|
|
Return to Index |
W
WAIVER The voluntary or intentional giving up of a claim or privilege. Most modern
real estate sales contracts contain a clause which states that no waiver or modification
of the contents of the contract can occur without the written consent of all parties to
the contract.
WALK-THROUGH INSPECTION The physical inspection of property that takes place
immediately prior to closing for the purpose of ensuring the new owner that the property
is in the same physical condition as when the sales contract was signed.
WALKUP A building at least two stories in height containing no elevator. Such
buildings, quite common in large metropolitan areas, are used for both commercial and
residential use.
WAREHOUSE A building used to receive and store goods and merchandise. In terms of
classifying such property, warehouses are normally located in an area zoned for either
commercial or industrial property.
WAREHOUSING The process by which a mortgage banker or mortgage broker assembles
mortgages that he or she has made and prepares the mortgages to be sold in the secondary
mortgage market. By selling these mortgages the originator now has additional capital that
can be used to make more mortgages which in turn may be sold in the secondary mortgage
market.
WARRANTY A promise or assurance that a set of facts or a statement is true and
correct. The warranty can be either oral or written, and in the case of real estate both
types of warranties exist. Written warranties are often given by suppliers of equipment,
such as appliances or materials, while implied warranties of fitness and merchantability
are given by contractors and sellers of homes.
WARRANTY DEED A type of deed used to convey real property in which the grantor
makes formal assurance as to the quality of title to the property. Warranty deeds, both
general and special, are commonly used to convey real estate.
WASTE The destructive use of property by someone in possession who holds less than
full and clear title such as a tenant or mortgagor.
WASTELAND Land which is considered to be economically unfit for production, such as
swampland or desert land.
WASTING ASSET A natural resource such as timber, oil, or gas which has a limited
useful life and thus is subject to amortization (depletion) during the life of the asset.
WATER COURSE A natural stream of running water being fed by a natural source such
as a stream or river.
WATER RIGHTS A legal right to use the water from a natural stream or canal for such
purposes as irrigation, power, or private consumption.
WATER TABLE The distance from ground level to natural groundwater, be it above or
below the earth's surface.
WEAR AND TEAR The lessening in value of an asset such as real estate due to
ordinary and normal use.
WENDT, PAUL A real estate appraiser who throughout the 1960S and 1970s offered
numerous ideas on real estate appraising. Wendt drew attention to a number of weaknesses
in traditional capitalization theory and attempted to bring into clear focus the
relationship between current practice and appraisal theory. He is the author of Real
Estate Appraisal.
WETLANDS Low-lying land adjacent to water which may be periodically covered by
water or the remains of flooding. Such land is normally restricted as to development that
can take place and in many instances is owned by the federal government or a state
government to insure the ecological protection of such land and its animal inhabitants.
WILL A legal declaration in which a person disposes of property to take effect upon
his or her death. In order to make a valid formal will a person must be of statutory age,
generally eighteen or twenty-one in most states, although some states set the age as low
as fourteen. In addition, the person must be of 'sound mind' at the time of the execution
of the will. A formal will must be in writing, which may be typed, printed, or
handwritten. Real estate must be described with sufficient certainty, but it is not
required that a complete legal description be included. In addition, a formal will must be
signed.
WOMEN'S COUNCIL OF REALTORS (WCR) An affiliate of the National Association of
Realtors whose members have expressed an interest in furthering the role of women in real
estate brokerage activities. WCR offers opportunities for the development of leadership
skills through its local and state chapters and the WCR Leadership Training Graduate (LTG)
program. The mailing address is 430 North Michigan Avenue, Chicago, Illinois 60611; (312)
440-8W3.
WORK LETTER A letter given by a landlord to a tenant detailing the amount and type
of work the landlord and the tenant will each do in preparing the property for occupancy
by the tenant.
WORKOUT (LOAN) A loan which is technically in default but under which the lender
(mortgagee) is attempting to assist the borrower (mortgagor) in restructuring the terms of
the loan or the time of repayment rather than proceeding with foreclosure.
WRAPAROUND MORTGAGE A method of acquiring additional financing on real estate by
placing the additional funds in a secondary or junior position to the existing debt. As
its name implies, a wraparound mortgage 'wraps around' an existing first mortgage. This
method of obtaining additional capital is often used with commercial property where there
is substantial equity in the property and where the existing first mortgage has an
attractive low interest rate. By obtaining a wraparound, the borrower receives dollars
based on the difference between current market value of the property and the outstanding
balance on the first mortgage. The borrower amortizes the wraparound mortgage which now
includes the balance of the first mortgage and the wraparound lender forwards the
necessary periodic debt service to the holder of the first mortgage. Thus, the borrower
reduces the equity and at the same time obtains an interest rate lower than would be
possible through a normal second mortgage. The lender receives the leverage resulting from
an interest rate on the wraparound greater than the interest paid to the holder of the
first mortgage.
WRIT OF EXECUTION A court order instructing an officer of the court to carry out
the decision of the court, such as the selling of foreclosed property or the removal of a
tenant at sufferance.
| 
Copyright © 2000
- 2008 Brenda Rose, retired