A historical summary of all the recorded transactions that affect the title to the property. An attorney or a title company will review an abstract of title to determine if there are any problems affecting the title to the property. All such problems must be cleared before the buyer can be issued a clear and insurable title.
A loan provision giving the lender the power to declare all sums owing lender immediately due and payable upon the violation of a specific loan provision, such as the sale of the property, or the failure to make loan payments on time.
Example : John sells his property to Mary who takes over John's mortgage payments. They do not notify the lender of this transaction. The lender finds out that the title to the property has transferred and calls the loan, since the loan documents state that the loan is due on the sale of the property. John is now liable to pay his lender in full.
The addition to land through natural forces like wind or water.
Example : deposit of soil carried by a river
Formal declaration before a public official (typically a Notary Public) that one has signed a document. Required before recording real estate legal documents, such as a deeds of trust.
A measure of land equal to 43,560 square feet.
Also known as a variable rate mortgage. The interest rate on these mortgages changes periodically.
This is the length of time for which the interest rate is fixed on an adjustable. Therefore if the adjustment period is six months, then the interest rate will remain fixed for six months, after which time it will adjust.
A written signed agreement between the seller and the purchaser in which the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms of the agreement. Also known as contract of purchase, purchase agreement, offer and acceptance, earnest money contract or sales agreement.
A gradual paying off of a debt by periodic installments which pay principal and interest.
A timetable for payment of a mortgage showing the amount of each payment applied to interest and principal and the remaining balance on the loan.
An amount that may be charged annually for having a line of credit available. Often charged regardless of whether or not you use the line. Also referred to as a "participation fee".
The effective rate of interest for a loan per year. This rate is typically higher than the note rate because it takes into account closing costs. This is one way to compare loan programs offered by different lenders. Caution : the APR is sometimes computed differently by different lenders and can be misleading.
An initial statement of personal and financial information which is required to approve your loan.
Fees that are paid upon application. An application fee may frequently include charges for property appraisal ($200-$400) and a credit report ($30-50).
An opinion or estimate of the value of a property at a given date.
An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc., to the property and surroundings.
An increase in the value of a house due to changes in market conditions or other causes.
The valuation placed upon a property by a public tax assessor for purposes of taxation.
A local tax levied against a property for a specific purpose such as street lights.
One who is authorized to act for another under a power of attorney which may be general or limited in scope.
Example : John wants to sell his house but has to be out of the country for 4 months. John gives authorization to Mary to sign the grant deed to sell the property to a buyer. Mary becomes John's Attorney In Fact.
Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.
Example : A balloon mortgage for $25,000 has interest only payments for 5 years at 12% ($250 per month), with the full principal of $25,000 due and payable after 5 years.
A lump sum payment of the unpaid balance of the loan
The financial inability to pay one's debts when due. The debtor surrenders his assets to the bankruptcy court. An individual typically files for Chapter 7 (all debts wiped out) or Chapter 13 (establishes a payment plan to pay off debts). A bankruptcy stays on an individual's credit report for 7 years.
The person who receives or is to receive the benefits resulting from certain acts.
Example : The lender is named as the beneficiary on a mortgage loan.
Example : John has a life insurance policy for $100,000 with Jane as his beneficiary. Should John die - Jane will receive the benefits i.e. $100,000.
Definition #1: A title insurance binder is the written commitment of a title insurance company to insure title to the property subject to the conditions and exclusions shown on the binder.
Definition #2: Preliminary agreement, normally secured with earnest money, between a buyer and a seller as an offer to purchase real estate.
A mortgage covering more than one piece of property.
Example : A developer subdivides a tract of land into lots and obtains a blanket mortgage on the whole tract.
One who applies for a loan secured by real estate and is responsible for repaying the loan (mortgage).
An interim loan typically used when the buyer is unable to sell his/her house but needs money to close the transaction on the house he/she is buying. The bridge loan is made on the buyers current residence to finance the buyers new residence. The loan is paid off when the buyers current residence is sold.
An agent hired by a buyer to locate a property for purchase. The broker represents the buyer and negotiates with the seller’s broker for the best possible deal for the buyer.
