GLOSSARY OF REAL ESTATE TERMS

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a la carte real estate services: Professional real estate services that are rendered one transaction at a time instead of the conventional full-service, commission-based brokerage relationship.
A-frame design: An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.
abstract of judgment: The summary of a court judgment that creates a lien against a property when filed with the county recorder.
abstract or title search: The process of reviewing all recorded transactions in the public record to determine whether any title defects exist that could interfere with the clear transfer of ownership of the property.
accelerated cost recovery system: A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.
accelerated depreciation: A bookkeeping method that depreciates property faster in the early years of ownership.
acceleration clause: A provision that gives a lender the right to collect the balance of a loan if a borrower misses a payment.
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 tax: Tax based on assessed property value.
add-on interest: The interest a borrower pays on the principal for the duration of the loan.
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.
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 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.
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.
agency: The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract.
agency closing: The process by which a lender uses a title company or other firm as an agent to complete a loan.
agency disclosure: Laws in most states require agents who act for buyers or sellers to disclose who represents whom in a real estate transaction. Laws vary widely by state.
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.
air handler: Short for air-handling unit, the blower equipment in a furnace, heat pump, or similar appliance designed for circulating heated or cooled air through a central heating system.
air lot: A designated airspace over a piece of property.
air-handling unit: The blower equipment in a furnace, heat pump, or similar appliance designed for circulating heated or cooled air through a central heating system.
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.
allowance: A budget 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.
amenities: Parks, swimming pools, health-club facilities, party rooms, bike paths, community centers, and other enticements offered by builders of planned developments.
American Society of Home Inspectors (ASHI): Professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 743-2744 for list of ASHI-certified inspectors in your area.
Americans with Disabilities Act (ADA): 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: The process of paying the principal and interest on a loan through regularly scheduled installments. Initially, most of each payment is applied toward interest owed, and later in the loan term increasingly applied toward principal.
amortization tables: Mathematical tables that lenders use to calculate a borrower's monthly payment.
amperage: The strength of an electrical current.
ampere: The basic unit used to measure electric current.
anchor bolt: A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.
annual: Any kind of plant that must be planted every year.
annual assessments: The process of placing a value on property for the strict purpose of taxation. May also refer to a levy against property for a special purpose, such as a street lighting or sewer assessment.
annual mortgagor statement: A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.
annual percentage rate (APR): A measure of interest rate that expresses the cost of a mortgage as a yearly rate on the loan balance. The APR assumes the loan is held for its full term. For adjustable-rate loans, the APR assumes the loan's index doesn't change from its initial value.
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.
antioxidant compound: A substance applied to aluminum wiring connections to seal and promote conduction.
appellant: A taxpayer or representative who appeals to a higher tribunal.
application: A document that details a potential borrower's income, debt, and other obligations to determine credit worthiness.
application fee: Includes any fees that are paid upon application. An application fee may include charges for property appraisal and a credit report, if those fees are not reported separately.
appraisal: An opinion of the value of a property at a given point in time.
appraisal fee: The fee that a professional real estate appraiser charges to appraise, or estimate the market value of, a 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 the current market value of a property.
appreciation: An increase in the value of a home or other property.
approval: A thorough assessment made by a lender of a borrower's ability to pay for a home, and a confirmation of the amount the borrower may obtain.
APR (annual percentage rate): A measure of interest that expresses the cost of a mortgage as a yearly rate on the loan balance. The APR assumes the loan is held for its full term. For adjustable-rate loans, the APR assumes the loan's index doesn't change from its initial value.
apron: A paved area, such as the junction of a driveway with the street.
aquastat: A thermostat submerged in water and used to control the operation of a device.
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.
arc: A spark between two electrical points.
arch: A curved structure that supports weight over an area, such as a doorway.
arch surrounds: Half-round or elliptical trim mounted above a door or window for decorative purposes.
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): A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.
