Glossary of Terms

• Abstract of title

  A compilation of the recorded documents relating to a parcel of land, from which an attorney may give an opinion as to the condition of title. Still in use in some parts of Wisconsin and in some other states, but giving way to the use of title insurance.
  
  
• Addendum

  Something added; a list or other material added to a document, letter, contractual agreement, escrow instructions, etc. (See also amendment).
  
  
• Adjustment Interval

  The period of time between changes in interest rate and/or monthly payment with an adjustable rate loan. These intervals will vary depending on the lending institution and the type of loan for which application is being made.
  
  
• ALTA (American Land Title Association)

  An organization composed of title insurance companies which has adopted certain insurance policy forms to standardize coverage on a national basis.
  
  
• Amortization

  Payment of a debt in installments of principal and interest, rather than interest-only payments.
  
  
• Appraisal

  A formal, written estimation of the current value of a home.
  
  
• APR (Annual Percentage Rate)

  The cost of credit expressed as a yearly rate. It takes into account interest, points and loan origination fee. Since all lenders are required to use the same guidelines in determining APR, this is a good basis for comparing the cost of various loan programs.
  
  
• Assessments

  (1) The estimating of value of property for tax purposes.
  (2) A levy against property in addition to general taxes. Usually for improvements such as streets, sewers, etc.
  (3) Charges against unit owners in a condominium by a condo or homeowners association.
  
  
• Assumption Fee

  Fee charged by mortgage lender when new Buyer of property assumes an existing mortgage.
  
  
  
  

• Accrual (of income, expenses, etc.)

  An accounting method under which income and expenses are charged to the periods for which they are applicable, rather than when payment is received or made; the method calling for income and expenses to be based on payment being received or made in cash accounting.
  
  
• Adjustable Rate Loan

  A loan in which the rate of interest is tied to a specific financial index, with both the rate of interest and the monthly payments subject to change at established adjustment intervals.
  
  
• Agency

  Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter. Agency involving real property should be in writing, such as listings, Buyer brokerage agreements, trusts, powers of attorney, etc.
  
  
• Amendment

  A change to alter a part of an agreement without changing the principal idea or essence.
  
  
• Application Fee

  A fee, often non-refundable, charged by the lender to cover costs of processing an application.
  
  
• Appurtenant

  Belonging to, accessory to, or incidental to.
  
  
• ASCS (Agricultural Stabilization and Conservation Service)

  A division of the U.S. Department of Agriculture.
  
  
• Assume and Agree to Pay

  A form of purchase of real estate whereby the Buyer agrees to be personally liable for payment of balance due from Seller on a specific mortgage which is a lien on such real estate.
  
  

The South Central Wisconsin MLS serves Dane, Sauk , Columbia, Rock, Dodge, Iowa, Green, Lafayette, Grant, and Richland Counties, as well as portions of Jefferson, Crawford, Vernon, Juneau, Monroe, Adams, Marquette, Green Lake, and Waushara Counties.

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