Arizona Real Estate Terms
Arizona Real Estate Terms. Guide t all Arizona Real Estate Terms
Functional Obsolescence Functional obsolescence is a flawed or faulty property that is rendered inferior because of advances or changes.
Maintenance The monthly charge levied on owners by a cooperative corporation to cover the building’s operating costs, real estate taxes, and the debt service on the building’s underlying mortgage.
Managing Agent In New York City, most of the cooperative and condominium buildings are managed by an outside company, or managing agent, which is responsible for the building operations.
Mansion Tax A mansion tax is a New York State tax of 1% of the selling price levied on the buyer of any residence costing in excess of $1,000,000.
Market Value The market value of a property is an estimation of the price for a property in relation to the current real estate market.
Master Deed A master deed is the instrument that legally establishes a condominium. It is also referred to as a condominium declaration.
Mechanic’s Lien A mechanic’s lien is a statutory lien available to anyone supplying labor or material to the construction of an improvement of land that ahs not been properly compensated.
Metes and Bounds Metes and bounds is a system of land description with distances and directions.
Monolithic Slab A monolithic slab is a type of foundation in which the footing and slab are poured at the same time.
Mortgage A mortgage is a pledge of real estate collateral to secure a debt. Also, it is a legal document describing and defining the pledge. The mortgage may also include the terms of repayment of the debt. It is also referred to as a deed of trust.
Mortgage Banker A mortgage banker is an institution that performs services similar to those of a mortgage broker. However, a mortgage banker is also legally permitted to lend its own funds.
Mortgage Broker A real estate professional who represents an array of banks seeking to issue mortgages. The mortgage broker meets with a customer, assists with the application, and facilitates the mortgage process on behalf of the borrower and the bank. Generally, in the case of residential mortgages, the mortgage broker is paid a fee by the bank for this service.
Mortgage Insurance (or Private Mortgage Insurance / PMI) Mortgage insurance is insurance that protects the lender in case the home buyer does not make their mortgage payments. Typically, a borrower would be required to pay a fee for mortgage insurance if their down payment is less than 20%.
Mortgage Note A mortgage note is a document signed at closing which states the borrower’s promise to re-pay a sum of money. The note states an interest rate and a fixed period of time (term) for repayment.
Mortgage Satisfaction Mortgage satisfaction refers to the full payment of a mortgage loan.
Mortgagee The mortgagee is the lender in a mortgage transaction.
Mortgagor The mortgagor is the borrower in a mortgage transaction.
Multiple Dwelling A multiple dwelling is a structure with two or more residential units.
Multiple Listing Service (MLS) A MLS is a central service for real estate listings available to member brokers. National Association of Realtors (NAR) The NAR is the largest and most prominent trade organization for real estate brokers and agents. Negative Amortization This occurs when a loan permits the borrower to make a payment that is less than the full amount required to cover the interest charge on the open balance and the shortfall is added to the mortgage principal.
Negative Pledge A negative pledge is when the condominium places restrictions on the unit deed and trust agreement restricting the right of an owner to finance a condominium unit for more than a specified amount.
Net Lease A net lease refers to a type of lease in which the tenant pays a fixed rent plus the operational costs of the property.
Net Listing A net listing is a method of establishing the listing broker’s commission as the entire amount above specified new amount to the seller. This method of establishing a broker’s commission is illegal in New York State.
Net Worth Net worth is your assets less your liabilities.
Nonconforming Use A nonconforming use refers to the utilization of land that does not conform to the zoning ordinance for the area.
Nonrecourse Note A nonrecourse note is a type of note in which the borrower has no personal liability for payment.
Notarize Some legal documents, including certain leases and contracts of sale, are notarized by a certified Notary Public to verify the authenticity of a signature.
Notice of Lis Pendens Notice of lis pendens is a public record warning all concerned parties that title to a property is the subject of a lawsuit and any lien resulting from the suit will attaché to the title.
Offer An offer is made to purchase a property at a specific price.
Offering Plan See “Prospectus”.
