Real Estate Terms

Unencumbered property is property that is free of any lien.

Unity of interest occurs when co-owners all have the same percentage of ownership in a property.

Unity of possession occurs when all co-owners have the right to possess any and all portions of the property owned, without physical division.

Unity of time occurs when co-owners receive title at the same time in same conveyance.

Unity of title occurs when co-owners have the same type of ownership in a property.

A special federal tax levied on investment income generated from property held in a pension plan in which there is a mortgage. The property ownership is allocated between the cash investment and the mortgage, and all gain allocable to the mortgage portion is subject to UBTI tax.

Shares of stock in a cooperative corporation transferred to the sponsor at the completion of the conversion process. The sponsor normally gets special rights to rent and/or sell these shares (representing special apartments) without board approval.

Use variance is the permission to use the land for a purpose which, under the current zoning restrictions, is prohibited.

Useful life is the period of time that a property is expected to be economically useful.

Usury is charging a rate of interest higher than the rate allowed by law.

A VA guaranteed loan is a mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veteran Affairs.

The vacancy rate is the projected rate of the percentage of rental units that will be vacant in a given year.

Valuation establishes an opinion of value utilizing an objective approach based on facts related to the property, such as age, square footage, location, cost to replace, etc.

Value in use is the present worth of the future benefits of ownership.

A variance is a deviation from specific requirements of a zoning ordinance due to special conditions of the property.

A vendor’s affidavit is a document signed under oath by the seller stating that the seller has not encumbered title to real estate without full disclosure to the purchaser.

Vesting options are choices buyers have in how to acquire property.

Vicarious liability is one person being responsible for the actions of another.

The walk-through inspection of a property occurs right before a closing to ensure that the property is being delivered as stipulated in the contract of sale.

A walk-up building is a building that does not have an elevator and are usually four or five stories.

Wetlands are federal and state protected transition areas between uplands and aquatic habitats that provide flood and storm water control, surface and groundwater protection, erosion control, and pollution treatment.

Words of conveyance is a stipulation in a deed demonstrating the definite intent to convey a specific title to real property to a named grantee.

A wraparound mortgage is a junior mortgage in an amount exceeding a first mortgage against the property.

A writ of attachment is a court order preventing any transfer of attached property during litigation.

The yield refers to the return on an investment.

An area of a municipality or specific building that is zoned for a specific use, such as residential, commercial, etc.

Zoning are the laws regulating land use.

Zoning ordinance is a statement settling forth the type of use permitted under each zoning classification and specific requirements for compliance.