Real Estate Glossary

Underwriter - Party who agrees to pay for or finance something, especially by signing an agreement; employee who determines the acceptability of risks. In real estate lending, the person who makes the final determination about whether to make a specific loan.

Underwriting - In lending, a process of completing a secondary and more thorough evaluation of a loan application to determine the risk to the lender. Underwriting includes analysis of the borrower's creditworthiness (capacity to repay the debt, credit history, capital assets) and the value of the collateral, usually the property being purchased.

Undisclosed Principal - Party who is represented by an agent and who instructs the agent not to disclose the party's identity so that the identity remains unknown.

Unimproved Land - See raw land.

Unincorporated Area - Geographic portion of a county where the inhabitants have not formed a governing corporation such as a city.

Unsecured Loan - A loan that is not backed by collateral.

Urban - Of, like or pertaining to a city or town; citified.

Urban Growth Boundary - Imaginary line created by a local or regional government agency to limit residential, commercial and industrial growth to a given area over a certain period of time. In Oregon, land development is very limited outside of cities. Inside cities, land may be developed according to zoning established by city ordinance. Expansion of city boundaries in order to increase the land for development is limited by urban growth boundaries, which are established by local and regional governments, often subject to confirmation by state government.

Useful Life - (1) In real estate appraisal, the economic value of an improvement in terms of years of use. (2) For income tax purposes, the time of economic use established for an asset for depreciation purposes.

Utility Room - Finished or unfinished room in a home, usually near the garage, where common access to utilities is located, especially an electrical panel and connections for a washer and dryer. May also be set up for additional laundry activities (e.g., folding, ironing, etc.) and common household storage. See also, laundry room.

VA - Department of Veterans Affairs; federal agency responsible for administering benefits for military veterans. See also, Department of Veterans Affairs.

VA Loan - Real estate loan for which repayment is guaranteed through a program of the U.S. Department of Veterans Affairs. Under the program, the VA guarantees certain pre-approved lenders that VA will reimburse the lender up to a specified amount if the veteran defaults on the loan. The VA does not actually lend money. The VA guarantee allows a veteran to buy a home up to a specified price with no down payment. Qualification guidelines for VA-guaranteed loans are more flexible than those for conventional loans. See also, certificate of eligibility and certificate of reasonable value.

Vacancy Rate - Estimated percentage of time a rental unit will sit vacant, based on a comparison of vacancies for similar rental properties; often the result of an educated guess.

Variance - Generally, a waiver of a zoning regulation pertaining to a particular zone without changing the other regulations applicable in the zone and without changing the zone's designation. Variances are granted on a case-by-case basis after consideration of a written application and, usually, a public hearing.

Vendee - In a land sales contract, the buyer of the property.

Vendor - (1) Seller of real estate in a land sales contract. (2) Generally, any party who sells a good or service.

Vesting - The name and legal manner in which ownership of real property is held.

Walk-Through Inspection - Inspection by a buyer personally of real estate being purchased; usually visual only. Often includes the buyer looking to verify that repairs have been completed as previously agreed, or that the property remains in the same condition as when initially viewed. See also, final walk-through inspection.

Warranty Deed - Same as general warranty deed. See also, statutory warranty deed.

Whole House Inspection - See home inspection.

Wraparound Mortgage - Purchase financing where a real estate lender makes a loan on property that is already subject to another loan without the earlier loan being paid off or the buyer assuming the earlier loan. The new lender collects one payment each month large enough to cover both the second mortgage and the underlying first mortgage, then forwards the appropriate portion of the payment to the first mortgage lender. Not commonly used in Oregon because most deeds of trust contain a "due on sale clause" requiring that a loan be paid in full upon a sale or transfer of the property securing the loan.

Yard - (1) Landscaped area between a building and property line of a residential property. (2) Open area outside a commercial or retail building used for storage of goods or materials, as in a lumber yard, brick yard, etc.

Zero Lot Line - Term to describe a building constructed with one side exactly on one of the boundary lines of a lot. Usually built along a side boundary, as in a row house, or along a front boundary, as in a store built with its front on the edge of the sidewalk.

Zone - Given area of a city or county where use of land is restricted by local law.

Zoning - Division of a city or county into regulatory zones, each with distinct differences from the other zones. Each zone has specific uses that are allowed, conditionally allowed and prohibited, and each zone has regulations limiting the types and specifications of construction within the zone.