U-value
The amount of heat a door or window conducts between the inside air and the environment.

U.S. Department of Housing and Urban Development
Also known as HUD. A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.

U.S. Department. of Housing and Urban Development (HUD)
A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.

Ultra vires
Action that is beyond that allowed legally.

Unbundled real estate services
Real estate services not bound together, but purchase transaction at a time.

Underfloor wiring system
Wires, such as for electricity, places beneath the floor of a structure.

Underimprovement
An improvement to property that is below the standard, usual expectation.

Underlayment
A layer of wood between the subfloor and the floor.

Underlying mortgage
The first mortgage on property when other mortgages exist as well, as in the case of a wraparound loan.

Underpinning

1. . Using beams on an interim basis while a structure is being built.
2. . Reinforcing a building with supports.
3. . A property.

Undersupply
Lack of supply of real property. When demand exceeds supply, price of the property goes up.

Underwriter knot
A code-approved knot tied at the end of an electrical cord to prevent the wires from being pulled away from their connection to electrical terminals.

Underwriting
The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan.

Underwriting fee
A fee charged by the lender to verify information on the loan application, authenticate the property's worth as collateral, and make a final determination about whether to grant a loan to the applicant.

Underwritting
The acceptance of risk in return for payment. In a new securities issue, the underwriter, known as the underwritting function by purchasing the securities of a real estate company at a fixed price from the issuer, expecting to sell them at a higher offering price and making a profit on the spread. Underwritting is the function of investment bankers, who usually form an underwriting group, also called a syndicate, to pool the risk and assure successful distribution of the issue.

Undisclosed heir
A person who claims the right to a piece of property after the death of an owner without a will.

Undisclosed principal

1. . A major party to a transaction, such as a seller or purchaser of property, remains anonymous.
2. . Person is not informed by an agent that there is a principal. In this case, the agent has legal ability under the contract.

Undisclosed spouse
A marital partner who can claim the right to a piece of property but is not identified in the owner's will.

Undivided interest
Ownership by two or more persons that give the right to use the entire property.

Undue influence
Someone acts in an extraordinary way because of fear, excessive influence, or other reason. The person is being forced to do something against his will. The injured person can use this pressure tactic as a basis to void the contract.

Unearned increment
Unexpected increase in the price of property not due to any effort on the owner's part.

Unemployment
The nonavailability of jobs for people able and willing to work at the prevailing wage rate. It is important measure of economic health, since full employment is generally constructed as a desired goal. As firms fail and as individuals struggle, mortgages and other loans go unpaid. This causes real estate values to go down and hurts lenders. Loan defaults rise.

Unencumbered
Real property that is without any obligations, liens, or anything else against it. It is free and clear such as a house without mortgage.

Unenforceable
Oral or written contract that is not enforceable by the judicial system.

Uniform Residential Landlord and Tenant Act
Legislation in 13 states providing protection to people who rent their residences. The act deals with landlord-tenant contractual relationships and obligations.

Unilateral contract
An agreement in which one individual or business agrees to do or not do something in return for the actual performance of another person or business.

Unilateral listing
Listing of property that is open, meaning there is no one real estate agent who has the sole right to sell the property.

Unimproved land
Raw land in its natural condition which has in no way been improved.

Unincorporated group
Association of people not treated as a corporation.

Unit
Segregated part of a structure such as an office in an office building or a residence in an apartment house.

Unit in place method
Approach to valuing property based on its replacement cost. The cost of each major element of the property per square foot is added together and multiplied by the total space to estimate what it costs to rebuild the structure.

Unities
Peculiarities necessary to form a valid joint tenancy. They are unity of time, title, interest, and possession.

Unity
Legal dictate that must exist for property to be owned as joint tenants.

Unity of interest
In joint tenancy, the joint tenants must acquire their interest by the same conveyance and the interest must be equal.

Unity of possession
Principle stating that the joint tenants must have equal rights to possession of the whole property.

