Real Estate Glossary
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
ABSORPTION RATE Back to top
The ratio of the number of properties in an area that have been sold against the number available. Used to show the volatility of a market.
ACCELERATION CLAUSE Back to top
A provision in a mortgage that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstances. Usually when the borrower defaults on the loan.
ACCESSORY BUILDING Back to top
A building separate from the main structure on a property. Often used for a specific purpose, such as a workshop, storage shed or garage.
ACCRETION Back to top
The natural growth of a piece of land resulting from forces of nature
ACRE Back to top
43,560 square feet. A measurement of area.
ACTUAL AGE Back to top
The amount of time that has passed since a building or other structure was built. See also: EFFECTIVE AGE
ADJUSTMENT DATE Back to top
The date the interest rate changes on an adjustable rate mortgage.
AD VAL OREM TAX Back to top
Taxes assessed based on the value of the land and improvements
ADDENDUM Back to top
A supplement to any document that contains additional information pertinent to the subject. Appraisers use an addendum to further explain items for which there was inadequate space on the standard appraisal form.
ADJUSTABLE-RATE MORTGAGE (ARM) Back to top
A type of mortgage where the interest rate varies based on a particular index, normally the prime lending rate.
ADJUSTED BASIS Back to top
The value of an asset (property or otherwise) that includes the original price plus the value of any improvement, and less any applicable depreciation.
ADJUSTED SALES PRICE Back to top
An opinion of a property’s sales price, after adjustments have been made to account for differences between it and another comparable property.
AESTHETIC VALUE Back to top
The additional value a property enjoys based on subjective criteria such as look or appeal.
AFFORDABILITY ANALYSIS Back to top
A calculation used to determine an individual’s likelihood of being able to meet the obligations of a mortgage for a particular property. Takes into account the down payment, closing costs and on-going mortgage payments.
AGENT Back to top
A person who has been appointed to act on behalf of another for a particular transaction.
AMENITY Back to top
Any feature of a property that increases its value or desirability. These might include natural amenities such as location or proximity to mountains, or man-made amenities like swimming pools, parks or other recreation.
AMERICAN SOCIETY OF APPRAISERS Back to top
An organization of appraisal professionals and others interested in the appraisal profession.
AMORTIZATION Back to top
The repayment of a loan through regular periodic payment.
AMORTIZATION SCHEDULE Back to top
The breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution and debt service (interest) fees.
AMORTIZATION TERM Back to top
The length of time over which an amortized loan is repaid. Mortgages are commonly amortized over 15 or 30 years.
ANNUAL PERCENTAGE RATE (APR) Back to top
The rate of annual interest charged on a loan.
ANNUITY Back to top
A sum of money paid at regular intervals, often annually.
APPLICATION Back to top
A form used to apply for a mortgage loan that details a potential borrower’s income, debt, savings and other information used to determine credit worthiness.
APPRAISAL Back to top
A ”defensible” and carefully documented opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser.
APPRAISAL INSTITUTE Back to top
A world-wide organization dedicated to real estate appraisal education, publication and advocacy.
APPRAISAL PRINCIPLES Back to top
The basic building blocks of the property valuation process, including property inspection, market analysis and basic economics.
APPRAISAL REPORT Back to top
The end result of the appraisal process, usually consists of one major, standardized form such as the Uniform Residential Appraisal Report form 1004, as well as all supporting documentation and additional detail information. The purpose of the report is to convey the opinion of value of the subject property and support that opinion with corroborating information.
APPRAISED VALUE Back to top
An opinion of the fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principals.
APPRAISER Back to top
An educated, certified professional with extensive knowledge of real estate markets, values and practices. The appraiser is often the only independent voice in any real estate transaction with no vested interest in the ultimate value or sales price of the property.
APPRECIATION Back to top
The natural rise in property value due to market forces.
ASSESSED VALUE Back to top
The value of a property according to jurisdictional tax assessment.
