RE/MAX Metro Associates ,  Columbia, SC

   Dondi Phelps, Realtor®

       Direct: (803) 600-6000    Toll Free 1-800-968-6978   Fax: (803) 749-5810

                       Representing YOUR Best Interests In Real Estate

First Home, New Construction, Luxury Home, Investment Home, Lake Living, Golf Communities or Retirement Homes are all here!

     Columbia, SC Real Estate - Irmo, Chapin, Ballentine, Lake Murray, Northeast, Blythewood, Downtown, Lexington, West Columbia-Cayce, Gaston, Ft. Jackson,  and Hopkins.

 

Real Estate Glossary  Either click on the letter or just scroll down. Or Click here to return  Top  | A  | B  | C  | D  | E  | F  | G  | H  | I  | J  | K  | L  | M  | N  | O  | P  | Q  | R  | S  | T  | U  | V  | W  | X  | Y  | Z  A ACCREDITED BUYER REPRESENTATIVE (ABR) - the Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation. This coveted designation is awarded to real estate practitioners by the Real Estate BUYERS AGENT Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS  who have met the specified educational and practical experience criteria. ACRE - A unit of measure used in real estate, one acre equals 43,560 square feet of land. A perfectly square acre has sides of 208.71 feet. ADJUSTABLE RATE MORTGAGE (ARM) - interest rates on this type of mortgage are periodically adjusted up or down depending on the specified financial index. Also called a variable-rate mortgage (VRM). ADVERSE POSSESSION - The act of acquiring title to property by continuous and outright possession against the title of another for a specific period of time. AGENCY - An agency relationship is created when you appoint someone to act on your behalf. In so doing, the agent then becomes bound by certain fiduciary duties, which include obedience, loyalty, disclosure, confidentiality, accountability and reasonable care and diligence. An agency relationship can be created by a desire to be represented and a consent to represent, however it is more often created as a result of a listing agreement or a buyer representation agreement. . Ask Dondi to explain in detail how you may be represented. AGREEMENT OF SALE - A written document or contract in which a purchaser agrees to buy and a seller agrees to sell a specific property. AMORTIZATION - a method of equalizing the monthly mortgage payments over the life of the loan, even though the proportions of principal to interest changes over time. In the early part of the loan, the principal repayment is very low, while the interest payment is very high. At the end of the loan, the relationship is reversed. AMORTIZATION SCHEDULE - A table showing how a loan is systematically repaid during its term. ANNUAL PERCENTAGE RATE - the actual finance charge for a loan, including points and fees, in addition to the stated interest rate. APPLICATION FEE - the amount, usually non refundable, that a lender charges for processing a borrower's application for a loan. APPRAISAL - an expert opinion of the value or worth of a property. APPRAISER - A person who conducts appraisals and writes reports of the appraisal. Usually certified by a state regulatory agency.. APPRECIATION - an increase in property value, normally due to inflation. APPURTENANCE - Anything which is a part of, or annexed to real property, either attached or not, such as a building, or an easement, that it will pass as part of the property upon sale. ASSESSED VALUE - the value place on property by taxing authorities for purposes of levying taxes. It may differ widely from appraised or market value. ASSESSMENT - A specific one - event tax designated for a specific purpose.. ASSESSOR - A person, usually an employee of, or an independent contractor for a taxing body who estimates the value of property for tax purposes. Very often this value is not the fair market value.. ASSIGN - The act of transferring or assigning one's rights under a contract or agreement to another.. ASSIGNEE - The person to whom rights are assigned or transferred. ASSUME A LOAN - a buyer assumes the responsibility to repay an existing  loan as a condition of sale.  | TOP  |  B BALLOON MORTGAGE - A mortgage in which the final payment is larger than any of the preceding payments. A balloon mortgage is usually one in which the loan has been amortized for a specific period of time, but which provides for a balloon payment at some specific time prior to the expiration of that period of time.   