Unity of time
Principle stating that all joint tenants must acquire their interest from the same deed or will.

Unjust enrichment
Person or business that benefits from the work of another person or business. The recipient has not compensated the other party for this gain. In law, the one being enriched at the sacrifice or detriment of the other party must provide restitution.

Unlawful detainer
Illegally keeping or holding on to someone else's property.

Unrealized gain
Increase in the value of property arising from holding it. The gain is realized only when the property is sold at which time it is taxable.

Unrecorded deed
The transfer of a property deed from one person to another without publicly recording it. The recording of a deed in a public office gives constructive notice of the act of the sale and helps prevent possible fraud.

Unsecured loan
loan that is not secured by a mortgage on a specific property. It is backed only by the borrower's credit rating. Unsecured loan are typically short term. The disadvantages of this kind of loan are that, because it is made for the short term and has no collateral, it carries a higher interest rate than a secured loan and payment in a lump sum is required.

Unsecured note
Credit note which a lender's only security is the borrower's personal financial situation and credit history.

Unsolicited listings
Listing of real estate property done without any effort an the part of the real estate broker.

Up-front fee
Received immediately when an investment is made or contract signed. For example, a real estate limited partnership may require that an investor pay a 3% sale fee at the time of initial investment.

Upgrades
Options offered to buyers in a new-home project that go beyond the standard carpeting, lighting, finish carpentry, and other amenities.

Upland
Land that is adjacent to water such as a stream.

Upset date
Provision in a written agreement allowing the prospective purchaser the right to cancel the contract if occupancy requirements are not satisfied as of a specific date.

Upset price
Judicially determined minimum selling price for auctioned property.

Upside potential
An approximation of the possible appreciation of value in real estate. One would consider several factors in evaluating the upside potential in the value of real estate, including location, amenities, and potential increase in rental income. The opposite of upside potential is downside risk, which is an approximation of the possible comparative decline in value of a property.

Upzoning
The process in which a property is zoned from a lower to a higher use.

Urban
Metropolitan locality such as a city. It is heavily populated with many residents and businesses.

Urban development Action Grant
It is intended to stimulate private investment in distressed cities and urban counties by providing federal "seed money' to attract private funds for such projects as industrial parks and revitalized waterfront areas. The Community Development Block Grants program transfers HUD funds directly to cities and states for urban renewal projects.

Urban economics
Branch of economics that applies the tools of economic reasoning to the analysis and solution of urban economic problems.

Urban property
Real property located in a metropolitan, heavily populated area.

Urban renewal
Older property is bought usually by a governmental agency to be modernized and improved. In many cases, the deteriorating property is torn down and a new structure built.

Urban space
Availability of land in an urban area.

Urban sprawl
Unexpected growth in an urban locality.

Use density
Percentage of land that may be used productively to the total square footage of the land.

Use tax
Levy charged to use something such as water supplied by the town.

Useful life
Usual operating service life of property for the purpose it was acquired. The useful life used for depreciation accounting does not necessarily coincide with the actual physical life or any commonly recognized economic life.

Usufructuary right
An individual's option to fairly utilize another's property.

Usury
An interest rate charged on a loan that exceeds the legal maximum interest rate within the state. It is illegal to do so. The maximum interest rate may depend on the type of lender and nature of the loan. Federal laws may also apply.

Usury laws
State laws limiting the interest rate that can be charged to individuals borrowing money in that state. These laws affect all lenders in a state regardless of what federal or state agency issued their charter. If there is a national economic emergency, the federal government may temporarily suspend state usury laws.

Utilities
Services provide to a parcel of land public utility companies, such as gas, water, electricity.

Utility

1. . An economic and highly subjective term describing satisfaction of a specified want. Utility and usefulness are not necessarily synonymous terms.
2. . The value of a certain outcome or payoff to someone; the pleasure or displeasure that person would derive from that outcome.

Utility easement
An easement granted to a public utility.

Utility room
Contains the appliances necessary for the maintenance of an establishment.