Market conditions that favor buyers i.e. there are more sellers than buyers in the market. As a result buyers have ample choice of properties and may negotiate lower prices. Buyers markets may be caused by an economic slump or overbuilding.
A set of regulations by which an organization conducts its business.
Example : A condominium association prepares bylaws that state the minimum number of owners to conduct a meeting to decide policies.
A clause in the mortgage or deed of trust giving the mortgagee or beneficiary the right to accelerate payment of he mortgage debt in full on a certain date or on the happening of specified conditions.
Profit earned from the sale of real estate. A seller may defer taxes on the capital gain of his/her primary residence by buying a higher priced residence within 2 years.
Consumer safeguard which limits the amount the interest rate on an adjustable rate mortgage may change per year and/or the life of the loan.
Consumer safeguard which limits the amount monthly payments on an adjustable rate mortgage may change.
The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, etc.).
Receiving money back when refinancing your present mortgage.
A requirement of some lenders that buyers have sufficient cash remaining after closing to make the first two mortgage payments.
A legal term meaning "let buyer beware". The buyer must examine the property and buy at his/her own risk.
Example : A property may be offered in an "as is" condition with no expressed or implied guarantee of quality or condition.
The maximum allowable interest rate over the life of the loan of an adjustable rate mortgage.
An appraisal performed by an approved appraiser, which establishes the property's current market value. This value establishes the ceiling on the maximum mortgage loan principal.
Document issued by a local governmental agency that states a property meets the local building standards for occupancy and is in compliance with public health and building codes. This document is normally required by a lender prior to closing the loan.
An opinion rendered by an attorney as to the status of title to a property, according to the public records. This certificate does not the same level of protection as title insurance.
The chronological order of conveyance of a parcel of land from the original owner to the present owner.
Example : An abstractor can research title to property going back to the date that the property was granted to the United States.
A marketable title, free of clouds and disputed interests. Most lenders require a clear title prior to closing.
Property pledged to secure a loan.
1. The act of transferring ownership of a property from seller to buyer in accordance with a sales contract.
2. The time when a closing takes place.
Expenses incurred by the buyer and seller in a real estate or mortgage transaction. There are two types of costs : recurring and non recurring.
Non-recurring costs are one time transactional costs which include:
A written document provided by a lender to agreeing to make a loan on specific terms to a borrower or builder.
A short term loan to pay for the construction of buildings or homes. These loans typically provide periodic disbursements to the builder as each stage of the building is completed. When construction is completed a permanent loan is used to pay off the construction loan.
Anything of value given to induce another to enter into a contract. Earnest money deposit on a sales contract is consideration.
Conditions which must be satisfied before the buyer can close the purchase of a property. Contingencies are generally outlined in the purchase contract between the buyer and seller.
Example : The buyer has 14 days to remove the property contingency under the sales contract. In this case the buyer has 14 days to inspect the property and request the seller to perform repairs. If the buyer is not satisfied with the condition of the property or if the buyer and the seller cannot agree on repairs, the buyer may back out of the contract with no penalty. After 14 days the buyer no longer has the right to back out with no penalty as a result of a problem with the condition of the property.
An agreement between competent parties to do or not do certain things for consideration.
Example : To have a valid contract for the sale of real estate there must be :
1. an offer
2. an acceptance
3. competent parties
4. consideration
5. legal purpose
6. written documentation
7. description of the property
8. signatures by principals or their attorney-in-fact
A provision in some Adjustable Rate Mortgages that permit converting the ARM to a fixed rate loan under specified conditions at a predetermined time. Sometimes available for an additional cost.
Some variable loans come with options to convert them to a fixed loan based on a pre-determined formula, during a given time period. For example the 1 yr tbill adjustable may be converted to a fixed during the first five years on the adjustment date. The means that you could convert during the 13th, 25th, 37th, 49th and 61th months of the loan.
The transfer of title of real from one party to another.
An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. A resident purchases stock in the corporation which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his unit for as long as he owns the stock.
A clause in a mortgage that obligates or restricts the borrower and which, if violated, can result in foreclosure.
The maximum amount that you can borrow under a home equity plan.
A report detailing a borrowers credit history including payment history on revolving accounts (eg. credit cards) and installment accounts (e.g.. car loan). A credit report also includes information found from public records including tax liens and judgments.
