Here are some terms used in the Real Estate
Industry which you might find helpful:
Industry which you might find helpful:
GLOSSARY OF REAL ESTATE TERMS:
Adjustable Mortgage Loans (ARM's): Mortgage loans under which the interest rate is periodically
adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed
to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM's),
Flexible Rate Loans, Variable Rate Loans.
Adverse Market Delivery Charge - Fannie Mae, which sets the standards for mortgages it buys
from lenders, is increasing the adverse market delivery charge on home loans purchased on or after 1
April 2011, and for the first time will require borrowers with a credit score of 740 or higher to pay this fee.
Adverse Market Fee - The adverse market fee is paid to Fannie Mae when WHEDA delivers the loan.
Loan applicants are required to pay this fee, .25% of the loan amount, regardless of the property location.
Amortization: Payment of a debt in equal installments of principal and interest, rather than interest-
only payments.
Annual Percentage Rate (A.P.R.): The yearly interest percentage of a loan, as expressed by the
total finance charge actually paid (interest, loan fees, points). The A.P.R. is disclosed as a requirement
of federal truth in lending statutes.
Apportion: Once the amount of taxes to be levied by each taxing jurisdiction has been determined,
the total tax levy must be divided, or apportioned, among all the taxation districts which contain territory
in the jurisdiction.
Arm’s-Length Sale: A sale between two parties, neither of whom is related to or under abnormal
pressure from the other.
Assessed Value: The dollar amount assigned to taxable real and personal property by the assessor
for the purpose of taxation. Assessed value is estimated as of January 1 and will apply to the taxes
levied at the end of that year. Assessed value is called a primary assessment because a levy is applied
directly against it to determine the tax due. Accurate assessed values ensure fairness between
properties within the taxing jurisdiction. (See Equalized value for fairness between municipalities).
Assessment Level: The relationship between the assessed value and the equalized value of non-
manufacturing property minus corrections for prior year over or under charges within a municipality–
town, village or city. For example, if the assessed value of all the property subject to property tax in the
municipality is $2,700,000 and the equalized value (with not prior year corrections) in the municipality is
$3,000,000 then the “assessment level” is said to be 90% ($2,700,000 ÷ $3,000,000 = .90 or 90%).
Assessment Ratio: The relationship between the assessed value and the statutory valuation
standard (fair market value for most property, use value for agricultural land, and 50% of full value for
agricultural forest and undeveloped lands). For example, if the assessment of a parcel which sold for
$150,000 (fair market value) was $140,000, the assessment ratio is said to be 93% (140,000 divided by
150,000). The difference in the assessment level and the assessment ratio is that the level typically
refers to the taxation district; the ratio refers to the individual parcel.
Assessed Value $140,000
Assessment Ratio = = 93%
Market Value $150,000
Buy Down: A payment to the lender from the seller, buyer, or third party, or some combination of
these, that causes the lender to reduce the interest rate during the early years of the loan.
Cap: In adjustable rate mortgages, the limit on how much the interest rate or monthly payment can
change.
Chattel: In law, any property other than a freehold or fee estate in land. Chattels are treated as
personal property, although they are divisible into chattels real, and chattels personal.
Closing: The final procedure in which documents are executed and/or recorded, and the sale (or loan)
is completed. Closing Statement: The statement which lists the financial settlement between buyer and
seller, and also the costs each must pay.
CMA: CMA, or Competitive Market Analysis, is a comparison of homes similar to a seller’s home
in terms of size, style, features, and location that have sold recently or are on the market. A CMA is
prepared by a real estate agent to help set a home’s listing price.
Compensating Factors - The process of qualifying for a home mortgage has become considerably
more detailed and difficult lately. In some cases an individual’s true credit worthiness can’t be summed
up by a credit bureau report. Loan professionals who work with underwriters realize this to be the case
and will often look at certain factors that compensate for the lack of other credit requirements to offset
the deficiency.
Contingency: Commonly, a stated event which must occur before a contract is binding. For example,
a home sale may be contingent upon the buyer obtaining financing.
Debt Forgiveness: The IRS considers forgiven or canceled debt to be a form of income. It requires
Creditors who agree to accept $600.00 (or more) less than the original balance to issue a 1099-C to the
consumer, who then must pay tax on the phantom income.
Deposit: A portion of the down payment given by the buyer to the seller or escrow agent with a written
offer to purchase. Shows good faith.
