Archive for March, 2010
VA – See: Department of Veterans Affairs.
VA ESCAPE CLAUSE – A clause stating that the buyer (borrower) shall not be obligated to buy nor shall any deposit be lost if the appraisal is less than the agreed upon amount.
VA MORTGAGE – A loan guaranteed by The Department of Veterans Affairs. These loans are restricted to eligible veterans and require little or no down payment.
VA MORTGAGE FUNDING FEE – A closing cost either paid in full at closing or financed. It is one of the costs to obtain a VA guaranteed loan.
VACANCY – A place which is empty (vacant). The term is generally used to describe a property available for rent.
VACANCY FACTOR – The estimated percentage of vacancies in a rental project. May be based on past records of the property, or a professional guess if a new project. Surrounding area buildings, if similar, may be used for comparison.
VACANCY RATE – See: Vacancy Factor.
VACANT LAND – Land without buildings. May or may not have improvements, such as grading, sewers, etc.
VACATE – (1) To move out. (2) A legal term meaning to set aside or annul, as to vacate a judgment.
VALID – Legally binding. Properly carried out in accordance with legal procedures.
VALLEY – (1) The concave angle formed by the two sloping sides of a roof. (2) Low land between hills or mountains.
VALLEY FLASHING – Waterproofing (flashing) applied to the concave joint (valley) of a roof.
VALLEY RAFTER – A rafter (beam) which forms the apex of the interior angle of a valley roof.
VALLEY ROOF – A roof, the exterior surface of which forms a concave angle, having the edges higher than the center.
VALUABLE CONSIDERATION – A legal term meaning any consideration sufficient to support a contract. The word “valuable” does not mean of great value but merely having value.
VALUATION – The estimating of value. Appraisal.
VALUATOR – See: Appraiser.
VALUE – (1) The usefulness of an object. (2) The monetary worth of an object. (3) A shortening of the term valuable consideration, as in a purchaser “for value”.
VALUE AFTER THE TAKING – In the case of a partial taking under eminent domain, the value of the part not taken.
VALUE BEFORE THE TAKING – The market value of a property before condemnation.
VALUE IN PLACE – The market value of an improvement in place, as opposed to value in use.
VALUE IN USE – (1) The value to a specific owner of a property or improvement. Usually much greater than market value. (2) The value of a property for a specific use. Also called Use Value.
VALVE – A device, operated automatically or manually, to regulate the flow of a gas or liquid, or to prevent the return of the gas or liquid to its source.
VAPOR BARRIER – The placing of moisture retarding material, such as paints, foil, treated paper, etc., on or in walls to prevent condensation.
VARA – A Spanish or Portuguese unit of measure of approximately 33 inches.
VARIABLE INTEREST RATE – An interest rate which fluctuates as the prevailing rate moves up or down. In mortgages there are usually maximums as to the frequency and amount of fluctuation. Also called “flexible interest rate”.
VARIABLE OPERATING EXPENSES – Those expenses which vary (usually with occupancy). Example: Maintenance costs vary with the number of units occupied. Property taxes are fixed under the same conditions.
VARIABLE PRICE RANGING – Pricing property within a price range rather than at an exact price. The ranges are published in local newspapers and each range is assigned a number. The number corresponding to a particular property is displayed on the “for sale” sign. A prospective buyer can look at the sign and know the approximate amount (the range) that the seller expects to be offered.
VARIABLE RATE MORTGAGE – See: Adjustable Mortgage Loan.
VARIANCE – Change of a portion of zoning requirements without changing the zoning.
VARNISH – A finish for wood which gives a transparent protective covering. Composed of resins dissolved in oil.
VAULT – (1) An arched ceiling or roof. (2) A room or enclosure used for the storage of valuables.
VENDEE – Purchaser or buyer, especially on a land contract.
VENDOR – The person who transfers property by sale. Another word for “seller”. Commonly used in land contract sales.