BALLOON PAYMENT - a large principal payment due all at once at the end of some loan terms. BANKRUPTCY - A legal proceeding wherein one is granted relief from debts due to the inability to pay the debts. BEQUEST - Personal property received under a will. BLANKET MORTGAGE - A mortgage pledging more than one property as collateral for a loan. BROKER - A person licensed by the appropriate state regulatory authority to act on behalf of another in the sale or purchase of real estate. In most states, licensed salespeople must be licensed under a broker. BUILDING CODES - local safety codes regulating the construction of buildings, including design, materials, and other related aspects of building. BUILDING LIMIT LINE OR SETBACK - Distances from the ends and/or sides of the lot beyond which construction may not extend. BUY-DOWN - A payment required by a lender at the time a loan is made to reduce the interest rate. BUYER'S BROKER - A licensed real estate broker, together with his or her affiliated agents, who represent buyers and owe their buyer clients certain fiduciary duties. BUYER'S MARKET - A real estate market in which the supply exceeds the demand.  | TOP  |  C CAP - a limit on how much the interest rate can change in an adjustable rate mortgage. CAPITAL GAINS - the taxable "profit" made on the sale of real estate, which must either be recognized (and paid) or deferred. CAPITAL LOSS - the loss derived from the sale of a capital asset. CASH FLOW - The amount of money remaining from an investment property when all operating costs and loan costs are subtracted from the gross income. CERTIFICATE OF TITLE - a document, signed by a title examiner, stating that a seller has an insurable title to the property. CLOSING - the deed to property is legally transferred from seller to buyer and documents are recorded. CLOSING COSTS - the numerous expenses incurred by both buyer and seller in the transfer of title during a real estate transaction. These costs are in addition to the cost of the property and are items prepaid on the closing day. CLOSING STATEMENT - t(Sometimes referred to as Settlement Statement.) A statement usually prepared by an attorney or title company setting out all the financial details concerning the costs of conveying property. The closing statement is normally given at Closing. CLOUD ON TITLE - A defect in the title to property which prevents the title from being good and marketable. COLLATERAL - The property pledged by a borrower to secure a loan. COMMISSION - a fee (usually a percentage of the total transaction) paid to an agent or broker for services performed. COMMUNITY PROPERTY - property acquired and jointly owned by husband and wife in which each has equal Interest. COMPARABLE - recently sold properties that are similar in size end location to the property being purchased. COMPARATIVE MARKET ANALYSIS (CMA) - a survey of attributes and selling process of comparable homes on the market or recently sold; used to help determine a correct pricing strategy for a seller's property. CONDEMNATION - The taking of private property for public purposes.Condemnation can take place when a building is unfit for habitation, or when needed for a public use. CONDOMINIUM - The ownership in one unit of a building or buildings containing many units. Ownership includes the unit itself and a share of the ownership of common elements. CONSTRUCTION LOAN - A temporary loan used to pay construction costs during the construction period. A construction loan is usually followed by a permanent mortgage. CONTINGENCY - a condition in a contract that must be met for the contract to be binding. CONTRACT - a binding legal agreement between two or more parties. CONVENTIONAL MORTGAGE - a mortgage loan not insured by HUD or guaranteed by the Department of Veterans Affairs. It is subject to conditions established by the lending institution and State statutes. CONVEY - to transfer property or title from one person to another. CO-OP - An apartment building owned by a group of people in which each person occupies one of the apartments. While the group together owns all the units, each individual has absolute rights to the occupation of a single unit. CO-SIGNER - a person who signs a note and becomes liable for repayment of same with the borrower. COUNTER-OFFER - An offer made in response to a person who has made an initial offer. CREDIT REPORT - A report from a company which specializes in keeping credit histories on people. Lenders base the decision on an applicant's credit worthiness based on the information in a credit report. Credit reports cannot be given except with the consent of the person being reported on.  | TOP  |  D DEED - a legal document that formally conveys ownership of property from seller to buyer. DEED OF TRUST - Very much like a mortgage, a deed of trust pledges specific real estate as collateral for a loan. DEED RESTRICTIONS - A deed carries with it the right to use property in any legal manner.  