Because business is another language. BUSINESS ENGLISH FOR RESIDENTIAL REAL ESTATE. Compiled and Written by Robert Toryak Edited By Carol Heiberger

Transcription

1 Because business is another language. BUSINESS ENGLISH FOR RESIDENTIAL REAL ESTATE Compiled and Written by Robert Toryak Edited By Carol Heiberger

2 ExecuSpeak Dictionary 2013 Winter Babel, LLC. All rights reserved. Printed in the United States of America. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of reprints in the context of review. For information, write Carol Heiberger, 1636 Waverly Street, Philadelphia, PA ISBN: Philadelphia Edition Cover Design and Logo by Bondepus ATTENTION: SCHOOLS AND BUSINESSES The ExecuSpeak Dictionary is available at quantity discounts with bulk purchase for education, business, or sales promotional use. For information, contact Carol Heiberger at Carol@ExecuSpeakDictionary. com.

3 Translating from Execu Speak, the language of business, into something useful and understandable no longer requires a team of attorneys or an advanced degree.

4 Table of Contents About the Author... 1 About the Editor... 2 Introduction... 3 Preface... 4 Acknowledgements... 5 Alphabetical Index Subject Indexes Agent / Agency Construction Exterior Finance Government Interior Legal Documents Legal Terms Measurement Services Uses Zoning Order Form

5 About the Author Robert Toryak has over 30 years of experience in real estate finance, development and project management in both the commercial and residential sectors. Within commercial real estate, his experience includes office, industrial, retail, healthcare, information technology, hospitality and other market sectors. Robert understands the entire project process beginning with government entitlements, financing, construction, tenant representation and project closeout. His diverse experience provides a clear focus on execution and service to the client. Robert has occupied senior level positions with Tishman Realty & Construction, KeySpan Energy Corporation, Cresa Partners and Kislak Company. This experience has given Robert the knowledge to help organizations execute their strategic plan using the process of organizational project management. This integration of an organization s portfolio management, program management and project management results in a successful implementation of the organization s strategic goals. Industry affiliations include: CoreNet Global, Coalition of Commercial Real Estate, University of Pennsylvania s Wharton School Zell-Lurie Real Estate Center, Project Management Institute, International Facilities Management Association (IFMA), New York Real Estate Board, International Electrical & Electronic Engineers, U.S. Green Building Council, and Urban Land Institute. 1

6 About the Editor The author of ExecuSpeak Dictionary and founder of its publisher Winter Babel, Carol Heiberger is an experienced executive and project manager of large-scale, multi-location projects. Her industry experience includes positions in field operations with the Ford Motor Company, new product development with Bell Atlantic, the COO of a start-up CATV/ISP company, and Strategic Planning with a large energy utility. Strong affiliations with educational institutions in Philadelphia have provided the opportunity for teaching both degree-seeking graduate students and knowledge-seeking adults of all ages and walks of life. As a volunteer, she has served on the loan committee of a micro-lender and as a counselor and mentor to small-business owners and start-ups. She earned her MBA from Wharton. The goal of the ExecuSpeak Dictionary series is to accelerate knowledge acquisition and shorten the learning curve. The key to language acquisition, of any kind, is repetition of a word or phrase in a variety of contexts. It takes 7-20 repetitions to make a new word or phrase a part of someone s vocabulary. (Repetition includes reading, writing, speaking, and hearing.) The assumption, in the writing of any book in the ExecuSpeak Dictionary series, is that the user has heard the word or phrase before but needs to refresh their memory. The subject indexes, in addition to the alphabetical index, make it easier to search. The series is available in paper book as well as multiple technology platforms to ease accessibility and usefulness. All the products can be seen at As a buyer of this book, you have free access to the mobile edition at app. execuspeakdictionary.com from any device (tablet, smartphone, computer, or pad). Simply register to use the entire dictionary. 2

7 Introduction Welcome to the second extension of the ExecuSpeak Dictionary s Business English series. While the book we did on the vocabulary of zoning has a very narrow market, this book on the language of real estate should have a more universal appeal. As noted in the Preface, residential real estate is frequently the biggest purchase any individual will make. The focus is on buyers because it is the first-time buyer who will be the most challenged. However, sellers will benefit by refreshing their memories. Hopefully, real estate professionals will be able to use this book to educate their clients. The necessary disclaimer: This book is not intended to replace a lawyer or a real estate agent or a mortgage professional. Our goal is to make it easier to understand the process, the issues, and the challenges associated with a real estate transaction. And that starts by understanding the vocabulary. Carol 3

