Glossary - A

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Abandonment: Occurs when someone voluntarily surrenders or relinquishes possession of real property without vesting this interest in any other person.

Acceptance: An offeree's consent to enter into a contract and be bound by the terms of the offer.

Access: General or specific right of ingress or egress to a particular property.

Addendum: Additional material attached to and made part of a document.

Adjustable-rate mortgage (ARM): A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.

Administrator: A person appointed by a probate court to administer the estate of a person who died intestate.

Advertising: The public promotion of one's products and services.

Agency: A relationship created when one person, the principal, delegates to another, the agent, the right to act on his/her behalf in business transactions and to excuse some degree of disaction while so acting.

Agent: One who is authorized to represent and to act on behalf of another person (called the principal).

Agreement of sale: A contract between buyer and seller covering the sale of specific real property.

Amenity: A feature of real property that enhances its attractiveness and increases the occupant's or user's satisfaction although the feature is not essential to the property's use. Natural amenities include a pleasant or desirable location near water, scenic views of the surrounding area, etc. Human-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.

Amortization: The gradual repayment of a mortgage loan by installments.

Amortization schedule: A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.

Amortize: To repay a mortgage with regular payments that cover both principal and interest.

Annual percentage rate (APR): The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).

Annuity: An amount paid yearly or at other regular intervals, often on a guaranteed dollar basis.

Application: A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security.

Appraisal: A written analysis of the estimated value of a property prepared by a qualified appraiser.

Appraised value: An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

Appraiser: A person qualified by education, training, and experience to estimate the value of real property and personal property.

Appreciation: An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

Assessed value: The valuation placed on property by a public tax assessor for purposes of taxation.

Assessment: The process of placing a value on property for the strict purpose of taxation. May also refer to a levy against property for a special purpose, such as a sewer assessment.

Assessor: A public official who establishes the value of a property for taxation purposes.

Asset: Anything of monetary value that is owed by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

Assignment: The transfer of a mortgage from one person to another.

Assumable mortgage: A mortgage that can be taken over ("assumed") by the buyer when a home is sold.

Assumption: The transfer of the seller's existing mortgage to the buyer. See assumable mortgage.

Attorney-in-fact: One who holds a power of attorney from another to execute documents on behalf of the grantor of the power.