Deed restrictions are used by the seller to provide restrictions over and above those imposed by law. Deed restrictions are often imposed by developers to protect the value of the yet undeveloped property and to provide protections for other property owners in the development.. DEFICIENCY JUDGMENT - The judgment against a person when they default on a mortgage and the sale of the property does not fully satisfy the obligation. The unsatisfied portion of the loan. DELINQUENT LOAN - A loan with payments that are past due. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) - A federal agency that helps home buyers by providing mortgage insurance on mortgage loans that might otherwise be too high risk for the lender. HUD also has a number of other programs designed to provide housing. DEPOSIT - a percentage of the purchase price, paid by the buyer when the Purchase and Sale agreement is signed and typically held in escrow until the transaction is completed. DEPRECIATION - A decrease in the value of real property due to a number of causes such as deterioration of the neighborhood. DOWN PAYMENT - a percentage of the purchase price that the buyer must pay in cash and may not borrow from the lender. DUE ON SALE - A mortgage clause that specifies that a mortgage loan must be paid in full when title to the mortgaged property is conveyed.  | TOP  |  E EARNEST MONEY - the deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. EASEMENT - A right granted from a property owner to another for a specific use of a portion of the owners land. Public utilities often use easements for the purpose of installing their utility lines. EMINENT DOMAIN - A governmental right to acquire private property for public use provided the owner is properly compensated. A number of court cases exist which attempt to define acquisition of real property and compensation. ENCROACHMENT - When a part of a building or other improvement from an adjoining property reaches beyond the property line of another.  ENCUMBRANCE - a legal right or interest in land that affects a good or clear title, and diminishes the land's value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. EQUITY - the value of a homeowner's unencumbered interest in real estate. Equity is computed by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property. A homeowner's equity increases as he pays off his mortgage or as the property appreciates in value. When the mortgage and all other debts against the property are paid in full the homeowner has 100% equity in his property. ESCROW - a fund or account held by a third-party custodian until conditions of a contract are met. EXCLUSIVE AGENCY - The type of agency relationship in which the broker represents either the buyer or the seller, but not both in the same transaction. EXCLUSIVE AGENCY LISTING - A listing agreement between a broker and a seller in which the broker is given the exclusive right to sell a property with the sole exception that the seller reserves the right to sell the property himself. In this type of listing, the broker earns his fee unless the seller sells the property himself. Drawback is that the broker can not advertise the property. EXCLUSIVE RIGHT TO SELL - A listing agreement between a broker and a seller in which the broker is given the exclusive right to sell the property. In this type of listing, the broker earns his fee regardless of who sells the property including the owner.  | TOP  |  F FAIR MARKET VALUE - The price an informed buyer will pay an informed seller with neither party being under duress. FANNY MAE - Federal National Mortgage Association. FARMERS HOME ADMINISTRATION (FmHA) - The government agency responsible for guaranteeing mortgage loans on farms and rural homes. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - The federal agency which buys mortgage loans from savings and loans and banks. FEDERAL HOUSING ADMINISTRATION (FHA) - The federal agency which insures mortgage loans.g FEE SIMPLE TITLE - The normal type of title to property. It means full and unrestricted title. FIRST MORTGAGE - A mortgage recorded in first place on a property and having priority over all other mortgages that follow. FIXED RATE MORTGAGE -A mortgage with a specified rate of interest which cannot be changed throughout the entire tern of the mortgage. FIXTURE - a recognizable entity (such as a kitchen cabinet, drape or light fixture) that is permanently attached to property and conveys with the property when it is sold. FORECLOSURE - The legal act of a lender or lien holder seizing title to a property when the obligation is in default. FORECLOSURE SALE - A sale held for the purpose of liquidating a property in satisfaction of a debt.  | TOP  |  G GENERAL WARRANTY DEED - A deed in which the grantor grants all his rights, title and interests, but also warrants the title of the property from the beginning of its recorded history. "GOOD FAITH ESTIMATE" - an approximation of closing costs, which a lender is required to give to a prospective mortgage borrower within three days of the time an application for a loan is submitted. