| Term | Definition |
|---|
| acknowledgment | A declaration made by a person to a notary public, or other public official authorized to take acknowledgments, that the instrument was executed by him and that it was his free and voluntary act. |
| acre | A measure of land equal to 43,560 square feet. |
| ad valorem | Designates an assessment of taxes against property. Literally, according to value. |
| additional principal payment | A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan. |
| adjustable rate mortgage (ARM) | A mortgage loan whose interest rate fluctuates according to the movements of an assigned index or a designated market indicator--such as the weekly average of one-year U.S. Treasury Bills--over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary. |
| adjusted basis | The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken. |
| adjustment date | The date on which the interest rate changes for an adjustable-rate mortgage (ARM). |
| adjustment period | The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM). |
| adjustments | Money that the buyer and sellers credit each other at the time of closing. Often includes taxes and down payment. |
| administrator/administratrix | A man/woman appointed by a court to settle the estate of a deceased person when there is no will. Contrast with executor/executrix. |