ASSESSMENT Back to top
The function of assigning a value to a property for the purpose of levying taxes.
ASSESSMENT RATIO Back to top
The comparative relationship of a property’s assessed value to its market value.
ASSESSOR Back to top
The jurisdictional official who performs the assessment and assigns the value of a property. See Routt County Assessor’s Office.
ASSET Back to top
Any item of value which a person owns.
ASSIGNMENT Back to top
Transfer of ownership of a mortgage – usually when the loan is sold to another company. Colorado Contracts to Buy and Sell Real Estate can also be assigned if indicated in the contract.
ASSUMABLE MORTGAGE Back to top
A mortgage that can be taken over by the buyer when a home is sold.
ASSUMPTION Back to top
When a buyer takes over, or “assumes” the sellers mortgage or Colorado Contract to Buy and Sell Real Estate.
ATTACHED HOUSING Back to top
Any number of houses or other dwellings which are physically attached to one another, but are occupied by a number of different people. The individual houses may or may not be owned by separate people as well.
BACKFILL Back to top
The slope of the ground around a house.
BALLOON MORTGAGE Back to top
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.
BALLOON PAYMENT Back to top
The final large payment at the end of a balloon mortgage term.
BANKRUPTCY Back to top
When a person or business is unable to pay their debts and seeks protection of the state against creditors. Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loan.
BILL OF SALEBack to top
A physical receipt indicating the sale of property.
BIWEEKLY MORTGAGE Back to top
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.
BONA FIDE Back to top
Any genuine offer, made without intent to defraud or deceive.
BRIDGE FINANCING Back to top
An interim loan made to facilitate the purchase of a new home before the buyer’s current residence sells and its equity is available to fund the new purchase.
BROKER Back to top
An individual who facilitates the purchase of property by bringing together a buyer and a seller.
BTU Back to top
British Thermal Unit. A unit of measurement used to describe heating or cooling capacity.
BUFFER ZONE Back to top
A segment of land between two disparate municipal zones which acts as a shield to keep one zone from encroaching upon the other. Often used to separate residential districts from commercial areas.
BUILDING CODE Back to top
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.
BUILDING LINE OR SETBACK Back to top
The statutory distance between buildings and the property line, imposed by municipalities, home associations, or other agreements.
BUILT-INS Back to top
Specific items of personal property which are installed in a real estate improvement such that they become part of the building. Built-in microwave ovens and dishwashers are common examples. Refrigerators are not necessarily built ins.
BUY DOWN Back to top
Extra money paid in a lump sum to reduce the interest rate of a fixed rate mortgage for a period of time. The extra money may be paid by the borrower, in order to have a lower payment at the beginning of the mortgage. Or paid by the seller, or lender, as incentive to buy the property or take on the mortgage.
CALL OPTION Back to top
A clause in a mortgage which allows the lender to demand payment of the outstanding balance at a specific time.
CAP Back to top
Associated with Adjustable Rate Mortgages. A limit on how high monthly payments or how much interest rates may change within a certain time period or the life of the mortgage.
CAPITAL Back to top
Accumulated goods and money which is most often used to generate additional income.
CAPITAL EXPENDITURE Back to top
An outlay of funds designed to improve the income-producing capabilities of an asset or to extend its economic life.
CASH-OUT REFINANCE Back to top
Refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cash.
CAVEAT EMPTOR Back to top
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 ELIGIBILITY Back to top
A document issued by the Veterans Administration that certifies eligibility for a VA loan.
CERTIFICATE OF OCCUPANCY Back to top
Issued by an appropriate jurisdictional entity, this document certifies that a building complies with all building codes and is safe for use or habitation.
CERTIFICATE OF REASONABLE VALUE (CRV) Back to top
Usually based on an independent appraisal, a CRV for a particular property establishes the maximum amount which can be secured by a VA mortgage.
CERTIFICATE OF TITLE Back to top
A document designating the legal owner of a parcel of real estate. Usually provided by a title or abstract company.
