H

• Highest and Best Use: The use of a property that maximizes its value.
• Homeowners Association (HOA): An organization that manages common areas and enforces community rules in a housing development.

I

• Income Approach: A method of property valuation based on its potential income.
• Improvement: Any structure or feature added to land that increases its value.

J

• Joint Tenancy: Ownership of property by two or more individuals with the right of survivorship.
• Joint Venture: A business arrangement where two or more parties combine resources for a specific real estate project.

K

• Key Money: A payment made to secure a lease or rental agreement.
• Kickback: An illegal payment made in return for a referral or favorable treatment.

L

• Lien: A legal claim on a property to secure payment of a debt.
• Leasehold: A right to use and occupy real estate for a specified period, usually through a lease agreement.

M

• Market Value: The most probable price that a property should bring in a competitive and open market.
• Mortgage: A loan secured by real property.

N

• Net Operating Income (NOI): The total income generated by a property minus operating expenses.
• Nonconforming Use: A land use that does not conform to current zoning regulations.

O

• Overimprovement: Making improvements to a property that exceed the neighborhood norm.
• Open Listing: A property is listed with multiple brokers, and only the broker who brings in a buyer receives a commission.

P

• Property Tax: Taxes assessed on real estate by local governments.
• Plat: A detailed map of a subdivision, showing the location and boundaries of individual properties.

Q

• Quiet Title Action: A legal action to establish ownership of a property.
• Qualified Fee: A type of ownership where certain restrictions or conditions are placed on the property.

R

• Reconciliation: The final step in the appraisal process, where the appraiser considers various valuation approaches and arrives at a final value.
• Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate.

S

• Subject Property: The property being appraised.
• Survey: A measurement and mapping of a property’s boundaries, structures, and features.

T

• Title: The legal right to ownership of a property.
• Tax Lien: A claim by the government against a property for unpaid taxes.

U

• Underwriting: The process of evaluating a loan application to determine its risk.
• Usury: Charging an interest rate higher than the legal limit.

V

• Vacancy Rate: The percentage of vacant rental units in a property or market.
• Vacant Land: Land without any structures.

W

• Warranty Deed: A legal document that guarantees clear title to a property.
• Writ of Execution: A court order to enforce a judgment by seizing and selling a debtor’s property.

Y

• Yield: The return on an investment, often expressed as a percentage.
• Yield Spread Premium: A fee paid to a mortgage broker for obtaining a loan with a higher interest rate.

Z

• Zoning: Government regulations that control the use of land in a specific area.
• Zoning Variance: Permission from local authorities to deviate from zoning regulations for a specific property.