# Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• 203(b)
  • FHA program which provides mortgage insurance to protect lenders from default; used to finance the purchase of new or existing one- to four family housing; characterized by low down payment, flexible qualifying guidelines, limited fees, and a limit on maximum loan amount. 
• 203(k)
  • This FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of its rehabilitation through a single mortgage loan.

A Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Acceleration clause
  • A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.
• 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.
• Accretion
  • The gradual addition to the shore or bank of a waterway by deposits of sand or silt.
• Acknowledgment
  • A written declaration affirming that a person acted voluntarily.
• Acre
  • A measurement of land equal to 43,560 square feet.
• Acre foot
  • The volume of material needed to cover an acre of land one foot deep.
• Active solar system
  • A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use.
• Actual age
  • The number of years a structure has been standing.
• Ad Valorem
  • According to value; which refers to the value of property used in the computation of taxes.
• 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.
• Add-on interest
  • The interest a borrower pays on the principal for the duration 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 date
  • The date the interest rate changes on an adjustable-rate mortgage.
• 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.

• Advance fees

  • means any fees charged for services including, without any limitation, any fees charged for listing, advertising, or offering for sale or lease any real property. Advance fees shall not include fees paid solely for advertisement in a newspaper or other publication of general circulation. ^*1

• Adverse possession
  • The acquisition of title to property through possession without the owner's consent for a certain period of time.
• Adverse use
  • The access and use of property without the owner's consent.
• Aeolian soil
  • Soil that is composed of materials deposited by the wind.
• Affiant
  • A person who makes a sworn statement.
• Affirmation
  • A substitution for an oath granted to people based on religious reasons.
• A-frame design
  • An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.
• Agency
  • The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract.

  • means a fiduciary relationship between a principal and an agent arising out of a brokerage agreement whereby the agent is engaged to do certain acts on behalf of the principal in dealings with a third party. ^*1

• Agency closing
  • The process by which a lender uses a title company or other firm as an agent to complete a loan.
• Agent
  • A person licensed by the state to conduct real estate transactions.
• Agreed boundary
  • A compromise boundary to which property owners agree in order to resolve a dispute.
• Agreement of sale
  • A document the buyer initiates and the seller approves that details the price and terms of the transaction.
• Alcove
  • A recessed section of a room, such as a breakfast nook.
• Alienation clause
  • A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.
• Alkali
  • Mineral salt found in soil.
• Alkaline soil
  • Soil that contains a higher concentration of mineral salt than natural acid.
• Alley
  • A lane behind a row of buildings or between two rows of buildings.
• Allowances
  • Budgets offered by builders of new homes for the purchase of carpeting and fixtures.
• Alternative mortgage
  • Any home loan that does not conform to a standard fixed-rate mortgage.
• Aluminum siding
  • A metal covering that provides an alternative to paint for owners of wood homes.
• Aluminum-clad windows
  • Wooden windows with aluminum covering the exterior.
• Amenity
  • A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, Woods, water) or man-made (like a swimming pool or garden).
• American Society of Home Inspectors
  • The American Society of Home Inspectors is a professional association of independent home inspectors. Phone (800) 743-2744.
• 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
  • Repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years). The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.
• Amortization schedule
  • A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
• Amortization tables
  • Mathematical tables that lenders use to calculate a borrower's monthly payment.
• Amperage
  • The strength of an electrical current.
• Anchor bolt
  • A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.
• Annual
  • Something that happens once a year.
• Annual mortgagor statement
  • A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.
• Annual Percentage Rate (APR)
  • Calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan. This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage.
• Annuity
  • The payment of a fixed sum to an investor at regular intervals.
• Anticipatory breach
  • A communication that informs a party that the obligations of the original contract will not be fulfilled.
• Application
  • The first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process. The form used to apply for a mortgage loan, containing information about a borrower’s income, savings, assets, debts, and more.
• Application fee
  • The fee that a lender charges to process a loan application.
• Appraisal
  • The process of estimating a property's market value based on established methods and the Appraiser's professional judgment.
  • A document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
  • A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
• 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 a property's current fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
• Appraiser
  • An individual qualified by education, training, and experience to estimate the value of real property and personal property.
• Appreciation
  • The increase in the value of a property due to changes in market conditions, inflation, or other causes.
• APR
  • Annual Percentage Rate
• Arbitration
  • A method of resolving a dispute in which a third party renders a decision.
• Arbor
  • An area shaded by trees, shrubs or vines on a latticework structure.
• 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.
• ARM
  • Adjustable Rate Mortgage
• 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.
• Asking price
  • A seller's initial price for a property.
• 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.
• Assessment rolls
  • A list of taxable property compiled by the assessor.
• Assessor
  • A government official who is responsible for determining the value of a property for the purpose of taxation.
• Assets
  • Items of value which include cash, real estate, securities and investments.
• Assignor
  • A person who transfers rights and interests of a property.