ARM index: A publicly published number used to adjust the interest rate for an adjustable rate loan (ARM). An index (such as Treasury bills or the prime rate) reflects the lender's cost of credit, and is not controlled by individual lenders.
arpent: A French measurement of land equal to .84625 acres.
array: A term used by tax assessors to describe a list of properties in a certain category sold within a given period of time.
as-is condition: The purchase or sale of a property in its existing condition.
asbestos: A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.
ASHI (American Society of Home Inspectors): A professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 743-2744 for list of ASHI-certified inspectors in your area.
asking price: A seller's initial price for a property.
assemblage: The combining of two or more adjoining lots into one larger tract to increase total value.
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: An official who determines the assessed value of a property.
assets: Items of value which include cash, real estate, securities, and investments.
assignment: The transfer of rights to pay a debt from one party to another, with the original party remaining liable for the debt if the second party defaults.
assignor: A person who transfers rights and interests of a property.
assumable mortgage: A mortgage that can be transferred to another borrower.
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.
automatic extension: A clause in a listing contract stating that the agreement will automatically continue for a certain period of time after the expiration date. This is discouraged and prohibited in many states.
automatic flue damper: A device in the flue of a heating unit that closes to prevent heat loss when the unit is not in operation.
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.

back title letter: A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes.
back-end ratio: A lender calculation that compares a borrower's total debt (principal, interest, property taxes, and insurance, plus other monthly debt payments) to gross monthly income.
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.
backerboard: A rigid board used beneath tile.
backfill: Soil used to solidify the foundation of a structure.
backsplash: The area behind and above a countertop, typically covered to prevent water from splashing onto the wallboard.
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.
baffle: A device used as a heat shield to deflect the byproducts of combustion.
balance sheet: A statement that shows the assets, liabilities, and net worth of an individual.
ball cock: One type of inlet valve assembly inside a toilet tank that, when opened automatically, fills the tank with water.
ballcock assembly: The toilet tank mechanism that controls flushing.
balloon loan: A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.
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.
baluster: Intermediate vertical support for a stair railing, often made from turned hardwood.
balustrade: Railing held up by a set of posts on a porch or stairway.
bankruptcy: A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven to 10 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.
base loan amount: The amount upon which loan payments are based. If the borrower finances his or her closing costs, those costs will be added to the base loan amount.
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.
batten: A narrow piece of material used on the outside of a house to cover joints in walls.
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.
before-tax income: Total income before taxes are deducted.
beneficiary: The lender who makes a loan, also called a mortgagee. The person borrowing money is the mortgagor.
bequest: Personal property given to a person through a will.
berm: A built-up lip of concrete designed to prevent runoff water from entering the garage or driveway.
betterment: An improvement that increases a property's value as opposed to repairs that maintain the value.
betterment: An improvement that increases the property's value.
bi-level: A home that has two levels. Typically, a garage or storage area is situated in the lower level and the home in the upper section. Most bi-level structures were built after 1950.
bi-metal coil: Part of a mechanical thermostat. Consists of two different types of metal that expand and contract at two different rates with changes in room temperature.
bid out: The process that contractors use to estimate the cost of a house or project before it is completed.
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 a reciprocal contract.
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.
binder: A preliminary agreement between buyer and seller.
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.
blockbusting: The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry of a particular race into the neighborhood.
blue-ribbon condition: A house maintained close to its original condition. Also called mint condition.
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.
blueprint: The plan for a home or other structure.
board and batten: A type of siding composed of vertical boards and batten slats that cover wall joints.
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 composed of 8- to 12-inch-wide wooden boards nailed vertically to create a barn-like exterior.
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.
bonus room: A room with no specifically designated function, unlike a living room, bedroom, or kitchen.
book value: The value of a property as a capital asset based on its cost plus any additions, minus depreciation.
boot: A piece of sheet metal that connects a heating or cooling duct and a vent.
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.
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.
bracing: The technique used to reinforce a structure.
branch circuit: An electrical circuit with its own circuit breaker in the service panel.
