Adjustable-Rate Mortgage / Loan:
Financing offered with an interest rate that is variable, usually dependents on the LIBOR (London Inter-Bank Offer Rate). This type of financing features a length of term in which the rate is fixed, a maximum amount the interest rate is allowed to be increased too during a specified period and a maximum amount the interest rate is allowed to be increased too during the life of the financing offered.
Agricultural Property:
Land, that may include improvements (i.e.: fencing, buildings, water/sewer, etc.) for the sole purpose of farming or cultivating the land for harvestable crops (i.e.: vegetables, fruits, nursery products, etc.). This type of land may include tillable, non-tillable and forest/timber land.
Assessed Value:
This is the amount that a municipality places on the real estate property, dependents on previous comparable sales history, current market conditions and current property conditions. This amount is used for the sole purpose of taxing real estate properties.
Borrower:
Opposite of the lender, this individual and/or entity is receiving funds from a lender, of which it will have to be returned with interest. This individual and/or entity will have to prove to the lender that they are able to return the funds borrowed with interest, through their creditworthiness. For the individual and/or entity to provide their creditworthiness, they may have to provide to the lender: previous tax statements, proving income; credit report/history, proving financial stability; down-payment, proving genuine interest in equity within the property; and more depending on the requirements of the lender.
Brown Property / Brownfield:
A property, previously or currently zoned industrial, that is typically characterized as such by the Department of Environmental Protection (DEP), ready for future development/use. This parcel may have improvements on it, such as buildings and structures. Contaminants may have seeped into the ground on this property and may need to be cleaned/remediated or may already have been cleaned/remediated, due to improper disposal and/or holding of waste / contaminants.
Collateral:
Items that are used to secure a loan / mortgage. Typically, real estate properties may be used to secure a loan / mortgage, to protect the lender during a delinquency and favor the borrower by obtaining a lower interest rate compared to a personal loan.
Collateralized Mortgage Obligation (CMO) / Collateralized Debt Obligation (CDO):
A securitized financial product, that contains multiple loans / mortgages packaged together for the purpose of decreasing risk to the investor and increasing liquidity to the lender. Typically, financial institutions use these products for liquidity purposes, to increase cash reserves for lending or other means. These instruments are fixed income products that are typically issued by Fannie Mae, Freddie Mac & Ginnie Mae. An investor purchasing this product will receive monthly payments of the principal and interest, of which half of the principal will be returned to the investor through the monthly payments through the half-life. Instruments issued by Ginnie Mae are guaranteed by the federal government. This instrument is different from conventional fixed income products such as bonds or cd’s, since principal would be paid at maturity.
Commercial Property:
Land, that may include improvements (i.e.: fencing, buildings, water/sewer, etc.) for the sole purpose of commercial space, such as but not limited to: offices, retail (i.e.: stores, restaurants, etc.), and other business purposes.
Conventional Mortgage / Loan:
This type of financing is typically offered by banks (i.e.: lender) to individuals and/or entities (i.e.: borrower), that will be returned with interest. Typically, borrowers who qualify for this financing, meet certain income, down-payment and creditworthiness requirements, as stipulated by the lender.
County Assessor:
An individual or department, designated for handling and compiling assessed values on real estate properties, for taxation purposes.
County Auditor:
An individual or department, designated for handling financial matters pertaining to the municipality, whether receivables or payables, predominantly from real estate property taxes.
County Clerk:
An individual or department, designated for distributing real estate property tax statements and collecting real estate property taxes. In addition, this individual and/or department, may be designated for handling numerous records, especially pertaining to real estate properties.
County Recorder:
An individual or department, designated for recording and maintaining real estate transactions and other actions taken place within said municipality.
Deed Covenants & Restrictions:
Statements found on a deed, for the purpose of either conveying a restriction to the grantee / buyer for said real estate property designated on the deed. These are typically used to either protect the buyer/seller or for the use of preserving the real estate property in a certain manner.
Crop Insurance:
Protection purchased typically by farmers, to avoid and/or limit losses to their crops / harvest from unpredictable and/or unfavorable weather and/or market conditions.
