Comparative market analysis (CMA) A method used by brokers and salespeople for estimating the current value of a property using sale price data from similar properties. Not to be confused with a bona fide appraisal performed by a licensed appraiser.
Adjustable rate mortgage A mortgage loan having an interest rate that can be periodically raised or lowered in accordance with the movement of a financial index.
Appraisal An opinion of value of a property developed by a professional and disinterested third party and supported by data and evidence.
Acceleration A right granted through a loan clause enabling the lender to call all sums immediately due and payable on a loan should the borrower violate certain provisions of the loan agreement.
trade fixture A fixture necessary for the conduct of a business. Although affixed to the land, it is personal property.
trust A fiduciary relationship between a trustor and trustee. The trustor conveys legal title to property to the trustee, who holds and manages the estate for the benefit of another party, the beneficiary ( in a land trust, trustor and beneficiary are the same person).
underwriting 1. A process of investigating the financial capabilities and creditworthiness of a prospective borrower and granting credit to a qualified borrower. 2. The act of insuring or financing a party, business venture, or investment.
unequal services Services that differ in nature or quality from those normally rendered, with the alteration based on race, color, sex, national origin, or religion.
unilateral contract An agreement in which only one party promises to perform, contingent on the other party’s performance of an optional action.
universal agency A fiduciary relationship which empowers an agent to perform any and all actions for a principal that may be legally delegated.
usury Excessive or illegal interest charged on a loan.
utility A determinant of the value of an item reflecting the item’s ability to perform a desired function.
vacancy A measure of the unoccupied supply of exiting space in a building or market at any point in time. A vacancy rate is the amount of vacant space divided by the total amount of existing space.
validity Legal status of a contract that meets requirements of: competence of parties, mutual consent, valuable consideration, legal purpose, and voluntary good faith. A prerequisite for enforceability.
value In general, the worth of an item as determined by its utility, desirability, scarcity, affordability, and other components and quantified as price.
variance A land use that conflicts with current zoning but is authorized for certain reasons, including undue hardship to comply and minimal negative impact to leave it alone.
void Without legal force or effect; unenforceable and null, such as an illegal contract.
void contract An agreement that is null and cannot be enforced.
voidable contract An agreement that is subject to being nullified because a party to the agreement acted under some legal disability. Only the disadvantaged party can take action to void the contract.
water rights Rights of a property that abuts a body of water to own or use the water. See littoral rights, riparian rights, and prior appropriation.
will Last will and testament; a written or verbal statement by a testator instructing how to distribute the testator’s estate to heirs.
yield Investment return expressed as a dollar amount or a percent of the original investment amount
zoning ordinance A municipal land use regulation
