REAL ESTATE TERMS

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There are currently 10 names in this directory beginning with the letter A.
ADDENDUM
If a buyer or seller want to change an existing contract, they might add an addendum outlining the specific part of the contract they’d like to adjust and the parameters of that change. The rest of the contract stays the same, regardless of the addendum.

ADJUSTABLE RATE MORTGAGE
The interest rate for an adjustable-rate mortgage changes periodically. You might start with lower monthly payments than you would with a fixed-rate mortgage, but fluctuating interest rates will likely make those monthly payments rise in the future.

ADJUSTMENT DATE
The date in which the interest will begin to accrue on your mortgage, before payment is made on the mortgage. It is usually the date the mortgage funds are dispersed.

AGREEMENT OF SALE
An agreement between the seller (vendor) and buyer (vendee) for the purchase of real property.

AMORITIZATION
The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest.

ANNUAL PERCENTAGE RATE
The annual percentage rate (APR) is the amount of interest charged on your loan every year.

APPRAISAL
An appraisal is the process of creating an estimate of value for real estate property. Fair market value (FMV) is the price a property would sell for given a reasonable amount of time and assumes the buyer and seller know about all the details of the property. For the appraiser to get an accurate value, they must collect appropriate data and apply one or more approaches. He or she will then explain the appraisal decision in a final reconciliation of value.

APPRECIATION
Appreciation refers to the increase in the value of a property or item over time.

ASSESSED VALUE
A municipal or provincial government's determination of a property's worth for tax purposes.

ASSUMABLE MORTGAGE
An assumable mortgage is a type of financing arrangement whereby an outstanding mortgage and its terms are transferred from the current owner to a buyer. By assuming the previous owner's remaining debt, the buyer can avoid having to obtain their own mortgage.