Deed:
An instrument used to convey ownership from the current owner, the seller (Grantor), to the new owner, the buyer (Grantee). These instruments are found in various forms, such as: Quit Claim Deed, Special Warranty Deed, General Warranty Deed, Sheriffs Deed, Tax Deed, etc..
Delinquent:
Behind on a payment, a payment that is overdue or a payment that is late.
Dilapidated Property:
A real estate property, typically a building, that is neglected by the owner or damaged by storms, vandals and/or other causes.
Easement / Right of Way:
An access point, allowing an individual to trespass legally, if and when properly recorded on deeds and/or land surveys.
Encroachment:
Improvements, such as buildings, structures, fencing, etc., that extend beyond the legal boundary as found on a land survey, onto a neighboring real estate property.
Fannie Mae:
Otherwise known as the Federal National Mortgage Associate, is a government sponsored enterprise (GSE), that issues mortgage backed securities, such as Collateralized Mortgage Obligations (CMOs) and/or Collateralized Debt Obligations (CDOs), for the purpose of offering larger banks/lenders liquidity to increase cash reserves and lending, while offering investors alternative fixed income products.
Federal Housing Administration (FHA) Mortgage / Loan:
This type of financing is typically offered by banks (i.e.: lender) to individuals and/or entities (i.e.: borrower), that will be returned with interest. Typically, borrowers who qualify for this financing, would pay mortgage insurance due to the fact the borrower may not meet certain requirements as found in a conventional mortgage / loan.
Flood Insurance:
Protection purchased typically by home-owners in a designated flood zone, to avoid and/or limit losses to their real estate property from unpredictable and/or unfavorable weather conditions. Banks and lenders alike, typically require borrowers and home-owners to purchase this protection when the real estate property is located in a designated flood zone.
For Sale:
Available to purchase/acquire.
Foreclosure:
After a certain amount of missed payments and delinquencies from the borrower or real estate property owner, the lender or municipality (depending on the type of proceedings) would pursue petitioning the court on recording the real estate property as collateral in lieu of balance owed by the borrower and/or real estate property owner. After a period of time elapses, and the delinquency is still present, the real estate property is transferred from the delinquent holder to the lender or municipality, as a means to make them whole again.
Forest / Timber Land:
Land, that may include improvements (i.e.: fencing, buildings, water/sewer, etc.) for the sole purpose of forestry or timber/lumber/wood cultivation.
Freddie Mac:
Otherwise known as the Federal Home Loan Mortgage Associate, is a government sponsored enterprise (GSE), that issues mortgage backed securities, such as Collateralized Mortgage Obligations (CMOs) and/or Collateralized Debt Obligations (CDOs), for the purpose of offering smaller banks/lenders liquidity to increase cash reserves and lending, while offering investors alternative fixed income products.
General Warranty Deed:
An instrument used to convey ownership from the current owner, the seller (Grantor) to the new owner, the buyer (Grantee). This instrument protects the grantee, as the grantor warrantees the entire title/history of the property.
Ginnie Mae
Otherwise known as the Government Mortgage Associate, is a government sponsored enterprise (GSE), that issues mortgage backed securities, such as Collateralized Mortgage Obligations (CMOs) and/or Collateralized Debt Obligations (CDOs), for the purpose of offering banks (who offer FHA, VA, and other loans/mortgages) liquidity to increase cash reserves and lending, while offering investors alternative fixed income products. This entity is guaranteed / backed by the federal government.
Grantee:
The buyer, otherwise known as the new owner of a real estate property, found on a deed.
Grantor:
The seller, otherwise known as the current/previous owner of a real estate property, found on a deed.
Home Equity Line of Credit (HELOC):
This type of financing offered by a lender to a borrower, based off of the equity value within the real estate property used as collateral. The equity value of the real estate property is the current market / appraised value minus any current loans and/or mortgages on that property.
Home Owners Insurance:
Protection purchased typically by home-owners, to avoid and/or limit losses to their real estate property from vandal and/or damaged caused to the property. Banks and lenders alike, typically require borrowers and home-owners to purchase this protection.
Improvements:
Anything of added value, permanently placed on a real estate property. This may include, but are not limited to: fencing, buildings / structures, water / sewer and much more.
Industrial Property:
Land, that may include improvements (i.e.: fencing, buildings, water/sewer, etc.) for manufacturing and industrial purposes.