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.
breezeway: A roofed passageway with open sides.
brick: Building material made from clay molded into oblong blocks and fired in a kiln.
brick veneer: A brick facade on a wall or fireplace.
bridge loan: A short-term loan for borrowers who need more time to find permanent financing.
broker: Anyone who acts as a go-between. A real estate broker is licensed to handle property transactions and operate a brokerage firm. A mortgage broker is an individual or firm that matches borrowers to lenders and loan programs for a fee.
brokerage: The act of bringing together two or more parties in exchange for a fee or commission. Real estate brokerages are firms or companies that are licensed to conduct real estate transactions.
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.
buffer strip: A parcel of land that separates two or more properties.
buildability: The feasibility of constructing a home or other structure on a piece of land. Parcels for which a building permit cannot be obtained may be considered "unbuildable."
builder upgrades: Extra features or better finishing materials offered by a builder.
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.
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 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 other 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.
butt: The way in which two boards meet so that the ends touch in a continuous line.
butterfly roof: A roof formed by two gables that dip in the middle to resemble a butterfly's wings.
buydown 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's agent: An agent representing a buyer in a home purchase, either as a single agent or as an exclusive buyer's broker.
buyer's broker: A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid either by the buyer or through the seller or listing broker at closing.
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.
Buyers Resource Real Estate: National buyer's brokerage company with offices in 13 states. Call (800) 359-4092 for information and referrals.
Buyers' Home Finding Network: National referral service for buyer's brokers only. Call (800) 500-3569 for information and referrals.
bylaws: The rules and regulations that a homeowners association or corporation adopts to govern activities.

call option: A clause in a loan agreement that allows a lender to ask for the balance at any time.
can light: An incandescent light inside a metal can that is mounted flush with the surface.
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 on the amount the interest rate or monthly payment can increase in an adjustable rate mortgage.
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: The decorative top of a column or pilaster.
capital expenditure: The cost of making improvements on a property.
capital gain: Profit an investor makes from the sale of real estate or investments.
capital gains tax: A tax placed on profits from the sale of real estate or investments.
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.
caravan: A group of real estate agents who tour a house that has been recently listed for sale.
carport: A roof that covers a driveway or other parking area.
carryback financing: Financing in which a seller agrees to take back a note for a set amount of the sale of the home.
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-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.
cashier's check: A check the bank draws on itself rather than on a depositor's account.
casing: The trim that encircles a window or door opening, hiding the gap between the door or window jamb and the wall's surface.
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 asking a court to suspend action until the party that filed the challenge can be heard.
caveat emptor: A legal principle stating that a buyer is responsible for ensuring the quality of goods purchased. From Latin, "let the buyer beware."
cavedium: A courtyard or atrium.
CD (certificate of deposit): A document showing that the bearer has a specified amount of money on deposit with a bank, stock-brokerage firm, or other financial institution.
ceiling fan: A large, ceiling-mounted paddle fan. Also known as a Casablanca fan.
ceiling height: The standard height of a ceiling is eight feet.
center mullion: A cabinetry term referring to the vertical piece of wood on the front that divides the opening into two parts.
central air conditioning: A device that generates cold air through an outside unit 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 showing 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 stating 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 that entitles the buyer to receive a deed after court confirmation of the purchase of the property.
Certified International Property Specialist (CIPS): An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling international real estate transactions.
Certified Real Estate Brokerage Manager (CRB): An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for real estate office management.
Certified Residential Specialist (CRS): An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling residential real estate transactions.
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 to protect against scuffs from furniture.
change frequency: The adjustment schedule on an adjustable rate mortgage.
change order: A modification of a 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.
chase: A shielded vertical shaft that houses various pipes, drains, ducts, and flues.
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 cap: A concrete cap that surrounds the top of the chimney brick. The cap protects the masonry from rain and other elements.
