Welcome to the Lexicon of Real Estate Terms
Navigating the world of real estate can be daunting, especially with the myriad of terminology that pervades the industry. Our Lexicon of Real Estate Terms is here to simplify your experience, providing you with more than 3,300 terms and definitions and 33,000 Quizes to help you feel comfortable using modern real estate language.
This comprehensive guide serves as a quick reference for various audiences, whether you are a home buyer or seller, a real estate professional, a business student, an investor, or an attorney. We understand that mastery of the language is crucial in making informed decisions in the real estate market, and our lexicon is designed to empower you.
What You’ll Find in Our Lexicon:
Our lexicon includes detailed definitions for real estate topics from A to Z. Whether you’re looking to understand key concepts for personal knowledge or to enhance your professional repertoire, you’ll find terms related to:
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Appraisal: Learn about the process of determining a property’s market value.
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Architecture: Explore different styles and terminologies that define building design.
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Brokerage: Understand the role of real estate brokers and the services they provide.
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Construction: Familiarize yourself with the terms used in the building process.
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Debenture: Discover financial instruments that could impact real estate investments.
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Flood Plain: Understand the risks and regulations associated with properties in flood-prone areas.
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Negative Amortization: Get insights into loan types that increase in balance over time.
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Security Instrument: Learn about the agreements that secure a loan against a property.
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Subprime Loan: Understand the implications of loans given to borrowers with poor credit.
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Underlying Mortgage: Familiarize yourself with the financial obligations tied to a property.
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Zoning: Get to grips with laws that define how land can be used.
In addition to these definitions, our lexicon provides a wealth of resources, including:
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Common abbreviations used in real estate communications.
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Mathematical formulas essential for calculating mortgage payments, investment returns, and more.
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Charts and diagrams to visually represent complex concepts and processes.
Why Use Our Lexicon?
By utilizing this resource, you’ll gain confidence in your understanding of real estate terminology. Whether you’re conducting research, preparing for a transaction, or simply looking to expand your knowledge base, our lexicon ensures you have access to the information you need at your fingertips.
Join us in diving into the intricate world of real estate language, and empower yourself with the terminology that shapes the industry. Feel free to explore and reference frequently; your journey into mastering real estate has just begun!
Voluntary Alienation is a legal term that describes the transfer of property rights through the free will of the property owner, typically by sale or gift.
A voluntary lien is a claim on a property that the owner agrees to, commonly seen in the form of a mortgage. Unlike involuntary liens, which are imposed without the owner's consent, voluntary liens are willingly granted by property owners to secure debt.
A Virtual Office Website (VOW) is an internet-based site where real estate brokers provide listings and related data to clients in compliance with the rules and regulations set forth by multiple listing services (MLS).
A waiver is the voluntary renunciation, abandonment, or surrender of a claim, right, or privilege, often formalized through a written statement. In real estate, waivers are commonly used to relinquish specific rights or stipulations within contracts or agreements.
A Waiver of Tax Lien is a document issued by a taxing jurisdiction confirming that it will not file a lien on a particular property, often used during the sale of real estate by an estate to assure a clear title for the buyer.
A walk-through inspection is a detailed examination that a buyer or tenant conducts before finalizing the purchase or lease of a property. Its primary purpose is to ensure that the property is in the agreed-upon condition and that any necessary repairs have been completed.
A Walk-Up (Apartment) Dwelling Unit is a type of apartment located in a multi-story building without an elevator. Often considered more affordable due to the lack of elevator amenities, these units are typically found in older buildings.
A warehouse is a large building or space used for the storage of goods, commodities, and merchandise. Warehouses are crucial for businesses to efficiently manage inventory and streamline distribution.
The practice of packaging numerous mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans.
A warranty is a promise contained in a contract, typically in real estate, that guarantees certain conditions or performances with regards to a property, often provided by the seller or builder.
A Warranty Deed is a legal document that ensures that the seller (grantor) of a property has a clear and marketable title to transfer to the buyer (grantee) and guarantees to defend the buyer against any claims to the property.
The Warranty of Habitability is an implied assurance given by a landlord that an apartment offered for rent is free from safety and health hazards.
WASTE refers to property abuse, destruction, or damage caused by a possessor that goes beyond normal wear and tear, affecting the rights and interests of other stakeholders in the property. This is often addressed in mortgage or lease contracts, as well as in life estates.
A wasting asset is a property, resource, or investment that diminishes in value over time due to inherent factors like physical deterioration, depletion, or obsolescence.
Water rights dictate the legal entitlements of water usage owned by individuals or entities, covering both surface and groundwater. These rights are essential in agricultural, commercial, and residential sectors.
The water table represents the upper level of an aquifer below which the ground is fully saturated with water. It is a crucial factor in the study of hydrology, agriculture, and real estate development, influencing water supply management and construction planning.
Wear and tear refers to the gradual deterioration of property as a result of regular use, weathering, and age. This inevitable process affects the condition and value of various property assets over time.
A Western Row House or Western Town House is a nineteenth-century-style house usually built to span an entire street or block, featuring common side walls with adjacent houses.
Wetlands are areas of land where water saturation is the dominant factor determining the soil and the types of plant and animal communities living there. Commonly recognized wetlands include marshes, swamps, bogs, and fens.
