Real Estate Glossary

Real Estate Glossary


Process which improves the machineability of metals by heating and allowing them to cool slowly, which removes stress and softens the material.

Legal process, which is used by a municipality to expand its territory to include part of an adjacent, unincorporated area. Also, the act of permanently attaching a fixture to a building, thus making it part of the structure.

Yearly occurrence

Valuation on property for purposes of taxation, sewer charges, etc.

Amount the interest rate of an adjustable rate mortgage can be raised or lowered in any consecutive 12-month period.

Total annual interest and principal loan payments required on a loan.

Ratio of annual mortgage payments divided by the initial principal of the mortgage and only applies to loans involving constant payment.

Statement sent to borrower, on a yearly basis, detailing principal remaining on the loan and amounts paid toward interest and taxes.

The rate a borrower actually pays, including interest, points and loan origination fees when expressed as a percentage rate per year. On an adjustable rate mortgage, assumption is made that the loan's index remains the same as its initial value.

The real rate of interest on a loan, which is the coupon rate divided by the net proceeds of the loan. See Effective Interest Rate.

Growth rings seen in the horizontal cross section of a tree.

Fixed sums paid, at regular intervals, to an investor.

Annuity where the payments are made at the beginning of the period, either monthly, quarterly or yearly.

Factor used to determine the equal periodic payment; yearly, monthly, etc. associated with a real estate transaction. It is used for both a present value of annuity of future value of annuity.

To eliminate, invalidate cancel, abolish or make null and void, as though it had never existed.

Ring shaped.

Hollow cylinder shaped drill bit used to cut plugs of wood

Nail with raised rings, for better gripping ability, forged into the circumference of the shank. Used in construction for framing lumber.

Space left in a container over the surface of the contents.

Something that announces. Indicator which is used to show when a condition occurs.

The positively charged electrode toward which current flows.

A pier or square column at the end of a wall.

Prefix meaning in front of something or coming before.

A smaller room leading into a larger or main room. Waiting area.

Small, decorative fixture that is attached on the eaves of the roof of a building to hide the ends of the tiles.

Ornamental palm leaf pattern.

Screen or veil decorating the front of an alter.

Coming before in time, order or development. Situated toward the front.


Balcony that faces the sun.

Shiny black, compact, hard coal which gives much heat but little flame and smoke.

Science dealing with studying measurements of the human body to determine differences in individuals or groups; used to determine the proper sizing and proportions of objects to be used by people.

Prefix meaning against something or opposite of something.

Substance that slows down a chemical reaction. Opposite of a catalyst, which hastens a chemical reaction.

Time period one expects to own property as an investment.

Communication (usually by letter) informing one party, by the other party, that the terms of the original contract will not be fulfilled.

Inclined in opposite directions. Alternately, formation of stratified rocks sloping downward from each side of a ridge.

Material used to prevent marine growth on ship bottoms or diving apparatus.

Substance with a lower freezing point than water added to a liquid in a cooling system, such as an automobile, to prevent freezing.

Assembly Device, consisting of teeth on hinged pawls, used to prevent the kickback of wood being cut by a power saw, by allowing the wood to be pushed in one direction but not allowing it to move in the opposite direction.

Material that resists magnetism.

Metal, which is sometimes added as an alloying agent to increase hardness in tin or lead. The atomic symbol is SB, atomic number is 51 and the atomic weight is 121.75. A one percent combination with lead is used to sheath electric cables and a ratio of six to seven percent to make the plates in lead-acid batteries.

Substance that slows down the oxidation of oils, fats, etc. to retard deterioration.

A substance used to seal and promote conduction by application to aluminum wiring connections.

Oil used as a wood finish to preserve wood and to impart a sheen, this blend of drying oil and plastic in a vehicle such as mineral spirits is also sometimes used to stain wood.

Overlaying, on a base color, of a semi-opaque color, which is then partially wiped away giving an antique appearance. Application of a certain coating to a ceramic unit then firing it in a kiln to form a hard surface. Alternately, installation of glass.

Preventive device for the back-flow of liquid into a system. Used in sprinkler systems to prevent water from trickling back into the water supply that is feeding it originally.

