A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.

Certified Residential Broker. To be certified, a broker must be a member of the National Association of Realtors,® have five years experience as a licensed broker and have completed required Residential Division courses.

Certified Residential Specialist.

The comparison of a buyer's housing costs to his or her gross or net effective income, and the comparison of a buyer's total long-term debt to his or her gross or net effective income. The first ratio is housing ratio; the second ratio is total debt ratio.

A clause that requires a full payment of a mortgage or deed of trust when the secured property changes ownership.

The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith.

The difference between what is owed and what the property could be sold for.

A procedure in which a third party acts as a stakeholder for both the buyer and the seller, carrying out both parties' instructions and assuming responsibility for handling all of the paperwork and distribution funds.

Called Freddie Mac; a part of the secondary market, particularly used to purchase loans from savings and loan lenders within the Federal Home Loan Bank Board.

Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by the VA, as well as conventional home mortgages.

An estate in which the owner has unrestricted power to dispose of the property as he wishes, including leaving by will or inheritance. It is the greatest interest a person can have in real estate.

A loan insured by the Federal Housing Administration (of the Department of Housing and Urban Development).

The total cost a borrower must pay, directly or indirectly, to obtain credit according to Regulation Z.

A conventional loan with a single interest rate for the life of the loan.

The maximum interest rate on an ARM that can be reached at the first adjustment.

A letter from a relative stating that an amount will be gifted to the buyer, and that said amount is not to be repaid.

Called Ginnie Mae; a governmental part of the secondary market that deals primarily in recycling VA and FHA mortgages, particularly those that are highly leveraged.

A residential mortgage with monthly payments that start at a low level and increase at a predetermined rate.

Graduate, Realtors Institute. A professional designation granted to a member of the National Association of Realtors® who has successfully completed courses covering Law, Finance and Principles of Real Estate.

A qualified inspector's report on a property's overall condition. The report usually includes an evaluation of both the structure and mechanical systems.