Down payment: Cash portion of the purchase price paid by a buyer from his own funds as opposed to
that portion which is financed.
Equalized Value: The estimated value of all taxable real and personal property in each taxation
district, by class, as of January 1 and certified by the Department of Revenue on August 15 of each year.
The value represents market value (most probable selling price), except for agricultural property, which
is based on its use (ability to generate agricultural income) and
Escrow: A procedure in which a third (neutral) party holds all funds, documents, etc. necessary to the
sale, with instructions from both buyer and seller as to their use and disposition.
Excessive Assessment: An appeal to the municipality under Section 74.37 claiming a property
assessment is excessive. The property owner files a claim against the municipality to recover the
amount of property tax imposed as a result of the excessive assessment.
Fair Market Value: Synonymous with a property’s full value, market value or – in the case of
personal property – true cash value. Fair market value is “the amount the property will sell for in an
arms-length transaction on the open market between a willing seller not obliged to sell the property and
a willing buyer not obliged to purchase it.” Waste Management v. Kenosha County Review Board 184
Wis. 2nd 541, (1994).
Farm Preservation Agreement: A document where a landowner agrees to implement and maintain
conservation practices on agricultural land in exchange for property tax credits.
FHA Loan: A loan insured by the Federal Housing Administration, a part of the Department of Housing
and Urban Development. FHA insurance enables lenders to loan a very high percentage of the sale
price.
Forest Land: A document in which the Grantor agrees to implement and maintain a forestry
management plan developed by the Wisconsin Department of Natural Resources in exchange for
property tax benefits.
Full Value: (1) The value reflected as fair market value when used in reference to the valuation of
real property under s 70.32(1) WI Stats (this does not include agricultural property defined in s 70.32 (2)1.
WI Stats). (2) The same as equalized value, however is often used when referring to the value of school
and special districts.
Graduated Payment Mortgage: A mortgage initially offering low monthly payments that increase at
fixed intervals and at a predetermined rate.
Hazard Insurance: Otherwise known as homeowners’ insurance. This is a usual requirement of a
mortgage lender and an advisable safeguard for any homeowner to protect against loss.
Home Affordable Refinance Program (HARP) - Announced in March 2009, HARP is a federal
government program designed to help 5 million underwater or near-underwater homeowners refinance
into a fixed loan with a lower monthly payment. However, as of Aug. 31, only 894,000 borrowers have refinanced through HARP.
On Oct. 24, 2011, President Obama announced an overhaul to the HARP program with the intent of reaching more underwater homeowners. The
expanded HARP program - also referred to as HARP 2.0 - will take effect on December 1, 2011 for borrowers with a loan-to-value ratio of less than
125 percent and in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent.
Index or Rate Index: A measure of interest rate changes used to adjust the interest rate of an
Adjustable Mortgage Loan. Example: the change in U.S. Treasury securities (T-bills) with a 1-year
maturity, based upon their weekly average yield.
Land Contract: A contract for the sale of real estate wherein the purchaser, who is in
possession of the property, pays the purchase price in periodic installments. The vendor and vendee
each have an interest in the property until final payment is made.
Landmark: A feature of the land such as a natural feature or improvement considered significant.
Historical Landmark - A feature of the land, usually an improvement, of historical significance; the
landmark document is recorded to give notice of a special historical landmark designation.
Surveyor’s Landmark - A feature of the land, monument, marker or other construction set up on the
boundary line of two adjoining estates, to fix such boundary.
Levy: The total amount of property taxes imposed by a taxing unit.
Lien: A legal claim or charge on property as security for payment of a debt or for the discharge of an
obligation.
LIMITED SERVICES LISTINGS: See "SPECIAL SERVICES LISTINGS"
Loan-to-Value Ratio: The ratio – expressed as a percentage – of the amount of a mortgage loan to
the appraised value or selling price of the property.
Lock box: A key storage system placed on a home entrance that is accessible only by active, licensed
real estate agents who must abide by a strict set of guidelines when showing a seller’s home.
Margin: In Adjustable Mortgage Loans, the number of percentage points the lender adds to the index
rate to determine the new interest rate at each adjustment.
Marital Property: Chapter 766 of Wisconsin Statutes establishes marital property as community
property on all personal and real property gained during the period of the marriage; each spouse has an
undivided one-half ownership interest in personal and real property. Chapter 766 also sets forth several
instruments designed to modify marital property laws.