A white elephant in real estate is a property that is too expensive to maintain relative to its value or revenue-generating capability, often making it a financial burden instead of an asset.
A will, also known as a testament, is a legal document that sets forth how an individual's property and affairs will be handled after their death.
Williamsburg Georgian or Early Georgian is an English-style house built in Williamsburg, representing the early Georgian houses constructed in America throughout the early 1700s. These residences had simple exterior lines and generally fewer decorative elements compared to later Georgian houses.
A willing buyer is a person who expresses genuine interest in purchasing a property under common market conditions, without being under undue pressure or compulsion.
An opening in the wall of a building, typically made of transparent material, designed to admit light and air into the interior spaces. Windows can often be opened and closed to control ventilation.
‘Without recourse’ is a term used in endorsing a note or bill to indicate that the holder cannot look to the debtor personally for payment if the debtor defaults. The recourse is only to the property involved. It is similar to a nonrecourse loan and is often used as a form of exculpation.
The Women's Council of REALTORS® (WCR) is a nationwide community of professionals working across real estate sectors to promote leadership and development. The council focuses on empowering women in real estate through education, networking, and extensive support.
The Women’s Council of REALTORS® (WCR) is an organization, affiliated with the National Association of REALTORS® (NAR), dedicated to preparing women for their emerging roles in the real estate industry, encouraging productive careers, and developing leadership potential.
A term used in certain home inspection forms, indicating that as a condition for purchase, the property must be free of these insects.
The Work Triangle is a concept determining the efficiency of a kitchen layout by measuring the total distance of the sides of the 'triangle' connecting the refrigerator, range, and sink. Optimal distances range between 15 and 21 feet to allow for smooth workflow and movement.
Working capital is a financial metric that represents the difference between a company's current assets and current liabilities, providing insight into its short-term financial health and operational efficiency.
A Working Mortgage is a mortgage loan where payments are made more frequently than once a month, usually timed to align with the borrower's pay period. This payment structure typically accelerates the amortization of the loan, resulting in less interest paid over the life of the loan.
A workout agreement entails a mutual effort by a property owner and lender to avoid foreclosure or bankruptcy following a default. It generally involves substantial reduction in the debt service burden during an economic depression.
A wraparound mortgage is an innovative financing tool that includes an existing underlying mortgage within its structure, facilitating real estate transactions by streamlining payment processes. It features a consolidated loan combining both old and new debts, circumventing the traditional need for two separate mortgages.
A Writ of Ejectment is a legal order issued by a court to repossess property from someone who is occupying it unlawfully. This document empowers law enforcement to remove said occupant and restore possession to the rightful owner.
A write-down is an accounting term that describes the reduction in the book value of an asset when its fair market value falls below its carrying value on the balance sheet. This is often recorded to reflect a decrease in the asset's value due to obsolescence, damage, or market conditions.
A write-off is an accounting action where an asset's diminished value is removed from the financial books, reflecting that it is no longer expected to generate economic benefit.
Wrongful foreclosure occurs when a lender improperly or illegally forecloses on a borrower’s property. This type of foreclosure typically arises due to failure to follow correct legal procedures or agreements made between the lender and the borrower.
In real estate, a yard refers to the outdoor area that surrounds a home or building. This can include front yards, side yards, and backyards, each offering unique opportunities for landscaping, leisure activities, and adding aesthetic value to the property.
Yield refers to the earnings generated and realized on an investment over a particular period of time, presented as a percentage of the investment's cost, current market value, or face value.
Yield Capitalization is a method used in real estate to derive the lump sum value of an income stream by a discounted cash flow (DCF) approach. This method is deemed more sophisticated compared to Direct Capitalization as it factors in the timing of cash flows and anticipates growth or decline in the asset value.
A yield curve is a graphical representation that shows the current interest rates of similar financial obligations, often government bonds, ordered by their maturity dates. The curve primarily informs about potential future interest rates and economic behavior.
A Yield Maintenance Prepayment Penalty ensures lenders are compensated for the potential loss of interest income if a borrower pays off a loan early.
The yield rate, also known as the return on investment, is a key metric used to evaluate the annual return generated from an investment property expressed as a percentage of its cost or market value.
Yield to Maturity (YTM) is the internal rate of return on an investment, considering all inflows and outflows of investment returns and their timing, providing a comprehensive view of the investment's profitability.
Zero lot line development refers to houses built directly on the boundary of the lot, leaving little to no yard space. This construction style maximizes land use and is often seen in densely populated urban areas.
Zillow is a comprehensive real estate service that aggregates listing data on houses for sale from various local MLS (Multiple Listing Service) sources. It features these homes on its website, provides property valuations, and recommends real estate salespersons to help potential buyers tour and purchase homes. The platform also includes myriad tools such as rental listings, mortgage calculators, and market insights.
A zone refers to an area designated by local government regulations for a specific use, subject to certain restrictions or conditions. These uses can range from commercial to various types of residential applications.
Zoning is a legal mechanism used by local governments to regulate the use of privately owned real property through specific applications of police power. It aims to prevent conflicting land uses and promote orderly development by designating zones that limit the type and intensity of development permitted within their jurisdiction.
A Zoning Map is an official municipal or local government document used to define how different parcels of land within a jurisdiction can be used, including specifications for residential, commercial, industrial, and other uses.