CERTIFIED GENERAL APPRAISER Back to top
Generally, any professional who has met the local or state requirements, and passed the appropriate certification exam, and is capable of appraising any type of property.
CERTIFIED RESIDENTIAL APPRAISER Back to top
A sub-classification of appraiser who is only licensed to appraise residential property, usually up to four units.
CHAIN OF TITLE Back to top
The complete history of ownership of a piece of property.
CHATTEL Back to top
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.
CLEAR TITLE Back to top
Ownership of property that is not encumbered by any counter-claim or lien.
CLOSING Back to top
The process whereby the sale of a property is consummated with the buyer completing all applicable documentation, including signing the mortgage obligation and paying all appropriate costs associated with the sale (CLOSING COSTS).
CLOSING COSTS Back to top
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.
CLOSING STATEMENT Back to top
The document detailing the final financial arrangement between a buyer and seller and the costs paid by each.
CO-BORROWER Back to top
A second person sharing obligation on the loan and title on the property.
COLLATERAL Back to top
An asset which is placed at risk to secure the repayment of a loan.
COLLECTION Back to top
The process a lender takes to pursue a borrower who is delinquent on his payments in order to bring the mortgage current again. Includes documentation that may be used in foreclosure.
COMMISSION Back to top
A percentage of the sales price or a fixed fee negotiated by an agent to compensate for the effort expended to sell or purchase property.
COMMON AREA ASSESSMENTS Back to top
Fees which are charged to the tenets or owners of properties to cover the costs of maintaining areas shared with other tenets or owners. Commonly found in condominium, PUD or office spaces.
COMMON AREAS Back to top
Any areas, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the tenets or owners of property near by. Commonly found in condominium, PUD or office spaces.
COMMUNITY PROPERTY Back to top
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 Back to top
An abbreviated term used by appraisers to describe properties which are similar in size, condition, location and amenities to a subject property who’s value is being determined. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for determining a comparable property.
CONCESSIONS Back to top
Additional value granted by a buyer or seller to entice another party to complete a deal.
CONDEMNATION Back to top
The official process by which a property is deemed to be uninhabitable or unusable due to internal damage or other external conditions.
CONDOMINIUM Back to top
A development where individual units are owned, but common areas and amenities are shared equally by all owners.
CONDOMINIUM CONVERSION Back to top
Commonly, the conversion of a rental property such as an apartment complex into a CONDOMINIUM-style complex where each unit is owned rather than leased.
CONSTRUCTION LOAN Back to top
A loan made to a builder or home owner that finances the initial construction of a property, but is replaced by a traditional mortgage one the property is completed.
CONTIGUOUS Back to top
Connected to or touching along an unbroken boundary.
CONTINGENCY Back to top
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 the requires a complete home inspection before it becomes official.
CONTRACT Back to top
A legally binding agreement, oral or written, between two parties.
CONVENTIONAL MORTGAGE Back to top
A traditional, real estate financing mechanism that is not backed by any government or other agency (FHA, VA, etc.).
CONVERTIBLE ARM Back to top
A mortgage that begins as and adjustable, that allows the borrower to convert the loan to a fixed rate within a specific timeframe.
CORPORATE RELOCATION Back to top
A situation where a person’s employer pays all or some of the expenses associated with moving from one location to another, usually over a substantial distance. Relocation expenses often include the amounts, such as brokerage fees, incurred in the selling and buying of the employee’s primary residence.
COST OF FUNDS INDEX (COFI) Back to top
An index of financial institutions costs used to set interest rates for some Adjustable Rate Mortgages.
COVENANT Back to top
A stipulation in any mortgage that, if not met, can be cause for the lender to foreclose.
CREDIT Back to top
A loan of money for the purchase of property, real or personal. Credit is either secured by an asset, such as a home, or unsecured.
CREDIT HISTORY Back to top
A record of debt payments, past and present. Used by mortgage lenders in determining credit worthiness of individuals.
