Acre

A parcel of space which if square would measure approx. 208 ft by 208 ft (43,560 square ft.).

Adjustable Rate Mortgage

A mortgage with an interest rate that could move up and down over the life of the loan.

Agent

One who represents another for a fee.

Amortization

The process of paying off a loan over an agreed on period of time at an agreed upon interest rate either fixed or variable.

Appraisal fee

The sum paid to a professional appraiser for determining the value of a property.

Asking price

The dollar sum at which a seller decides to offer his property for sale.

Buyer's Agent

A person who represents a buyer in a transaction.

Closing costs

The accumulated fees a buyer pays at the time of taking possession of a property.

Co-signer

One who signs for and with another thereby assuming shared responsibility for a loan

Down payment

The purchase price minus the amount of the mortgage.

Equity

The sum of money left over when a person sells a property and satisifies all mortgages and liens if any.

Escrow

The process of holding money in the control of a third party until some certain conditions are met.

Fixed-rate mortgage

A loan with an interest rate that remains constant over the life of the loan.

FSBO

For Sale By Owner (without the participation of a Realtor).

Home inspection

A physical inspection of a property by a professional to determine the condition of the property and whether defects exist.

Income property

A building or space that can be rented in whole or in part thus producing income for the owner.

Lien

A claim on the property of another as security for a debt.

Listing

A written agreement between a seller and a Realtor outling the price and terms at which a seller would be willing to sell his property.

MLS

Multiple Listing Service An agreement among Realtors outlining the conditions under which each may sell properties listed by the other.

Mortgage

A person who represents many lenders in the search for best terms for a borrower.

Mortgage insurance

An insurance policy, paid for by a borrower which insures a portion of a loan thus reducing risk for a lender.

Owner financing

A seller who delivers title to his property to another and agrees to accept payment over a specified period of time at an agreed upon interest rate is said to have provided owner financing.

Pre-approval letter

A letter from a lender stating the qualifications of a person to purchase a property within certain price limits.

Prequalification

A letter similar to a pre-approval letter but with less detail, substance and weight.

Property tax

A tax determined by a town assessor and owed on a yearly basis to the municipality.

Real estate broker

A professional licensed by the State to sell properties and to hire others whom he would supervise and for whose actions he would be responsible.

Square footage

A measure for comparing the space within a building or parcel of land, (e.g.) a 2000 sq. ft. house.

Subdivision

A parcel of land that has been divided into several building sites.

Survey

The precise description of the dimensions and location of a parcel of real estate.

Tax lien

A hold or notice recorded on the land records and on view for the public that taxes due on a property have not been paid.

Title insurance

An insurance policy, usually with a one-time fee, guarunteeing that at the time of purchase of the policy there are no outstanding liens against the property and no defects in the title.

Variable interest rate

A loan on which the interest rate may fluctuate from time to time, either up or down, is called a variable rate loan.