Interest Only Mortgage / Loan:
This type of financing typically offers by certain banks and lenders to borrowers within real estate development. In this situation, for a specified time period, only interest payments are made, in which the lump sum principal balance would be paid at the end of the specified time period.
Interest Ownership:
When multiple parties are involved in a real estate transaction, this would indicate what percentage each individual and/or entity owns of the real estate property.
Interest Rate:
A fee, typically charged on an annual basis but paid on a monthly basis, is charged by the lender to the borrower, based off of the amount borrowed, credit worthiness of the applicant / borrower, length of financing, etc..
Land Locked:
A real estate property situated in the middle and/or between other real estate properties, that does not have legal access through either public road frontage or easement / right of way.
Lender:
Opposite of the borrower, this individual and/or entity is providing (lending) funds to a borrower, of which the borrower will have to be return said funds with interest. This individual and/or entity will lend to the borrower based off of their creditworthiness, through previous tax statements, proving income; credit report/history, proving financial stability; down-payment, proving genuine interest in equity within the property; and more depending on the requirements of the lender.
Lien:
A security an individual and/or entity may have, against a real estate property, based off of an amount owned by the current real estate property owner. This security held by the IRS, takes precedence over ones held by a municipality, while this security held by a municipality takes precedence over ones held by anyone else.
Mortgage / Loan:
A contract in which the lender provides funds to the borrower. In this agreement, the borrower agrees to return the funds borrowed within a specified time period, with a stated interest. Collateral may be used to secure financing.
Mortgage / Loan Underwriter:
An individual and/or department designated to determine if the lender will be able to lend funds to the borrower, based off of the creditworthiness of the borrower, real estate property valuation and other metrics.
Mortgage / Loan Banker:
An individual who originates mortgages by working with the borrower by obtaining documents and information required and working with the mortgage / loan underwriter by providing the necessary information and documents as required.
Multiple Listing Service (MLS):
A service used by real estate agents and/or brokers for the purpose of listing a real estate property through multiple venues and brokers to gain market exposure and attract interest from more buyers.
Municipality:
A government body, such as, but not limited to: County, City, Town, Village, etc.. The government body which contains elected officials and hired individuals, maintains records (i.e.: deeds, marriage certificates, liens, etc.) and provides services within a designated area (i.e.: school, police, firefighters, road maintenance, public water/sewer, etc.) through the use of funds from real estate property taxes.
Non-Tillable Land:
A real estate property that is not used or suitable for agricultural purposes.
Owner Financing:
A contract between the grantor, the current owner (seller) and the grantee, the new owner (buyer) in which the real estate property is transferred to the grantee, only after all required payments have been made. This type of financing, similar to a mortgage / loan, makes real estate property ownership affordable, but without the strict requirements of creditworthiness and the real estate property is used solely as collateral.
Parcel Number:
A combination of numbers and/or letters, used for the purpose of referencing a specific real estate property in legal documents, correspondence, tax statements, deeds, etc..
Principal Balance:
The original amount and/or current amount left to repay for a loan and/or mortgage.
Property Taxes:
Using the assessed value, real estate properties are assessed an amount owed by the real estate property owner, which will be used for services offered by a municipality.
Quiet Title:
A court action in which the current owner of said real estate property, petitions the court to “quiet the title” or settle any outstanding title issues, in order to gain a marketable title of said real estate property.
Quit-Claim Deed:
An instrument used to convey ownership from the current owner, the seller (Grantor), to the new owner, the buyer (Grantee). The seller provides no guarantees nor warrantees of any kind to the buyer, regarding to their ownership claim nor the marketability of the title to said property.
Real Estate:
Property that can be conveyed ownership, consisting of land, which may include improvements (i.e.: buildings).
Real Estate Agent:
An individual who works for a real estate broker, actively solicits and represents buyers/sellers of real estate. This individual is compensated upon a sale of a real estate property, typically a percentage of the sales price.
Real Estate Broker:
An individual who may work independently or with other brokers, actively solicits and represents buyers/sellers of real estate. This individual is compensated upon a sale of a real estate property, typically a percentage of the sales price.
Real Estate Owned (REO) / Bank Owned:
A real estate property owned by a financial institution (i.e.: bank) or government entity (i.e.: municipality).