Marital Property Agreement - An agreement between spouses whereby the basic provision of each
spouse having an undivided one-half ownership interest in personal and real property accumulated
during the marriage, is modified according to the terms of the agreement.
Unilateral Statement - A spouse may execute a statement that classifies income as marital or individual
property. After the execution date, (when the document is notarized) all new property is individual.
Market Value: The dollar amount for which a property would be sold by a willing seller to a willing
buyer under normal market conditions. (see also fair market value)
Mineral Claim: An interest in minerals in land, with or without ownership of the surface of the land. A
right to take minerals or a right to receive a royalty. In Wisconsin, the register of deeds must provide
customers with standard forms for this instrument as per S.706.057(7).
MLS: MLS stands for multiple listing service, by which member brokers cooperate in the sale of each
other’s listings. Sellers may choose not to allow their property into multiple listing, if they wish.
NNN or A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net
lease in which the tenant pays all or part of the taxes, insurance, and maintenance associated with use
of the property. These fees are paid in addition to the tenant's regular monthly rent.
Triple Net leases almost always favor the landlord and should be carefully negotiated to limit how much
the landlord can increase NNN fees each year.
Non-Purchasing Spouse: The laws vary from state to state when it comes to common property. This
can have a big impact on obtaining a loan as some states require the spouse’s debts to be included the
debt-to-income calculations. If you’re considering a loan where, better or not, one half is not included,
check with your loan professional regarding the Community Property rules in your state.
Ordinance: A rule established by an authority; a permanent rule of action; a law or statute. Usually
used to designate the enactments of the legislative body of a municipality.
Patent: The instrument by which a government grants public lands to an individual.
PITI (Principal, Interest, Taxes, and Insurance): Used to indicate the four major items
included in a monthly mortgage payment.
Points: A fee charged by a lender as a service charge or as an amount needed to make the yield on a
mortgage competitive with other types of investments. Each point represents 1% of the loan amount.
Price Trend Analysis: A tool developed and used exclusively by Molony Real Estate to help set a
home's listing price by projecting local trends. Used in conjunction with a CMA, or Competitive Market
Analysis. Because home values appreciate over time, a Price Trend Analysis maximizes listing prices.
Principal: Amount of debt, not including interest; the face value of a loan.
Private Mortgage Insurance: Insurance issued by a private company against a loss by a lender in
the event of default. Private mortgage insurance is generally required for conventional financing
whenever less than 20% is put down.
Quality Tax – A tax that will be passed down to consumers as a result of the mortgage debacle both
from the origination side and the default sides of the house. The “quality tax” will be approximately $300
per loan and will come in the form of higher processing fees or higher interest rates borne by
borrowers.
Reassessment: This is the redoing of the existing assessment roll because of substantial inequities.
All the property of the district is viewed, valued, and placed in the new assessment roll, which is then
substituted for the original roll.
Restrictions: A limitation on the use of real property, generally originated by the owner or subdivider
in a deed or a separate document, and/or subdivision plat. The purpose behind the restrictions is
usually to maintain or enhance the value of the land and surroundings.
Revaluation: This is the determination of new values for an upcoming assessment year. The previous
year’s assessment roll is not affected. The term is often used in conjunction with §70.055 of the
Wisconsin Statutes where expert help can be hired to work with the assessor in revaluing the district.
Second Mortgage: A mortgage which ranks after the first mortgage lien in priority.
Settlement: Same definition as closing.
Shadow Inventory - a term that's applied to homes that have been repossessed by lenders but not
yet placed on the market for sale. Many analysts also include distressed properties that are likely to end
up being taken back by lenders in their shadow inventory estimates. Analysts track shadow inventory
because the flow of foreclosed homes onto the market could impact existing-home inventories -- and
home prices -- for years to come. Analysis shows that the pace of distressed property sales is just as or
more important as the raw number of homes headed for lenders' real estate owned (REO) inventories.
Short Sale: The FICO credit score company considers a short sale the same as a foreclosure because
the sale involves transferring the home for less than the amount required to pay off all mortgages on it.
This appears on your credit report as a "settled" debt and can reduce your credit score by 200 to 300
points.
SPECIAL SERVICES LISTINGS: (also known as Limited Services Listings):
This new business service offers opportunity for cooperating brokers to offer sellers supplementary
service packages, refer parties to ancillary service providers and have more control over the
transaction in general. Limited-service brokers offer their seller-clients something different from the full
range of brokerage and related administrative services.
