Adjustable Rate Mortgage (ARM) - A mortgage in which interest and payment rates vary periodically, based on specific index, such as 30-year Treasury bills or the Cost-of-Funds index.

Administrator - A person appointed by a probate court to settle the affairs of an individual dying without a will. Technically, the term administrator is now obsolete and the term personal representative is the proper statutory title.

Adverse Possession - A claim made against the lands of another by virtue of open and notorious possession of said lands by the claimant.

Agent - A person or company who represents and acts on behalf of another person, called the principal, in deali

Air Rights - The right to ownership of everything above the physical surface of the land.

Amortization – A method by which monthly mortgage payments are equalized over the life of the loan despite the fact that the proportion of principal to interest changes.

Appraisal – Professional and unbiased written opinion of property’s value based on recent, comparable sales, quality of construction and current condition, and style of architecture.

Appurtenance - Anything so annexed to land or used with it that it will pass with the conveyance of the land.

Assessment - The imposition of a tax, charge or levy, usually according to established rates.

Assessor - A public official who evaluates property for the purpose of taxation.

Assignee - One to whom a transfer of interest is made. For example, the assignee of a mortgage or contract.

Assignor - One who makes an assignment. For example, the assignor of a mortgage or contract.

Assumable Mortgage - A mortgage which, by its terms, allows a new owner to take over its obligations.

Attachment - Legal seizure of property to force payment of a debt.

Attorney in Fact - One who holds a power of attorney from another allowing him or her to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.

Balloon Mortgage - A mortgage that is amortized over a specific period of years, but requires a lump sum payment in full at an earlier date.

Bankruptcy - A federal court proceeding in which debtors are relieved of liability for their debts after surrender of their assets to a court appointed trustee .

Binder – Generally a small amount of money from the buyer, accompanying a rief written offer to buy (See Earnest Money).

Clear Title - One which is not encumbered or burdened with defects.

Closing - Also known as "escrow" or "settlement." The process of executing legally binding documents, such as deeds and mortgages most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase .

Clouded Title - An encumbered title.

Common Interest Community (CIC) - Ownership characterized by mutual ownership of common areas, either jointly or through membership in an association, e.g., condominiums, planned unit developments, and townhomes.

Comparative Market Analysis (CMA) – A study, similar to the sales comparison approach used by appraisers, of recent sales of comparable properties used by real estate agents to estimate the market value of property for a seller or buyer in connection with a real estate transaction.

Condemnation - Taking of private property for public use through court proceedings.

Condominium (Condo) – Real estate ownership in which a property owner has title to a specific unit, but shared interest in the common areas.

Counter Offer – An offer made by a buyer or seller to the other party, responding to the asking price or a subsequent adjustment to that price to complete a purchase or sale.

Conveyance - An instrument by which title is transferred; a deed. Also, the act of transferring title.

Conventional Mortgage - Most popular home financing form not insured by FHA or guaranteed by VA. Available from many lenders at varying rates, terms and conditions.

Covenant - An agreement written into deeds and other instruments promising performance or non-performance of certain acts, or stipulating certain uses or non-uses of the property.

Cul-de-Sac - The terminus of a street or alley. Usually laid out by modern engineers to provide a circular turn around for vehicles.

Deed - A written document by which the ownership of land is transferred from one person to another.

Deed of Trust - See " Mortgage."

Devise - The disposition of real property by will.

Due on Sale Clause - Provision in a mortgage or deed of trust which requires loan to be paid in full if property is sold or transferred.

Easement - An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines, or crossing the property.

Egress - The right to leave a tract of land. Often used interchangeably with "access."

Eminent Domain - The power of the state to take private property for public use upon payment of just compensation.

Encroachment - A trespass or intrusion onto another property, usually by a structure, wall or fence.

Encumbrance - A lien, liability or charge upon a parcel of land.

Equity - The difference between the sale price of a property and the mortgage on the property.

Escheat - A reversion of property to the state in those cases where an individual dies without heirs or devisees, and, in some states, without a will.

Escrow – An arrangement by which one deposits a thing of value with a third person (called an escrow agent) who will make delivery to another person when specified conditions are fulfilled. For instance, a contract, deed, bond, or other written instrument may be deposited with a third person, by whom it is to be delivered to the grantee or promisee upon the performance of some act.

Examination of Title - The investigation and interpretation of the record title to real property based on the title search or abstract.

Executor - A person appointed by the probate court to carry out the terms of a will. The term is "executrix" if that person is a woman.

Extended Mortgage - One in which the due date of a mortgage is extended for a longer period, often at a higher interest rate than the original mortgage.

Freddie Mac - Federal Home Loan Mortgage Corporation (also FHLMC) is a stockholder owned corporation chartered by Congress that purchases mortgage loans.