-
Acre - a measure of
land equal to 43560 square feet or 4840 square yards
-
Adjustable Rate Mortgage
(ARM) - a loan characterized by a fluctuating interest
rate, usually one tied to a bank or savings and loan association
cost-of-funds index
-
Annual Percentage Rate
(APR) - The relationship of the total finance charges
associated with a loan. This must be disclosed to the borrowers
by lenders in the Truth-in-Lending Act.
-
Appraisal - An estimate
of the quantity, quality or value of something. The process
through which conclusions of property value are obtained;
also refers to the report that sets forth the process of estimation
and conclusion of value.
-
Attorney Opinion of Title
- An abstract of title that an attorney has examined and has
certified to be, in his own opinion, an accurate statement
of the facts concerning the property ownership.
-
Balloon Payment - A
final payment of a mortgage loan that is considerably larger
than the required periodic payments because the loan amount
was not fully amortized.
-
Beneficiary - (1) the
person for whom a trust operates or in whose behalf the income
from a trust estate is drawn. (2) A lender in a deed of trust
loan transaction.
-
Broker - One who acts
as an intermediary on behalf of others for a fee or commission.
-
Building Permit -
written governmental permission for the construction, alteration
or demolition of an improvement, showing compliance with building
codes and zoning ordinances.
-
Closing Statement (HUD1)
- A detailed cash accounting of a real estate transaction
showing all cash received, all charges and credits made and
all cash paid out in the transaction.
-
Commission - Payment
of a broker for services rendered, such as in the sale or
purchase of real property; usually a percentage of the selling
price of the property.
-
Consideration - (1)
that received by the grantor in exchange for his or her deed.
(2) something of value that induces a person to enter into
a contract.
-
Construction Loan
- A short-term loan usually made during the construction phase
of a building project.
-
Conventional Loan - A loan that requires
no insurance or guarantee.
-
Deed - A written instrument that,
when executed and delivered, conveys title to or an interest
in real estate
-
Deed of Trust - An
instrument used to create a mortgage lien by which the borrower
conveys title to a trustee, who holds it as security for the
benefit of the note holder.
-
Easement - a right
to use the land of another for a specific purpose, such as
for a right-of -way or utilities; an incorporeal interest
in land
-
Escrow - The closing
of transaction through a third party called an escrow agent,
who receives funds on behalf of the broker's principal or
some other person until the consummation or termination of
transaction.
-
FHA loan - A loan
insured by the Federal Housing Administration and made by
an approved lender in accordance with the FHA's regulations.
-
Grantee - A person
who receives a conveyance of real property from a grantor.
-
Grantor - The person
transferring title to or an interest in real property to a
grantee
-
Home Equity Loan -
A loan under which a property owner uses his or her residence
as collateral and can then draw funds up to a prearranged
amount against the property
-
Homeowners Insurance Policy
- A standardized package insurance policy that covers a residential
real estate owner against financial loss from fire, theft,
public liability and other common risks.
-
Joint Tenancy - Ownership
of real estate between two or more parties who have been named
in one conveyance as joint tenants. Upon the death of a joint
tenant, the decedent's interest passes to the surviving joint
tenant or tenants by the right of survivorship.
-
Judgement - the formal
decision of a court upon the respective rights and claims
of the parties to an action or suit. After a judgement has
been entered and recorded with the county recorder, it usually
becomes a general lien on the property of the defendant.
-
Lease - A written
contract between a landlord and a tenant that transfers the
right to exclusive possession and use of the landlord real
property to the lessee for a specified period of time and
for a stated consideration. By state law leases for longer
than a certain period of time must be in writing to be enforceable.
-
Legal Description
- A description of a specific parcel of real estate complete
enough for an independent surveyor to locate it and identify
it.
-
Levy - To assess;
to seize or collect. To levy a tax is to assess a property
and set the rate of taxation. To levy an execution is to officially
seize the property of a person in order to satisfy an obligation.
-
Lien - a right given
by law to certain creditors to have their debts paid out of
the property of a defaulting debtor, usually by means of a
court sale.
