One or more rooms of a building used as a place to live, in a building containing at least one other unit used for the same purpose. Usually has, at least, cooking facilities, a bathroom, and a place to sleep. Those who live in these units pay rent for their use, usually on a monthly basis.

A building combining the features of an apartment building and a hotel. The units are furnished and may offer hotel facilities such as maid service, a restaurant, etc., but whose residents may stay for months or years, paying on a weekly or monthly basis.

A building containing two or more separate residential units, which is under one ownership. The residents of the units pay rent.

Action (or failure to act) by a principal which leads one to believe that an agent of said principal has authority which in fact the agent does not have.

A residential property loan which calls for a payment increase over the first 6 years. Level payments are made for the remaining years and the loan paid off during the 15th year. There is no prepayment penalty and P.M.I. is required.

The first step in the official loan approval process; the form records information about the potential borrower necessary to the underwriting process.

Using a formula to evaluate credit applications and credit bureau data. See also: Fico Score; Scoring Model.

Furnishings (mostly thought of as decorative) and equipment in a building.

A proper allocation of income and expenses of property, especially after a division of ownership.

An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.

The amount of money charged by an appraiser. There is no set amount since the work necessary varies with each property.

A trade organization designed to establish standards of competency in the appraisal industry. The designations MAI (competent by the institute’s standards to appraise all types of real property) and SRA (competent to appraise residential property) are prestigious and heavily relied upon by real estate agents, lenders, governments and others who utilize appraisers. The American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers combined in 1991 to form the Appraisal Institute.

Generally, three major methods of appraisal: Cost Approach, Income Approach, Market Value (comparables) Approach.

A written report by an appraiser containing an opinion as to the value of a property and the reasoning leading to this opinion. The factual data supporting the opinion, such as comparables, appraisal formulas, and qualifications of the appraiser, will also be set forth.

An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc., of the property and surroundings.

One who is trained and educated in the methods of determining the value of property through analysis of various factors which determine said value.

An increase in value to real property due to positive changes or the elimination of negative elements in the surrounding area. Although not within the original meaning, the word has been incorrectly used so often that it is now acceptable to describe an increase in value for any reason, including inflation.

In states where attorneys examine the chain of title before title insurance is issued, the title company will approve certain attorneys as those whose opinion it will accept for the issuance of a title policy.

Something belonging to something else, either attached or not, such as a barn to a house, or an easement to land. The appurtenance is part of the property and passes with it upon sale or other transfer.

Belonging to, accessory to, or incidental to.