A mortgage with a due-on-sale clause is not assumable.Įquity - The difference between the value of a home and what is owed on it. Allowable densities are usually determined by local jurisdictions.ĭue-on-Sale - A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property.

The following glossary will help you to be a better informed shopper.Īssessment - A tax levied on a property or a value placed on the worth of property by a taxing authority.īinder - A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller.Ĭertificate of Occupancy - A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.Ĭonditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision.Ĭondominium - A home in a multi-unit complex each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc.Ĭredit Rating - A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.ĭefault - A breach of a mortgage contract (such as not making monthly payments).ĭensity - The number of homes built on a particular acre of land. When you start shopping for a new home, you may encounter some words and terms with which you are unfamiliar.

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