Real Estate Glossary

Acceleration Clause - Provision in loan contract allowing lender to collect the balance of a loan if the borrower misses a payment.

Accelerated Cost Recovery System - Tax calculation giving greater depreciation in the early years of ownership of real estate or personal property.

Accelerated Depreciation - Accounting method that depreciates property faster in the early years of ownership.

Accessibility - Determines how accessible a building is to those with disabilities.

Accretion - Gradual addition to the shore or bank of a waterway by deposits of sand or silt.

B - Real Estate Terms

Back-to-Back Escrow - Allows person to buy and sell property at the same time.

Balloon-Frame Construction - Home framing method used in two-story homes in which studs extend from the ground to the ceiling of the second floor.

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.

C - Real Estate Terms

Cancellation Clause - Provision detailing conditions for the parties to terminate the agreement.

Certificate of Occupancy - Document stating that a home or other building has met all building codes and is suitable for habitation.

Certificate of Title - Written opinion on the status of a piece of property based on an examination of the public record.

D - Real Estate Terms

Deed of Trust - Document giving lender the right to foreclose on a piece of property if the borrower defaults on the loan.

Disclosure - Statement to potential buyers listing information relevant to a piece of property, such as the presence of radon or lead paint.

Dual Agency - when the real estate agent or broker represents the buyer and seller in a real estate transaction.

E - Real Estate Terms

Earnest Money - Money a buyer gives with an offer to purchase a property. Also called a deposit.

F - Real Estate Terms

Fair Housing Act - 1965 Federal law, amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex, national origin, family status and disability.

Fannie Mae - (Federal National Mortgage Association) A congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Fiduciary Duty - Relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.

G - Real Estate Terms

Good-Faith Estimate - Estimate from an institutional lender that shows the costs a borrower will incur, including loan-processing charges and inspection fees.

Grace Period - Specified time for making loan payment after its due date without penalty.

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Jeff Stegich, SRES
Virginia Cook, Realtors®
5025 Park Blvd Ste 300
Plano, Texas 75093
Cell: 214-394-6919
VM: 972-733-8493

A - Real Estate Terms