Real Estate Glossary

Letter U

UCCSee: Uniform Commercial Code.

Ultra ViresOriginally acts of a corporation beyond or against its charter. Now includes illegal acts. An officer of a corporation may be personally liable for an ultra vires act of the corporation.

Umbrella Liability PolicyProvides broad coveragefor an insured's liability over and above liabilitycovered by underlying contracts.

Unavoidable CauseA cause which reasonable prudence and care could not have prevented, such as death, illness, papers lost in the mail, etc.

Unbalanced ImprovementAn appraisal term describing an improvement not in conformity with the surrounding area, and so, not suited to its location. May be an underimprovement or overimprovement.

Unconscionable ContractSo unfair that a court will not allow it. So one sided that no one in his right mind would agree on one side, and no fair and honest person would agree on the other side.

UnconstitutionalViolating a provision of the U.S.Constitution or a state constitution.

UndercoatingA "prime" or first coat before the finish or "top coat" of paint or other finish.

Underfloor Wiring SystemA system of electrical wiring built into the floor of a building through conduits, ducts, and raceways.

Underground Storage TanksHolding tanks that can used to store chemicals, fuels, toxic waste, and other substances. Regulated by the EPA.

UnderimprovementAn improvement which is deficient in size or quality in relation to the site on which it is built.

Under-LeaseA sub-lease for either less than the remaining term on the master lease or less than the total property covered by the master lease.

Underlying FinancingA mortgage, trust deed, or land contract prior to (underlying) another mortgage, trust deed, or land contract which is all inclusive or wraps around it.

UnderpassA passageway under a road, railway, or other right of way. May be for pedestrian traffic, automobiles, or any other method of transportation.

Underpinning(1) Temporary load-bearing beams used during construction. (2) Permanent load-bearing supports, added to an existing structure.

UnderwriterOne who insures another. A small title company may buy insurance from a larger one (the underwriter) for all or part of the liability of its policies. A larger title company may buy part of the insurance from another company on high liability policies.

UnderwritingThe process of analyzing both the worthiness of a potential borrower and the property involved to enable a lender to decide whether to make a loan, the amount to lend and how much to charge in interest and fees.

Undeveloped LandSee: Raw Land.

Undisclosed Dual AgencyOccurs when both principal parties in the same transaction are represented by a fiduciary without full disclosure to and approval from all parties in the transaction.

Undisclosed PrincipalA principal whose identity is not revealed by an agent.

Undivided InterestA partial interest by two or more people in the same property, whether the interest of each is equal or unequal.

Undivided LoyaltyThis is given up by the buyer and seller when they consent to dual agency.

Undue InfluenceInfluence used to destroy the will of another so that his decision is not his free act.

Undulating LandRolling land composed of compound slopes (two or more slopes of different grades).

Unearned IncrementAn increase in the value of a property caused by increased population, development, or demand for which the owner is not responsible.

Unearned PremiumThat unused portion of an insurance premium which is returned to the policy holder upon cancellation.

UnencumberedFree of liens and other encumbrances. Free and clear.

Unencumbered PropertyProperty whose seller has a clear title free of mortgages or other liens.

Unenforceable ContractA contract which a court will not enforce, even though it may have all the requirements of a valid contract. Example: A contract barred by a statute of limitations. It may be valid except that the plaintiff took too long to bring the action.

Unfinished Building SpaceNot completed. A general term not specifying how much has not been completed. May need paint, floor covering, or other minor completions. May need plumbing, electricity, floors, or other major completions.

Uniform Commercial CodeA codification of commercial law, adopted in most states, that attempts to make uniform laws relating to commercial transactions, including chattel mortgages and bulk transfers. Security interests in chattels are created by an instrument known as a security agreement. Article 6 of the code regulates bulk transfers, that is, the sale of a business as a whole, including all fixtures, chattels, and merchandise.

Uniform Commercial Code (UCC)A set of laws written to make it easier to do business between states by making the law the same for each state that adopted the code. The UCC covers many aspects of business such as transactions involving personal property (Article 2) and Negotiable Instruments (Article 3).

UniformityIn taxation, equality in the burden of taxation, implying equality in the method of assessment as well as the rate of taxation.

Uniform LawsLaws approved by the National Conference of Commissioners on Uniform State Laws. Many have been adopted in one or more states. Among these are the Uniform Commercial Code, Uniform Negotiable Instruments Act, Uniform Partnership Act, Uniform Residential Landlord and Tenant Act, etc.

Uniform Residential Appraisal ReportThe standard form used to appraise one to four family residential property.

Uniform Residential Appraisal Report (URAR)Standard Fannie Mae Form 1004 used by appraisers.

Uniform Residential Loan Application Report (URLA)Standard Fannie Mae Form 1003 used by loan originators.

Uniform Standards Of Professional Appraisal Practice (USPAP)Professional appraisalstandards developed by The AppraisalFoundation, and now recognized throughout theUnited States as accepted standards of appraisalpractice.

Unilateral ContractA one-sided contract by which one party makes a promise to induce a second party to do something. The second party is not legally bound to perform; if the second party does comply, however, the first party is obligated to keep the promise.