8 Preface The biggest investment most people will ever make is buying a home. The key word is investment, although the majority of buyers focus on the concept and needs associated with the word home. Buying a house takes time: looking for the right location, making the numerous inspections and then taking the big step of making an offer. In a buyers market did you pay too much? Or in a sellers market did you pay too much? You may ask what am I talking about. And that is the point of this book on residential real estate terms. It will define important terms for both buyers and sellers and use them in practical terms. When buying a home it is vital to know the various terms the real estate broker, your attorney and your bank are using. As a result, this book on residential real estate terms focuses on those definitions that will serve as a guide through the maze of terms used during the home purchase process. Location, location, location may be the key real estate term used by brokers but what happens if you do not know about title search, short sale, HUD1, etc.? The goal is to increase your ability to navigate the real world not just by understanding the meaning of the term but also its practical use. You might ask why... well, are you buying a home or an investment? We think it should be both! Bob 4

9 B Back-up Offer Alternative bid for a house that would be accepted if the first bid fails. Usage: Our broker has a back-up offer in case the first purchaser cannot obtain a mortgage. Balance Amount of the loan that s left to be paid. Usage: The balance on the loan is $128,000. Balloon Mortgage Home loan which is not fully paid off over the term of the note and leaves a large balance due at the end. Usage: Our balloon mortgage allowed us to pay only the interest for the first seven years. Balloon Payment Final lump sum amount that is due at the termination of a balloon mortgage. Usage: Joe hoped he d sell the house in time to make the balloon payment. Bankruptcy A legal proceeding involving a person or business that is unable to repay their outstanding debts. Usage: The couple filed for bankruptcy in order to get relief from their credit card debt. Base Loan Amount Foundation upon which loan payments are based. Usage: The base loan amount is $325,

10 B ExecuSpeak Dictionary Bay Window Window structure that projects out from the wall of a building. Usage: The family cat likes to sit in the bay window to keep watch on the street. Bequest Personal property that is given as a gift through a will. Usage: In his father s will, John received a bequest of all the furniture in the house. Bill of Sale Written document that transfers title to personal property. Usage: The bill of sale for your refrigerator is considered to be proof that you own it. Biweekly Mortgage Mortgage in which payments are made every two weeks instead of once a month. Usage: A biweekly mortgage pays down the loan balance faster and results in the payment of less interest. Blanket Mortgage Loan that covers more than one plot of land owned by the same borrower. Usage: In order to buy the house with the extra 3 lots for future building, we applied for a blanket mortgage to save time and money. Block Smallest possible area of land bounded by three or more legally open streets. Usage: Our city block is surrounded by four streets. 20

11 B ExecuSpeak Dictionary Building Height The vertical distance from ground level. Usage: The height of the house is 33 feet measured from the ground to the peaked roof. Building Services Maintenance and repair services for the structural and mechanical elements of a building. Usage: The management company cleans the tenants carpets as an added building service. Buy-down Lump sum paid to temporarily reduce the interest rate. Usage: The seller is willing to buy-down the purchaser s interest rate to sweeten the deal. Buyer s Market Market conditions that favor the buyer. Usage: Due to the recession it is a buyer s market and prices are substantially reduced. 22

12 C Call Option Similar to the acceleration clause; the bank has the right to demand payment of the loan after a specific period of time. Usage: The mortgage has a call option by the bank after 5 years upon 3 months notice. Canopy Roof-like cover that provides protection from the sun or weather. Usage: The rear deck s canopy was made out of wood. Cap (interest) ARM rates change but are usually limited on an annual basis. Usage: Our ARM has an annual interest rate cap of 1%. Cap (payment) ARMs limit the amount that payments can change over a specified period of time. Usage: Our ARM has a payment cap of $300 per month. Caretaker Quarters Single dwelling unit that is occupied by an individual who is responsible for maintenance or security of a property. Usage: Large estates have caretaker quarters on the property for people to take care of lawns, gardens, etc. Carport Partially open structure for the parking, storage, or keeping of vehicles. Usage: The carport in the rear of this two-family house protects cars from rain and snow. 23

