addition to normal principle and interest. (See participation loan)

Loan Application Fees: Usually about $100 to $250, this fee covers administrative work done by the bank 

Loan Commitment Fees: An agreement to lend money, generally of a specified amount, at specific terms at some time in the future.

Locked in Interest Rate: The rate promised by a lender at the time of loan application.     The promise is a legal commitment of the lender, though there may be qualifications or contingencies that allow the lender to charge a higher rate. On home loans, the lock-in is usually provided for 1% of the amount borrowed, though often it is free of charge. On income property loans, a lock-in usually requires a commitment fee from the loan applicant.

LTV or LVV: The loan to value ratio.

Margin: A set number of percentage points above or below official rates. 

MLS: A database of homes and information used by Realtors for the purpose of networking and selling homes. 

Mortgagee: The person or company that lends money for a home. 

Mortgage Broker: One who, for a fee, places a loan with investors, but does not service the loans. 

Mortgage Insurance: A type of insurance designed to cover the lender if the borrower defaults on the loan.

Mortgage Insurance Fees: The lender may require mortgage insurance when the    purchaser is borrowing more than a specified proportion of the purchase price or lending authority's valuation. The insurance is taken out to protect the lending authority's interest in the land and is paid by the mortgagor. 

Mortgage Manager: A non-bank lender, also known as a mortgage originator or securities, which on-sells mortgages to the market, usually for a cheaper rate than the banks. 

Mortgage Repayments: Mortgage repayments are usually monthly payments made by the mortgagor to the lending institution towards paying off the loan. The size of the repayments depends on a number of factors such as the type of lending institution and the type and term of the loan. 

Mortgage Type: The specific loan style and type.  

Mortgagor: The person who borrows money for a home.  

Municipal Council Rates: Municipal council rates are based on the Land Value of the property as assessed by the Value General's Department and applies to both vacant and improved land. 

Negative Amortization: When interest rates increase faster than monthly payments, on an adjustable-rate mortgage, your balance may grow despite efforts to pay it down. 

Novation: A third party agreement whereby one party is released from a contract and another party is substituted. 

NPV: The present net value. 

OAR: The overall rate of capitalization. 

Obsolescence: A loss in value due to reduced desirability and usefulness of a structure because its design and construction has become obsolete; loss due to a structure's becoming old-fashioned, not in keeping with modern needs, with consequence loss of income.

Opinion of Title: A certificate, generally from an attorney, as to the validity of title to property being sold. 

Origination Fee: A fee charged to borrower to cover costs associated with issuing the loan, such as credit checks, appraisal, and title expenses. 

Owners Corporation: The Owners Corporation is required to maintain and keep the common property and to enforce the by laws which govern the use of common and personal property in the Corporation. 

Passed In: If a property is not sold at auction because the owner's reserve price has not been reached, it is passed-in to the highest bidder having a first option to purchase at the reserve price. It is then possible to negotiate for the purchase, either on the same day or afterwards. Properties so passed-in are mostly sold shortly afterwards at a price close to the passed-in figure. 

Plasterboard: A rigid, insulating building board made of a core of gypsum plaster set between and bonded to outer coverings of heavy cardboard. It is made in many types and several thickness and used for flat and even walls and ceilings. 

Points: The fees paid to induce lenders to make a mortgage loan. Each point equals 1% of the loan principle. Points have the effect of reducing the amount of money advanced by the lender. (Same as discount points) 

Power of Sale: A clause inserted into mortgages or deeds of trust, grants the lender, (or trustee) the right to sell the property upon certain default. 

Prepayment Penalty: A fee charged for paying off a loan before the agreed date. 

Principle: The total amount of a home loan refinancing when a second loan with a lower interest rate is taken out to pay off an original loan. 

Price Index: A national survey that keeps track of home price increases or decreases for all regional areas.

Private Treaty Sale: A sale concluded by an estate agent as distinct from a sale by auction.

Prorate: To allocate between seller and the buyer their proportionate share of an obligation paid or due, for example, taxes or insurance. 

Puffing: The overstating of qualities relating to a property. 

Quiet Enjoyment: The right of an owner or any other person legally entitled to possession to use the property without interference.

Quiet Title: Court action to settle a title dispute.

Quit Claim Deed: A deed that conveys only the grantor's rights or interests in real estate, without stating the nature of the rights and with no warranties of ownership. Often used to remove a possible cloud on title.

Relocation Network: A geographically diversified group of real estate brokerage companies, generally not members of a franchise that share information with another concerning and to help potential customers.  

Rental Bond: A rental bond is paid by a tenant as a form of security for the landlord against breaches of the tenant. 

Residential Property: Residential property includes both a house on land or vacant land for residential purposes up to 2.5 hectares in area, as well as home units, villas and town homes.

emidetached Housing: One of a pair of self-contained houses, often of mirror image design, attached by a common wall but detached from other buildings; usually on separate titles. 

Shingle: A thin piece of wood, slate or other material, usually oblong in shape with one end thicker than the other and generally cut to uniform size. Shingles are used in overlapping rows to cover the roofs or walls of buildings.

Standard Variable Interest Rate: An interest rate, which moves roughly in line with official interest rates. 

Strada Title: A system of land title based on the horizontal subdivision of air space. In practice, plans of a building are registered, containing internal units marked as to their boundaries and each allocated a lot number as in a plan of subdivision. 

Stucco: An external render with a decorative textured or imitation stone finish, made of lime, Portland cement and sand and used in the coating of houses and other buildings until the mid-twentieth century.

Specific Performance: A contract is specifically performed when each of the parties to it does the very thing or things which he contracted to do and when accordingly, each party gets what he bargained for. The right to specific performance of a contract can be enforced through the courts, which may decree that a contract shall be specifically performed and carried into effect. 

Stamp Tax: Stamp tax is a revenue raised by means of stamps affixed to certain contracts such as for the conveyance of property. The tax rates are based on a scale of charges according to the sale price of the property. 

Subletting: A sublet occurs when the tenant gives another person the right to occupy all or part of a premises over which you hold a tenancy, but keep the tenancy in your own name. 

Substructure: The general structure base upon which the remainder of a structure or superstructure, is supported compromising the footings and any retaining wall or other walls supported by the ground up to the ground floor level. Its function is to receive the loads from the superstructure and transfer them safely down to the load bearing foundation. (More on foundations) 

Terrace Double Story: A building often attached on one or both sides. Usually in Victorian style with balconies and intricate metal work. Living areas are downstairs and bedrooms upstairs. 

Terrace Housing: One of a row of three or more attached dwellings of uniform style, generally two or three stores high, and decorated with cast-iron lacework. 

Tenancy Agreement: The amount of bond to be paid varies according to the type of property involved. 

Title: The ownership of property, or the documents constituting the evidence of such ownership. 

Torrence Insurance: A policy issued to a mortgagee or mortgagor that protect against specific defects in title. 

Torrence Title: The colloquial name given to titles to land constituted by statutes, in essence requiring registration of ownership and dealings in land with a Governmental Department.