• Associate broker

  • means any person who is licensed as a real estate broker, but who is employed by a principal broker or under contract, expressed or implied, to a principal broker and in addition operates under the supervision of a principal broker to participate in any activity described in paragraph III of this section. ^*1

• Assumable mortgage
  • A mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an assumable mortgage.
• 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.
• Avigation easement
  • An easement over private property near an airport that limits the height of structures and trees.
• Awning windows
  • Single-sash windows that tilt outward and up.

B Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Back fill
  • Soil used to solidify the foundation of a structure.
• Back title letter
  • A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes.
• Back-to-back escrow
  • 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.
• Backwater valve
  • A valve in a sewer line that prevents sewage from flowing back into a house.
• Balance sheet
  • A statement that shows the assets, liabilities and net worth of an individual.
• Balloon Mortgage
  • A mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.
• Balloon payment
  • The final lump sum payment due at the end of a balloon mortgage.
• Balloon-frame construction
  • A type of framing used in two-story homes in which studs extend from the ground to the ceiling of the second floor.
• Balustrade
  • Railing held up by a set of posts on a porch or stairway.
• Bankruptcy
  • A federal law whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow.
• Bargain sale
  • The sale of a piece of property for less than market value.
• 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.
• Bequeath
  • To transfer personal property through a will.
• Bequest
  • Personal property given to a person through a will.
• Betterment
  • An improvement that increases a property's value as opposed to repairs that maintain the value.
• 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.
• Binder
  • A report issued by a title insurance company that details the condition of a home's title. and provides guidelines for a title insurance policy.
• 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.
• Blighted area
  • A neighborhood that has deteriorated.
• Blind nailing
  • Nails driven into a wall and concealed with putty.
• 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.
• Blue-ribbon condition
  • A house maintained close to its original condition. Also called mint condition.
• Board foot
  • Measurement of lumber that is the equivalent of 144 cubic inches.
• Board of Equalization
  • A state board charged with ensuring that local property taxes are assessed in a uniform manner.
• Board-and-batten siding
  • Siding is composed of 8- to 12-inch wide wooden boards nailed vertically to create a barn-like exterior.
• BOCA
  • Building Officials Conference of America, which writes the guidelines for basic, community building codes.
• 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.
• Borough
  • A section of a city that has authority over local matters.
• Borrow
  • Sand, gravel or other material used for grading.
• Borrow pit
  • The hole at a site that has been excavated.
• Borrower
  • A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.
• Boulevard
  • A street lined with trees or constructed with a landscaped median.
• Boundary
  • The dividing line between two adjacent properties.
• Braced framing
  • A construction method in two-story homes in which the frame is reinforced with posts and braces.

• Branch office

  • means a real estate broker's office other than the principal place of business. ^*1

• 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.
• Breach of warranty
  • A seller's inability to pass clear title to a buyer.
• Break-even point
  • The point in which the owner's rental income matches expenses and debt.
• Breast height
  • The height at which the diameter of a tree is measured; four feet, six inches above the ground.
• 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.
• Broker
  • A person or company licensed by the state to deal in real estate.

  • means any person acting for another on commission or for other compensation, for the promise of such commission or other compensation, or any person licensed under this chapter who: ^*1

    • Sells, exchanges, purchases, rents, or leases real estate.

    • Offers to sell, exchange, purchase, rent or lease real estate.

    • Negotiates, offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate.

    • Lists, offers, attempts or agrees to list real estate for sale, lease or exchange.

    • Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or improvements on real estate.

    • Collects, offers, attempts or agrees to collect rent for the use of real estate.

    • Advertises or holds oneself out as being engaged in the business of buying, selling, exchanging, renting or leasing real estate.

    • Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, lease, or rental of real estate.

    • Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate.

    • Engages in the business of charging an advance fee in connection with any contract whereby the person undertakes to promote the sale or lease of real estate, through its listing in a publication or data base issued for such purpose, through referral of information concerning such real estate to brokers, or both.

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

• Brokerage agreement

  • means a written contract between a principal and a real estate brokerage firm intended to bring parties together for the sale, purchase, exchange, rent, or lease of real estate. ^*1

• Broom clean
  • The ideal condition of a building when it is turned over to an owner or tenant.
• Brownstone
  • A vintage row house constructed of red sandstone.
• Budget
  • A detailed record of all income earned and spent during a specific period of time.
• Buffer strip
  • A parcel of land that separates two or more properties.
• Builder upgrades
  • Extra house features or better finishing materials that a builder offers.
• Building and loan association
  • An organization that raises money to helps its members purchase real estate or construct a building.
• Building code
  • A comprehensive set of laws that controls the construction or remodeling of a home or other structure. Based on agreed upon safety standards within a specific area, a building code is a regulation that determines the design, construction, and materials used in building.
• Building inspector
  • A city or county employee who enforces the building code and ensures that work is correctly performed.
• Building line or setback
  • Guidelines that limit how close an owner can build to the street or an adjacent property.
• Building moratorium
  • A halt on home construction to slow the rate of development.
• Building paper
  • A thick, water-resistant paper that serves as insulation.
• Building permit
  • A permit issued by a local government agency that allows the construction of home or renovation of a house.
• 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.
• Bulkhead
  • A retaining wall designed to hold back water from the ocean or another body of water.
• Bundle of rights
  • The various interests or rights an owner has in a property.
• Bungalow
  • A small one-story house or cottage.
• Butterfly roof
  • A roof formed by two gables that dip in the middle to resemble a butterfly's wings.
• 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

  • means a party in the transaction involved in the purchase or exchange of real estate. ^*1

• Buyer agent

  • means a licensee acting on the behalf of a buyer or tenant in the purchase, exchange, rent, or lease of real estate. ^*1

• 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.

C Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Call option
  • A clause in a loan agreement that allows a lender to ask for the balance at any time.
• CAM
  • Common Area Maintenance
• Can lights
  • Cylindrical chambers with bulbs recessed into the ceiling.
• 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, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease.
• 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 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.

  • Net Operating Income ÷ Value = Capitalization Rate

  • Net Operating Income ÷ Capitalization Rate = Value

  • Value X Capitalization Rate = Net Operating Income

• 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.
• Cash reserves
  • A cash amount sometimes required to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender.
• 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
  • A formal notice, that asks a court to suspend action until the party which filed the challenge can be heard.
• Caveat emptor
  • A legal principle derived from Latin than means "let the buyer beware."
• Cavedium
  • A courtyard or atrium.
• CC&Rs
  • Covenants, Conditions and Restrictions. Rules and regulations for a development, such as acceptable landscaping or improvements that can be made to individual units.
• CCCS
  • Consumer Credit Counseling Service
• CD
  • Certificate of Deposit.
• 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 document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner; before the title is transferred at closing, it should be clear and free of all liens or other claims.
• 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.
• Change frequency
  • The adjustment schedule on an adjustable-rate mortgage.
• Change order
  • A modification of the construction contract to authorize a change in the work, an adjustment in the amount of the contract or a change in the contract time. The owner, architect and contractor must sign the change.
• Chattel
  • Personal property such as furniture, clothing or a car.
• Chattel mortgage
  • A lien on personal property used as collateral for a loan.
• Chimney back
  • The back wall or lining of a fireplace or furnace chimney.
• 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 fill
  • Cinders used below a basement or around a foundation to promote drainage.
• Circuit breaker
  • An electric fuse that activates or deactivates a circuit.
• Cistern
  • A tank used to store rainwater.
• Classified property tax
  • A tax that varies in rate depending on the use of the property.
• Clear title
  • A property that does not have liens, defects or other legal encumbrances.
• Closing
  • Also known as settlement, this is the time at which the property is formally sold and transferred from the seller to the buyer; it is at this time that the borrower takes on the loan obligation, pays all closing costs, and receives title from the seller.
• Closing costs
  • Customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing; these costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application.
• 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.
• Cluster development
  • A method of squeezing more homes into less space.
• CMA
  • Comparative Market Analysis
• COC
  • Certificate Of Compliance. A document issued by the Manchester Housing Code Department attesting that the designated dwelling, dwelling unit, or rooming house on inspection was found to be in compliance with this chapter. Certificates shall be prepared by the Housing Code Department and shall contain such information as is required by the Department, including a description of the rental unit, the expiration date of the certificate, and requirements as to reapplication and re-inspection and renewal.
• Codicil
  • A change to a will that adds or subtracts provisions or clarifies portions of the document.
• Co-housing
  • Individual housing units that are clustered around a common building where residents share cooking and other activities.
• Coign
  • The cornerstone of a building that differs in shape or color from the rest of the wall.
• Co-insurance
  • Coverage that involves the use of two or more insurers..
• 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.
• Colonial
  • A house style.
• 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
  • Other than residential. Owned or leased property such as office, research, retail and industrial properties.
• Commingling
  • The mixing of money held in trust with other funds.
• Commission
  • An amount, usually a percentage of the property sales price, that is collected by a real estate professional as a fee for negotiating the transaction..

