We are pleased to welcome you to the Real Estate AlphabetTM. As we add to the list of words defined here, we will include the most important terms that home buyers, sellers, agents and students are likely to encounter. The definitions are from publications carried by the Real Estate BookstoreTM. Our comments are indicated by REB.
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appraisal    "An appraisal is a supportable estimate of property value. It includes a description of the property under consideration and the appraiser's opinion of the property's condition, its utility for a given purpose and/or its probable monetary value on the open market."
From The Art of Real Estate Appraisal: Dollars and Cents Answers to Your Questions by William L. Ventolo and Martha R. Williams / Paperback / Published 1992 / $
REB:Federal law requires that appraisers in federally-related transactions (which includes most home mortgages) be licensed or certified by the state in which the property being appraised is located. The lender will usually hire the appraiser as part of the loan transaction, but you are entitled to see a copy of the appraisal. If you hire an appraiser yourself for any purpose, make sure that the appraiser is licensed or certified by your state.
broker    "One who acts as an intermediary on behalf of others for a fee or commission."
From Modern Real Estate Practice, 14th Edition by Fillmore W. Galaty, Wellington J. Allaway, Robert C. Kyle / Paperback / Published 1997 / $$$
REB: If you want to be in the business of selling or buying real estate for other people, you must obtain a real estate broker's license. Brokers can hire others who are licensed as either brokers or real estate salespeople to carry out the activities of the real estate office. Traditionally, a real estate broker was the agent of the property seller. A broker entered into an agreement with a property owner to sell property, and that broker--or another broker who saw the property in the multiple listing service (MLS)--worked with the buyer to submit an offer acceptable to the seller. Unfortunately, buyers frequently assumed (incorrectly) that they were working with an agent who represented them. In addition, facts concerning the condition of the property might be kept from the buyer. But the credo of "caveat emptor" (let the buyer beware) is no longer the rule of law in any state. Nationwide, the role of the real estate broker is being redefined to clarify the broker's representation, and also to make sure that adequate disclosure of property condition is made to a prospective buyer. The industry itself is also moving to make sure that the buyer is adequately represented. Many real estate offices now practice "exclusive buyer brokerage" and refuse to accept property listings from sellers; they deal only with buyers. The Department of Real Estate (or Real Estate Commission) in your state has information on the education and experience required for licensing, and also will accept complaints regarding licensees. Click here for links to the Web sites of many state licensing agencies.

condominium    "An estate in real property consisting of an individual interest in an apartment or commercial unit and an undivided common interest in the common areas in the condo project such as the land, parking areas, elevators, stairways, exterior structure and so on. . . ."
From The Language of Real Estate by John W. Reilly, DREI / Paperback / Published 1993 / $$
REB:When you own a condominium, you own the airspace within a defined unit. Along with all of the other unit owners, you share ownership in the structure of the building, the ground the building is on, and the other parts of the property, such as sidewalks and landscaping, swimming pool and parking area. The building can be one-story or multi-story. You can mortage or lease your ownership interest, subject to any restrictions in your deed. All owners pay an assessment, usually monthly, to cover the expense of maintaining common areas. Because land cost is shared by all property owners, this is an attractive form of ownership in areas where land costs are high, such as resorts. It also appeals to people who want the tax advantages of ownership, yet don't want the burden of outside maintenance of a detached home.
deed    "A written instrument . . . conveying some property interest from a grantor to a grantee. A grantor is the person who conveys the property interest; the grantee is the person to whom the grant is made. . . ."
From Handbook of Real Estate Terms by Dennis S. Tosh, Jr. and Nicholas O. Ordway / Paperback / Published 1991 / $
REB:Every state has its own requirements for a legally valid deed to property within the state. Generally, a deed states the names of the grantor and grantee, provides a legal description of the property conveyed and is signed by the grantor. The property buyer (the grantee) should record the deed. This means that the deed is brought to the county recorder's office of the county where the property is located, so that it can be copied and made part of the public record. In order to be recorded, the grantor's signature on the deed must be acknowledged. This means that the grantor's signature must be witnessed by a notary public or other official. In some parts of the country, the grantor's fingerprint also is necessary for recording. There may be deed restrictions that limit the new owner's use of the property, such as a restriction that prohibits construction of a manufactured home. Most often, limitations on property use appear in a Declaration of Restrictions that is separately recorded and simply referenced in the deed.

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