The total amount of credit card, auto, mortgage or other debt upon which you must pay.
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income or gross monthly income (conventional loans).
A written document by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the Country where the property is located, and should be delivered to the buyer at closing.
Failure to make payments on time. Can lead to foreclosure.
The final, unconditional and absolute transfer of a deed to the Grantee so that the Grantor may not revoke it. A Deed, signed but held by the Grantor, does not pass title.
Cash paid to the seller when a formal sales contract is signed.
Decline in the value of a house due to wear and tear, obsolescence, adverse changes in the neighborhood, or any other reason.
The difference between face value of an installment note and mortgage or deed of trust, and the present cash value.
The rights of a widow or child to part of a deceased husband's or fathers property.
The amount paid for the purchase of a property in addition to the mortgage, but not including any closing costs.
Example : John buys a house for $100,000 and obtains a loan for $80,000. His down payment is $20,000.
A clause inserted in a mortgage that allows the lender to call the loan due and payable at its option upon the transfer of the property.
A clause in the Deed of Trust or Mortgage that states that the entire loan is due upon the sale of the property.
A deposit made by a buyer of real estate towards the down payment to evidence good faith. This money is typically held by the real estate brokers or the escrow company.
The right to use the land of another for a specific purpose. Easements may be temporary or permanent.
Example : The utility company may need an easement to run electric lines.
Equity = Property Value -
Loans/Liens Against the property.
Equity is typically expressed as a percentage of the property value.
A loan based on the borrower's equity in his or her home.
Joint ownership of a property between the owner/occupant and the owner/investor, that results in tax advantages for both parties. Upon sale of the property the joint owners split profits based on the percentage they own.
Neutral third party that handles all funds in a real estate transaction. The buyer puts his deposit into escrow, the lender funds the loan into escrow. Escrow pays the real estate brokers commission, pays off any loans/liens against the property, pays real estate taxes and any other fees associated with the transaction and sends the balance of the money to the seller.
A person named in a will to carry out its provisions for the disposition of the estate.
A person in a position of trust or responsibility with specific duties to act in the best interest of a client. A real estate broker is a fiduciary for his/her clients.
Interest charged by a lender.
A mortgage that has priority as a lien over all other mortgages. In the case of a foreclosure the first mortgage will be satisfied before other mortgages..
The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage for the original borrower.
Improvements or personal property attached to the land so as to become a part of the real estate. Fixtures are transferred to the buyer upon sale of the property. To determine whether an item is a fixture include :
Example : John sells his house to Mary. John wants to take the chandelier because he states it is personal property. Mary wants the chandelier to stay because she believes it is a fixture.
The lender's postponement of foreclosure to give the borrower time to catch up on overdue payments.
A legal process by which the lender forces a sale of a property because the borrower has not met the terms of the mortgage.
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A property that has no liens.
For sale by owner. A property for sale that is not listed with a real estate broker.
The fully indexed rate = value of the index + margin.
A period of time during which a loan payment may be paid after its due date but not incur a late penalty. Such late payments may be reported on your credit report.
That party in the deed who is the buyer or recipient.
That party who is the seller or the giver.
For qualifying purposes, the income of the borrower before taxes or expenses are deducted.
A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.
Insurance on a property against fire and other risks. A homeowners policy may have additional coverage for theft, liability, etc that a fire insurance policy may not cover.
A loan providing you with the ability to borrow funds at the time and in the amount you choose, up to a maximum credit limit for which you have qualified. Repayment is secured by the equity in your home. Simple interest (interest-only payments on the outstanding balance) is usually tax-deductible. Often used for home improvements, major purchases or expenses, and debt consolidation.
A fixed or adjustable rate loan obtained for a variety of purposes, secured by the equity in your home. Interest paid is usually tax -deductible. Often used for home improvement or freeing of equity for investment in other real estate or investment. Recommended by many to replace or substitute for consumer loans whose interest is not tax-deductible, such as auto or boat loans, credit card debt, medical debt, and education loans.
To pledge a property as security without having to give up possession of it.
Additions to raw land such as buildings, streets, etc that add value to the land.
That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves.
A method used by an appraiser to estimate the value of a property based on the income it generates.
