Home Improvement Tv,

OPERATING EXPENSES
Those periodic and necessary expenses which are essential to the continuous operation and maintenance of a property.

ATTORNMENT
The act of a tenant formally agreeing to become the tenant of a successor landlord; as in attorning to a mortgagee who has foreclosed on the leased premises.

BORROWER (MORTGAGOR)
An individual who applies for and receives funds in the form of a loan and is obligated to repay the loan in full under the terms of the loan.

HOMESTEAD
A home which is used as a personal residence.

MECHANIC'S LIEN
A statutory lien created in favor of materialmen and mechanics to secure payment for materials supplied and services rendered in the improvement, repair or maintenance of real property.

CLOSING STATEMENT
A detailed cash accounting of a real estate transaction prepared by an escrow officer or other person designated to process the mechanics of the sale, showing all cash that was received, all charges and credits which were made, and all cash that was paid out in the transaction; also called a settlement statement.

PRO FORMA STATEMENT
A projection of future income and expenses.

STATUTE OF LIMITATIONS
That law pertaining to the period of time within which certain actions must be brought to court.

FHA
See Federal Housing Administration.

ENTIRETY, TENANCY BY
A form of joint ownership of property between husband and wife with the right of survivorship.

NOTICE OF DEFAULT
Written notice to a borrower that a default has occurred and that legal action may be taken.

RANGE
A measurement, used in the government survey system, consisting of a strip of land six miles wide, running in a north-south direction.

CUSTOMER TRUST FUND (CTF)
An impound account maintained for the purpose of setting up a reserve to pay certain periodic obligations such as real property taxes, insurance premiums, lease rent, and maintenance fees.

LOAN-TO-VALUE RATIO (LTV)
The percentage of the loan amount to the appraised value (or the sales price, whichever is less) of the property.

REALTY
Land and everything permanently affixed thereto.

REBATE
A reduction or kickback of a stipulated charge.

REAL ESTATE
The physical land and appurtenances, including any structures; for all practical purposes synonymous with real property.