We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

U Terms

Underimprovement:  A structure or development of lower cost or value than the highest and best use of the site. Versus overimprovement.

 

Underlying Mortgage: A lien that has priority over liens of other creditors. It must be repaid before the other liens are fully paid.

 

Underwriter:  One who insures another or takes certain risks.  In mortgage lending, the one who approves or denies a loan based on the qualifications of the property and borrower.  In securities, it is the broker that sells the issue and, unless sold on a "best efforts" basis, agrees to purchase the remaining security not bought by the public. 

 

Unearned Increment:  An increase in the value of real estate unrelated to efforts by the owner; due to an increase of the market value often because of an increase in area population.

 

Unencumbered Property:  Real estate that is free and clear of mortgages and other liens.

 

Uniform Commercial Code (UCC):  A group of laws to attempted to standardize the state laws that are applicable to commercial transactions.

 

Uniform Settlement Statement: Provides an itemization of both the seller's and borrower's costs for closing the loan.  Called a HUD-1.

 

Unilateral Contract:  An obligation given by one party contingent on the performance of another party, but without obligating the second party to perform. Also see bilateral contract. 

 

Unimproved Property:  Land that has received no development, construction, or site preparation. It is raw land. 

 

Unit In Place Method:  A valuation technique used by appraisers to estimate the reproduction cost (new) of a structure.  The method involves estimating the cost of producing and installing individual components, such as the foundation, exterior walls, plumbing, electrical, etc.

 

Unrealized Gain:  The difference of current market value over the cost for an asset if it were sold.

 

Unrecorded Deed:  An instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of change in ownership.  Recording is essential to protect one's interest in real estate.

 

Upset Price:  The minimum acceptable price for property being auctioned.

 

Urban Property:  Real estate located in an urban area, generally characterized by relatively high-density development and extensive availability of city water and sewer services. 

 

Urban Renewal:  The process of redeveloping deteriorated sections of the city, often through demolition, new construction, and conversion of existing buildings.  Although urban renewal may be privately funded, it is most often associated with government renewal programs.

 

Useful Life:  The period of time over which a building is expected to provide a competitive return or use. 

 

Usufructuary Rights:  Interests that provide for the use of property that belongs to another.

 

Usury:  The charging a rate of interest greater than that permitted by state law.  In most states, usury limits vary according to the type of lender and type of loan.  Federal laws have also been passed on certain usury limits and conditions. 

 

Utilities:  Services such as water, sewer, gas, electricity, and telephones, that are generally required to operate a building.

 

Utility Easements :  Use of another's property for the purpose of laying gas, electric, water, and sewer lines.