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.
chipboard: A board made of wood chips glued together under pressure.
cinder block: A block made of ash and cement, used in construction.
cinder fill: Cinders used below a basement or around a foundation to promote drainage.
circuit: Short for electrical circuit, a complete circuit requires two electrical conductors (wires), an electrical source, and an electrical device such as a light. Electricity travels through one "hot" wire from the source to the device where it is converted into light, heat, or energy, then it returns along the other "neutral" wire to the source.
circuit breaker: A switch-like device in an electrical circuit that is designed to shut down the circuit in the event of an electrical overload or short circuit. Circuit breakers are normally installed in main electrical panels or subpanels.
circuit breaker: A switch-like device in an electrical circuit that is designed to shut down the circuit in the event of an electrical overload or short circuit. Circuit breakers are normally installed in main electrical panels or subpanels.
cistern: A tank used to store rainwater.
clapboard: A type of siding, typically cedar, composed of overlapping horizontal boards.
classified property tax: A tax that varies in rate depending on the use of the property.
cleanout: An opening in the drainage system for the removal of obstructions. It also refers to the part of a fireplace from which ashes can be removed.
cleanout: A Y-shaped fitting with a cap or plug on one of the arms of the Y that can be removed in the event of a drain clog to snake out the drain line.
clear title: A title to property that does not have liens, defects, or other legal encumbrances.
clevis: Part of the assembly needed to raise and lower a sink or tub pop-up. The clevis is a pin that connects to a pivot rod.
closing: The final procedure in which documents are signed and recorded and the property is transferred.
closing costs: Expenses incidental to the sale of real estate, including loan, title, and appraisal fees. These costs exist in addition to the price of the property and are paid at closing. Some are one-time expenses and some are recurring.
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.
co-housing: Individual housing units that are clustered around a common building where residents share cooking and other activities.
co-insurance: Coverage that involves the use of two or more insurers.
co-maker: A person who signs a promissory note with the borrower and assumes responsibility for the loan.
co-signer: A second party who signs a promissory note and takes responsibility for the debt.
CO/ALR: A designation on special light switches and outlets intended to be installed with aluminum wiring.
codicil: A change to a will that adds or subtracts provisions or clarifies portions of the document.
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.
colonia: Unincorporated communities along the border between the United States and Mexico.
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.
combination door: An outer door with interchangeable screen and glass panels.
combination window: A window with interchangeable screen and glass panels.
combustion gases: The fumes or exhaust from a gas- or oil-burning appliance such as a water heater or furnace. Combustion gases are usually vented through a flue.
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: An area that is zoned for businesses.
commingling: The mixing of money held in trust with other funds.
commission: A negotiable percentage of the sales price of a home, paid to the agents of the buyer and seller.
commitment: A promise by a lender to make a loan with specific terms for a specified period.
commitment fee: A fee charged by the lender to guarantee a specific set of loan terms to be honored at some future date.
common area: An area inside a housing development that is owned by all residents.
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 his or her 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 of a mortgage plus accrued interest.
compressor: Motorized equipment in a refrigeration (or air conditioning) system that circulates coolant through the system.
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.
condensate drain: A drain required by a dehumidifier, high-efficiency furnace, or similar appliance to carry away condensation.
condensate pump: A small pump used with high-efficiency furnaces or other appliances that create significant condensation. It activates when water collects to a certain level and pumps it out to a drain.
condenser: Part of a refrigeration (or air conditioning) system that pressurizes refrigerant to cool it by changing it from a vapor to a liquid. On a refrigerator, the condenser is the coil on the outside of the unit; an air conditioner's condenser is usually outside the house.
conditional commitment: A promise by a lender to make a loan if the borrower meets certain conditions.
conditional sale: A contract for the sale of property stating that the title will remain invested in the seller until the conditions of the contract have been fulfilled.
condominium: Individual units in a building or development in which owners hold title to the interior space while common areas such as parking lots, community rooms, and recreational areas are owned by all the residents.