CREDITOR Back to top
A person to whom money is owed.
CREDIT REPORT Back to top
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.
CUL-DE-SAC Back to top
A dead-end street. One with only one entrance/exit.
DATE OF APPRAISAL Back to top
The specific point in time as of which an appraiser designates the value of a home. Often stipulated as the date of inspection.
DEBT Back to top
An obligation to repay some amount owed. This may or may not be monetary.
DEBT EQUITY RATIO Back to top
The ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home. Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt.
DEED Back to top
A document indicating the ownership of a property.
DEED-IN-LIEU (OF FORECLOSURE) Back to top
A document given by a borrower to a lender, transferring title of the property. Often used to avoid credit-damaging foreclosure procedures.
DEED OF TRUST Back to top
A document which transfers title in a property to a trustee, who’s obligations and powers are stipulated. Often used in mortgage transactions.
DEED OF RECONVEYANCE Back to top
A document which transfers ownership of a property from a Trustee back to a borrower who has fulfilled the obligations of a mortgage.
DEED OF RELEASE Back to top
A document which dismisses a lien or other claim on a property.
DEED OF SURRENDER Back to top
A document used to surrender any claim a person has to a property.
DEFAULT Back to top
The condition in which a borrower has failed to meet the obligations of a loan or mortgage.
DELINQUENCY Back to top
The state in which a borrow has failed to meet payment obligations on time.
DEPOSIT Back to top
Cash given along with an offer to purchase property, Also called EARNEST MONEY.
DEPRECIATION Back to top
The natural decline in property value due to market forces or depletion of resources.
DETACHED SINGLE-FAMILY HOME Back to top
A single building improvement intended to serve as a home for one family.
DISCOUNT POINTS Back to top
Points paid in addition to the loan origination fee to get a lower interest rate. One point is equal to one percent of the loan amount.
DISTRESSED PROPERTY Back to top
A mortgaged property which has been foreclosed on.
DUPLEX Back to top
A single-building improvement which is divided and provides two units which serve as homes to two families.
DWELLING Back to top
A house or other building which serves as a home.
DOWN PAYMENT Back to top
An amount paid in cash for a property, with the intent to mortgage the remaining amount due.
EARNEST MONEY DEPOSIT Back to top
A cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer.
EASEMENT Back to top
The right of a non-owner of property to exert control over a portion or all of the property. For example, power companies often own an easement over residential properties for access to their power lines.
ECONOMIC LIFE Back to top
The amount of time which any income-producing property is able to provide benefits to its owner.
EFFECTIVE AGE Back to top
The subjective, estimated age of a property based on its condition, rather than the actual time since it was built. Excessive wear and tear can cause a property’s effective age to be greater than its actual age.
ENCROACHMENT Back to top
A building or other improvement on one property which invades another property or restricts its usage.
ENCUMBRANCE Back to top
A claim against a property. Examples are mortgages, liens and easements.
EQUAL CREDIT OPPORTUNITY ACT (ECOA )Back to top
U.S. federal law requiring that lenders afford people equal chance of getting credit without discrimination based on race, religion, age, sex etc
EQUITY Back to top
The difference between the fair market value of your Steamboat property and that amount an owner owes on any mortgages or loans secured by the property.
EQUITY BUILDUP Back to top
The natural increase in the amount of equity an owner has in a property, accumulated through market appreciation and debt repayment.
ERRORS AND OMISSIONS INSURANCE Back to top
An insurance policy taken out by appraisers to cover their liability for any mistakes made during the appraisal process.
ESCROW Back to top
An account used to hold all monies involved in a Steamboat real estate transaction, typically a title company. Also, an amount retained by a third party often used in the payment of annual taxes or insurance for real property.
ESCROW ACCOUNT Back to top
An account setup by a mortgage servicing company to hold funds with which to pay expenses such as homeowners insurance and property taxes. An extra amount is paid with regular principal and interest payments that goes into the escrow account each month.