Real estate that generates rental income. Examples : apartment buildings, office buildings and shopping centers.
A statistic that indicates some current economic of financial condition. Indexes are used to make adjustments in variable rate loans.
The right to go in and out over a piece of property but not the right to park on it..
A mortgage insured against loss to the mortgagee in the event of default and a failure of the mortgaged property to satisfy the balance owing plus costs of foreclosure.
The periodic charge, expressed as a percentage, for use of credit.
A provision of an ARM limiting how much interest rates my increase in a given adjustment period..
A money source for a lender.
A construction loan made during completion of a building or a project.
A permanent loan usually replaces this loan after completion
A creditor can demand full repayment from any and all of those who have borrowed. Each borrower is liable for the full debt, not just the prorated share.
An agreement between owners defining their rights, ownership, monetary obligations and responsibilities. This could be between and investor and an occupant or the occupants. If an investor is involved, the investor does not take depreciation deductions and none of the occupant's payment is deemed rent for tax purposes.
Ownership of a property by two or more people, each of whom has an undivided interest with the right of survivorship.
Example : John and Mary own a house in joint tenancy. Each owns half of the entire (undivided) property. If John dies, Mary will own the entire property and vice versa.
The decision of a court of law stating that one individual is indebted to another and fixing the amount of indebtedness. Judgments, when recorded, become a lien on real property owned by the defendant.
The claim on the property of a debtor resulting from a judgment.
A real estate installment selling arrangement whereby the buyer may use and occupy land, but no deed is given by seller until the sales price has been paid.
The penalty a borrower must pay when a payment is made after the due date.
An alternative financing option that allows low- and moderate-income home buyers to lease a home from a nonprofit organization with an option to buy, and with each month's rent payments consisting of "PITI" payments on the first mortgage, plus an extra amount that is earmarked for a savings account in which money for a down payment accumulates.
A lease under which the lessee has the right to purchase the property. The option may run for a portion or for the full length of the lease.
Tenant's right of possession for a specific period of time under a lease agreement.
Legally acceptable identification of real estate by one of the following:
A person to whom property is rented under a lease. (Tenant)
A person who rents property to another under a lease. (Landlord)
A claim against the property for the payment of a debt, judgment, mortgage or taxes.
Example : Unpaid contractors may file a mechanic's lien.
A provision of an ARM that limits the total increase in interest rates over the life of the loan.
Latin for "lawsuit pending." Recorded notice that litigation is pending on a property. Most lenders will require the clearance of the Lis Pendens prior to closing.
A document required by a lender prior to loan approval. The application includes detailed information about the borrower and the property.
A commitment you obtain from a lender assuring you a particular interest rate or feature for a definite time period. Provides protection should interest rates rise between the time you apply for a loan, acquire loan approval, and, subsequently, close the loan and receive the funds you have borrowed.
A fixed number the lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate.
The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.
The termination or due date of a note, time, draft, acceptance, bill of exchange, or bond. The date a time instrument or indebtedness becomes due and payable.
The right of an unpaid contractor or subcontractor to file a lien against property to recover the amount due to him/her.
The minimum amount that you must pay, usually monthly, on a home equity loan or line of credit. In some plans, the minimum payment may be "interest only," (simple interest). In other plans, the minimum payment may include principal and interest (amortized).
A written instrument that creates a lien upon real estate as security for the payment of a specified debt.
Like mortgage bankers, mortgage brokers take loan applications and process the necessary paperwork. Unlike a mortgage banker, brokers do not fund the loan with their own money, but work on behalf of several investors, such as mortgage bankers, S and L's, banks, or investment bankers.
The lender.
Term life insurance designed to pay off the mortgage balance if the insured person dies.
A loan which utilizes real estate as security or collateral to provide for repayment should you default on the terms of your loan. The mortgage or Deed of Trust is your agreement to pledge your home or other real estate as security.
A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.
The borrower.
An increase in principal balance which occurs when the monthly payments do not cover all of the interest cost. The interest cost which is not covered by the payment is added to the unpaid principal balance.
Loan in which the interest rate is adjusted periodically.
The borrowers gross income minus federal income tax.
The value of all assets, including cash, less total liabilities. It is often used as an underwriting guideline to indicate an individual's creditworthiness and financial strength.