  • means the New Hampshire real estate commission. ^*1

• Commitment
  • A promise by a lender to make a loan with specific terms for a specified period.
• Commitment fee
  • The fee a lender charges for promising to make a loan.
• Common area
  • An area inside a housing development that is owned by all residents.
• Common Area Maintenance (CAM)
  • Annual charge often assessed to tenants for maintenance of the property's "common area", such as entryways, hallways or bathrooms.
• Common law
  • A body of laws based on custom, usage and rulings by courts in various jurisdictions.
• 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.
• Community property
  • Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states.
• Community Reinvestment Act
  • A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live.
• 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.
• Concrete tilt-up
  • The process of pouring concrete into forms on the ground, allowing the forms to harden and then raising the material to a vertical position to form walls.
• 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
  • A form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex; the owner also shares financial responsibility for common areas.
• 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. National headquarters: 8701 Georgia Avenue., Suite 507, Silver Springs, MD 20910. Phone: (800) 388-2227.
• Consumer Price Index (CPI)
  • A measure of inflation as determined by the federal government by using a "basket of goods". Used in leases as an impartial benchmark for the calculation of escalations.
• 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 for deed
  • A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.
• 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 private sector loan, one that is not guaranteed or insured by the U.S. government.
• 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.
• Conveyance
  • The transfer of title of property.
• Conveyance tax
  • A tax imposed on the transfer of real property.
• Cooperating broker
  • A real estate broker who finds a buyer for a property that another broker has listed.
• Cooperative (Co-op)
  • Residents purchase stock in a cooperative corporation that owns a structure; each stockholder is then entitled to live in a specific unit of the structure and is responsible for paying a portion of the loan.
• Cooperative Corporation
  • A business trust that holds the title to a cooperative residential building and grants occupancy rights to shareholders in the corporation.
• Cooperative mortgages
  • Any loans related to a cooperative residential project.
• Cooperative project
  • A project in which a corporation holds title and sells shares representing individual units to buyers who then receive a proprietary lease as their title.
• Corner bead
  • A reinforcement placed in the corner where two walls intersect.
• Corner influence
  • The effect on the value of a property because it is situated on a corner or near a corner.
• Cornice
  • A horizontal molding that projects from the top of a structure or wall.
• Corrective work
  • Necessary or desired repairs to remedy problems uncovered by a home or specialized inspection.
• Co-signer
  • A second party who signs a promissory note and takes responsibility for the debt.
• 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.
• Counteroffer
  • A response to an offer.
• 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.
• CPI
  • Consumer Price Index
• Craftsman style
  • An architectural style that evolved as part of the Arts and Craft movement near the turn of the century.
• 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 that lists all past and present debts and the timeliness of their repayment; it documents an individual's credit history.
• 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 record that lists all past and present debts and the timeliness of their repayment; it documents an individual's credit history.
• Credit repository
  • Large companies that gather financial and credit information from various sources about individuals who have applied for credit.
• Credit score
  • A number representing the possibility a borrower may default; it is based upon credit history and is used to determine ability to qualify for a mortgage loan.
• Credit union
  • Nonprofit cooperative organizations that provide banking and financial services, including mortgages, home improvement loans and home equity loans, to their members.
• Creditor
  • An individual or institution to whom a debt is owed.
• Cross wiring
  • The condition where all or part of the electric service for one dwelling unit is connected to or paid for through the electric meter that serves another dwelling unit.
• 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.
• Curtain wall
  • An exterior wall that encloses a yard or other area but does not provide any structural support to a home.
• 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.
• Cynic
  • Someone who knows the cost of everything and the value of nothing.

D Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Damper
  • A movable plate in a fireplace that allows smoke and fumes to travel up the chimney's flue.
• Days on the market
  • The period of time a property is listed for sale until it is sold or taken off the market
• DBA
  • Doing Business As.
• 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.
• Debt-to-income ratio
  • A comparison of gross income to housing and non-housing expenses; With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.
• Deck
  • A roofless, floored area that adjoins a house.
• Deed
  • The legal document that transfers ownership of a piece of property.
    • Administrator's deed
      • A legal document that an administrator of an estate uses to transfer property.
    • Fiduciary Deed
      • A fiduciary deed is a deed used to transfer property when the grantor is a fiduciary such as a trustee, guardian, conservator, or executor acting in his official capacity. A fiduciary deed usually only warranties that the fiduciary is acting in his appointed capacity and within his allotted authority.
    • Grant Deed
      • A grant deed transfers to the grantee all or part of the legal rights the grantor has in the parcel of real property. The grantor deed implies certain warranties; that the property has not been transferred to someone else and that the property is free from any liens placed on the property by the grantor.
    • Quit Claim Deed
      • A quit claim deed transfers to the grantee any and all of the legal rights the grantor has in the parcel of real property. The quit claim deed makes no warranty about the extent of the grantor’s interest in the parcel of real property.
    • Trust Deed
      • A trust deed is a written instrument which transfers property to a trustee to secure an obligation such as a promissory note or a mortgage. The trustee has the power to sell the real property in the case of a default on the obligation.
    • Unrecorded deed
      • An unrecorded deed transfers ownership from one party to another without being officially recorded.
    • Warranty Deed
      • A general warranty deed transfers to the grantee all of the legal rights the grantor has in the parcel of real property and explicitly warranties that the grantor has good title to the parcel. A special warranty deed transfers to the grantee all of the legal rights the grantor has in the parcel of real property but warranties only what the deed specifically states is warranted.
    • Wild deed
    • An improperly recorded deed.
• 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.
• Deed-in-lieu
  • To avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process doesn't allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with the foreclosure.
• Deep-seal floor drain
  • A drain used to dispose of water from the basement floor to a sewer line.
• 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.
• Delinquency
  • Failure of a borrower to make timely mortgage payments under a loan agreement.
• 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.
• Demising Wall
  • A wall which separates a tenant's suite from another tenant's suite, or building common areas. In most cases, a demising wall will be constructed from floor to either the building roof deck or floor deck. The wall may also be a fire rated wall.
• 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.
• Design/build
  • A project in which the owner contracts directly with an individual or company to perform design and construction.
• Designer
  • Unlike architects, designers are limited to drawing blueprints.
• Digital images
  • Images that are incorporated into house listings to give potential buyers a view of the property.
• 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.

• Disclosed dual agent

  • means a licensee acting for more than one party whose interests may differ in a transaction with the knowledge and written consent of all parties for whom the licensee acts. ^*1

• 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.
• Document needs list
  • A list of documents a lender requires when a potential submits a loan application.. The required documents range from paycheck stubs to credit card statements.
• Domed ceiling
  • A hemispherical ceiling that projects upward without support.
• 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 portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.
• 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.

E Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Early occupancy
  • The condition in which buyers can occupy the property before the sale is completed.
• Earnest money
  • Money put down by a potential buyer to show that he or she is serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal.
• Earthquake insurance
  • A policy that provides coverage against damage to a home from an earthquake.
• 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.
• EEM
  • Energy Efficient Mortgage.  An FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase
• Effective age
  • The age of a structure estimated by its condition rather than its actual age.
• 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.
• Employer-assisted housing
  • Programs which help employees purchase homes through special plans developed with lenders.
• 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.
• End loan
  • The conversion from a construction loan to permanent financing a condominium buyer secures after all units in a project have been completed.
• 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.
• Equifax
  • Equifax Credit Information Services, Inc., is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: P.O. Box 740249, Atlanta, GA 30374.
• Equity
  • An owner's financial interest in a property; calculated by subtracting the amount still owed on the mortgage loan(s) from the fair market value of the property.
• E&O Insurance
  • 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
  • A separate account into which the lender puts a portion of each monthly mortgage payment; an escrow account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance, etc.
• 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 company
  • Firms that act as neutral third parties to ensure that all conditions that the buyer, seller and lender establish in a real estate transaction are met.
• 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.
• Estoppel Certificate
  • A statement concerning the status of an agreement, (usually a lease) and the performance of obligations under the agreement. A third party such as a lender, relies on the statement (which is usually unilaterally executed by the tenant) for such things as making a loan on property.
• 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.

• Executive director

  • means the executive director of the New Hampshire real estate commission. ^*1

• 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.
• Experian
  • Experian, formerly known as TRW Information Systems & Services, is one of the "Big Three" credit-reporting bureaus.. Address: 505 City Parkway West, Orange, CA 92868.

F Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Facade
  • The part of a building facing the street or a courtyard.
• Fair Credit Billing Act
  • A federal law that governs credit and charge card billing errors. If a credit or charge card company violates any provision, consumers can sue to recover damages.
• Fair Credit Reporting Act.
  • A federal law passed in 1971 that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering, maintaining and disseminating credit information. The act also requires credit bureaus to show a consumer their credit file if the consumer presents proper identification, although the bureau reserves the right to charge a fee for doing so.
• Fair Debt Collection Practices Act.
  • A federal law passed in 1977 which outlaws debtor harassment and other types of collection practices. The act regulates collection agencies, original creditors who set up a separate office to collect debts, and lawyers hired by the creditor to help collect overdue bills. An original creditor--the company or individual that originally granted the credit--is not covered by the act, but may be covered by similar measures approved by state governments.
• 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.
• Fair market value
  • The hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation.
• Fannie Mae
  • Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential homebuyers.
• Farmer's Home Administration
  • A U.S. Department of Agriculture agency that provides credit to farmers and rural residents.
• Fascia
  • A board that connects the ends of the roof rafters and provides a surface to support gutters.
• Federal Home Loan Mortgage Corporation
  • 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 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.
• 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. National headquarters: Sixth and Pennsylvania Avenue NW, Washington, D.C. 20580. Phone: (202) 326-2222.
• 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.
• Fee simple defeasible
  • The owner of the property holds a fee simple title contingent upon certain conditions.
• Feng shui
  • An ancient Chinese belief that the physical characteristics of a house and the positioning of the home will affect the fortunes of the owner.
• FHA
  • Federal Housing Administration
• 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 Deed
  • A fiduciary deed is a deed used to transfer property when the grantor is a fiduciary such as a trustee, guardian, conservator, or executor acting in his official capacity. A fiduciary deed usually only warranties that the fiduciary is acting in his appointed capacity and within his allotted authority.
• 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.
• Field changes
  • Modifications made on the construction site that do not match blueprints.
• Fill dirt
  • Soil brought in to solidify a finished foundation.
• Filled land
  • An area where the ground has been raised by adding dirt, gravel or other fill material.
• Finder's fee
  • A fee in any amount that is paid to someone.
• 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 installment
  • The monthly payment on a home loan.
• Fixed time
  • The specific weeks in a year an owner of a timeshare arrangement has access to accommodations.
• Fixed-rate mortgage
  • A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change.
• 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.
• Float floor drain
  • A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump.
• Floating wall
  • Walls built to withstand movement in the basement floor.
• Flood insurance
  • insurance that protects homeowners against losses from a flood; if a home is located in a flood plain; the lender will require flood insurance before approving a loan.
• Flood plain
  • Flat, flood-prone areas located along waterways.
• Floor area ratio
  • The calculation of the floor area of all homes or buildings in a project. It is used in the planning and development of a site.
• Florida rooms
  • Enclosed porches built on the side or back of a home.
• Footings
  • Concrete foundations that support a structure.
• For Sale By Owner (FSBO)
  • The owner acts as the agent to avoid paying a sales commission.
• Forbearance
  • A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.
• 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.