-
Listing Broker - The
broker in a multiple-listing situation from whose office a
listing agreement is initiated, as opposed to the cooperating
broker, from whose office negotiations leading up to a sale
are initiated. The listing broker and the cooperating broker
may be the same person.
-
Loan Origination Fee
- A fee charged to the borrower by the lender for making a
mortgage loan. The fee is usually computed as a percentage
of the loan amount.
-
Mortgage - A conditional
transfer or pledge of real estate as security for the payment
of a debt. Also, document creating a mortgage lien.
-
Mortgage Banker -
Mortgage loan companies that originate, service and sell loans
to investors.
-
Mortgagor - A borrower
in a mortgage loan transaction.
-
Owners Affidavit
- A written statement made by a seller or grantor in which
the seller (1) identifies himself as, (2) certifies that
since the examination of title that no defects have occurred
in the title and (3) certifies that he or she is in possession
of the property.
-
Payoff Statement -
The document signed by a lender indicating the amount required
to pay a loan balance in full and satisfy the debt; used in
the settlement process to protect both the sellers and the
buyers interest.
-
Planned Unit Development
(PUD) - A planned combination of diverse land uses, such
as housing, recreation and shopping, in one contained development
and subdivision.
-
Power of Attorney
- A written instrument authorizing a person, the attorney-in-fact,
to act as agent for another person to the extent indicated
in the instrument.
-
Prepaid Items - On
a closing statement, items that have been paid in advance
by the seller, such as insurance premiums and some real estate
taxes, for which he or she must be reimbursed by the buyer,
or items that buyer must pay in advance of when they are due.
-
Principal - The original
amount of the total due and payable at a certain date.
-
Private Mortgage Insurance
(PMI) - Insurance provided by private carrier that protects
a lender against a loss in the event of a foreclosure and
deficiency.
-
Promissory Note -
a financing instrument that states the terms of the underlying
obligation, is signed by its maker and is negotiable.
-
Recording - The act
of entering or recording documents affecting or conveying
interests in real estate in the County recorder's office.
Until it is recorded, a deed or mortgage ordinarily is not
effective against subsequent purchasers or mortgagees.
-
Release Deed - A document
that transfers all rights given a trustee under a deed of
trust loan back to the grantor after the loan has been fully
paid.
-
Satisfaction of Mortgage - A document
acknowledging the payment of a mortgage debt.
-
Subdivision - A tract
of land divided by the owner into building lots and streets
according to a recorded subdivision plat which must comply
with local regulations
-
Subordination Agreement
- A written agreement between holders of liens on a property
that changes the priority or mortgage, judgement and other
liens under certain circumstances
-
Survey - The process
by which boundaries are measured and land areas are determined;
the on-site measurement of lot lines, dimensions and position
of a house on a lot, including the determination of any existing
encroachments or easements.
-
Tenancy by the Entirety
- The joint ownership, recognized in some states, of property
acquired by husband and wife during marriage. Upon the death
of one spouse the survivor becomes the owner of the property.
-
Tenancy in Common
- A form of co-ownership by which each owner holds an undivided
interest in real property as if he or she were sole owner.
Each individual owner has the right to partition. Unlike joint
tenants, tenants in common have right of inheritance.
-
Title - the right
to or ownership of land
-
Title Abstract - The
condensed history of a title to a particular parcel of real
estate, consisting of a summary of the original grant and
all subsequent conveyances and encumbrances affecting the
property and a certification by the abstractor that the history
is complete and accurate.
-
Title Insurance -
a policy insuring the owner or mortgagee against loss by reason
of defects in the title to a parcel of real estate, other
than encumbrances, defects and matters specifically excluded
by the policy.
-
Title Search - The
examination of public records relating to real estate to determine
the current state of the ownership.
-
VA Loan - A mortgage
loan on approved property made to a qualified veteran by an
authorized lender and guaranteed by the Department of Veteran
Affairs in order to limit the lender's possible loss.
|