A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. Note: The signed obligation to pay a debt, as a mortgage note.
Loans that do not comply with Fannie Mae or Freddie Mac guidelines.
A written instrument that acknowledges a debt and promises to pay.
One authorized to take acknowledgments of certain types of documents, such as deeds, contracts, and mortgages.
A letter sent to the defaulting party as a reminder of the default.
An expression of willingness to purchase a property at a specified price.
One who receives the offer. When the buyer makes an offer to the seller the seller is an offeree.
One who makes the offer. When the buyer makes an offer to the seller the buyer is an offeror.
A method of showing a home for sale to prospective buyers where the home is left open for inspection by those who may be interested in making a purchase.
A mortgage permitting the mortgagor to borrow additional money under the same mortgage, with certain conditions.
One who receives or purchases an option.
One who gives or sells an option.
A verbal agreement. Verbal agreements for the sale or use of real estate are normally unenforceable.
A purchase in which the seller provides all or part of the financing.
The individual named on a deed that has been recorded at the county recorders office.
A tenant of a residence who also owns the property.
Mortgage covering both real and personal property.
A mortgage, deed of trust or land contract provided in lieu of cash.
A provision in a mortgage that allows some of the property secured to be freed from serving as collateral.
A mortgage that allows the lender to share in part of the income or resale proceeds.
A mortgage for a long period of time. Often referred to as the mortgage that pays off a construction loan on a completed property.
A document issued by a government regulatory authority that allows the bearer to take some specific action.
An occupancy permit allows the owner of a building to occupy or rent the building.
A plan or map of a specific land area.
A public record containing maps of land, showing the division of the land into streets and lots and indicating the measurements of the individual parcels.
Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.
A loan that is held as an investment by a bank or savings and loan, and NOT sold on the secondary market to investors.
A written document authorizing a person to act on the behalf of another person. That person does not have to be an attorney.
The process of determining how much money a prospective home buyer will be eligible to borrow before a loan is applied for.
Necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.
Prepaid interest is the interest charged to borrowers at closing to pay for the cost of borrowing for a balance of the month. For example, if a loan closes on the 19th of the month and the first payment is due on the 1st of the following month, the lender will charge 12 days of prepaid interest.
Full or partial payment of the principal before the due date. This might occur if the borrower makes extra payments, sells the property, or refinances the existing loan.
Fees paid by the borrower if they pay the loan before its due date.
Companies that originate and service mortgage loans (banks, savings & loans, credit union, mortgage bankers, institutional lenders) make up the primary mortgage market.
The lowest commercial interest rate charge by a bank on short term loans to their most credit worthy customers. View current prime rate.
Amount of debt, not including interest. The face value of a note, mortgage, etc.
Court process to establish the validity of the will of a deceased person.
A government levy based on the market value of the property.
To divide in proportionate shares, such as taxes, insurance, rent, or other items which the buyer and seller share as of the time of closing, or other agreed upon time.
An auction of property with notice to the general public.
A mortgage used to finance the purchase of a property.
Comparisons of a borrower's debts and gross monthly income.
A court action to settle a title dispute.
A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land. A quitclaim deed is often given to clear the title when the grantor's interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has.
Land and anything permanently affixed to the land, and those things attached to the building.
A person licensed to negotiate and transact the sale of real estate on behalf of either the borrower or seller, or in some cases both partied.
An individual who often owns a real estate company or is in a management position, and who is licensed to represent a buyer or a seller in a real estate transaction.
A trust that uses investors money to purchase and manage real estate. Investors realize some of the tax advantages in owning real estate.
A real estate professional who is a member of the National Association of Realtors.
When a mortgage is paid off in full, the lender conveys the property back to the owner.
The act of entering into a book of public records instruments affecting title to the real property. A lender requires that a deed of trust or a mortgage be recorded to evidence the debt against the property.
Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
The cancellation of a contract. When refinancing a mortgage on a principal residence the law gives the homeowner a period to cancel the contract
The right of the holder of a note secured by a mortgage or deed of trust to claim money from the borrower in default in addition to the property pledged as a collateral.
Repaying an existing loan from the proceeds of a new loan on the same property.
