Free Real Estate Vocabulary Flashcards

The horizon (layer of soil) beneath the top layer. The composition of the B horizon is changed by the action of percolating water.

See: British Thermal Unit.

Points paid to a mortgage broker by a lender which exceed the points paid by the borrower.

In states where attorneys examine title for title insurance purposes, this letter is given by a title insurance company to an attorney, giving to said attorney the condition of title as of a certain date. The attorney then begins his examination as of that date. Also called a starter or back title certificate. See also: Starter.

To replace ground removed by excavation for construction. Used to brace a structure (especially a foundation or footings).

A secondary offer to buy property, used in case the first (primary) offer fails. A backup offer is especially useful when the primary offer contains difficult contingencies.

Water in a stream or river which, because of a dam or other obstruction, is stopped in its course or flows back toward its source.

A valve set in a lateral sewer line which automatically prevents sewage from flowing back to its source (a building).

An appraisal term meaning that value of real property is best sustained when opposite influences (e.g. supply and demand) are equal.

See: Installment Note, Balance Due Date.

A statement of the assets and liabilities of a company to determine its net worth (equity).

A tax free exchange of properties under Section 1031 of the Internal Revenue code. To be tax free the taxpayer must invest all of the profit from the relinquished property into the replacement property. See also: Boot.