Buyers could work with an attorney, however, the buyer would miss out on many services that are
customary for a Realtor to provide. An attorney would charge extra for these services.
Taxation District: A city, village, or town. If a city or village lies in more than one county, that portion
of the city or village which lies within each county.
Taxing Jurisdiction: Any entity authorized by law to levy taxes on general property that is located
within its boundaries.
Tax Rate: The ratio of the property tax levy to the base. The tax rate is determined by dividing the
amount of the tax levy by either the total assessed value or the equalized value of the tax district. It is
often expressed in terms of dollars per thousand. It is synonymous with the term levy rate.
Title Insurance: Insurance against loss resulting from defects of title of public record.
A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net lease in
which the tenant pays all or part of the taxes, insurance, and maintenance associated with use of the
property. These fees are paid in addition to the tenant's regular monthly rent.
Triple Net leases almost always favor the landlord and should be carefully negotiated to limit how much
the landlord can increase NNN fees each year.
Trust: A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of
the state and the valid trust instruments.
Unlawful Tax: An appeal to the municipality under Section 74.35 claiming a tax is unlawful because a
clerical error was made in the description of the property or computation of the tax, the assessment
included improvements which did not exist on the assessment date, the property was exempt from
taxation, the property was not located in the municipality, a double assessment was made, or an
arithmetic transposition or similar error has occurred.
Use Value: The value a specific property has for a specific use. Beginning in 2000, agricultural land is
assessed according to its use as farmland instead of its market value as indicated by sales.
Use Value Assessment: An assessment based on the value of property as it is currently used, not on its
market value. This applies to agricultural land only.
VA Loans: Loans partially guaranteed by the Veteran’s Administration, enabling veterans to buy a
home with little or no down payment.
Variance: A document evidencing permission to depart from the requirements of a zoning ordinance.
Waiver: A document wherein the intentional or voluntary relinquishment of a known right is made.
Adjustable Mortgage Loans (ARM's): Mortgage loans under which the interest rate is periodically
adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed
to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM's),
Flexible Rate Loans, Variable Rate Loans.
Adverse Market Delivery Charge - Fannie Mae, which sets the standards for mortgages it buys
from lenders, is increasing the adverse market delivery charge on home loans purchased on or after 1
April 2011, and for the first time will require borrowers with a credit score of 740 or higher to pay this fee.
Adverse Market Fee - The adverse market fee is paid to Fannie Mae when WHEDA delivers the loan.
Loan applicants are required to pay this fee, .25% of the loan amount, regardless of the property location.
Amortization: Payment of a debt in equal installments of principal and interest, rather than interest-
only payments.
Annual Percentage Rate (A.P.R.): The yearly interest percentage of a loan, as expressed by the
total finance charge actually paid (interest, loan fees, points). The A.P.R. is disclosed as a requirement
of federal truth in lending statutes.
Apportion: Once the amount of taxes to be levied by each taxing jurisdiction has been determined,
the total tax levy must be divided, or apportioned, among all the taxation districts which contain territory
in the jurisdiction.
Arm’s-Length Sale: A sale between two parties, neither of whom is related to or under abnormal
pressure from the other.
Assessed Value: The dollar amount assigned to taxable real and personal property by the assessor
for the purpose of taxation. Assessed value is estimated as of January 1 and will apply to the taxes
levied at the end of that year. Assessed value is called a primary assessment because a levy is applied
directly against it to determine the tax due. Accurate assessed values ensure fairness between
properties within the taxing jurisdiction. (See Equalized value for fairness between municipalities).
Assessment Level: The relationship between the assessed value and the equalized value of non-
manufacturing property minus corrections for prior year over or under charges within a municipality–
town, village or city. For example, if the assessed value of all the property subject to property tax in the
municipality is $2,700,000 and the equalized value (with not prior year corrections) in the municipality is
$3,000,000 then the “assessment level” is said to be 90% ($2,700,000 ÷ $3,000,000 = .90 or 90%).
Assessment Ratio: The relationship between the assessed value and the statutory valuation
standard (fair market value for most property, use value for agricultural land, and 50% of full value for
agricultural forest and undeveloped lands). For example, if the assessment of a parcel which sold for
$150,000 (fair market value) was $140,000, the assessment ratio is said to be 93% (140,000 divided by
150,000). The difference in the assessment level and the assessment ratio is that the level typically
refers to the taxation district; the ratio refers to the individual parcel.