ESCROW DISBURSEMENTS Back to top
The payout of funds from an escrow account to pay property expenses such as taxes and insurance.
EXAMINATION OF TITLE Back to top
The report on the title of a property from the public records or an abstract of the title.
EXCLUSIVE LISTING Back to top
An agreement between the owner of a property and a Steamboat real estate agent giving the agent exclusive right to sell the property.
FAIR MARKET VALUE Back to top
The price at which two unrelated parties ()a buyer and a seller, under no duress, are willing to transact business. Fair market value is not necessarily the list price.
FANNIE MAE Back to top
A private, shareholder-owned company that works to make sure mortgage money is available for people to purchase homes. Created by Congress in 1938, Fannie Mae is the nation’s largest source of financing for home mortgages.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) Back to top
The U.S. Government agency created in 1933 which maintains the stability of and public confidence in the nation’s financial system by insuring deposits and promoting safe and sound banking practices.
FEDERAL HOUSING ADMINISTRATION (FHA) Back to top
A sub-agency of the U.S. Department of Housing and Urban Development created in the 1930′s to facilitate the purchase of homes by low-income, first-time home buyers. It currently provides federally-subsidized mortgage insurance for private lenders for mortgages up to $675,000 in Routt County, Colorado.
FEE APPRAISER Back to top
A certified, professional appraiser who forms an opinion of the fair market value of property and receives a set fee in exchange.
FHA MORTGAGE Back to top
A mortgage that is insured by the Federal Housing Administration (FHA). FHA mortgages require smaller down payments. The current loan amount insured by FHA is up to $675,000
FIRST MORTGAGE Back to top
The primary loan or mortgage secured by a piece of property.
FIXED-RATE MORTGAGE (FRM) Back to top
A mortgage which has a fixed rate of interest over the life of the loan.
FIXTURE Back to top
Any piece of personal property which becomes permanently affixed to a piece of real property. For example, a dishwasher, lighting, and a built-in oven are fixtures.
FLOOD INSURANCE Back to top
Supplemental insurance which covers a home owner for any loss due to water damage from a flood. Often required by lenders for homes located in FEMA-designated flood zones.
FLOOR PLAN Back to top
The representation of a building which shows the basic outline of the structure, as well as detailed information about the positioning of rooms, hallways, doors, stairs and other features. Often includes detailed information about other fixtures and amenities.
FORECLOSURE Back to top
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. The Routt County Public Trustee handles foreclosures.
FOUNDATION Back to top
The solid structural element upon which a structure is built.
FRONTAGE Back to top
The segment of a property that runs along a point of access, such as a street or water front.
GENERAL LIEN Back to top
A broad-based claim against several properties owned by a defaulting party.
GOVERNMENT MORTGAGE Back to top
Any mortgage insured by a government agency, such as the FHA or VA.
GRADE Back to top
The slope of land around a building. Also ground level.
GRANTEE Back to top
Any person who is given ownership of a piece of property, or the Buyer.
GRANTOR Back to top
Any person who gives away ownership of a piece of property, or the Seller.
GROSS AREA Back to top
The sum total of all floor space, including areas such as stairways and closet space. Often measured based on external wall lengths.
HALF-SECTIONBack to top
320 acres. Used in metes and bounds legal descriptions for Routt County ranches.
HAZARD INSURANCE Back to top
Insurance covering damage to a property caused by hazards such as fire, wind and accident.
HEIGHT ZONING Back to top
A municipal restriction on the maximum height of any building or other structure.
HIDDEN AMENITIES Back to top
Assets of a property which contribute to its value, but are not readily apparent. Examples might include upgraded or premium building materials.
HIGHEST AND BEST USE Back to top
The most profitable and likely use of a property. Selected from reasonably probable and legal alternative uses, which are found to be physically possible, appropriately supported and financially feasible to result in the highest possible land value. For example, a Steamboat single family home on a lot zoned commercial is possibly not being used to its highest and best use.
