Terms starting with the letter A

Acceleration Clause
A clause in a contract by which the time for payment of a debt is advanced, usually making the obligation immediately due and payable, because of the breach of some condition, such as failure to pay an installment when due.

Acceptance
The indication or manifestation by the offeree that the offeree is willing to be bound by the terms of the offer.

ACRE
43,560 square feet of land.

Acknowledgment
A declaration made by a person to a notary public, or other public official authorized to take acknowledgments, that the instrument was executed by the person and that it is a free and voluntary act.

Ad Valorem
Latin meaning "according to value". Normally used to describe a tax based on the assessed value of real property.

Adjustable Rate Mortgage (ARM)
A mortgage whose interest rate changes over time based on an index and a margin.  Rate changes are made at prescribed times and within prescribed limits (caps) as defined in the mortgage contract.

Adjustment Period or Interval
On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years, depending on the index.

Adverse Possession
The right of an occupant of land to acquire a superior title to the real estate against the record owner, where such possession has been actual, notorious, hostile, visible and continuous for the required statutory period (in Colorado, 18 years).  The purpose behind this concept is to promote the productive use of land and to give title to the one putting the land to use.

Affidavit
A statement or declaration reduced to writing, and sworn to or affirmed before some officer who has authority to administer an oath or affirmation.

Agency
A legal relationship resulting from an agreement or contract, either expressed or implied, written or oral, whereby one person, called the agent, is employed by another, called the principal, to do certain acts in dealing with a third party.

Agent
Any person, partnership, association, or corporation authorized or employed by another, called the principal, to act for, on behalf of, and subject to the control of the latter.

AITD - See All Inclusive Trust Deed

Alienation
The transfer of real property by one person to another.

All Inclusive Trust Deed (AITD) - See Wraparound Mortgage

Amenities
In real estate, amenities refer to such circumstances, in regard to location, outlook, or access to a park, lake, highway, view or the like which enhance the pleasantness or desirability of real estate and which contribute to the pleasure and enjoyment of the occupants.

Amortization
The gradual repayment of a mortgage by installments.  As you pay back the loan, an increasing amount of each payment is applied to principal and a lesser amount is applied to interest. Amortization is also a process of spreading a cost that is incurred upfront over the term of the loan or life of the asset.

Annual Percentage Rate (A.P.R.)
The actual cost of a mortgage loan expressed as a yearly rate.  The APR will be higher than the interest rate stated on the application and note because it includes fees such as: interest, discount points, origination fee, mortgage insurance and other related fees.  The truth in lending act requires lenders to disclose an APR to assist the borrower in measuring the actual cost of a loan.

Application
A form used by mortgage lenders to document necessary information concerning the mortgage loan applicant(s).

Appraisal
In real estate, an estimate of the quality or value of property; the process by which conclusions of the value of property are obtained; also refers to the report setting forth the estimate of value together with the basis for such conclusions.  For VA appraisal - See Certificate of Reasonable Value

Appraised Value
The fair market value an appraiser assigns to a particular property, based on analysis of the property in question, and the market conditions in the area, and recent sales data of comparable homes in the area.

Appreciation
An increase in value due to changes in market conditions or other causes.

Appreciation rate - Appreciation rate is the yearly percentage rate that an asset increases in value. 

Appurtenance
That which belongs to something else; something adapted to the use of the real property to which it is connected or belongs, and which was intended to be a permanent addition to the land, and which passes as an incident to said land, as a house, barn, garage, right of way.

APR - See Annual Percentage Rate

ARM - See Adjustable Rate Mortgage

Assessed Value
The value that a taxing authority, such as a county assessor places on real property as a base for computing property taxes.  Generally assessed at 80% of value.

Assessment
A local tax levied against a property to cover the proportionate cost of an improvement, such as a street or sewer.

Assignee
The party to whom a legal right has been assigned or transferred.

Assignment
A transfer to another of a legal right.

Assignor
The party who assigns or transfers a legal right.

Assumption
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply.

Attachment
A type of encumbrance, permitted only under special circumstances, which is placed against the real estate of a defendant in a pending law suit for money damages.

Attorney's Opinion
In real estate, the written opinion of an attorney-at-law regarding the marketability of title to real property based upon an examination of the abstract of title or the records in the county clerk and recorder's office.

Available Cash
The amount of liquid assets (i.e. checking, savings, mutual funds, etc) immediately available to pay closing costs and down payment.

Average Interest Rate
The actual average interest rate for a combination of debts based upon a total weighted interest rate calculation.  Utilizing each loan balance and interest rate, the calculator determines an average interest rate for multiple debts.