ACRE - 43,560 square feet

Addendum - A supplement to any document that contains additional information pertinent to the subject.

Adjustable Rate Mortgage (ARM) - A loan agreement, secured by property, in which the annual percentage rate may change according to an index.

Adjusted Basis - The value of an asset that includes the original price plus the value of any improvement, and less any applicable depreciation.

Agent - A person who has been appointed to act on behalf of another for a particular transaction.

Amenity - feature of a property that increases its value or desirability.

Amortization - The repayment of a loan through regular periodic payment.

Amortization Schedule - individual payments throughout the term of an amortized loan, showing both principal and interest contribution.

Annual Percentage Rate (APR) - The rate of annual interest charged on a loan.

Appraisal - documented opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser.

Appreciation - The natural rise in property value due to market forces.

Assumable Mortgage - A mortgage that can be taken over by the buyer when a home is sold.

Balloon Payment - A mortgage loan in which the monthly payments are not large enough to repay the loan by the end of the term. So at the end of the term, the remaining balance comes due in a single large payment.

Biweekly Mortgage - A mortgage where you make "half payments" every two weeks, rather than one payment per month. This results in making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgage.

Bridge Financing - An interim loan made to facilitate the purchase of a new home before the buyer's current residence sells.

Building Code - Regulations that ensure the safety and material compliance of new construction within a municipality. Building codes are localized to ensure they are adequate to meet the risk of common hazards.

Cash-out Refinance - Refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cash.

Caveat Emptor - Literally translated: ''Let the buyer beware.'' A common business tenet whereby the buyer is responsible for verifying any and all claims by the seller of property.

Certificate of Occupancy - Issued by an appropriate jurisdictional entity, this document certifies that a building complies with all building codes and is safe for use or habitation.

Chattel - Any personal property which is not attached to or an integral part of a property. Chattel is not commonly taken into consideration when appraising the value of real property.

Closing Costs - All appropriate costs generated by the sale of property which the parties must pay to complete the transaction. Costs may include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the deal.

Common Areas - Any areas, such as entryways, pools, recreational facilities, etc which are shared by owners of property near by. Commonly found in condominiums.

Community Property - In many jurisdictions, any property which has been acquired by a married couple. The ownership of the property is considered equal unless stipulated otherwise by both parties.

Comparables - An abbreviated term used to describe properties which are similar in size, condition, location and amenities to a subject property whose value is being determined.

Condemnation - The official process by which a property is deemed to be uninhabitable or unusable due to internal damage or other external conditions.

Contingency - Something that must occur before something else happens. Often used in real estate sales when a buyer must sell a current home before purchasing a new one. Or, when a buyer makes an offer that requires a complete home inspection before it becomes official.

Contract - A legally binding agreement, oral or written, between two parties.

Credit Report - A detailed report of an individuals credit, employment and residence history prepared by a credit bureau. Used by lenders to determine credit worthiness of individuals.

Deed of Trust - A document which transfers title in a property to a trustee, whose obligations and powers are stipulated. Often used in mortgage transactions.

Default - The condition in which a borrower has failed to meet the obligations of a loan or mortgage.

Deposit or Earnest Money - Cash given along with an offer to purchase property.

Discount Points - Points paid in addition to the loan origination fee to get a lower interest rate.

Easement - The right of a non-owner of property to exert control over a portion or all of the property. For example, utility companies often own an easement over residential properties for access to their lines.

Eminent Domain - The legal process whereby a government can take ownership of a piece of property in order to convert it to public use. Often, the property owner is paid fair-market value for the property.

Encroachment - A building or other improvement on one property which invades another property or restricts its usage.

Encumbrance - A claim against a property. Examples are mortgages, liens and easements.

Equity - The difference between the fair market value of a property and that amount an owner owes on any mortgages.

Fee Simple - A complete, unencumbered ownership right in a piece of property.

First Mortgage - The primary loan or mortgage secured by a piece of property.

Fixture - Any piece of personal property which becomes permanently affixed to a piece of real property.

Foreclosure - The process whereby a lender can claim the property used by a borrower to secure a mortgage and sell the property to meet the obligations of the loan.

Hazard Insurance - Insurance covering damage to a property caused by hazards such as fire, wind and accident.

Home Inspection - A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value.

Improvements - Any item added to vacant land with the intent of increasing its value or usability.

Joint Tenants - A situation where two or more parties own a piece of property together. Each of the owners has an equal share, and may not dispose of or alter that share without the consent of the other owners.

Jumbo Loan - A mortgage loan for an amount greater than the limits set by Fannie Mae and Freddie Mac. Often called non-conforming loans.

Lien - Any claim against a piece of property resulting from a debt or other obligation.

Margin - The difference between the interest rate and the index on an adjustable rate mortgage.

Mortgage - A financial arrangement wherein an individual borrows money to purchase real property and secures the loan with the property as collateral.

Personal Property - Owned items which are not permanently affixed to the land.

Pre-Approval - The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen.

PrePayment - Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.

Pre-Qualification - Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.

PITI (principal, interest, taxes and insurance) - The most common constituents of a monthly mortgage payment.

PMI (private mortgage insurance) - A form of mortgage insurance provided by private, non-government entities. Normally required when the loan to value ratio is less that 20%.

Quit Claim Deed - A legal document which transfers any ownership an individual has in a piece of property.

RESPA (real estate settlement procedures act) - A federal law requiring lenders to give full disclosure of closing costs to borrowers.

REALTOR - A real estate agent or broker who is a member of the National Association of Realtors.

Second Mortgage -A loan secured by the equity in a home, when a first mortgage already exists.

Subdivision - A residential development that is created from a piece of land which has been subdivided into individual lots.

Tenancy in Common - A form of holding title, whereby there are two or more people on title to a property, ownership does not pass on to the others upon the death of one individual.

Title Insurance - A policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. This also covers a lender should a question of ownership arise.

Trustee - A fiduciary that holds or controls property for the benefit of another.

Zone - A specific area within a municipality or other jurisdiction which conforms to certain guidelines regarding the use of property in the zone. Some zones include single-family, multi-family, industrial, commercial and mixed-use.