HOME EQUITY LINE OF CREDIT Back to top
A type of mortgage loan that allows the borrower to draw cash against the equity in his home. Also known as a second mortgage.
HOME INSPECTION Back to top
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. The Colorado Contract to Buy and Sell Real Estate has a contingency for home inspections.
HOME INSPECTOR Back to top
A person who performs professional home inspections. Usually, with an extensive knowledge of house construction methods, common house problems, how to identify those problems and how to correct them.
HOMEOWNER’S ASSOCIATION Back to top
HOMEOWNER’S INSURANCE Back to top
A policy which covers a Routt County home owner for any loss of property due to accident, intrusion or hazard.
HOMEOWNER’S WARRANTY Back to top
An insurance policy covering the repair of systems and appliances within the home for the coverage period.
HUD-1 STATEMENTBack to top
A standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase. Supplied by mortgage brokers and title companies.
IMPROVED LAND Back to top
Any parcel of land which has been changed from its natural state through the creation of roads, buildings or other structures.
IMPROVEMENTS Back to top
Any item added to vacant land with the intent of increasing its value or usability.
INCOME PROPERTY Back to top
A piece of property whose highest and best use is the generation of income through rents or other sources.
INDEPENDENT APPRAISAL Back to top
An estimation of value created by a professional, certified appraiser with no vested interest in the value of the property.
INSURABLE TITLE Back to top
The title to property which has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clear.
INVESTMENT PROPERTY Back to top
Any piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.
JOINT TENANCY Back to top
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.
JUDGMENT Back to top
An official court decision. If the judgment requires payment from one party to another, the court may put a lien against the payees property as collateral.
JUMBO LOAN Back to top
A mortgage loan for an amount greater than the limits set by Fannie Mae and Freddie Mac, currently $675,000 in Routt County. Also called a non-conforming loan.
LATENT DEFECTS Back to top
Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.
LEASE Back to top
A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.
LEASE OPTION Back to top
A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.
LEGAL DESCRIPTION Back to top
The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.
LENDER Back to top
The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.
LIABILITIES Back to top
A person’s outstanding debt obligations.
LIEN Back to top
Any claim against a piece of property resulting from a debt or other obligation.
LIKE-KIND PROPERTY Back to top
Any property which is substantially similar to another property.
LOAN-TO-VALUE RATIO (LTV) Back to top
The comparison of the amount owed on a mortgaged property to its fair market value.
LOCK-IN Back to top
An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.
LOCK-IN PERIOD Back to top
The amount of time the lender has guaranteed an interest rate to a borrower.
MAJOR DEFICIENCYBack to top
A deficiency that strongly impacts the usability and habitability of a house. Or a deficiency that may be very expensive to repair.
MANUFACTURED HOUSINGBack to top
Once known as ”mobile homes,” manufactured housing is any building which has been constructed off site, then moved onto a piece of real property. Manufactured housing is financed differently, often at a higher interest rate.
MARGIN Back to top
The difference between the interest rate and the index on an adjustable rate mortgage.
MARGINAL LAND Back to top
Land whose value has been diminished due to some internal defect or external condition. In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the property.
METES AND BOUNDSBack to top
A traditional way of describing property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the property back to its origin.
MINERAL RIGHTSBack to top
The legal right to exploit and remove the benefits of any minerals located below the surface of a parcel of land. In Northwest Colorado, coal, oil, gas, are some of the mineral rights you will find.
MISREPRESENTATION Back to top
A statement by one party in a transaction that is incorrect or misleading. Most misrepresentations are deemed to be intentional and thus may constitute fraud. Others, however, some are rendered through simple mistakes, oversights or negligence.
MORTGAGE BROKER Back to top
A person or organization that serves as a middleman to facilitate the mortgage process. Brokers often represent multiple mortgage bankers and offer the most appropriate deal to each buyer.
MORTGAGE INSURANCE Back to top
A policy that fulfills that obligations of a mortgage when the policy holder defaults or is no longer able to make payments.