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - The government agency which provides funding for all parts of certain residential mortgage loans. GRACE PERIOD - That period of time from the due date of a payment until the payment is recorded as late. GRANTEE - The person named in a deed who is the recipient of title. GRANTOR - The person named in a deed who surrenders title.  | TOP  |  H HAZARD INSURANCE - compensates for property damage from specified hazards such as fire and wind. HOME INSPECTION - the professional scrutiny of a home to assess its overall condition and identify existing or potential structural and/or mechanical problems. HUD - U.S. Department of Housing and Urban Development. Office of Housing/Federal Housing Administration within HUD insures home mortgage loans made by lenders. HUD-1 Form Also known as the RESPA statement, detailing all the loan closing costs and itemizing all payments made by and due from both the buyer and the seller.  | TOP  |  I INCOME APPROACH - A technique used in appraising property determines fair market value by capitalizing net income. INCOME-TO-DEBT RATIO - a lender's calculation of the percentage of income represented by a borrower's housing payments plus all other revolving debt payments. INDEMNIFY - To reimburse one as a result of any damages of losses they suffer. INSOLVENCY - The result of debts being equal to or greater than assets. INSTALLMENT SALES CONTRACT - A contract providing for a buyer to purchase a property by making installment payments to a seller. Title remains vested in the seller until the contracted purchase price is paid in full. INTEREST - the cost of borrowing money, usually expressed as a percentage rate. INSURANCE - A contract providing for financial protection against loss. For example, a homeowner's insurance policy provides for reimbursement if the owner suffers a loss due to fire or a number of other causes.  | TOP  |  J JOINT TENANCY - When two or more people hold equal undivided interest in title to a property. JUDGMENT - Court order which results from one person suing another for money.  | TOP  |  K  | TOP  |  L LEASE - A contract which permits a person to occupy and use a property for a specific period in return for a specific sum of money. LEASEBACK - The process of selling a property and also entering into a lease to continue using that property. LESSEE - The tenant. LESSOR - The landlord. LIEN - a security claim on property until a debt is satisfied. LIFE ESTATE - A right granted to a person to use a property for the rest of their life. Upon the demise of the holder of the life estate, use of the property reverts to the holder of legal title. LIMITED PARTNER - A partner in an investment property or properties who makes and investment, expects a return, but cannot make management decisions. LIMITED PARTNERSHIP - A partnership comprised of limited partners who put up the cash with which to purchase an investment property and one or more general partners who manage and operate the investment property. LIQUIDATED DAMAGES - The damages a party suffers as a result of the breach of a contract by the other party. LISTING AGREEMENT - An agreement which authorizes a broker to sell an owner's property for a certain price within a specified time period for which the broker will be compensated a specific fee. LISTING CONTRACT - (see listing agreement) LOAN ORIGINATION FEE - A flat fee a lender may charge for lending money. A fee which may be in addition to points. LOAN-TO-VALUE RATIO - the relationship between the mortgage on a property and its value. If the mortgage is $80,000 and the property is worth $100,000, the loan-to-value is 80 percent.  | TOP  |  M MARGIN - The contractually specified rate difference between an index and the rate of a variable rate mortgage. MARKETABLE TITLE - Typically defined as such title that is insurable by a title company, it is a title free of liens and defects. MARKET APPROACH - A technique used in appraising property which compares recently sold comparable properties in arriving at a conclusion as to fair market value. MARKET PRICE - the actual price at which a property sold. MARKET VALUE - the price that is established by present economic conditions, locations and general trends. MECHANIC'S LIEN - A lien which usually results from a contractor or supplier not being paid for services rendered or materials delivered in the construction, remodeling, expansion, etc. of a building. METES AND BOUNDS - A method used in describing property which starts at an identifiable starting point and then describes the succeeding sides by their bearing (direction) and length (distance). MORTGAGE - security claim by a lender against property until the debt is paid. MORTGAGE BANKER - A thrift institution which makes mortgage loans. MORTGAGE BROKER - A person who matches buyers with lenders. MORTGAGE COMMITMENT - a written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house. MORTGAGE COMPANY - A company which makes mortgage loans. MORTGAGE GUARANTY INSURANCE CORPORATION (MGIC) - A company which insures private mortgages against default. MORTGAGE INSURANCE - Life insurance on the borrower which will pay the mortgage loan off in the event of the borrower's demise. MORTGAGEE - The lender in a mortgage document. MORTGAGOR - The person (s) or company who has borrowed the money in a mortgage document. MULTIPLE LISTING SERVICE (MLS) - a system that provides to its members detailed information about properties for sale.  Agents can use software to search for available homes on the computer.  | TOP  |  N NATIONAL ASSOCIATION OF REALTORS® (NAR) - The national trade association of real estate practitioners. REALTORS® distinguish themselves from non-REALTOR® practitioners by subscribing to a strict Code of Ethics. NEGATIVE AMORTIZATION - A condition which occurs when the interest due each period exceeds the amount being paid thereby increasing the mortgage balance. NET LISTING - A listing agreement which provide that the seller receive a specified amount of money regardless how much is paid for the property. In a net listing, it is anticipated the sale price will be higher than the net and the broker will receive the difference. This type of listing is illegal in some states. NOTE - The document which usually accompanies a mortgage and is the promise to re pay the loan.. O OFFER TO PURCHASE - An offer made in writing by a buyer to purchase a specific property and establishing all the terms of the sale. When accepted by the seller, it becomes the agreement of sale. OPEN LISTING - A listing agreement which provides that a broker will be paid if he sells the property, but will not get paid if sold by another including other brokers. Owners sometimes enter into multiple open listings. OPTION - A clause in a lease agreement which allows the lessee the right to purchase the leased property at a specified sale price and terms. An option may also be granted absent a lease agreement. ORIGINATION FEE - an application fee(s) for processing a proposed mortgage loan.  | TOP  |  P P.I.T.I. - principal, interest, taxes and insurance, forming the basis for monthly mortgage payment. PLAT - a map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements. POINT - one percent of the loan principal. It's charged in addition to interest and fees. POWER OF ATTORNEY - written document giving authorization to one person to act on behalf of another. PRE-APPROVAL - the process of obtaining preliminary approval for a mortgage before application is complete. May or may not constitute a formal commitment by the lender to make the loan. PREPAYMENT - payment of mortgage loan, or part of it, before due date. PREPAYMENT PENALTY - a fee paid by a borrower who pays off the loan before it is due. PRE-QUALIFICATION - an informal estimate of the maximum mortgage a borrower could obtain, based on a calculation of available income and existing debt. PRINCIPAL - the basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which interest is paid. PRIVATE MORTGAGE INSURANCE - an insurance policy that protects the lender should the borrower default on the mortgage. Usually required for borrowers whose down payment represents less than 20 percent of the purchase price. PROMISSORY NOTE - a written agreement promising to repay a loan. PROPERTY TAX - Taxes due each year by various municipal bodies based on an assessed value of the property. PRORATE - divide or assess proportionately. PUBLIC RECORDS - Records relating to ownership and liens on real estate. Usually kept and maintained by the county government. PURCHASE AGREEMENT - A contract setting forth the parties, the property being conveyed, the consideration (sale price) and other terms of the sale. In many states, having written agreement is required by law. | TOP  |  Q QUITCLAIM DEED - A deed in which the grantor surrenders title (if any) to a parcel of property. | TOP  |  R RATE LOCK - A guaranteed rate of interest for a specific time frame on a mortgage loan. RATE OF RETURN - The rate at which an investor recaptures his investment in income producing property. REAL ESTATE - Land and its appurtenances (attachments such as buildings or other structures or improvements). REAL ESTATE BROKER - A person licensed by his/her particular state to charge a fee for bringing a buyer and a seller together to purchase real estate. REALTOR® - a licensed real estate agent who belongs tot he local