Open-ended Listing Contract An open-ended listing contract is a contract between a seller and a real estate broker that does not have a termination date.
Open-end Mortgage An open-end mortgage is a mortgage that may be refinanced without rewriting the mortgage contract.
Origination Origination is the first step in the mortgage loan process consisting of the completion of the application. Ordinance An ordinance is a law enacted by the local government.
Open Listing An open listing is an apartment for sale for which the owner has not signed an exclusive agreement with a real estate broker. Many brokers may represent the seller, or the seller can promote the property independently.
Option to Renew An option to renew is a provision in a lease that states the method and terms of a lease renewal.
Origination Fee The origination fee is a service charge by a lending institution for a mortgage.
Ownership in Severalty Ownership in severalty is title to real property held in the name of one person only.
Parcel A parcel is a specific portion of land such as a lot. Partition Partition refers to the legal proceeding that divides property of co-owners so each will hold title in severalty.
Party Wall Party wall refers to the wall in common between two adjoining structures, such as in townhouses and brownstones.
Passive Loss A passive loss is a loss generated by investment real estate when real estate is not the taxpayer’s primary business. Loss in excess of income may not be fully recognized for tax purposes in the year it was incurred.
Penthouse A penthouse apartment refers to the apartment on the highest floor in a luxury, high-rise building.
Percentage Lease A percentage lease refers to a lease that has a rental amount that is a combination of a fixed amount plus a percentage of the lessee’s gross sales.
Percolation Percolation is the movement of water through soil.
Percolation (Perc) Test A perc test determines if the soil is sufficiently porous for the installation of a septic tank.
Perfecting a Loan When a loan is issued against a personal property, it is recorded in the county clerk’s office against the name of the borrower. The recording process perfects a security position against the collateral.
Periodic Tenancy A periodic tenancy lease automatically renews for successive periods unless terminated by either party. It is also called an estate from year to year.
Phantom Gain A sale of real estate in which income is recognized for tax purposes but no money has been received correlating to the gain amount. This can occur when the property’s basis has been depreciated below the property’s mortgage amount.
Pied-a-Terre Pied-a-terre is a term that refers to an apartment that is not the primary residence of the owner. The term refers to an apartment that is used only sporadically throughout the year.
PITI PITI is an acronym for a mortgage payment that includes principal, interest, taxes and insurance.
Plat A plat is a property map that is part of the public record.
Platform Framing Platform framing is the most common type of framing in residential construction in which the framing of the structure rests on a subfloor platform.
Points Points refer to the payment made to a lender as consideration for issuing a mortgage, usually based on a percentage of the loan amount. Each point is equal to 1% of the principal of the mortgage.
Powder Room A powder room is also referred to as a half-bath, and only has a toilet and sink.
Pre-Approval A pre-approval is a process in which a conditional commitment is issued after a loan profile is underwritten with all standard documentation except a property appraisal and a title search.
Pre-Qualification A pre-qualification is a process in which a loan officer calculates the housing-to-income ratio and the total debt-to-income ratio to determine an approximate maximum mortgage loan amount.
Price-to-Earnings Ratio (P/E Ratio) The price-to-earnings ratio is the common metric used to assess the relative valuation of equities. To compute the P/E ratio in the case of a rented house, divide the price of the house by its potential earnings or net income, which is the market rent of the house minus expenses, which include maintenance and property taxes. This formula is: House P/E Ratio = House Price / Rent-Expenses Compare this ratio to the simpler but less accurate price-rent ratio.
Price-to-Income Ratio It is the basic affordability measure for housing in a given area. It is generally the ratio of median house prices to median familial disposable incomes, expressed as a percentage or as years of income. This ratio, applied to individuals, and also referred to as “attainability”, is a basic component of mortgage lending decisions.
Price-Rent Ratio The price-rent ratio is the average cost of ownership divided by the received rent income (if buying to let) or the estimated rent that would be paid if renting (if buying to reside). This formula is: House Price-Rent ratio = House Price / Monthly Rent x 12
Primary Residence Generally, a primary residence of an owner or renter is one that they occupy the majority of time, usually considered to be 6 months and 1 day out of every year.