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.
conforming loan: Any loan that meets the qualifications to be purchased by Fannie Mae or Freddie Mac. The current conforming loan limit is $252,700.
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: Funding arranged by an owner 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: A short-term loan for home or building construction. The lender disburses the funds in stages.
construction-to-permanent loan: A construction loan that is converted 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.
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.
continuity tester: A simple, battery-powered tool that indicates whether an electrical circuit is complete or incomplete by lighting or buzzing when you touch its two probes to the wires.
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 long-term loan a lender makes for the purchase of a home.
conversion: The exchange of personal or real property of one character for another.
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 listed by another broker.
cooperative corporation: A business trust that holds the title to a cooperative residential building and grants occupancy rights to shareholders in the corporation.
cooperative mortgage: Any loan 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.
corbel: A short block or bracket projecting from a wall and providing support for a horizontal member.
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.
corporate relocation: An arrangement by which employers pay to transfer and move employees.
corrective work: Necessary or desired repairs to remedy problems uncovered by a home or specialized inspection.
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.
counterbore: A hole drilled to recess the head of a screw.
counteroffer: A response to an offer.
courier fee: Fee charged at closing to cover the delivery of documents between lenders, escrow companies, and other parties during a real estate transaction.
covenant: A legal assurance or promise in a deed or other document, or implied by law.
covenants, conditions, and restrictions (CC&Rs): Rules and regulations for a development, such as those pertaining to acceptable landscaping or improvements that can be made to individual units.
craftsman style: An architectural style that evolved as part of the Arts and Crafts 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 of an individual's current and past debt payments.
credit life insurance: Insurance that pays off a mortgage in the event of the borrower's death.
credit rating: The degree of creditworthiness assigned to a person based on credit history and financial status.
credit report: A detailed account of an individual's credit, employment, and residence history. A lender uses this report to determine a loan applicant's creditworthiness.The three largest credit bureaus are Trans Union Corp., Equifax, and Experian (formerly TRW).
credit repository: Large companies that gather financial and credit information from various sources about individuals who have applied for credit.
credit union: A nonprofit cooperative organization that provides banking and financial services such as mortgages, home improvement loans, and home equity loans to its members.
creditor: An individual or institution to whom a debt is owed.
CREIA: Abbreviation of California Real Estate Inspection Association, a trade organization of home inspectors whose members must meet the group's education and performance requirements. Call (800) 388-8443 for list of CREIA-certified inspectors in your area.
cross-bridging: The strengthening of a structure by bracing cross members between beams.
crown: A piece of molding around the top of a room.
CU/AL: A designation on standard light switches and outlets that intended to be installed with copper wiring.
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.
current value: The value of a home at the time of appraisal.
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.
cylindrical lockset: The familiar type of doorknob mechanism found on most interior (and some exterior) doors, designed to fit into a large hole bored through the face of a door's stile.

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 prior to being sold or taken off the market.
deadbolt lock: A lock that requires a key to open from the outside and a turn button from the inside.
debt: Any amount one person owes to another.
debt assumption letter: The formal transfer of debt from one party to another, backed by a contract of assumption signed by both parties. Also known as assignment of debt.
deck: A roofless, floored area that adjoins a house.
decorating allowance: An amount of money supplied by the seller and held in escrow for the buyer, to be applied toward negotiated decorating changes.
deed: The legal document that transfers ownership of a piece of property.
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.
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 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.
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.
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.
dimensional lumber: Single pieces of lumber sawed to standard dimensions.
dimmer: A light switch that controls the brightness of one or more lights. Most allow a full range of control from full off to full on.
dimple: To create a slight dent with a light blow of a hammer when driving a nail. This technique is typically used when hanging drywall to provide a tiny pocket for receiving drywall compound.
dip tube: An extension of the water supply line into a storage tank. This delivers water close to the heat source on the bottom of a water heater.
disability insurance: An insurance policy that covers an individual's ability to produce income.
