Texas Real Estate License Glossary

WAIVER – To voluntarily give up or surrender a right.

WAREHOUSE – A building used to store merchandise and other materials or equipment.

WAREHOUSING – A term used in financing to describe the process which loan correspondents employ, assembling into one package a number of mortgage loans which the correspondent has originated and selling them in the secondary mortgage market.

WARRANTY – A guaranty by the seller, covering the title as well as the physical condition of the property.

WARRANTY DEED – A deed in which the grantor fully warrants good clear title to the premises. Also called a general warranty deed.

WASTE – An improper use or abuse of property by one in possession of land, who holds less than the fee ownership, such as a tenant, life tenant, mortgagor, or vendee.

WEAR AND TEAR – The gradual physical deterioration of property, resulting from use, passage of time and weather. Only property subject to wear and tear is depreciable.

WRAP-AROUND MORTGAGE – A method of refinancing in which the new mortgage is placed in a secondary or subordinate position. In essence, it is an additional mortgage in which another lender refinances a borrower by lending an amount over the existing first mortgage amount, without cashing out or distributing the existence of the first mortgage.

YEAR-TO-YEAR TENANCY – A periodic tenancy in which the rent is reserved from year to year.

YIELD – The return on an investment or the amount of profit, stated as a percentage of the amount invested.

ZONING – The regulation of structures and uses of property within designated districts or zones. Zoning regulates and affects such things as use of the land, types of structure permitted, building heights, setbacks, and density (the ratio of land area to improvement area).