Principal The principal in the mortgage is the amount that is borrowed and on which interest is paid or received.
Private Mortgage Insurance (PMI) See Mortgage Insurance.
Processing Processing is the second step in the mortgage application process which involves the verification of information stated on the application. Credit reports and the appraisal are also ordered at this time.
Property Condition Disclosure Form This form is a comprehensive checklist pertaining to the condition of the property including its structure and any environmental issues in and around the property.
Property Description The property description is an accurate, legal description of the land.
Property Tax The tax issued by a municipality on the ownership of a property.
Proprietary Lease The lease issued by a cooperative corporation to each tenant-shareholder prescribing his or her right to occupy a specific apartment and his or her general obligations as an owner and tenant.
Pro-Rata Share In relation to a co-op, the pro-rata share is your apartment’s share of the building’s underlying mortgage. The share is determined by dividing the amount of the underlying mortgage by the number of shares in the building then multiplying the per-share amount by the number of shares for your apartment. The lower of either the appraised value or purchase price then divides that number.
Prospectus A document issued by a sponsor in the process of converting a building to a cooperative or condominium ownership. It is intended to provide “full disclosure” of all relevant facts associated with evaluating an investment in the property, and is also referred to as the offering plan or black book.
Quadruplex A quadruplex is an apartment with four levels.
Radon Radon is a colorless, odorless gas present in soil that enters a home through small spaces and openings.
Rate Cap A rate cap is the limit on interest rates during the term of an adjustable rate mortgage.
Ratios Ratios are guidelines applied by the lender during underwriting a mortgage loan application to determine how large a loan to grant an applicant. The ratios the lenders use are generally the Loan-to-Value Ratio, Housing-to-Income Ratio, and Debt-to-Income ratio.
Real Estate Broker A real estate broker is an individual employed on a fee or commission basis as an agent to bring buyers and sellers together and assist in negotiating real estate contracts between them.
Real Estate Investment Trust (REIT) An REIT is a trust owned by shareholders that buys and initiates mortgage loans.
Real Estate Salesperson A real estate salesperson performs any of the acts of a real estate broker but while associated with and supervised by a broker.
Real Estate Settlement Procedures Act (RESPA) RESPA is a federal law that regulates the activities of lending institutions in making mortgage loans.
Real Property Tax Lien This lien is a tax levied against real property by the local government and has priority over all other liens.
Recapture When investment real estate has been depreciated for tax purposes, the gain on the sale includes a “recapture” of the previously written-off depreciation as gain. In certain cases, this can result in a tax liability that exceeds the cash received. See “Phantom Gain”.
Recognition Letter A recognition letter is a letter from the cooperative corporation’s board of directors recognizing the secured rights of a lender to the shares of stock and the proprietary lease on a specific apartment.
Recording Recording is registering the ownership, lien, or claim of a party to a specific parcel of real estate with the local county.
Recording Fees Recording fees are the fees charged by the recorder’s office to record a document such as a mortgage, deed of trust, deed and UCC Financing Statement.
Redlining Redlining is the resistance of lending institutions to make loans for the purchase, construction, or repair of a dwelling due to the socio-economic conditions of the property’s location.
Referral Fee A referral fee is a percentage of a broker’s commission paid to another broker for the referral of a buyer or seller.
Refinancing Refinancing are the proceeds of a new loan used to pay off an existing mortgage on the same property.
Rental A rental is the possession, but not ownership, of a property for a limited duration of time under defined terms and conditions.
Rental Building A rental building only has apartments for rent and not for purchase.
Reserve Fund A reserve fund is the amount reserved to provide funds for future expenses in order to maintain a cooperative or condominium building and is managed by the building’s board.
Residential Lead-based Paint Hazard Reduction Act This act stipulates procedures to be followed in disclosing the presence of lead-based paint in the sale or rental of properties built prior to 1978.
