Real Estate Dictionary
AMORTIZATION
The gradual repayment of a loan by installments.
APPRAISAL
An expert or official valuation of a home's value based on its condition, prevailing prices in the neighborhood, resale values, age and other factors.
APPRECIATION
An increase in a home's value.
CONDOMINIUM
A legal arrangement under which a person owns one unit of a multi-unit development, such as an apartment building, plus an undivided interest in common areas used by other owners, such as hallways and grounds.
CONTINGENCY
a condition that must be met as stated in the offer to purchase before a contract becomes binding.
DEED
A document which transfers ownership of real property.
EARNEST MONEY
A deposit you pay to the seller to indicate your intent to purchase. If the deal is consummated, this money is applied to the purchase price. If the deal falls through for legitimate reasons, it should be returned to you.
EQUITY
The difference between your home's fair market value and your indebtedness.
ESCROW ACCOUNT
An account for the accumulation of monthly payments, designated for future payments of real estate taxes, insurance fees, etc.
FAIR MARKET VALUE
The highest price that a willing buyer would pay, and the lowest price that a willing seller would accept.
HOMEOWNER'S INSURANCE
Sometimes called hazard insurance, required insurance that will reimburse you or your lender in case of damage to the property from specified causes.
HOMESTEAD
Property owned by a person and used as his or her residence, giving rise to special legal restrictions and exemption from claims of creditors within statutory limits.
JOINT TENANCY
A form of co-ownership giving each tenant equal interest and equal rights in the property.
JUDGMENTS
Decrees of the court declaring that one individual is indebted to another and fixing the amount of such indebtedness.
MARITAL PROPERTY
Under the Wisconsin Martial Property Act, property accumulated by either spouse during marriage due to the efforts or income generated during marriage after the determination date.
MILL RATE
A percentage applied to the assessed valuation to determine taxes.
PITI
Principal, interest, taxes, insurance. The components that make up your monthly mortgage payment.
PRINCIPAL
The amount borrowed or current unpaid balance; also, that portion of a monthly payment that reduces the outstanding balance of a mortgage.
PRIVATE MORTGAGE INSURANCE (PMI)
A policy that guarantees the lender payment of the balance of the loan not covered by the sale of the property in the event of foreclosure.
RESTRICTIVE COVENANT
Also frequently called "Deed Restrictions", a promise that land will be used (or not used) in a certain way. For example, a promise that land will be used for single-family residential purposes only.
TITLE INSURANCE
A required policy ensuring that title will be held free of any other liens other than those incurred by the buyer.
ZONING
A local ordinance that divides land into use classifications and usually regulates lot size, placement, bulk, and height of structure.