13 Alphabetical Index Numerics 9 401(k) 9 401(k) Loan 9 403(b) 9 403(b) Loan 9 A 11 A-Credit 11 Abut 11 Acceleration Clause 11 Accrued Interest 11 Adjacent 11 Adjustable Rate Mortgage (ARM) 12 Adjustment Date (Interval) 12 Adjustment Interval 12 Affordability 12 Aggregate Adjustment 12 Agreement of Sale 12 Alley 13 Alternative Documentation 13 Amortization 13 Amortization Schedule 13 Amount Financed 13 Annual Percentage Rate (APR) 13 Application 14 Application Fee 14 Appraisal 14 Appraisal Fee 14 Appraised Value 14 Appraiser 14 Appreciation 15 APR 15 Arbor 15 Area of a Building 15 ARM 15 Asking Price 15 Assessed Value 16 Assessment 16 Assessor 16 Asset 16 Assignment 16 Assignment Recording Fee 16 Assumable Mortgage 17 Assumption 17 Automated Valuation Model (AVM) 17 Awning 17 B 19 Back-up Offer 19 Balance 19 Balloon Mortgage 19 Balloon Payment 19 Bankruptcy 19 Base Loan Amount 19 Bay Window 20 Bequest 20 Bill of Sale 20 Biweekly Mortgage 20 Blanket Mortgage 20 Block 20 Bona Fide 21 Bond Market 21 Bridge Loan 21 Broker 21 Broker Processing Fee 21 Budget 21 Building Height 22 Building Services 22 Buy-down 22 Buyer s Market

14 Subject Indexes Agent / Agency Construction Exterior Finance Government Interior Legal Documents Legal Terms Measurement Services Uses Zoning

15 Business English for Zoning and Real Estate Agent / Agency Application 14 Application Fee 14 Assessed Value 16 Assessment 16 Assessor 16 Automated Valuation Model (AVM) 17 Bankruptcy 19 Broker 21 Certificate of Eligibility (CE) 25 Certificate of Reasonable Value (CRV) 25 Certificate of Veteran Status 26 Certification and Authorization Form 26 Commission 28 Commitment 28 Completion Certificate 30 Consumer Reporting Agency 31 Cost of Funds Index (COFI) 33 Credit Bureau 33 Credit Report 33 Credit Repository 34 Credit Score 34 Document Preparation Fee 37 Equal Credit Opportunity Act (ECOA) 40 Equifax 41 Exclusive Listing 42 Experian 43 Fair Credit Reporting Act 45 Fannie Mae (FNMA) 45 Fannie Mae s Community Home Buyer s Program 46 FDIC 46 Federal Housing Admin. (FHA) 46 Federal Reserve Board 46 Federal Truth-in-Lending Form 46 Flood Certification Fee 49 Freddie Mac ( FHLMC) 51 Government National Mortgage Association (Ginnie Mae) 53 Housing and Urban Development (HUD) 56 HUD Median Income 56 HUD-1 Settlement Statement 56 Listing Agent 63 Real Estate Agent 83 Realtor 83 Title Company 96 Title Insurance 96 Title Search 96 TransUnion 96 VA Mortgage 99 Veterans Administration (VA) 99 Construction Completion Certificate 30 Demolition 36 Fence 47 Final Plat 48 Fixture 49 Front Setback Line 51 Front Yard 51 Gable 53 Ground Floor 54 Impervious Ground Cover 57 Lot 65 Lot Adjustment 65 Manufactured (Mobile) Home 67 Modular Home 68 Pilaster 76 Plot Plan 77 Preliminary Plat 78 Rear Setback 84 Retaining Wall 85 Side Setback 91 Side Yard

16 Order Form We re thrilled that you like the ExecuSpeak Dictionary Business English for Residental Real Estate and want to purchase more copies. Fax this page to 1(215) or scan and to NAME: ADDRESS: CITY: STATE and ZIPCODE: COUNTRY: TELEPHONE: How many copies? How are you paying? Check Credit Card Type: Credit Card #: Card Expiration Date: Card 3 or 4 digit Code: Credit Card