Real Estate Glossary - U thru V

Underimprovement - An improvement which, because of deficiency in cost or size, is not the most profitable use of the land; not the highest and best use.

Underwriting - In real estate lending, the process of evaluating a loan application to determine the probability that the applicant would repay the loan, and matching the risk to an appropriate rate of return. Sometimes called risk analysis.

Undue Influence - Exerting excessive pressure on someone so as to overpower the person's free will and prevent him or her from making a rational or prudent decision; often involves abusing a relationship of trust.

Uniform Settlement Statement - A settlement statement required for any transaction involving a loan that is subject to the Real Estate Settlement Procedures Act (RESPA).

Uniform Standards of Professional Appraisal Practice - Guidelines for appraiser adopted by the Appraisal Foundation, a nonprofit organization of professional appraiser associations.

Unit-in-Place Method - In appraisal, a method of estimating replacement cost by estimating the cost of each component (foundation, roof, etc.), then adding the costs of all components together.

Unity of Interest - In reference to concurrent ownership, when each co-owner has an equal interest (equal share of ownership) in the property. A requirement for joint tenancy.

Unit of Possession - When property is owned concurrently by two or more individuals, each co-owner is equally entitled to possession of the entire property, because their interests are undivided. This is a requirement for joint tenancy, but it is also a characteristic of all concurrent ownership.

Unity of Time - In reference to concurrent ownership, when each co-owner acquired title at the same time. A requirement for joint tenancy.

Unity of Title - In reference to concurrent ownership, when each co-owner acquired title through the same instrument (deed, will, or court order). A requirement for joint tenancy.

Unjust Enrichment - An underserved benefit; a court generally will not allow a remedy (such as forfeiture of a land contract) if it would result in the unjust enrichment of one of the parties.

Unlawful Detainer - A summary legal action to regain possession of real property; especially, a suit filed by a landlord to evict a defaulting tenant.

Usury - Charging an interest rate that exceeds legal limits.

Utility - The ability of an object to satisfy some need and/or arouse a desire for possession; one of the four elements of value, along with scarcity, demand, and transferability.

V

VA - Department of Veterans Affairs.

VA Entitlement - The guaranty amount that a particular veteran is entitled to.

Valid - The legal classification of a contract that is binding and enforceable in a court of law.

Value, Assessed - The value placed on property by the taxing authority (the county assessor, for example) for the purposes of taxation.

Value, Face - The value of an instrument, such as a promissory note or a security, that is indicated on the face of the instrument itself.

Value, Market - The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. (This is the definition from the Uniform Standards of Professional Appraisal Practice.) Market value is also called fair market value, value in exchange, or objective value.

Value, Utility - The value of a property to its owner or to a user. (A form of subjective value.) Also called value in use.

Variable Expense - A property management expense that varies depending on current management needs (e.g., repair expenses).

Variable Interest Rate - A loan interest rate that can be adjusted periodically during the loan term, as in the case of an adjustable-rate mortgage.

Variance - Permission (from the local zoning authority) to use property or build a structure in a way that violates the strict terms of the zoning ordinance.

Vendee - A buyer or purchaser; particularly, someone buying property under a land contract.

Vendor - A seller; particularly, someone selling property by means of a land contract

Verify - 1.To confirm or substantiate. 2. To confirm under oath.

Vested - A person who has present, fixed right or interest in property has a vested right or interest, even though he or she may not have the right to possession until sometime in the future. For example, a remainderman's interest in the property vests when it is granted (not when the life estate ends).

Voucher System - In construction lending, a system in which the general contractor gives subcontractors vouchers (instead of cash) for services rendered. The vouchers, which are statements attesting to the sum owed, are then presented to the construction lender for payment.

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