Rental Property:
A real estate property, typically resident or commercial, used for the sole purpose of leasing/renting to tenants. This real estate consists of land and include improvements (i.e.: buildings).
Residential Property:
A real estate property categorized for residential living purposes, consisting of land, which may include improvements (i.e.: buildings).
Sheriffs Deed:
Pursuant by court order/judgment, an instrument used to convey ownership from the sheriff, the seller (Grantor), to the new owner, the buyer (Grantee). This instrument is typically used in foreclosure proceedings.
Short Sale:
A real estate property offered for sale by a financial institution (i.e.: bank), that is priced for less than the outstanding mortgage/debt currently on the real estate property (i.e.: a house with a $100,000 underwater mortgage that is listed by a bank for $80,000). The financial institution is willing to accept a loss on the real estate property, based on determining factors (i.e.: current real estate market, current home-owner’s willingness to sell the property,
Sold:
Once an agreement is reached between a buyer and seller of a real estate property, the buyer delivers the proceeds for the sale to the seller while the seller conveys ownership to the real estate property. Any and all contingencies agreed upon by the buyer and seller, must be met by both parties.
Special Warranty Deed:
An instrument used to convey ownership from the current owner, the seller (Grantor), to the new owner, the buyer (Grantee). The seller provides a specific warranty / guarantee regarding to the marketability of the title, typically only for the time period the seller owned the property, but not providing any warranty / guarantee to the marketability of the title, outside seller’s ownership of said property.
Surveyor:
An individual and/or corporation that uses readily available information from public records, to map-out and stake boundaries of real estate, through the purpose of locating the real estate property relevant to existing natural boundaries (i.e.: rivers, valleys, etc.) and existing built boundaries (i.c.: fences, buildings, etc.), maps, GPS Coordinates and ground stakes.
Swamp Land:
A real estate property categorized by it being water-logged (i.e.: standing water).
Tax Deed:
An instrument used to convey ownership from a municipality, the seller (Grantor), to the new owner, the buyer (Grantee). Like a quit-claim deed, the seller provides no guarantees nor warrantees of any kind to the buyer, regarding to their ownership claim nor the marketability of the title to said property. This instrument is used by municipalities once a tax lien certificate holder petitions for tax deed or municipalities selling real estate property pursuant to foreclosure from a tax delinquency.
Tax Lien:
An instrument issued by a municipality, that is placed on a real estate property due to past-due / delinquent real estate property taxes. These instruments provide a redemption period, interest rate, face value and other important information used by the municipality for recording of delinquent property taxes. This instrument does not convey actual ownership of real estate property, only ownership to that specific lien on the real estate property. Depending on where this instrument was issued and the laws governing these instruments, upon the expiration of the redemption period and following specific notice requirements, the lien holder may petition for tax deed.
Tillable Land:
A real estate property, categorized for agricultural purposes, that is used primarily for vegetation growing purposes.
Title Search:
An abstract of title, which is a report completed by a title company, conveys the provenance and history of the real estate property. This report includes anything filed publicly within the municipality, such as: ownership changes (i.e.: any and all publicly recorded deeds), publicly recorded debt (i.e.: mortgages/liens/judgements placed on the property and paid-off), easement recordings, survey recordings, court proceedings (i.e.: foreclosure, quiet-title, etc.) and much more. This report is used to decide on its marketability and if title insurance may be issued.
Under Contract:
This term is used when a seller of a real estate property, accepts an offer from a buyer for a real estate property. Both parties have to agree to the sales price, along with any other contingencies made by the seller and/or the buyer. Once both parties come to an agreement, both the buyer and seller have to perform their side of the agreement (i.e.: seller conveying ownership of real estate property upon receipt of funds from buyer).
Veterans Affairs (VA) Mortgage / Loan:
This type of financing is typically offered by banks (i.e.: lender) to present/past military members OR family members of military personnel (i.e.: borrower), that will be returned with interest. Typically, borrowers who qualify for this financing, meet certain income, down-payment and creditworthiness requirements, as stipulated by the lender.
Watershed
A real estate property categorized by water run-off (i.e.: streams and rivers) or water collected (i.e.: pond) due to water run-off.