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 when the lender makes the loan, to get a lower interest rate. Lenders offer various rate/point combinations, and borrowers pay points to adjust the interest rate to the market rate. One point equals one percent of the loan amount.
distressed property: Property that is in poor physical or financial condition.
document needs list: A list of documents a lender requires from a potential borrower submitting a loan application. The required documents range from paycheck stubs to credit card statements.
documentation preparation: A fee charged by the settlement agent (escrow company or attorney) to ready the necessary paperwork for closing.
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.
dowel: A length of wood that is round in profile and made of hardwood (round lengths of softwood are called rounds).
dowel plug: A short piece of a wooden dowel typically fitted into a counterbored hole to hide the head of a screw.
down payment: The difference between purchase price and the portion of the purchase price financed by a lender. Most lenders require that the down payment come from the buyer's own funds, but may also allow gifts from relatives.
downspout: A vertical gutter that empties water from the roof to the ground.
drain auger: Also called a snake. A long, coiled-wire tool that you can unwind and push into a drain line to free a clog.
drain flange: The round metal trim that fits into the hole at the bottom of a sink or bathtub. The stopper or pop-up fits into this flange to retain water in the sink or tub.
drain valve: A valve used to drain a water storage tank in order to perform maintenance or replacement.
drainage: A system of gutters and drainpipes that carry water away from the foundation of a house.
drainpipe: Part of a home's plumbing system that carries waste to the sewer or septic system. Most residential drainpipes are from 1½ to 4 inches in diameter.
draw: A payment made to subcontractors or suppliers from a construction loan.
drip caps: Angled strips of metal flashing that are designed to protect the eaves from water damage. With an L-shaped profile, they tuck under the first course of shingles and extend down over the fascia.
drip loop: A loop in the service conductor that minimizes the chance of water penetration.
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.
dual agent: An agent who represents both the buyer and the seller in a transaction. Some states require strict disclosure of this arrangement to consumers.
duct: A rigid metal or flexible insulated tube, designed to deliver air to and from a furnace or other air-handling unit.
duct: Any kind of pipe or channel that carries water, wiring, or conditioned air through a house.
ductwork: A system of large tubes, pipes, or channels (ducts) designed to deliver air to and from a furnace or other air-handling unit.
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.
duplex receptacle: An electrical outlet that accepts two lighting or appliance plugs.
Dutch colonial style: A design that features a barn-like gambrel roof, a ground-level front porch, and dormers.

early occupancy: The condition in which buyers can occupy the property before the sale is completed.
earnest money: Money a buyer gives with an offer to purchase a property. Also called a deposit.
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.
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.
efflorescence: White, powdery substance on concrete, stucco, or other masonry caused by water-soluble salts leaching to the surface.
electric service panel: A panel that transfers power from the utility line into a house to be distributed through fuses or circuit breakers.
electronic transfer: The process of having a mortgage payment automatically deducted from a borrower's checking or savings account. Many lenders offer this service.
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.
encumbrance: Any right or interest in property interfering with its use or transfer.
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 (ECOA): 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, or because the applicant receives public assistance.
equalization: A mass appraisal or reappraisal of all property within a jurisdiction for the purpose of equalizing values to assure that each taxpayer is bearing a fair share of the tax load.
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. URL: http://www.equifax.com. Phone: (800) 685-1111.
equity: A determination of the value of a property after existing liens are deducted.
errors and omissions insurance: A policy that pays for mistakes made by a builder or architect.
escheat: A situation in which the ownership of property reverts to the state when the owner dies without leaving a will.
escrow: A neutral third party holds documents and money for a real estate transaction and ensures that all conditions of a sale are met. Also refers to a special account that a lender uses to hold a borrower's monthly payments on property taxes and insurance.
escrow account: An account that a lender or mortgage servicer establishes to hold funds for the payment of expenses such as homeowners insurance and property taxes. Also known as an impound account.