or state affiliate of the the industry's professional trade association, the National Association of Realtors (NAR). RECORDING - The act of placing a document on the public records (usually the county records). Recording is usually done to give public notice of a conveyance or the placement of a lien. RELEASE OF LIEN - A legal document which serves notice that a lien holder has released his lien. RELEASE OF MORTGAGE - Same as Release of Lien, except that it is granted by a mortgagee to release a mortgage. RESTRICTIVE COVENANTS - Provisions included in a deed which limits the grantee in the use of the conveyed property. Most of these type covenants expire at a date certain, are binding on all subsequent grantees, and are most frequently created by a developer in a development project to protect the quality of the development.. RIGHT OF WAY - A right granted by a property owner to another to build, maintain and use a road, utility line or similar improvement over his property.  | TOP  |  S SALE-LEASEBACK - The act of selling property and then leasing the property from the buyer. Owners of commercial property often do this to liquidate assets to be invested for other purposes. SALES COMPARABLE - A sale of another property which may be used to indicate the value of a property. Comparable sales are normally similar in condition, style, size, location and utility to the property being evaluated.. SECOND MORTGAGE - A mortgage placed on a property after the first mortgage and subordinate to the first mortgage. People often take a second mortgage on a residential property to recapture some of their gain and/or appreciation to be used for other investments or expenses. SELLER'S MARKET - A market in which the demand for housing exceeds the supply.. SEPTIC TANK - A tank (usually concrete) on a property into which raw sewage is discharged. The sewage stays in the septic tank long enough for all solids to decay and liquid is drained off to an attached leach bed for the purpose of purifying the liquid. SETTLEMENT - all financial transactions required to make the contract final. SHERIFF'S DEED - A sale of property ordered by the court and carried out by the sheriff. A sheriff sale is most common with mortgage foreclosures or in sales of property resulting from delinquent taxes. SPECIAL WARRANTY DEED - The most common kind of deed used in conveying title to property. In special warranty deed, the grantor warrants the title for the period of time in which he held title, but does not warrant it with regard to previous owners. STRAIGHT-LINE DEPRECIATION - An accounting method in which a depreciable asset is depreciated by a like amount each year over a specified period of time. SUBDIVISION - The act of legally dividing a parcel of land into two or more smaller parcels. In most areas, subdividing land requires the approval of a governmental body. SURVEY - a map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description.  | TOP  |  T TAX LIEN - A kind of lien placed on property by a taxing authority when real estate taxes have not been paid. TERM - An agreed upon length of time in which a loan is to be repaid. TIME-SHARE - Title in a property held by several owners, each entitled to the use of the property for specified time periods each year. Common in resort areas. TITLE - a document that indicates ownership of a specific property. TITLE DEFECT - Any title problem which "clouds" the property's title. A title defect can be a lien, a person or entity who may have had interest in the property and never surrendered it, or any number of other situations making title less than perfect.. TITLE INSURANCE - protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to either the mortgagor, as an " owner's title policy, " or to the mortgagee, as a "mortgagee's title policy." Insurance benefits will be paid only to the "named insured" in the title policy, so it is important that an owner purchase an "owner's title policy", if he desires the protection of title insurance. TITLE SEARCH - detailed examination of the entire document history of a property title to make sure there are no legal encumbrances.  | TOP  |  U  | TOP  |  V VA (VETERANS ADMINISTRATION) LOAN - mortgages issued by lenders but guaranteed by the Veterans Administration and available only to eligible veterans and their spouses and Dependents. VARIANCE - a limited exemption from local zoning requirements.  | TOP  |  W WARRANTY - a written or implied guarantee that property (including mechanical systems or appliances) is in the condition described and will perform as promised.  | TOP  |  X  | TOP  |  Y  | TOP  |  Z ZONING ORDINANCES - the acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.  | TOP  |        I look forward to helping you with your Real Estate Needs!