An educational program from the FHA that counsels people about the home buying process. Completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium.

(1) Anything which could be considered real property. (2) Anything which may be inherited.

An appraisal term describing an area composed of buildings of varied styles or uses. Not as desirable as homogeneous property.

See: Gore.

The line on the shore to which high tide rises under normal weather conditions.

An apartment building considered “high” in the area where it is built. There is no national height standard.

The use of land which will result in its highest value. In appraisal this cannot be merely theoretical but must be realistic in that the use must be legal (proper zoning, etc.), physically achievable and financially feasible.

Technically, any public road, regardless of size. Most commonly, a paved road which carries traffic at high speeds.

The number of vehicles which may move along a highway at the same time. The number may vary as the type (size) of the vehicles vary, speed limit changes, access changes, etc.

Technically, land which fronts on a highway. For purposes of determining value, land which fronts on and has access to a highway.

The convex angle at the exterior meeting of the sides of a hip roof.

The rafter which forms the intersection of a convex roof angle.

A roof with four sloping sides which rise to a ridge. Usually found on garages or church steeples. Also called a pyramid roof.

The cost of a building when first constructed, as opposed to the original cost (cost to the present owner), although they may be the same.

Small depressions formed by heavy rains, resembling the depressions left after the wallowing of hogs.

A statement in a legal contract stating that an individual or organization is not liable for any injuries or damages caused to the individual signing the contract. Typically this is used to protect the real estate licensees from liability.

A tenant who retains possession after the expiration of a lease.

Portion of a loan held back by the lender until a contingency is net. In the sale of a home insured by V.A. or F.H.A., funds may be held back to make necessary improvements to bring the property to V.A. or F.H.A. standards. The money to make these repairs may not be available until closing. One and one half to double the estimated amount necessary is held back. If repairs are not made in the time allowed, these funds are used to make the repairs. In construction financing, funds are held back until, for example, a certain percentage of a subdivision has been sold, or a certain portion of a building has been completed.

One who rightfully acquires a negotiable instrument, such as a check or note. A holder has the same rights as an assignee, which are less than the rights of a holder in due course. See also: Holder In Due Course.

The transferee of a negotiable instrument, such as a check or note, for value, in good faith and without knowledge that the instrument is in default or has been dishonored. A holder in due course has greater rights than a holder and may have greater rights than the original transferor.

An open escrow for the life of a land contract, under which the escrow holder may be empowered to collect payments due under the contract and pay underlying encumbrances, and record a deed and purchase money mortgage, which are executed at the time of the inception of the land contract and held in the escrow, in the event of default by vendee. A cumbersome and costly method not used in all states, and in states where used, rapidly being replaced by the security (installment) land contract.