MORTGAGE INSURANCE PREMIUM (MIP) Back to top
An fee that is often included in mortgage payments that pays for mortgage insurance coverage.
MULTI-FAMILY PROPERTIES Back to top
Any collection of buildings that are designed and built to support the habitation of more than four families.
NEGATIVE AMORTIZATION Back to top
When the balance of a loan increases instead of decreases. Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interest.
NEIGHBORHOOD Back to top
A subsection of a municipality that has been designated by a developer, economic forces or physical
NO-COST LOAN Back to top
Many lenders offer loans that you can obtain at “no cost.” You should inquire whether this means there are no “lender” costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a “no-point” loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.
NO-POINT LOAN Back to top
A loan with no “points”. The interest rate on such a loan will be higher than a loan with points paid. Also sometimes refers to a refinance loan where closing costs are included in the loan.
NON-CONFORMING USE Back to top
The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a property is in use.
NONLIQUID ASSET Back to top
Any asset which can not be quickly converted into cash at little or no cost.
NOTICE OF DEFAULT Back to top
Formal written notice from a lender to a borrower that default has occurred.
OCCUPANCY Back to top
A physical presence within and control of a property.
OCCUPANCY RATE Back to top
The percentage of properties in a given area that are occupied.
OFF-SITE IMPROVEMENTS Back to top
Buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the property.
OFF-STREET PARKING Back to top
Designated parking spaces associated with a particular building or other structure which are not located on public streets. Steamboat Springs does not allow on street parking between November and May.
ON-SITE IMPROVEMENTS Back to top
Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.
OPEN SPACE Back to top
Any land which will not be built on. Steamboat Springs and Routt County neighborhoods generally have open space.
OWNER FINANCING Back to top
A transaction where the property owner provides all or part of the financing.
OWNER OCCUPIED Back to top
Where the owner occupies at least some portion of the property.
PARTIAL INTEREST Back to top
A shared ownership in a piece of property. May be divided among two or more parties.
PERSONAL PROPERTY Back to top
Owned items which are not permanently affixed to the land. Any personal property sold with Steamboat Springs real estate will have a bill of sale.
PERSONAL RESIDENCE Back to top
The primary domicile of a person or family.
PLANNED UNIT DEVELOPMENT (PUD) Back to top
A coordinated, real estate development where common areas are shared and maintained by an owner’s association or other entity. Example: Wildhorse Meadows and the future Steamboat 700 are PUD’s.
PLAT Back to top
A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.
POINT Back to top
A percentage of a mortgage amount (one point = 1 percent).
PRE-APPROVAL Back to top
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. Pre-approval allows the borrower greater freedom in negotiations with sellers.
PREPAYMENT Back to top
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.
PREPAYMENT PENALTY Back to top
A fee that may be charged to a borrower who pays off a loan before it is due.
PRE-QUALIFICATION Back to top
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.
PRIME RATE Back to top
The interest rate that banks and other lending institutions charge other banks or preferred customers.
PRINCIPAL Back to top
The amount owed on a mortgage which does not include interest or other fees.
PRINCIPAL BALANCE Back to top
The outstanding balance of principal on a mortgage. Does not included interest due.
PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI) Back to top
The most common constituents of a monthly mortgage payment.
PRIVATE MORTGAGE INSURANCE (PMI) Back to top
A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.
PROPERTY Back to top
Any item which is owned or possessed.
PURCHASE AGREEMENT Back to top
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
REAL ESTATE AGENT Back to top
A licensed professional who facilitates the buying and selling of real estate.
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) Back to top
A federal law requiring lenders to give full disclosure of closing costs to borrowers.
REAL PROPERTY Back to top
Land, improvements and appurtenances, and the interest and benefits thereof.
REALTOR Back to top
A real estate agent or broker who is a member of the National Association of Realtors.