Iron or steel block on which metal objects are hammered into shape. Tapered on one end to a near point, it is rounded to provide a shaping surface with a flat top.

Tapered bevel siding.

see American Planning Association and American Plywood Association.

Unit of one or more rooms within a multifamily complex of similar units.



Trade name for APA 303 plywood panel building siding, which can be used as exterior siding by being applied directly to building studs.

Opening, hole, gap. The opening in a camera or telescope, which allows light into the lens.

The highest point of interest, as in a structure.

Stone at the top of a gable or dome, triangular in shape.

Concave curve where the end of a column expands to spread into its base.

Perpendicular line from the center of a regular polygon to any one of its sides.

Instruments, tools materials, etc. needed to perform a specific task.

Calculated and theoretical power (watts) in an alternating current circuit. Apparent power is often grater than the actual power in a circuit because there are losses in the circuit due to the effect of reactance in the circuit. The reactance opposes the flow of AC current, using up some of the power.

Form, facade, attractiveness, curb appeal of a property. Pleasing, more attractive looking property is likely to allow the seller to of real estate to obtain a better price in a shorter selling period.

Lumber divided into industrial, architectural and premium grades, the quality of this lumber is based on its finished appearance.

A taxpayer or representative who appeals to a higher authority.

An attachment to a an object or addition to a structure.

Device or machine for performing a specific task, such as a mechanical or electromechanical device used for heating, cooking, cleaning or cooling.

Generally refers to a form or forms submitted to obtain some type of acceptance or service. Commonly refers to forms and documentation submitted to obtain a mortgage loan, in which instance the information provided details the income, debts and obligations of a potential borrower.

Fees paid to the lender at the time of application for a loan. It may include charges for a credit report, property appraisal, etc.

Device used for spreading a substance.

A decoration made of one material and attached to another as ornamental trim.

To put to a practical or specific use. To spread on a surface.

Division or assignment based on a plan or proportion as in prorating property expenses such as insurance and taxes between the buyer and seller.

Contractual provision requiring apportionment.

Market value of a property or home (real estate) as supplied by a third party, usually a licensed professional.

There are three basic methods of valuing property. (a) The replacement value of property. (b) Comparable sales approach, comparing properties with similar properties. (c) Interest Income that a property will return to the investor. Also known as appraisal method.

Usually done by a professional appraiser or the insurance industry, this is an assessment of property loss, taking into account the quality, quantity and age of a property.

The fee, charged by a licensed professional, to estimate the market value of a piece of real estate.

A profesional organization for licensed real estate appraisers.


The detailed written report that shows the value of a property, based on recent comparable sales, in the area. It also includes a description of the property and structures, street address, zoning allowed, assessed valuation and taxes, best use for the property and information about the appraiser.

Professional opinion of the market value of a home or property.

The licensed profession permitted to do appraisals and appear as an expert witness in a court of law regarding the evaluating process as well as giving testimony concerning real estate and market value.

Increase in the value of real estate over a period of time. Expression of gratitude.

Someone who is working under the supervision of an experienced craftsman to learn a craft or trade.



More or less correct or exact.

Measure of the annualized compound growth of a real estate investment.

Item which is part of something else and goes with a property and is also covered by the deed.

Structure not belonging to a property but considered a part of it through the use of an easement of common interest.

Measurement of interest rate that expresses the cost of a mortgage as a yearly rate on the loan balance, assuming that the loan is held for its full term. On an adjustable rate mortgage, assumption is made that the loan's index remains the same as its initial value.

A paved area, usually between a driveway and a street. Horizontal piece of trim beneath a window sill. Covering worn to hold tools and protect clothing. Panel behind a sink or lavatory. The front of a bathtub from the rim to the floor.

Horizontal beam, also referred to as the pitching piece, which supports the upper end of a stair carriage or stringer.

Panel wall section between the window sill and the base of the wall.

Semicircular or polygonal projection of a building, at the east end of a church with a domed or vaulted roof.

A thermostat that is submerged in water and is used to control the operation of a specific device.

Large pipe or conduit made for bringing water from a distant source.

Containing water. Formed by the action of water.

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