VENEER – Thin sheets of wood or other material, such as brick, usually covering less costly material.
VENEERED CONSTRUCTION – The placing of a facing material over the external surface of a structure.
VENT – An opening, usually a pipe or duct, which allows the passage of air or gas to release undesirable fumes from a building.
VENT PIPE – A pipe used for the elimination of sewer gases by allowing these gases to move from plumbing fixtures to a vent stack.
VENT STACK – A small chimney-like stack allowing ventilation through a roof.
VENTILATION – A system, natural or artificial, of providing fresh air circulation through a structure.
VENTURE CAPITAL – An equity investment, usually connoting risk.
VENUE – (1) The county (or other geographical division) in which an action or prosecution is brought for trial and which is to furnish the panel of jurors. (2) The county in which an acknowledgement (notarization) is made.
VERANDA – An open porch alongside a building. Usually covered by a roof for protection from the sun or rain.
VERGEBOARD – See: Barge-board.
VERIFICATION – Confirmation of truth, correctness, or authenticity. Done by affidavit, oath, or deposition, all of which require sworn statements.
VERIFICATION OF DEPOSIT (VOD) – A written request (form) sent to a financial institution to check the accuracy of information supplied by a potential borrower on a loan application regarding the amount of the borrower’s funds.
VERIFICATION OF EMPLOYMENT (VOE) – A written request (form) sent to an employer to check the accuracy of information supplied by a potential borrower on a loan application regarding the borrower’s employment history.
VERIFICATION OF MORTGAGE – A written request (form) sent to a mortgagee to check the accuracy of information supplied by a potential borrower on a loan application regarding the payment history and amount owing on the borrower’s existing mortgage.
VERIFS – A slang term to describe the verifications required by a lender. See: Verification Of Deposit; Verification Of Employment; Verification of Mortgage.
VERIFY – To confirm, substantiate, or prove to be true.
VERTICAL – Up and down. Perpendicular to the surface of the Earth.
VEST – To give an immediate interest, as opposed to a contingent or future interest.
VESTED – Present ownership rights, absolute and fixed. Modernly, ownership rights, even though on a land contract or subject to a mortgage or deed of trust.
VESTED REMAINDER – A remainder interest which is certain. See: Remainder; Contingent Remainder.
VETERAN’S ADMINISTRATION (V.A.) LOANS – Housing loans to veterans by banks, savings and loans, or other lenders which are insured by the Veteran’s Administration, enabling veterans to buy a residence with little or no down payment.
VETERAN’S TAX EXEMPTION – A state exemption for property taxes granted qualified veterans or their widows. Not in every state.
VICINAGE – (1) A neighborhood, vicinity. (2) A legal term signifying the county where a trial is held.
VILLA LOT – A term of no legal significance, used to describe a large lot upon which would be built an expensive house.
VILLAGE – A small community.
VIOLATION – Breach of any law or agreement.
VISUAL RIGHTS – The right to be able to see clearly as a general welfare right taking priority over a property right. Example: Restriction of structures or trees, shrubs, etc., at intersections if visibility is restricted as to cause a danger.
VITAL STATISTICS – Data regarding births, deaths, marriages, health records, etc., and usually kept by a governmental bureau. Federally, the Bureau of Vital Statistics.
VITREOUS – Relating to or resembling glass. Glassy.
VITRIFIED TILE – Clay pipes used in a disposal field.
VOD – See: Verification Of Deposit.
VOID – Having no legal force or binding effect.
VOIDABLE – May be voided, but not void in itself.
VOLT – A term in electronics, being the force necessary to cause one ampere to flow through a conductor with a resistance of one ohm. Common household current is 110 volts, with a 220 volt circuit used for some heavy appliances. Industrial uses may require higher voltage.
VOLUNTARY LIEN – A lien placed against real property by the voluntary act of the owner. Most commonly, a mortgage or deed of trust.
VOM – See: Verification Of Mortgage.