Reverse Annuity Mortgage A reverse annuity mortgage is a type of mortgage that retirees on fixed incomes can use to generate income out of the equity in their homes while they continue to live in the home.
R-Factor or R-Value The R-Factor is a rating that measures the degree of resistance to heat transfer.
Rider A rider is an addendum to a document that covers supplemental issues.
Ridge Beam A ridge beam is the highest part of framing in a structure and forms the apex of the roof.
Right of Assignment The right of assignment allows the lender to sell a mortgage at any time and obtain money invested rather than wait for the completion of the loan term.
Right of First Refusal A condition contained in many condominium master deeds that permits the board to review any party seeking to purchase or rent an apartment and to refuse the applicant if it so desires. If the board refuses the applicant, it must thereafter purchase or rent the apartment under the same terms and conditions stipulated in the contract.
Right of Survivorship The right of survivorship is the right of an owner to receive the title to a co-owner’s share upon death of the co-owner, as in the case of joint tenancy and tenancy by the entirety.
Right-of-Way Right-of-way is an easement allowing someone to use the land of another for a specific purpose.
Riparian Rights Riparian rights are the rights of an owner of property adjoining a watercourse such as a river, including access to and use of the water.
Room Apartment size may be described by number of rooms. A room in NYC must be at least 100 sq. ft. and have a window, except in the case of a kitchen. Most kitchens are counted as rooms, unless they are Pullman types, which are part of the living room. Baths are not counted as rooms. A three room apartment consists of a living room, bedroom and kitchen. A four room apartment could have two bedrooms, or a bedroom and dining room, a living room and kitchen.
Running with the Land Running with the land refers to rights that are passed with the title of property from the grantor to the grantee.
ARIZONA REAL ESTATE FOR SALE
Arizona Real Estate | Cities
Search for Scottsdale Arizona Real Estate For Sale, Cave Creek Arizona Homes For Sale, Carefree Arizona Homes For Sale, Rio Verde Foothills Arizona Homes For Sale, North Phoenix Arizona Homes For Sale. Access to all MLS Listings by city. Free Arizona MLS Search. Start your Real Estate Search by City NOW or Search by zip codes, 85266, 85331, 85263, 85377, 85262.
As a 35 year + full time veteran of the REAL ESTATE Industry, I understand what it takes to not only find the Home, Lot, Land, of your dreams, but also how to negotiate the minefield of real estate transactions. Not only am I a veteran of the real estate industry, I also live in the area I service.
An avid Golfer, Horseman and Baseball Fanatic, I know the pulse of the community. Todays buyer starts on the internet and spends an average of 5 months quietly perusing the information that is available. As this area tends to be buyers from outside the area my internet presence is a huge attraction. I regularly update my material and have additional pages that I maintain with up to date information on such platforms as Coldwell Banker, Google+, Facebook, Blogger, Active Rain, EProperties, Trulia, Zillow, YouTube , Tumblr and many others. Also, I have other sites that are specific to Property Types. These are:
North Scottsdale Homes For Sale By PriceDirect Link to the North Scottsdale MLS to search for homes in the specific bedroom, size or price category. You can also perform a custom search by clicking on the link to a custom search at the bottom of the column.
North Scottsdale Arizona Subdivision Homes For Sale SearchSearch for MLS homes in specific subdivisions by Bedroom and Price Ranges. Click on any link to be taken to an Scottsdale MLS Search Page. To perform a custom search, click on the custom search link at the bottom of the column.
|Saguaro Estates||Saguaro Highlands||Sandflower||Silverleaf|
|All Homes||All Homes||All Homes||3 Bedroom Homes|
|3 Bedroom Homes||3 Bedrooms||3 Bedroom Homes||4 Bedroom Homes|
|4 Bedroom Homes||4 Bedrooms||4 Bedroom Homes||5 Bedroom Homes|
|5 Bedroom Homes||5 Bedroom||6 + Bedroom Homes|
Scottsdale Arizona Golf Course Homes For SaleFree MLS Search all Scottsdale Arizona Golf Course Homes For Sale. Search by Listing Price, Square Footage, all Scottsdale Arizona Golf Course Homes For Sale. Just click on any link to be taken to Scottsdale Golf Course Homes For Sale Links to the Realtor MLS.
