Oscar Castillo
"Residential" Real Estate


    - Glossary





Valid contract   a contract that complies with all the essentials of a contract and is binding and enforceable with all associated parties.

VA loan   a government-sponsored mortgage assistance program administered by the Department of Veterans Affairs. Under the Servicemen's Readjustment Act of 1944, eligible veterans and widows or widowers (who have not re-married) of veterans who died in service or from service-connected causes may obtain partially guaranteed loans for the purchase or construction of a house or to refinance existing mortgage debt, a VA loan is a loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders. The VA was designed to offer long-term financing to American Veterans or to their surviving spouses

Valuation   the process to determine what a property is worth. Lenders orders valuations through an independent third party to help prevent fraud.  Lenders should have no influence in determining value. If the buyer’s valuation differs significantly from the valuation the lender has obtained, the lender may or may not consider reassessing the value again.

Value   The measure of the monetary equivalent of a property. The four essential elements of value are (1) utility, (2) scarcity, (3) demand and (4) transferability. Cost does not equal value nor does equity. There are various types of value, such as market value, tax assessed value, book value, insurance value, use value, par value, rental value and replacement value. By far, the type of value used for the largest number of real estate transactions is market value.

Value in exchange   the market value of a property.

Value in use   the value of a property as used for a specific purpose.

Vampire REO's - are bank-owned homes that are still occupied by the previous homeowner who have been foreclosed on. On the surface these properties often will look like normal "non-distressed" homes, but beneath the surface they represent a "shadow inventory" - which is inventory that has not been exposed to the market place yet (ie: not listed).  This type of shadow inventory (Vampire REO's) does remain and is sitting "out there".  Yes, it can be viewed upon as being intentionally hidden from the market.  What will motivate banks/lenders to sell them is a rise home prices (ie: enough/higher value) in order to try to recoup/minimize their losses from these bad loans.

Vandalism Endorsement - An optional type of coverage that can be added to a basic hazard or property and casualty insurance policy to provide "replacement payment" to the policy holder if his or her property is intentionally damaged by criminals.

Vapor retarders   special materials used in the installation of thermal insulation to reduce the passage of water vapor.  These materials include treated papers, plastic sheets, and metallic foils.

Variable costs   operating expenses that fluctuate with occupancy, such as utilities and maintenance costs.

Variable lease   allows for increases in the rental charges during the lease period. One of the more common is the graduated lease which provides for specified rent increases at set future dates. Another is the index lease, which allows rent to be increased or decreased periodically based on changes in the consumer price index or some other indicator.

Variable Rate Mortgage (VRM)- A loan in which the interest rate fluctuates with the cost of funds or other financial index plus a margin.  Also know as a Variable interest rate loan.

Variance   permission obtained from governmental zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning lows; an exception from the zoning laws. A variance gives some measure of elasticity to the zoning game.

Variate   a single item in a group.  In Real Estate range pricing, the high price and the low price are both considered variates.

Vendee   the purchaser (buyer) of realty.

Vendor   The seller of realty. In some land contract cases, the vendor may not be the owner--he or she might be the holder of an option.

Verification   confirmation under oath of the truthfulness of a statement.

Vestee    the owner of real property who name has been vested.

Vesting - vesting is a method of holding title to your real estate.  An Escrow or a Title company will ask the buyer or the party refinancing-How are you going to hold title?   A vesting is usually required every time you file a deed.... such as Sole ownership, Joint Tenancy, a Trust, Community property, Tenants in Common etc.

Veteran's Administration (VA)   a Federal agency providing assistance to veterans, including the guarantee of VA mortgage loans.

Veteran's exemption   California war veterans may receive a $4,000 exemption on the full cash value of their homes.

Void   having no legal force or binding effect; a nullity; not enforceable. A void agreement is no contract at all. A void contract need not be disaffirmed, nor can it be ratified. A contract for an illegal purpose (for example, gambling) is void.

Voidable contract   a contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties. A voidable contract is one that is able to be voided. Voidable implies a valid act that may be rejected by an act of disaffirmance (cannot be bound), rather than an invalid act that may be confirmed. For example, if a minor contracts to buy a diamond ring, the contract can be voided by the minor because of lack of sufficient age. If, however, the minor elects to enforce the contract, the contract is valid and the other party cannot assert the minor's lack of age as a defense.

Volatile organic compounds    carbon compounds that tend to be emitted as gases into the air. Organic chemicals are widely used as ingredients in household products. Paints, varnishes, and wax all contain organic solvents, as do many cleaning, disinfecting, cosmetic, degreasing, and hobby products. Fuels are made up of organic chemicals. All of these products can release organic compounds while in use or in storage.

Voluntary conveyance   voluntarily signing over to a lender the property pledged as collateral on a defaulted loan.

Voluntary lien   a lien placed on property with the knowledge and consent of the property owner.


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