VOUCHER SYSTEM – Payment of subcontractors by issuing vouchers that are redeemed by the construction lenders. The purpose is to make sure that payment reaches the subcontractors and avoids mechanic’s liens.
VPR – See: Variable Price Ranging.
Posted in UCC – See: Uniform Commercial Code.
ULTRA VIRES – Originally acts of a corporation beyond or against its charter. Now includes illegal acts. An officer of a corporation may be personally liable for an ultra vires act of the corporation.
UNAVOIDABLE CAUSE – A cause which reasonable prudence and care could not have prevented, such as death, illness, papers lost in the mail, etc.
UNBALANCED IMPROVEMENT – An appraisal term describing an improvement not in conformity with the surrounding area, and so, not suited to its location. May be an underimprovement or overimprovement.
UNCONSCIONABLE CONTRACT – So unfair that a court will not allow it. So one sided that no one in his right mind would agree on one side, and no fair and honest person would agree on the other side.
UNDER-LEASE – A sub-lease for either less than the remaining term on the master lease or less than the total property covered by the master lease.
UNDERCOATING – A “prime” or first coat before the finish or “top coat” of paint or other finish.
UNDERFLOOR WIRING SYSTEM – A system of electrical wiring built into the floor of a building through conduits, ducts, and raceways.
UNDERIMPROVEMENT – An improvement which is deficient in size or quality in relation to the site on which it is built.
UNDERLYING FINANCING – A mortgage, trust deed, or land contract prior to (underlying) another mortgage, trust deed, or land contract which is all inclusive or wraps around it.
UNDERPASS – A passageway under a road, railway, or other right of way. May be for pedestrian traffic, automobiles, or any other method of transportation.
UNDERPINNING – (1) Temporary load-bearing beams used during construction. (2) Permanent load-bearing supports, added to an existing structure.
UNDERWRITER – One who insures another. A small title company may buy insurance from a larger one (the underwriter) for all or part of the liability of its policies. A larger title company may buy part of the insurance from another company on high liability policies.
UNDERWRITING – The process of analyzing both the worthiness of a potential borrower and the property involved to enable a lender to decide whether to make a loan, the amount to lend and how much to charge in interest and fees.
UNDEVELOPED LAND – See: Raw Land.
UNDISCLOSED PRINCIPAL – A principal whose identity is not revealed by an agent.
UNDIVIDED INTEREST – A partial interest by two or more people in the same property, whether the interest of each is equal or unequal.
UNDUE INFLUENCE – Influence used to destroy the will of another so that his decision is not his free act.
UNDULATING LAND – Rolling land composed of compound slopes (two or more slopes of different grades).
UNEARNED INCREMENT – An increase in value to real property due to some change in the area rather than an improvement in the property itself.
UNEARNED PREMIUM – That unused portion of an insurance premium which is returned to the policy holder upon cancellation.
UNENCUMBERED – Free of liens and other encumbrances. Free and clear.
UNENFORCEABLE CONTRACT – A contract which a court will not enforce, even though it may have all the requirements of a valid contract. Example: A contract barred by a statute of limitations. It may be valid except that the plaintiff took too long to bring the action.
UNFINISHED BUILDING SPACE – Not completed. A general term not specifying how much has not been completed. May need paint, floor covering, or other minor completions. May need plumbing, electricity, floors, or other major completions.
UNIFORM COMMERCIAL CODE (UCC) – A set of laws written to make it easier to do business between states by making the law the same for each state that adopted the code. The UCC covers many aspects of business such as transactions involving personal property (Article 2) and Negotiable Instruments (Article 3).
UNIFORM LAWS – Laws approved by the National Conference of Commissioners on Uniform State Laws. Many have been adopted in one or more states. Among these are the Uniform Commercial Code, Uniform Negotiable Instruments Act, Uniform Partnership Act, Uniform Residential Landlord and Tenant Act, etc.
UNIFORM RESIDENTIAL APPRAISAL REPORT – The standard form used to appraise one to four family residential property.