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: A firm that acts as a neutral third party to ensure that all conditions established by the buyer, seller, and lender 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.
estimated closing costs: An estimate of expenses incidental to the sale of real estate, including loan, title, and appraisal fees. These costs are in addition to the price of the property, and are prepaid at closing. Some are one-time expenses and some are recurring.
estimated hazard insurance: An estimate of hazard insurance, also known as homeowner's insurance or fire insurance, to cover physical risks such as fire and wind damage. Lenders usually require coverage at least equal to the replacement value of the home.
estimated property taxes: An estimate of property taxes to be paid semiannually, or monthly if the lender requires. The amount is based on local tax rates and assessed property value, which is based on the most recent sale price plus assessment updates (subject to local policies).
estimated taxes and insurance: A calculation of monthly estimated taxes and insurance, used by a lender to evaluate a borrower's effective monthly housing expense.
estoppel: Agency situation in which one party incorrectly states that another person is the agent, and a third person relies on that representation.
European style: A cabinetry term referring to a style of cabinet without a face frame. Also known as box cabinets.
evaporator: A system of coils in a refrigeration (or air conditioning) system that, when filled with cold refrigerant, cools the air around it. On a refrigerator, the evaporator is the coil inside the unit; an air conditioner's evaporator is inside the plenum on the furnace or air-handler.
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 a foundation is laid.
exceptional depreciation: A term used to describe damages to a building that are not the result of normal wear and tear.
exclusive agency: An agreement to employ a particular broker. If another broker makes the sale, both are entitled to commissions.
exclusive buyer's agent (EBA): An agent, company, or franchise working exclusively for buyers as a fiduciary agent. EBAs do not represent sellers or list properties.
exclusive listing: A contract that gives an agent the exclusive right to market a property for a specific period of time.
executed contract: A contract in which all parties have fulfilled their promises.
executor: A person appointed to carry out the instructions in a will. If no executor is named in the will, a probate court will appoint an executor.
exemption: The removal of property from the tax base. An exemption may be partial or complete.
exfiltration: Air leakage from a building's interior to the environment.
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. Phone: (800) 392-1122.
express agreement: An contract in which the parties express their intentions in words.

façade: The part of a building facing a street or courtyard.
facilitator: A real estate professional who assists in a transaction but does not have a agency relationship with that party. Also known as transaction broker or intermediary.
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 designed to regulate procedures and prevent old or inaccurate information from staying in consumer credit files. The act gives individuals the right to inspect their own credit files, although the credit bureau may charge a fee.
Fair Debt Collection Practices Act: A federal law which outlaws debtor harassment, and regulates collection agencies, original creditors' collection offices (if separate), and creditors' lawyers. The original creditor may be covered by state law.
Fair Housing Act: Landmark federal law that makes it illegal to refuse to rent or sell to anyone based on race, color, religion, sex, or national origin. The 1988 amendments to the act expanded the protections to include family status and disability.
Fannie Mae: The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
Farmer's Home Administration (FmHA): A U.S. Department of Agriculture agency that provides credit to farmers and rural residents.
fascia: A flat board that runs horizontally along the eaves of a roof, typically capping the ends of the roof rafters to give the roof edge a more finished look and provide a base for attaching gutters.
Federal Home Loan Mortgage Corporation (FHLMC): The Federal Home Loan Mortgage Corporation is commonly known as Freddie Mac. The company buys mortgages from lending institutions, pools them with other loans, and sells shares to investors.
Federal Housing Administration (FHA): This government agency operates a variety of home-loan programs. Its most popular is the Section 203(b) program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.
Federal Housing Administration (FHA): This government agency operates a variety of loan programs including the Section 203(b) program, which provides low-rate mortgages to buyers who make a down payment of as little as 3 percent.