Assessed Value $140,000
Assessment Ratio = = 93%
Market Value $150,000
Buy Down: A payment to the lender from the seller, buyer, or third party, or some combination of
these, that causes the lender to reduce the interest rate during the early years of the loan.
Cap: In adjustable rate mortgages, the limit on how much the interest rate or monthly payment can
change.
Chattel: In law, any property other than a freehold or fee estate in land. Chattels are treated as
personal property, although they are divisible into chattels real, and chattels personal.
Closing: The final procedure in which documents are executed and/or recorded, and the sale (or loan)
is completed. Closing Statement: The statement which lists the financial settlement between buyer and
seller, and also the costs each must pay.
CMA: CMA, or Competitive Market Analysis, is a comparison of homes similar to a seller’s home
in terms of size, style, features, and location that have sold recently or are on the market. A CMA is
prepared by a real estate agent to help set a home’s listing price.
Compensating Factors - The process of qualifying for a home mortgage has become considerably
more detailed and difficult lately. In some cases an individual’s true credit worthiness can’t be summed
up by a credit bureau report. Loan professionals who work with underwriters realize this to be the case
and will often look at certain factors that compensate for the lack of other credit requirements to offset
the deficiency.
Contingency: Commonly, a stated event which must occur before a contract is binding. For example,
a home sale may be contingent upon the buyer obtaining financing.
Debt Forgiveness: The IRS considers forgiven or canceled debt to be a form of income. It requires
Creditors who agree to accept $600.00 (or more) less than the original balance to issue a 1099-C to the
consumer, who then must pay tax on the phantom income.
Deposit: A portion of the down payment given by the buyer to the seller or escrow agent with a written
offer to purchase. Shows good faith.
Down payment: Cash portion of the purchase price paid by a buyer from his own funds as opposed to
that portion which is financed.
Equalized Value: The estimated value of all taxable real and personal property in each taxation
district, by class, as of January 1 and certified by the Department of Revenue on August 15 of each year.
The value represents market value (most probable selling price), except for agricultural property, which
is based on its use (ability to generate agricultural income) and
Escrow: A procedure in which a third (neutral) party holds all funds, documents, etc. necessary to the
sale, with instructions from both buyer and seller as to their use and disposition.
Excessive Assessment: An appeal to the municipality under Section 74.37 claiming a property
assessment is excessive. The property owner files a claim against the municipality to recover the
amount of property tax imposed as a result of the excessive assessment.
Fair Market Value: Synonymous with a property’s full value, market value or – in the case of
personal property – true cash value. Fair market value is “the amount the property will sell for in an
arms-length transaction on the open market between a willing seller not obliged to sell the property and
a willing buyer not obliged to purchase it.” Waste Management v. Kenosha County Review Board 184
Wis. 2nd 541, (1994).
Farm Preservation Agreement: A document where a landowner agrees to implement and maintain
conservation practices on agricultural land in exchange for property tax credits.
FHA Loan: A loan insured by the Federal Housing Administration, a part of the Department of Housing
and Urban Development. FHA insurance enables lenders to loan a very high percentage of the sale
price.
Forest Land: A document in which the Grantor agrees to implement and maintain a forestry
management plan developed by the Wisconsin Department of Natural Resources in exchange for
property tax benefits.
Full Value: (1) The value reflected as fair market value when used in reference to the valuation of
real property under s 70.32(1) WI Stats (this does not include agricultural property defined in s 70.32 (2)1.
WI Stats). (2) The same as equalized value, however is often used when referring to the value of school
and special districts.
Graduated Payment Mortgage: A mortgage initially offering low monthly payments that increase at
fixed intervals and at a predetermined rate.
Hazard Insurance: Otherwise known as homeowners’ insurance. This is a usual requirement of a
mortgage lender and an advisable safeguard for any homeowner to protect against loss.
Home Affordable Refinance Program (HARP) - Announced in March 2009, HARP is a federal
government program designed to help 5 million underwater or near-underwater homeowners refinance
into a fixed loan with a lower monthly payment. However, as of Aug. 31, only 894,000 borrowers have refinanced through HARP.