UNIFORMITY – In taxation, equality in the burden of taxation, implying equality in the method of assessment as well as the rate of taxation.
UNILATERAL CONTRACT – A contract formed by a promise from one party and performance from the other. The contract is formed only after the performance is completed, unless legally excused. See also: Bilateral Contract.
UNILATERAL MISTAKE – A mistake made by one of the parties to the contract. Usually enforceable unless the other party knew or should have known of it (an obvious mistake).
UNIMPROVED LAND – Most commonly land without buildings; it can also mean land in its natural state.
UNINCORPORATED AREA – An area of a county which has not formed a municipal corporation (become a city).
UNINSURABLE TITLE – Title to real estate that a title insurance company refuses to insure. The defect goes to the fee (ownership) or a claim or encumbrance that could lead to the loss of fee title in the party seeking insurance.
UNIT – (1) One of any group. (2) An apartment, condominium, house in a subdivision, etc.
UNIT COST – In relation to real estate, a cost per square foot. Also called unit price.
UNIT COST IN PLACE METHOD – An appraisal method. The cost of construction by estimating the cost of each component part in place, including labor cost and overhead.
UNIT OF COMPARISON – Used in appraisal to make the most appropriate use of comparables. Example: A house may best be compared by price per square foot, land by price per front foot, a hospital by price per bed, etc.
UNIT PRICE – See: Unit Cost.
UNITED STATES GEOLOGICAL SURVEY – The section of the department of the interior which maps the country and identifies its geologic features.
UNITIES – The peculiarities necessary to form a valid joint tenancy. Unity of time, title, interest, and possession.
UNITY OF INTEREST – In joint tenancy, the joint tenants must acquire their interest by the same conveyance and said interest must be equal.
UNITY OF POSSESSION – In joint tenancy, the joint tenants must have equal rights to possession.
UNITY OF TIME – To have a valid joint tenancy, the joint tenants must acquire title at the same time.
UNITY OF TITLE – In joint tenancy, the holding by the joint tenants under the same document.
UNLAWFUL DETAINER – The unjustifiable possession of property by one whose original entry was lawful but whose right to possession has terminated; usually a tenant.
UNLIMITED MORTGAGE – See: Open End Mortgage.
UNMARKETABLE TITLE – Not saleable. A title which has serious defects.
UNRECORDED INSTRUMENT – A deed, mortgage, etc., which is not recorded in the county recorder’s office and, therefore, not protected under recording statutes. Valid between the parties involved, but not against innocent third parties.
UNSECURED – Generally referring to an obligation which has only a promise as security. A note would be unsecured, a note and mortgage would be secured.
UPLANDS – Land bordering bodies of water but above the high water mark.
UPSET PRICE – A legal term signifying the minimum price at which a property can be sold at auction, usually foreclosure.
URAR – See: Uniform Residential Appraisal Report.
URBAN – Pertaining to a city or town.
URBAN RENEWAL – Razing and rebuilding of obsolete sections of cities through financing by federal, state, and local governments.
USE DENSITY – The relationship of the number of buildings of a particular use to a given land area.
USE VALUE – See: Value in Use.
USEFUL LIFE – (1) In appraisal for sale purposes, the true economic value of a building in terms of years of use to the owner. (2) For tax purposes, the life set for depreciation. At any time during that period, a new life could begin for a new owner.
USUFRUCT – The right to use and profit from property vested in another, so long as the user (usufructuary) does not change the substance of the property. Would include an easement but not a profit a prendre.
USUFRUCTUARY – One who has a usufruct.
USURY – Charging an illegal rate or amount of interest on a loan.
UTILITIES – Public or private suppliers of water, electricity, gas, telephone and sewers that serve a property or the public or private companies that supply them.
UTILITY – Practical usefulness, as opposed to frivolity.
UTILITY ROOM – A room used for laundry, heating equipment, telephone wiring, or janitorial purposes.