Federal National Mortgage Association (FNMA): 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 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 (FTC): The government agency that regulates companies and industries, from credit bureaus and collection agencies to timeshare operators and some creditors. National headquarters: Sixth and Pennsylvania Avenue NW, Washington, D.C. 20580. Phone: (202) 326-2222.
fee simple: This type of ownership, also called fee simple absolute, 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 absolute: This type of ownership, also called fee simple, 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 subject to certain conditions.
fenestration: A term referring to the way windows are arranged in a building.
feng shui: An ancient Chinese design philosophy in which the positioning and physical characteristics of the home are believed to affect the fortunes of the owner.
FHA loans: Mortgages that are insured by the Federal Housing Administration (FHA). The FHA operates loan plans for investors and purchasers of rural property, and provides low-rate mortgages to buyers who make a down payment as small as 3 percent.
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.
financed closing costs: Closing costs that are added to the loan amount. This practice saves the borrower cash up front, but increases the borrower's monthly payment.
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 to loan money for the purchase of property.
first mortgage: The primary mortgage on a property. The first mortgage takes priority over all other voluntary liens.
fixed installment: The monthly payment on a home loan.
fixed time: The specific weeks in a year that an owner of a timeshare arrangement has access to accommodations.
fixed-rate mortgage: A home loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates.
fixer-upper: A house that needs refurbishment or remodeling and 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.
flip switch: An electrical switch operated by pushing the control knob up or down.
float arm: A wire-like device in some types of toilets that attaches a float ball to the ball cock.
float ball: A round or oval ball that floats on top of the water inside the tank of some toilets. When it reaches its highest position, it shuts off the flow of water.
float floor drain: A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump.
floating slab: A concrete floor that is not connected to the foundation wall.
floating wall: Walls built to withstand movement in the basement floor.
flood certification: The process of determining whether a property is located within a known flood zone. If the property is in a flood zone, the lender will probably require federally provided flood insurance.
flood insurance: Hazard coverage that is required in designated flood areas.
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.
flue: A chimney, usually made of metal, designed to exhaust unwanted gasses and byproducts from a combustion appliance such as a furnace or water heater. A fireplace also has a flue to carry away smoke.
flush door: A flush door has smooth surfaces, as opposed to a panel door, which has raised or recessed panels.
flush valve: The passageway between a toilet tank and bowl. When you flush a toilet, water rushes through the flush valve into the bowl.
flush valve seat: The seal in the passageway between a toilet tank and bowl. A stopper, flapper, or seat ball plugs the flush valve seat .When you flush a toilet, the seat is opened and water rushes through the flush valve into the bowl.
footing: A concrete foundation that supports a structure.
For Sale By Owner (FSBO): The seller acts as the selling agent and handles the sales process directly with the buyer or buyer's agent. In this situation, the seller does not pay a listing commission.
forbearance: A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.
foreclosure: Legal process by which a lender ends the borrower's interest in a property after a loan is defaulted. The lender may sell the property and keep the proceeds for mortgage and legal costs, using excess proceeds to satisfy other liens or return to the borrower.
forfeiture: The relinquishing of property rights by a delinquent borrower.
foundation: The support structure of a house.
four-way switch: A device that uses three switches to permit an appliance or outlet to be operated from all three switches.
foyer: The entrance hall to a home or building.
framing: The construction of the skeletal framework of a house.
Freddie Mac: The common name for the Federal Home Loan Mortgage Corporation (FHLMC), a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
free-market lots: Owners of these types of lots may hire any builder to construct their home.
freehold estate: An estate in which ownership is for an indeterminate length of time.
French doors: Two adjoining doors inlaid with glass that open from the middle.
front footage: The measurement of a parcel of land by the number of feet of street frontage.
front-end ratio: A lender calculation that compares a borrower's monthly housing expense (principal, interest, taxes, and insurance) to gross monthly income.
frontage: The portion of property that borders a roadway or body of water.
FSBO (For Sale By Owner): The owner acts as the agent to avoid paying a sales commission.
full-service broker: A real estate broker who performs all transaction services including listing and selling.
fully amortized adjustable-rate mortgage: A mortgage that amortizes, or pays down, the balance of a loan.
functional obsolescence: A loss