On Oct. 24, 2011, President Obama announced an overhaul to the HARP program with the intent of reaching more underwater homeowners. The
expanded HARP program - also referred to as HARP 2.0 - will take effect on December 1, 2011 for borrowers with a loan-to-value ratio of less than
125 percent and in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent.
Index or Rate Index: A measure of interest rate changes used to adjust the interest rate of an
Adjustable Mortgage Loan. Example: the change in U.S. Treasury securities (T-bills) with a 1-year
maturity, based upon their weekly average yield.
Land Contract: A contract for the sale of real estate wherein the purchaser, who is in
possession of the property, pays the purchase price in periodic installments. The vendor and vendee
each have an interest in the property until final payment is made.
Landmark: A feature of the land such as a natural feature or improvement considered significant.
Historical Landmark - A feature of the land, usually an improvement, of historical significance; the
landmark document is recorded to give notice of a special historical landmark designation.
Surveyor’s Landmark - A feature of the land, monument, marker or other construction set up on the
boundary line of two adjoining estates, to fix such boundary.
Levy: The total amount of property taxes imposed by a taxing unit.
Lien: A legal claim or charge on property as security for payment of a debt or for the discharge of an
obligation.
LIMITED SERVICES LISTINGS: See "SPECIAL SERVICES LISTINGS"
Loan-to-Value Ratio: The ratio – expressed as a percentage – of the amount of a mortgage loan to
the appraised value or selling price of the property.
Lock box: A key storage system placed on a home entrance that is accessible only by active, licensed
real estate agents who must abide by a strict set of guidelines when showing a seller’s home.
Margin: In Adjustable Mortgage Loans, the number of percentage points the lender adds to the index
rate to determine the new interest rate at each adjustment.
Marital Property: Chapter 766 of Wisconsin Statutes establishes marital property as community
property on all personal and real property gained during the period of the marriage; each spouse has an
undivided one-half ownership interest in personal and real property. Chapter 766 also sets forth several
instruments designed to modify marital property laws.
Marital Property Agreement - An agreement between spouses whereby the basic provision of each
spouse having an undivided one-half ownership interest in personal and real property accumulated
during the marriage, is modified according to the terms of the agreement.
Unilateral Statement - A spouse may execute a statement that classifies income as marital or individual
property. After the execution date, (when the document is notarized) all new property is individual.
Market Value: The dollar amount for which a property would be sold by a willing seller to a willing
buyer under normal market conditions. (see also fair market value)
Mineral Claim: An interest in minerals in land, with or without ownership of the surface of the land. A
right to take minerals or a right to receive a royalty. In Wisconsin, the register of deeds must provide
customers with standard forms for this instrument as per S.706.057(7).
MLS: MLS stands for multiple listing service, by which member brokers cooperate in the sale of each
other’s listings. Sellers may choose not to allow their property into multiple listing, if they wish.
NNN or A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net
lease in which the tenant pays all or part of the taxes, insurance, and maintenance associated with use
of the property. These fees are paid in addition to the tenant's regular monthly rent.
Triple Net leases almost always favor the landlord and should be carefully negotiated to limit how much
the landlord can increase NNN fees each year.
Non-Purchasing Spouse: The laws vary from state to state when it comes to common property. This
can have a big impact on obtaining a loan as some states require the spouse’s debts to be included the
debt-to-income calculations. If you’re considering a loan where, better or not, one half is not included,
check with your loan professional regarding the Community Property rules in your state.
Ordinance: A rule established by an authority; a permanent rule of action; a law or statute. Usually
used to designate the enactments of the legislative body of a municipality.
Patent: The instrument by which a government grants public lands to an individual.
PITI (Principal, Interest, Taxes, and Insurance): Used to indicate the four major items
included in a monthly mortgage payment.
Points: A fee charged by a lender as a service charge or as an amount needed to make the yield on a
mortgage competitive with other types of investments. Each point represents 1% of the loan amount.
Price Trend Analysis: A tool developed and used exclusively by Molony Real Estate to help set a
home's listing price by projecting local trends. Used in conjunction with a CMA, or Competitive Market
Analysis. Because home values appreciate over time, a Price Trend Analysis maximizes listing prices.
Principal: Amount of debt, not including interest; the face value of a loan.
Private Mortgage Insurance: Insurance issued by a private company against a loss by a lender in
the event of default. Private mortgage insurance is generally required for conventional financing
whenever less than 20% is put down.