REFINANCE TRANSACTION Back to top
RELOCATION SERVICE Back to top
Any company or agency that assists corporate employees in relocating from one place to another. Services may include hiring and coordinating Sales Associates, moving companies, utilizes and the like. Contact us for information if you are relocating to or from Steamboat Springs.
REMAINING BALANCE Back to top
The amount of principal, interest and other costs that has not yet been repaid.
REMAINING TERM Back to top
The amount of time remaining on your mortgage or other loan.
REMODEL Back to top
An activity designed to improve the value or desirability of a property through rebuilding, refurbishing, redecorating or adding on to it.
REPAYMENT PLAN Back to top
A plan to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosure.
REPLACEMENT RESERVE FUND Back to top
An account, or fund, setup for the replacement of short life items , such as carpeting, in the common areas of a cooperative property.
RESIDENTIAL PROPERTY Back to top
A piece of property whose highest and best use is the maintenance of a residence.
RIGHT OF FIRST REFUSAL Back to top
An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others. Some Steamboat Springs condominiums have rights of first refusal.
RURALBack to top
An area outside of an established urban area or metropolitan district. Routt County is a rural county with approx. 20,000 residents.
SALES PRICE Back to top
The actual price a property sells for, exclusive of any special financing concessions.
SCARCITY Back to top
An economic principal that dictates the price of a good or service through the interaction of supply and demand. When an item is scarce, its price tends to rise, given a constant demand. Real Estate, especially Colorado resort real estate, is a classic example of scarcity.
SECOND MORTGAGE Back to top
A loan secured by the equity in a home, when a primary mortgage already exists. Also known as a home equity loan.
SEMIDETACHED HOUSINGBack to top
Two residences which share a common wall, like a Steamboat Townhome or duplex. Most have common wall agreements.
SINGLE-FAMILY RESIDENCE Back to top
A property designed and built for one family.
SUBDIVISION Back to top
A residential development that is created from a piece of land which has been subdivided into individual lots. Heritage Park and Silver Spur are examples of Steamboat subdivisions.
SUBJECT PROPERTY Back to top
A term which indicates a property which is being appraised.
SURVEYBack to top
A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements.
Read about different types of Steamboat area surveys here.
SWEAT EQUITYBack to top
The method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.
TENANCY IN COMMON Back to top
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 Back to top
A specific document which serves as proof of ownership.
TITLE COMPANY Back to top
An organization which researches and certifies ownership of real estate before it is bought or sold. Title companies also act at the facilitator ensures all parties are paid during the real estate transaction. Steamboat area title companies include Land Title, Lawyers Title, and Stewart Title.
TITLE INSURANCEBack to top
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.
TITLE SEARCHBack to top
The process whereby the TITLE COMPANY researches a properties title history and ensures that no outstanding claims exist.
TRANSFER OF OWNERSHIP Back to top
Any means by which the ownership of a property changes hands.
UNENCUMBERED PROPERTY Back to top
Any property which has no outstanding claims or liens against it.
USEFUL LIFE Back to top
The span of time over which a property can be used or can provide benefits to its owner.
VACANCY RATE Back to top
The current percentage of vacant properties in a given area, regardless of why they are vacant.
VA MORTGAGE Back to top
A mortgage that is guaranteed by the Department of Veterans Affairs (VA).
VARIANCE Back to top
An exception to municipal zoning regulations granted for a specific time period to allow for non-conforming use of the land.
WALK-THROUGH INSPECTION Back to top
A process whereby an appraiser examines a property in preparation for estimating its value. Also, the process of inspecting a property for any damage prior to that property being bought or sold.
WARRANTY Back to top
An affidavit given to stipulate the condition of a property. The person giving the warranty assumes liability if the condition turns out to be untrue.
WEAR AND TEARBack to top
A term used to indicate the normal damage inflicted on a property through every-day use.
ZONE Back to top
A specific area within a municipality like the City of Steamboat Springs which conforms to certain guidelines regarding the use of property in the zone. Typical zones include single-family, multi-family, industrial, commercial and mixed-use.
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