• Foreclosure consultant

  • means any person, or any person acting in concert with such person, or any agent or employee of such person who provides a foreclosure consulting service. ^*2

• Foreclosure consulting contract

  • means a written, oral, or constructive agreement between a foreclosure consultant and a homeowner for the provision of any foreclosure consulting service or pre-foreclosure conveyance. ^*2

• Forfeiture
  • The relinquishing of property rights by a delinquent borrower.
• 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
  • Federal Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation that purchases residential mortgages, securitizes them, and sells them to investors; this provides lenders with funds for new homebuyers.
• Free-market lots
  • Owners of these types of lots may hire any builder to construct their home.
• 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.
• FSBO
  • For Sale By Owner
• 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.

G Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Gable
  • A triangular wall enclosed by the sloping ends of a ridged roof or a triangular decorative feature.
• 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.
• General plan
  • A government's long-range land-use plan.
• Geodesic dome
  • A structure constructed of lightweight bars forming a grid of polygons.
• 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.
• 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.
• Ginnie Mae
  • Government National Mortgage Association (GNMA); a government-owned corporation overseen by the U.S. Department of Housing and Urban Development. Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment; as with Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders. Ginnie Mae differs from its cousins, Fannie Mae and Freddie Mac, in that it only purchases loans backed by the federal government.
• Girders
  • Crossbeams that support floor joists.
• GMNBR
  • Greater Manchester/Nashua Board of REALTORS^®.
• Good faith estimate
  • An estimate of all closing fees including pre-paid and escrow items as well as lender charges; must be given to the borrower within three days after submission of a loan application.
• GPM
  • Graduated-Payment Mortgage
• 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.
• Grade level
  • The flat or sloping surface upon which a house is built.
• 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.
• Granny flat
  • Slang term for a separate unit in a house or above the garage, which in the past may have been occupied by an elderly relative.
• Grant Deed
  • A grant deed transfers to the grantee all or part of the legal rights the grantor has in the parcel of real property. The grantor deed implies certain warranties; that the property has not been transferred to someone else and that the property is free from any liens placed on the property by the grantor.
• 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.
• 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.
• Growing-equity mortgage
  • A fixed rate mortgage that increases payments over a specific period of time. The extra funds are applied to the principal.
• Guarantee mortgage
  • A loan guaranteed by a third party, such as a government institution.
• Gutters
  • Horizontal channels installed at the edge of a roof to carry rainwater or melted snow away from the house.

H Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Half-bath
  • Also called a powder room, a half-bath contains a toilet and a sink but no bathtub or shower stall.
• 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.
• Heat pump
  • An electric cooling and heating system.
• Hectare
  • The equivalent of 2.471 acres.
• HELP
  • Homebuyer Education Learning Program; an educational program from the FHA that counsels people about the home buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to 1.75% of the home purchase price.
• 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 conversion mortgage
  • Loans made to older owners who want to convert equity into money. Because borrowers are qualified on the basis of the value of their home, e, the loan is not the same as a home equity loan. Also known as reverse mortgages.
• Home equity loan
  • A loan that allows owners to borrow against the equity in their homes.
• Home inspection
  • An examination of the structure and mechanical systems to determine a home's safety; makes the potential homebuyer aware of any repairs that may be needed.
• Home rule
  • The power of a local government to adopt its own land-use regulations.
• Home warranty
  • offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner's insurance coverage extends over a specific time period and does not cover the home's structure.
• 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.
• Homeowner's insurance
  • An insurance policy that .combines protection against damage to a dwelling and its contents with protection against claims of negligence (inappropriate action that result in someone's injury) or property damage.
• Homeowners' warranty
  • Offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner's insurance coverage extends over a specific time period and does not cover the home's structure.
• Homesteading
  • A document that to protects some of a home's equity from lawsuits.
• Hopper window
  • A window that contains a single sash that tilts inward.
• Hose bibb
  • A threaded faucet connection for devices such as a washing machine.
• House wrap
  • A polyethylene barrier wrapped around a house to save energy.
• Housing counseling agency
  • provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying.
• 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.
• HUD
  • The U.S. Department of Housing and Urban Development
• HUD1 Statement
  • Also known as the "settlement sheet," it itemizes all closing costs; must be given to the borrower at or before closing.
• HVAC
  • Heating, Ventilation and Air Conditioning.

I Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Impact fees
  • Fees collected from developers of new homes to pay for schools, parks and other facilities.
• Implied warranty of habitability
  • Court cases which determined that all new homes are assumed to be fit for human habitation and meet all building codes.
• Impounds
  • A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.
• 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
  • A measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage.
• 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.
• Infill development
  • Any significant new construction in an established area.
• Infill housing
  • Home construction in established areas.
• Inflation
  • The number of dollars in circulation exceeds the amount of goods and services available for purchase; inflation results in a decrease in the dollar's value.
• 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
  • protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium.
• 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 rate
  • The amount of interest charged on a monthly loan payment; usually expressed as a percentage.
• 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.
• Interest-only loan
  • The 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.
• Investment property
  • Real estate that generates income, such as an apartment building or a rental house.

J Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Jalousie window
  • A window that consists of vertical rows of horizontal glass slats that operate together by a crank mechanism that connects all the slats.
• 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. Subflooring is connected to floor joists.
• Judgment
  • A legal decision; when requiring debt repayment, a judgment may include a property lien that secures the creditor's claim by providing a collateral source.
• 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.

K Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Kit home
  • A structure that contains prefabricated components and is put together by a contractor.
• 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.

L Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Landlord

  • means a party in a transaction who owns real estate intended for rental or leasing purposes. For the purposes of this chapter, "landlord'' shall also mean "lessor.'' ^*1

• Landscape architect
  • A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning.
• Landscape contractor
  • A professional who carries out the plans of a landscape architect or a landscape designer.
• Landscape designer
  • A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.
• 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.
• Lease option
  • A lease that contains the right to purchase the property for a specific price within a certain time frame.
• Lease purchase
  • Assists low- to moderate-income homebuyers in purchasing a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.
• Leasehold estate
  • An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
• Legal blemish
  • Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.
• Legal description
  • A specific way of identifying and locating a piece of real estate that is acceptable to a court.
• Lender
  • A bank, savings institution or mortgage company that offers home loans.
• 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 claims of negligence, personal injury or property damage.

• Licensee

  • means a broker or salesperson licensed by the New Hampshire real estate commission under the provisions of this chapter. ^*1

• Lien
  • A claim laid by one person or company on the property of another as security for money owed. A legal claim against property that must be satisfied when the property is sold
• Life 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.
• Life-cycle cost analysis
  • An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
• Life Estate
  • An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.
• Life Tenant
  • A person in possession of a life estate.
• Limited partnership
  • Real estate syndicates and other investment groups use this type of ownership.. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.
• 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.
• Lis Pendens
  • A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court.
• Listing
  • A piece of property placed on the market by a listing agent.
• Listing inventories
  • The known number of houses for sale within a given market.
• Live-in partnership
  • An arrangement in which two unrelated people purchase a home.
• Live-work space
  • An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
• 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
  • Money borrowed that is usually repaid with interest.
• 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 fraud
  • Purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.
• 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 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 (LTV) ratio
  • A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.
• Lock-in
  • Since interest rates can change frequently, many lenders offer an interest rate lock-in that guarantees a specific interest rate if the loan is closed within a specific time.
• 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.
• Loss mitigation
  • A process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan
• Low density
  • A low concentration of housing units in a specific area.
• 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-documentation loan
  • A mortgage that requires only minimal verification of income and assets.
• 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.
• LTV
  • Loan To Value

M Select a letter:  # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

• Main water shut-off valve
  • The primary valve that halts the flow of water from the water meter into a home.
• Maintenance fee
  • The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas.
• Managed-competition lots
  • Lots in which buyers choose between one of several builders.

• Managing broker

  • means a broker who manages a branch office. ^*1

• Mansard roof
  • A roof with four sides that slope upward from the roof edge to the square peak.
• Mantel
  • The facing of stone, marble or other material around a fireplace.
• Manufactured housing
  • Prefabricated homes that can range from simple trailers to larger dwellings.
• Margin
  • An amount the lender adds to an index to determine the interest rate on an adjustable rate mortgage.
• Market conditions
  • Factors affecting the sale and purchase of homes at a particular point in time.
• Market Price
  • The actual price that a piece of property sells for at a particular point in time.
• Market Value
  • The most probable price that a property should bring in a fair sale.
• 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.
• Maximum financing
  • A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property.
• 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.
• Median price
  • The price of the house that falls in the middle of the total number of