Quality Tax – A tax that will be passed down to consumers as a result of the mortgage debacle both
from the origination side and the default sides of the house. The “quality tax” will be approximately $300
per loan and will come in the form of higher processing fees or higher interest rates borne by
borrowers.
Reassessment: This is the redoing of the existing assessment roll because of substantial inequities.
All the property of the district is viewed, valued, and placed in the new assessment roll, which is then
substituted for the original roll.
Restrictions: A limitation on the use of real property, generally originated by the owner or subdivider
in a deed or a separate document, and/or subdivision plat. The purpose behind the restrictions is
usually to maintain or enhance the value of the land and surroundings.
Revaluation: This is the determination of new values for an upcoming assessment year. The previous
year’s assessment roll is not affected. The term is often used in conjunction with §70.055 of the
Wisconsin Statutes where expert help can be hired to work with the assessor in revaluing the district.
Second Mortgage: A mortgage which ranks after the first mortgage lien in priority.
Settlement: Same definition as closing.
Shadow Inventory - a term that's applied to homes that have been repossessed by lenders but not
yet placed on the market for sale. Many analysts also include distressed properties that are likely to end
up being taken back by lenders in their shadow inventory estimates. Analysts track shadow inventory
because the flow of foreclosed homes onto the market could impact existing-home inventories -- and
home prices -- for years to come. Analysis shows that the pace of distressed property sales is just as or
more important as the raw number of homes headed for lenders' real estate owned (REO) inventories.
Short Sale: The FICO credit score company considers a short sale the same as a foreclosure because
the sale involves transferring the home for less than the amount required to pay off all mortgages on it.
This appears on your credit report as a "settled" debt and can reduce your credit score by 200 to 300
points.
SPECIAL SERVICES LISTINGS: (also known as Limited Services Listings):
This new business service offers opportunity for cooperating brokers to offer sellers supplementary
service packages, refer parties to ancillary service providers and have more control over the
transaction in general. Limited-service brokers offer their seller-clients something different from the full
range of brokerage and related administrative services.
Buyers could work with an attorney, however, the buyer would miss out on many services that are
customary for a Realtor to provide. An attorney would charge extra for these services.
Taxation District: A city, village, or town. If a city or village lies in more than one county, that portion
of the city or village which lies within each county.
Taxing Jurisdiction: Any entity authorized by law to levy taxes on general property that is located
within its boundaries.
Tax Rate: The ratio of the property tax levy to the base. The tax rate is determined by dividing the
amount of the tax levy by either the total assessed value or the equalized value of the tax district. It is
often expressed in terms of dollars per thousand. It is synonymous with the term levy rate.
Title Insurance: Insurance against loss resulting from defects of title of public record.
A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net lease in
which the tenant pays all or part of the taxes, insurance, and maintenance associated with use of the
property. These fees are paid in addition to the tenant's regular monthly rent.
Triple Net leases almost always favor the landlord and should be carefully negotiated to limit how much
the landlord can increase NNN fees each year.
Trust: A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of
the state and the valid trust instruments.
Unlawful Tax: An appeal to the municipality under Section 74.35 claiming a tax is unlawful because a
clerical error was made in the description of the property or computation of the tax, the assessment
included improvements which did not exist on the assessment date, the property was exempt from
taxation, the property was not located in the municipality, a double assessment was made, or an
arithmetic transposition or similar error has occurred.
Use Value: The value a specific property has for a specific use. Beginning in 2000, agricultural land is
assessed according to its use as farmland instead of its market value as indicated by sales.
Use Value Assessment: An assessment based on the value of property as it is currently used, not on its
market value. This applies to agricultural land only.
VA Loans: Loans partially guaranteed by the Veteran’s Administration, enabling veterans to buy a
home with little or no down payment.
Variance: A document evidencing permission to depart from the requirements of a zoning ordinance.
Waiver: A document wherein the intentional or voluntary relinquishment of a known right is made.
GLOSSARY
Molony REAL ESTATE, LLC
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Molony Real Estate
377 CLARK STREET
PO BOX 194, Lodi, WI 53555
608-592-7306 & 608-445-8464
Website: MolonyRealEstate.com
Email:
molonyrealestate@Yahoo.com
| Wheelchair Ramp Available In order to achieve the goal of expanding the availability of housing opportunities for persons with disabilities, Molony Real Estate has acquired the use of a Wheelchair Ramp. Please let us know when setting up your appointment if you will need the use of the Wheelchair Ramp. |