Unilateral MistakeA mistake made by one of the parties to the contract. Usually enforceable unless the other party knew or should have known of it (an obvious mistake).

Unimproved LandMost commonly land without buildings; it can also mean land in its natural state.

Unincorporated AreaAn area of a county which has not formed a municipal corporation (become a city).

Uninsurable TitleTitle to real estate that a title insurance company refuses to insure. The defect goes to the fee (ownership) or a claim or encumbrance that could lead to the loss of fee title in the party seeking insurance.

UniquenessCharacteristic of real property that says each piece of land, each building, and each house is a different piece of real estate. Alsocalled: Non-homogeneity.

Unit(1) One of any group. (2) An apartment, condominium, house in a subdivision, etc.

Unit CostIn relation to real estate, a cost per square foot. Also called unit price.

Unit Cost In Place MethodAn appraisal method. The cost of construction by estimating the cost of each component part in place, including labor cost and overhead.

United States Geological SurveyThe section of the department of the interior which maps the country and identifies its geologic features.

UnitiesThe peculiarities necessary to form a valid joint tenancy. Unity of time, title, interest, and possession.

Unities Of Interest, Possession, Time, And TitleFourunities required to form a joint tenancy wherebyall owners share equally and simultaneously inthese conditions.

Unit Of ComparisonUsed in appraisal to make the most appropriate use of comparables. Example: A house may best be compared by price per square foot, land by price per front foot, a hospital by price per bed, etc.

Unit Owners AssociationThe organization that manages the operation of a condominium, imposing assessments and arranging forthe maintenance of the common areas. The association's members are the unit owners and they usually elect a board of directors. Alsocalled: a Condominium Association.

Unit PriceSee: Unit Cost.

Unity Of InterestIn joint tenancy, the joint tenants must acquire their interest by the same conveyance and said interest must be equal.

Unity Of OwnershipThe four unities traditionally needed to create a joint tenancy – unity of title, time, interest, and possession.

Unity Of PossessionIn joint tenancy, the joint tenants must have equal rights to possession.

Unity Of TimeTo have a valid joint tenancy, the joint tenants must acquire title at the same time.

Unity Of TitleIn joint tenancy, the holding by the joint tenants under the same document.

Universal AgentAn agent authorized to do everything that can be lawfully delegated to a representative.

Unjust EnrichmentAn unfairly obtained benefit by one party at the expense of another.

Unlawful DetainerThe unjustifiable possession of property by one whose original entry was lawful but whose right to possession has terminated; usually a tenant.

Unlawful Detainer ActionA summary legal action to regain possession of real property; especially, a lawsuit filed by a landlord to evict a defaulting tenant and regain possession of the property.Also called: a Forcible Detainer Action.

Unlimited MortgageSee: Open End Mortgage.

Unmarketable TitleNot saleable. A title which has serious defects.

Unnecessary HardshipReason for a zoning use variance if permitted uses of the property are not economically feasible and the property cannot be used without the variance.

Unrecorded InstrumentA deed, mortgage, etc., which is not recorded in the county recorder's office and, therefore, not protected under recording statutes. Valid between the parties involved, but not against innocent third parties.

UnsecuredGenerally referring to an obligation which has only a promise as security. A note would be unsecured, a note and mortgage would be secured.

UntenantableNot fit for occupancy (used to describe rental property).

UplandsLand bordering bodies of water but above the high water mark.

Upset PriceA legal term signifying the minimum price at which a property can be sold at auction, usually foreclosure.

URARSee: Uniform Residential Appraisal Report.

UrbanPertaining to a city or town.

Urban RenewalThe acquisition of run-down city areas for purposes of redevelopment.

Urea-FormaldehydeA clear chemical that is used in manufacturing including building materials suchas particle board, plywood paneling, carpeting,and insulation.

Urea-Formaldehyde Foam Insulation (UFFI)A type of housing insulation used in the 1970's. It was banned because of the formaldehyde fumesit released that caused a myriad of symptoms among homeowners who had it.

Usable Square FootageThe amount of actual space within the perimeter of the tenant's premises,including walls, columns, and airshafts; the floor area where tenants can actually lay carpet and place furniture.

Use DensityThe relationship of the number of buildings of a particular use to a given land area.

Useful LifeIn real estate investment, the number of years a property will be useful to the investors.

Use ValueSee: Value in Use.

Use VarianceAllows landowners to use their land in a way that is not permitted under current zoning laws. This type of variance is granted only in cases of unnecessary hardship. To prove unnecessary hardship, owners must establish that the requested variance meets four statutorily prescribed conditions.

UsufructThe right to use and profit from property vested in another, so long as the user (usufructuary) does not change the substance of the property. Would include an easement but not a profit a prendre.

UsufructuaryOne who has a usufruct.

UsuryThe practice of charging more than the rate of interest allowed by law.

UtilitiesPublic or private suppliers of water, electricity, gas, telephone and sewers that serve a property or the public or private companies that supply them.

UtilityPractical usefulness, as opposed to frivolity.

Utility RoomA room used for laundry, heating equipment, telephone wiring, or janitorial purposes.