REAL ESTATE GLOSSARY
Today we will start with the letter A. We will add more posts in the future with additional terminology that you may run across during a real estate transaction.
ABSTRACT: An abbreviation of the cardinal aspects of all recorded deeds, mortgages, leases and other instruments affecting the title to a particular piece of land.
ADVERSE POSSESSION: The unauthorized occupation of land belonging to another, by a person who does not have the consent of the owner. Said occupier is said to hold possession adversely to the rights and interests of the owner. In most states, by operation of law, title to the land becomes vested in such occupier after a fixed number of years of peaceful occupancy.
AMORTIZATION: This term has developed through French and Old English from the Latin words “mors” or “mort” meaning death or dead. It is the killing off of an existing debt by regular partial payments. The word “mortgage” is also derived from the same Latin root.
ANNEXATION: If a property is outside the limits of a municipality, the buyer should be aware that the property may later be annexed by a nearby municipality. The buyer may find information on the boundaries of nearby municipalities by contacting the municipalities directly.
APPRAISER: A person licensed by the state to perform Appraisals. The appraiser must follow strict guidelines. The Uniform Standards of Professional Appraisal Practice (USPAP) was adopted by Congress in 1989 and contains the standards for all types of appraisal services.
APPRAISAL: An appraisal is a valuation of the property. An appraiser renders an estimate of value as of a certain date under assumptions and conditions stated in the appraisal report. Typically, a buyer's lender requires an appraisal to verify that the loan is secured by property that is worth a certain amount. An appraisal is not the same as an inspection.
APR – Annual Percentage Rate. The yearly interest percentage of a loan as expressed by the actual rate of interest paid.
We hope these glossary terms are helpful to you as you buy or sell your next home. If you would like more information about how we help our clients, visit our website. If you are moving in or to North Texas, our Team would love to help you personally. If you are moving anywhere else in the United States, let us know and we can personally recommend a REALTOR to assist you wherever your move takes you.