A charge for a title insurance policy if previous policy on the same property was issued within a specified period. Reissue is less than the original charge.
Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and binding only between the original seller and buyer.
Form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a "release of mortgage."
A mortgage used by the elderly that provides income as long as they live in exchange. Payments made cause the loan principal to increase.
The right of a surviving joint tenant to acquire the interest of a deceased joint owner.
A loan that is amortized over a long period of time (e.g. 30 yrs) but the interest rate is fixed for a short period (e.g. 5 yrs). The loan may be extended or rolled over, at the end of the shorter term, based on the terms of the loan.
Depository institutions that specialize in originating, servicing and holding mortgage loans primarily on owner occupied residential property.
The market where banks, savings & loans and mortgage bankers can sell mortgages to investors.
Also known as a vacation home. This home is different from an investment property as it is not rented, but used occasionally by the owners.
A subordinated lien, created by a mortgage loan, over the amount of a first mortgage. Second mortgages generally carry a higher rate than a first mortgage since they represent a higher risk for an investor.
Property that serves as collateral for a debt.
An interest that a lender takes in the borrower's property to assure repayment of a debt..
The act of billing, collecting payment, filing reports, managing impound accounts and handling defaults on a mortgage.
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Map made by a licensed surveyor who measures land and charts its boundaries, improvements and relationship to the property surrounding it.
A commitment to provide permanent financing upon completion of construction. The take out loan normally pays off the construction loan.
Lien for nonpayment of taxes.
Public sale of a property at an auction by a government authority as a result of non-payment of taxes.
A low initial interest rate on a mortgage.
Tenancy established when a person who had been a lawful tenant wrongfully remains in possession of property after expiration of a lease.
A license to use or occupy land and buildings at the will of the owner. The tenant may decide to leave the property at any time or must leave at the landlords will.
A form of ownership by husband and wife whereby each owns the entire property. In event of the death of one, the survivor owns the property without probate.
Created by a lease for a fixed term, such as 6 months, 2 years, etc.
Ownership of a property by 2 or more persons, each of whom has an undivided interest, without the right of survivorship. Upon the death of one of the owners, the ownership share of the deceased is inherited by the beneficiary designated on the owner's will.
Ownership of property by one person.
The period of time between the commencement date and termination date of a note, mortgage, legal document, or other contract.
Legal phrase in a contract requiring all references to specific dates and times noted in the contract be interpreted exactly.
A form of property ownership under which a property is held by a number of people, each with the right of possession for a specified time interval. Time sharing is used mostly for vacation properties.
Evidence that the owner of the property is in lawful possession. Evidence of ownership.
A company that specializes in title searches and insuring title to property.
An insurance policy which protects the insured against loss arising from defects in title. Title insurance policies are typically obtained for the buyer and the lender.
An examination of the public records to determine the ownership and encumbrances affecting the property.
Residence which normally has 2 or more floors and is attached to other similar units.
A parcel of land, generally held for subdividing.
A fee which may be charged each time you draw on a home equity credit line.
Tax paid to the government entity upon sale of a property.
One in which the tenant pays all operating expense of the property. The landlord receives the net rent.
A separate bank account maintained by a broker or escrow company to handle all money collected for clients. A broker may not commingle these funds with his/her own funds.
A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law.
The decision whether to make a loan to a potential home buyer based on credit, income, employment history, assets, etc.
An ownership right to use and possess a property that is shared among co-owners, with no one co-owner having exclusive rights to any portion of the property.
Real estate with free and clear title.
Land that has received no development.
A document that transfers title from the grantor to the grantee without recording (i.e. providing public notice).
Charging a rate of interest greater than that permitted by law.
An interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.
A document signed by the borrower's employer verifying his/her starting date, job title, salary and probability of continued employment.
The voluntary renunciation, abandonment, or surrender of some claim, right, or privilege.
A deed conveying the title to a property with a warranty of a clear marketable title.
Ratio of income from an investment to the total cost of the investment over the period of the investment.
A form of housing where individual units are on separate lots, but are attached to one another. Example : Townhouse.
Areas may be zoned to specify use of a property i.e. residential, commercial, agricultural. These zoning ordinances are normally enforced by the city or the county.