|Scottdale Golf Course Homes|
|3 Bedroom Homes|
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|600K-1 Million Homes|
|Million Dollar Homes|
Cave Creek Arizona Real Estate MLS Home SearchSearch the Cave Creek Arizona MLS by Bedrooms, Price or Size. Direct link to the Cave Creek MLS with up to the moment information. Click on any link to be directed to your search.
Cave Creek Arizona Subdivisions Homes For SaleFree MLS Search all Cave Creek Arizona Subdivisions Homes For Sale. Search the MLS Like a Realtor. Click on any link to be taken to a special Realtor MLS Search Page to "Search Like Realtor".
Carefree Arizona |Real Estate |MLS |Realtor |Homes |SearchSearch the Carefree Arizona MLS by Bedrooms, Price or Size. Direct link to the Carefree Arizona MLS with up to the moment information. Click on any link to be directed to your search.
Carefree Arizona Subdivision |MLS |Homes |Golf Course Homes |Lots |MLSCarefree Arizona Real Estate MLS Subdivision Search. Direct Link to the Carefree MLS to search specific subdivisions in Carefree Arizona. Up to date to the moment information. Search for all Carefree Arizona Subdivision Homes For Sale.
Rio Verde Foothills Arizona Homes For Sale |Golf Course Homes |Horse PropertiesSearch Rio Verde Arizona MLS by Bedrooms, Price or Size. Direct link to the Rio Verde Arizona MLS with up to the moment information. Click on any link to be directed to your search for Homes, Lots, Land, Luxury Homes, Golf Course Homes, Horse Properties.
|3 Bedroom||4 Bedroom||5+ Bedroom||Vacant Land|
|All Homes||All Homes||All Homes||Under 2.5 Acres|
|Under 500K||Under 500K||Under 500K||2.5-5.0 Acres|
|500-999K||500-999K||500-999K||5 + Acres|
|Million Dollar Homes||Million Dollar Homes||Million Dollar Homes|
North Scottsdale Arizona | Horse |Properties |Homes |LandFree MLS Search all North Scottsdale Arizona Horse Properties, Land, Homes, For Sale. Search the North Scottsdale MLS, Homes for Sale, Horse Properties for Sale, Land, Like a Realtor.
|All Horse Property||By Price||Facilities||Raw Land|
|3 Bedroom||-500K||+ Barn||Under 2.5 Acres|
|4 Bedroom||500-999K||+ Arena||2 to 5 Acres|
|5 Bedroom||1M+||Over 5 Acres|
Commercial Real Estate For Sale
Scottsdale, Phoenix, Tempe, Chandler, Gilbert, Mesa, Fountain Hills, Scottsdale, Cave Creek, Carefree, Arizona. Search all Commercial Real Estate For Sale. Search Office, Office Warehouse, Warehouse, Medical, Dental, Retail, Commercial Land For Sale.
Commercial MLS Search, Click on any search linkCommercial MLS Real Estate Search, Scottsdale, Phoenix, Mesa, Tempe, Chandler, Gilbert, Fountain Hills, Cave Creek, Anthem Arizona. Click on any link to be taken to the search results page.
|OFFICE FOR SALE SEARCH||MEDICAL/DENTAL OFFICE SPACE FOR SALE||OFFICE WAREHOUSE FOR SALE||WAREHOUSE FOR SALE||RETAIL FOR SALE|
|Fountain Hills||Fountain Hills||Fountain Hills||Fountain Hills||Fountain Hills|
|Cave Creek||Cave Creek||Cave Creek||Cave Creek||Cave Creek|
OVER 300 ENDORSEMENTS
- Jeff McDowell, North Scottsdale Realtor 623.262.0811 EMAIL ME
By Jeff McDowell